Rapidly Changing the Investment Landscape in order to Increase Demand for Alternative Data Market
The alternative data market surpassed the market value of US$ 200 million in 2017, with an enormous CAGR from 2018 to 2026. Essentially directed by North America, the alternative data market is majorly driven by its early adoption across different industry verticals. Any useful information that is not from a financial statement is classified as alternative data. Evolving consumer behavior and the post-recession economy have created new market opportunities and the necessity to reach consumers in ways that are more sophisticated. Greenwich Associates study of asset managers found that 90% of asset managers who are analyzing alternative data are witnessing a return on their investment. To gain a strategic advantage over competitors, organizations are widely adopting such modern methods of data analysis for asset management. For example, JPMorgan Group stated in May 2017 that there is widespread agreement on the critical importance of alternative data in transforming the investment landscape. Similarly, in October 2017, Deloitte published a report announcing that firms that do not integrate alternative data into their investment process will be at risk of being at a strategic disadvantage.
Market Synopsis
Web scraping data segmentation to cement its dominance in the alternative data market
The web scraping segment represented the lion's share of the overall alternative data market value generated worldwide. Web scrapping data is frequently used to track e-commerce activities, public commentary, press releases, changes in corporate websites, and government filings. Increasing competition across alternative data providers, demand for improved quality of data, and rising outsourcing of web scrapping in order to effectively use resources are expected to surge the demand for web scraping data. However, organizations utilizing web scrapping are constrained by the associated compliance risk due to the ever-growing regulations associated with the practice of protecting private data. However, the steady growth of web scrapping data is credited to the practice of financial firms that calculate potential risks as well as the legal costs associated with web scraping.
Early Adoption of Alternative Data for Investment Management to Ensure North American Market Dominance
Presently, North America is the front-runner in the overall alternative data market, closely followed by Europe. The U.S., with its robust reliance on big data across the nation, primarily drives the market here. According to Tabb Group, hedge funds based on alternative data account for 27% of overall U.S. stock trades by investors, and these firms are closely searching for more effective and innovative sources of data. For instance, corporate jet tracking demonstrated the ability to predict investment decisions by tracking corporate aircraft activities. As alternative data continues to play a vital role in investment decisions, the U.S. Securities and Exchange Commission (SEC) ensures fair and efficient markets in the changing financial landscape. Alternative data markets here enjoy wide data protection under U.S. privacy and data security laws, while public personal information, such as non-confidential information of a non-intimate nature, is readily used. Furthermore, Asia Pacific witnessed a higher growth rate throughout the forecast period. A steadily improving economy is expected to drive the market here. The Organization for Economic Cooperation and Development Privacy Principles and the Asia Pacific Economic Corporation Privacy Framework serve as guides for fund managers to structure their data privacy policies.
Data management outsourcing will continue to be a key opportunity for alternative data providers.
The alternative data market is moderately competitive in nature, with the presence of both domestic and international players. Maintaining a significant amount of data in an organized form is necessary to stimulate the rise of alternative data and analytics. In search of a solution to manage data efficiently and effectively, organizations are outsourcing alternative data management services. Thus, the growth of the alternative data market, along with the trend of outsourcing services, has created a vital opportunity for market players. Key players in the global alternative data market include Eagle Alpha Ltd., YipitData, 7Park Data, Inc., M Science LLC, App Annie, Inc., Talkingdata, The NPD Group, Inc., 1010Data, Inc., Genscape, Inc., JWN Energy, Geotab, Inc., Jumpshot, SimilarWeb Ltd., Quandl Inc., Convergence Inc., and others.
Periods of History and Forecast
This research report presents the analysis of each segment from 2016 to 2026, considering 2017 as the base year for the research. The compound annual growth rate (CAGR) for each of the respective segments was calculated for the forecast period from 2018 to 2026.
Report Scope by Segments
The alternative data market report provides market size and estimates based on market dynamics and key trends observed in the industry. The report provides a holistic view of the global alternative data market based on data type, industry verticals, and geography. Key segments covered in the report are as follows:
Key questions are answered in this report.
What was the market size of alternative data in 2017 and the forecast up to 2026?
Which is the largest regional market for alternative data?
What are the key market trends observed in the alternative data market and the outlook for the financial investment sector?
Which are the most promising data types and industry verticals in the alternative data market?
Who are the key players leading the market?
What are the key strategies adopted by the leading players in the market?
What are the key application industry trends across different geographies and sub-geographies?
Frequently Asked Questions:
The market for Alternative Data is expected to reach US$ 200 Mn in 2026.
The Alternative Data market is expected to see significant CAGR growth over the coming years, at XX%.
The report is forecasted from 2018-2026.
The base year of this report is 2017.
Eagle Alpha Ltd.,YipitData,7Park Data, Inc.,M Science LLC,App Annie Inc. are some of the major players in the global market.
