Asia Pacific Data Monetization Market - Forecasts from 2023 to 2028

The Asia Pacific data monetization market is projected to witness a compound annual growth rate of 11.72%, growing to US$83.062 billion by 2028 from US$38.245 billion in 2021.

The Asia Pacific data monetization market is anticipated to rise steadily during the projected period. In the Asia Pacific region, the emergence of big data, AI, and the Internet of Things (IoT) is increasing, further facilitating this market growth. The increasing demand for data from the BFSI sector is also further pushing the market as various financial institutes, and investors are demanding data before investing in any business for their personal use. The increasing development in multiple countries of Asia Pacific is increasing people's interest in the region; with a huge population, the region has developing countries such as India and China that help the data monetization market to expand in the projected period.

Growth drivers for the Asia Pacific data monetization market

The rising network technology and the booming e-commerce in the countries of Asia Pacific, coupled with increased penetration of smartphones and internet in the region, is helping the data monetization market to expand in the region. Regional financial institutions can get the data and better utilize it for different financial purposes. The countries are also facing an increased use of the Internet of Things (IoT), big data, and AI. For instance, as per the Indian government, the country became the fifth highest AI investor attraction and revived US$ 3.24 billion in investments in AI startups. The increasing investment in startups and big data reflects the need for data in the market and the importance of it for various companies as well. These drivers will upsurge the Asia Pacific data monetization market.

Investments made by the Chinese government.

As per the UNCTAD, China invested the highest amount in the AI sector in 2022. The country invested a sum of 95.11 billion dollars in the sector. Chinese companies have also realized the need for data and are taking various steps to make good use of it for themselves. For instance, China Unicom, a networking company, started using blockchain to create a new data monetization revenue stream for them. The company aims to provide data to the companies that need it while keeping check people's privacy and taking data storage and overhead cost into account. The use of AI and big data has increased rapidly in China. As per China’s 14th five-year plan, the country expects to expand at a 7% rate in big data, AI, and IoT. The increasing data production in countries such as India and China, along with other countries in the Asia Pacific region, will help the data monetization market expand.

Automotive applications play a vital role.

The rising demand for data monetization services is due to the increased development of advanced analytics & big data under automotive applications, such as efforts towards improving passenger & driver safety, lower operating costs & extra features in car servicing. Moreover, insurance companies are launching deals for customers based on analysis of car data which in turn expands the demand for data monetization techniques. The partnership of insurance companies with key market players also boosts market growth in the long term. For instance- In 2022, Tesla announced its collaboration with a major Insurance player. This will help access the payment rates based on the driver’s data and potential risk in driving patterns.

Furthermore, the rising advancements in connected vehicles across Asia will expand the market growth. Automakers are currently focusing on increasing software deployment strategies to enhance customer experience. Players such as Mahindra & IBM Solutions focus on data-driven solutions such as optimizing production & manufacturing processes and predictive maintenance capabilities to offer personalized services. These developments will propel market growth till the forecast period.

Asia Pacific is anticipated to dominate the data monetization market.

The Asia Pacific data monetization market is expected to show significant growth in the coming years owing to the growing adoption of cloud computing and AI technologies in industrial applications coupled with the favorable investments initiatives undertaken by the government of major APAC economies, namely India, China, Japan, and South Korea to promote digitization in business sectors.

India is predicted to hold a significant market share.

The growing internet penetration and bolstering growth in major end users of data monetization in India, such as BFSI, retail, and manufacturing, has provided a positive outlook to the market demand and usage of data monetization processes in the country. Per the VNI Complete Forecast Highlights Report by Cisco, the traffic generated by the average internet consumer in India will increase by a staggering 127% to reach 14 gigabytes by 2021 from 6.2 gigabytes in 2016. Growing data traffic is directly anticipated to boost the data monetization market in the country.

Moreover, the favorable investments in cloud computing, AI, and IoT technology by major companies are further paving the way for future market growth in India. Launches of data monetization platforms by market players in India are further acting as an additional driving factor. For instance, in June 2023, TCS launched its “TCS Dexam” on Google Cloud, providing seamless data exchange to enterprises, enabling them to produce new products & services for mutual customers.

Market Developments:

• In May 2023, Amazon Web Service announced an additional investment of US$12.7 billion to promote the company’s cloud infrastructure in India.
• In March 2021, Google announced its plans to roll out an updated version of its Google Pay, which would allow users to choose whether they wish to share their data with the company. The new feature came with the purpose of monetization of the user’s transaction data.

Segmentation:

By Offering

• Solution
• Service

By Deployment Model

• On-Premise
• Cloud

By Enterprise Size

• Small
• Medium
• Large

By Application

• Retail
• Manufacturing
• Automotive
• BFSI
• Media & Entertainment
• Others

By Geography

• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others