Alternative Data Market Report 2025

The alternative data market size has grown exponentially in recent years. It will grow from $6.7 billion in 2024 to $9.66 billion in 2025 at a compound annual growth rate (CAGR) of 44.1%. The growth in the historic period can be attributed to an increase in the rising penetration of e-commerce, strong economic growth in emerging markets, increased Internet penetration, and increased availability of mobile devices.

The alternative data market size is expected to see exponential growth in the next few years. It will grow to $36.29 billion in 2029 at a compound annual growth rate (CAGR) of 39.2%. The growth in the forecast period can be attributed to increased numbers of smart cities, increase in Internet penetration, increasing adoption of 5g networks, favorable government initiatives and growing interest in stock trading. Major trends in the forecast period include integrating artificial intelligence (AI), establishing collaborations with research institutions and established companies, launching next-generation platforms and investing in edge computing solutions.

The growing adoption of 5G networks is anticipated to boost the alternative data market during the forecast period. 5G networks will facilitate the rapid uptake of alternative data applications and services, enabling new use cases. The enhanced bandwidth provided by 5G allows for a greater volume of data to be transmitted within a given timeframe, while lower latency ensures that data reaches its destination more quickly. Additionally, these networks offer improved coverage, supporting various network topologies that enhance the communication of alternative data. The rollout of 5G will also contribute to an increase in data traffic, stemming not only from smartphones but also from Internet-of-Things (IoT) devices. For example, in May 2024, Ericsson, a Sweden-based networking and telecommunications company, reported that the global adoption of 5G networks is accelerating, with approximately 300 networks launched and 5G population coverage outside mainland China reaching around 40% by the end of 2023, projected to rise to 80% by 2029. This trend is expected to drive demand for alternative data.

The rise in internet penetration is expected to drive the growth of the alternative data market. The internet is an extensive network connecting computers globally, facilitating information sharing and communication from virtually any location with an internet connection. Increased internet penetration is particularly advantageous for alternative data as it enables the collection, analysis, and use of diverse and unconventional data sources. For instance, in June 2024, the National Telecommunications and Information Administration, a U.S. agency under the Department of Commerce, reported a significant increase in internet penetration in the United States, with 83% of individuals aged 3 and older using the internet in 2023, up from 80% in 2021. Furthermore, the percentage of households with both fixed and mobile internet connections grew from 69% in 2021 to 72% in 2023, while the proportion of individuals without any internet connection decreased from 14% to 12% during the same period. This increasing internet penetration is poised to accelerate the growth of the alternative data market.

Major companies in the alternative data market are embracing a strategic partnership approach to enhance technology integration and broaden their market reach. A strategic partnership generally involves a collaborative relationship between two or more organizations that pool their resources, expertise, and efforts to achieve shared goals. For example, in May 2024, Exabel, a Norway-based end-to-end platform for organizing, analyzing, visualizing, and transforming alternative data, entered into a partnership with Datos, a U.S.-based provider of anonymized, large-scale, privacy-compliant clickstream data. This collaboration aims to integrate Datos' comprehensive clickstream dataset into Exabel's alternative data platform, allowing investors to analyze consumer behavior through web traffic trends. The partnership improves investment teams' capacity to correlate web traffic data with key company performance indicators, offering actionable insights for more accurate KPI predictions and fundamental analysis.

The alternative data market is anticipated to benefit from the rapid growth of investments in smart city projects across various countries. Smart city technologies leverage information and communication technologies to manage and operate urban services efficiently, such as transportation systems, water supply, and law enforcement. Big data plays a crucial role in various applications, including transportation, public safety, and city budgeting. Additionally, smart cities employ predictive analytics to identify areas susceptible to crime and forecast specific crime locations. For example, in June 2023, Urban Data Collective Limited, a UK-based IT solutions provider, partnered with SHIFT, an innovation district in England, to launch a three-month data-sharing pilot aimed at creating an urban data commons. This initiative will utilize its Urban Data Exchange platform to aggregate live data from sensors and smart infrastructure, initially focusing on renewable energy. The data collected on solar output, pollution, weather, and energy will enhance energy forecasting and facilitate predictive maintenance of renewable infrastructure.

In July 2024, BlackRock Inc., a U.S.-based investment company, acquired Preqin Ltd. for $3.2 billion. This acquisition is intended to strengthen BlackRock's alternatives investing platform by incorporating Preqin's data and technology solutions. The move will enhance BlackRock's capabilities in private markets, address the increasing demand for private market data and analytics, and establish a unified platform that connects public and private markets through standardized data, benchmarks, and analytics. Preqin Ltd. is a UK-based provider of data solutions for alternative investments.

Major companies operating in the alternative data market include Ravenpack International SL, 1010data, Inc, Vortexa Ltd., Eagle Alpha Ltd., Audit Analytics,Thinknum Inc., Thasos Group, Yewno, Inc., Advan Research Corporation, Exante Data, LLC., Eoitek, Sam Technology, WakeData, Oracle, Microsoft, IBM, SAP, Plaxonic, Teradata, Amazon Web Services, Quiver Quantitative, S&P Global, AlphaSense, Kantar, Quandl, InfoTrie, Running Alpha, Unity, Maxilect, Accenture Analytics, Tableau Software, Deep Data Science, Sigma Data Systems, Preqin Ltd.

North America was the largest region in the alternative data market in 2024. The regions covered in the alternative data market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the alternative data market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Alternative data refers to non-traditional information sources providing insights into a firm's future performance beyond conventional data such as corporate filings and analyst predictions. It is valuable for pre-trade investment assessment and monitoring a firm, industry, or nation's health.

Key types of alternative data include credit/debit card transactions, email receipts, geo-location (foot traffic) records, mobile app usage, satellite/weather data, social sentiment data, web scraping, and web traffic. Credit card transaction data, for example, helps estimate future spending patterns. This data is utilized across various sectors, including automotive, BFSI, energy, industrial, IT, telecommunications, media, entertainment, real estate, construction, retail, transportation, and logistics, benefiting businesses of all sizes.

The alternative data market research report is one of a series of new reports that provides alternative data market statistics, including alternative data industry global market size, regional shares, competitors with an alternative data market share, detailed alternative data market segments, market trends and opportunities, and any further data you may need to thrive in the alternative data industry. This alternative data market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The alternative data market includes revenues earned by entities by providing services such as point-of-sale transactions, web site usage, mobile app or app store analytics, crowdsourcing, and obscure city hall records. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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