Alternative Data Market: Key Insights for Investors and Future Trends to 2033

Market Overview:

According to IMARC Group's latest research publication, "Alternative Data Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global alternative data market size reached USD 8,889.1 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,81,103.5 Million by 2033, exhibiting a growth rate (CAGR) of 35.18% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

How AI is Reshaping the Future of Alternative Data Market

• AI and machine learning enable over 70% of alternative data providers to process complex datasets, delivering faster and more accurate insights for investment strategies.
• Advanced analytics tools leverage AI to analyze millions of social media posts in real-time, gauging public sentiment about products, brands, and market trends with unprecedented precision.
• Financial institutions use AI-powered algorithms to enhance fraud detection accuracy by 20-30%, analyzing patterns in credit card transactions and social media activities for comprehensive risk profiling.
• Machine learning models improve commodity price forecast accuracy by 20-30% compared to conventional analysis, helping hedge funds identify hidden patterns in alternative datasets.
• AI-driven edge computing solutions process IoT data closer to its source, enabling instantaneous real-time analytics for faster decision-making across transportation, logistics, and retail industries.

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Key Trends in the Alternative Data Market

• Financial Institutions Leading Adoption: The BFSI sector dominates with 17.5% market share, leveraging alternative data for credit risk profiling, fraud detection, and personalized financial products. Hedge funds and asset managers increasingly rely on social media sentiment, web traffic, and satellite imagery to outperform traditional investment strategies.
• Credit Card Data Driving Real-Time Insights: Credit and debit card transactions lead the market with 17.9% share, offering high-frequency data for analyzing consumer spending patterns and brand loyalty. Financial institutions use transactional data to develop sophisticated risk assessment models and guide investment decisions based on retail performance indicators.
• ESG Investing Fueling Data Demand: Growing focus on Environmental, Social, and Governance factors drives companies to adopt alternative data for sustainability analysis. Europe's sustainable ETFs attracted USD 35 billion in inflows in 2022, while regulatory frameworks like SFDR mandate non-financial data for assessing corporate governance practices.
• Mobile and Geolocation Analytics Expanding: Retailers and advertisers increasingly use mobile app usage and sensor data to personalize offerings and improve customer engagement. Foot traffic analysis through geolocation data provides unique insights not available through conventional data streams, enabling businesses to forecast market trends accurately.
• Social Media and Sentiment Analysis Rising: Approximately 78% of hedge funds integrated alternative data into investment strategies in 2022, with social media monitoring becoming critical for gauging consumer sentiment and emerging trends across industries.

Growth Factors in the Alternative Data Market

• Data Proliferation from Digital Transformation: IoT devices and digital platforms generate unprecedented data volumes, with businesses leveraging insights from online interactions, smart device telemetry, and operational sensors to enhance efficiency and gain real-time visibility into consumer behaviors.
• Competitive Advantage Through Unique Insights: Alternative data provides high-frequency insights unavailable through traditional sources, enabling financial institutions to develop strategies that outpace competitors. Hedge funds using machine learning report 20-30% improved forecast accuracy compared to conventional analysis.
• Technological Advancements in Analytics: Over 70% of alternative data providers integrate AI and machine learning for processing, while advanced streaming platforms enable real-time data analysis in e-commerce and stock trading sectors, broadening the scope of actionable insights.
• Evolving Regulatory Frameworks: Clear regulatory guidance from frameworks like GDPR, CCPA, and PIPL increases legitimacy and trust in alternative data. According to surveys, 74% of firms acknowledge alternative data's significant impact on institutional investing, driving adoption rates.
• E-Commerce Expansion Generating Data: Rapid e-commerce growth creates vast datasets from transactions, customer interactions, and digital behaviors. China's online sales reached 25% of retail sales in 2020, generating massive alternative data volumes for analysis across sectors.

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Leading Companies Operating in the Global Alternative Data Industry:

• 1010Data Inc. (Advance Communication Corp.)
• Advan Research Corporation
• Dataminr Inc.
• Eagle Alpha
• M Science
• Nasdaq Inc.
• Preqin
• RavenPack
• The Earnest Research Company
• Thinknum Inc.

Alternative Data Market Report Segmentation:

Breakup By Data Type:

• Mobile Application Usage
• Credit and Debit Card Transactions
• Email Receipts
• Geo-Location (Foot Traffic) Records
• Satellite and Weather Data
• Social and Sentiment Data
• Web Scraped Data
• Web Traffic
• Others

Credit and debit card transactions account for the majority of shares with 17.9% market share on account of their ability to provide real-time consumer spending insights and enable sophisticated risk assessment models.

Breakup By End Use Industry:

• Transportation and Logistics
• BFSI
• Retail and E-Commerce
• Energy and Utilities
• IT and Telecommunications
• Media and Entertainment
• Others

BFSI dominates the market with 17.5% market share due to heavy reliance on alternative data for enhanced investment strategies, credit risk profiling, fraud detection, and personalized financial products.

Breakup By Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America enjoys the leading position with over 68.9% market share, driven by technological leadership in AI and data analytics, sophisticated financial institutions, and an entrepreneurial ecosystem supporting alternative data innovation.

Recent News and Developments in Alternative Data Market

• November 2024: Advan Research Corporation acquired Real Estate Intelligence (REI) from RetailStat, expanding its capabilities in retail real estate analytics powered by mobile device location data.
• March 2025: BattleFin acquired Exabel, combining extensive data partnerships with innovative AI-driven alternative data analytics to enhance investment intelligence capabilities.
• 2025: iCapital acquired AltExchange to strengthen alternative investment data management solutions, providing enhanced access to private market data for institutional investors.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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