Alternative Data Market Size, Share, & Trends Analysis By Data Type (Credit & Debit Card Transactions, Mobile Application Usage, Social & Sentiment Data), By Industry, By End-user, By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the alternative data market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for alternative data market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of alternative data market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Alternative Data Market Categorization:

The alternative data market was categorized into four segments, namely data type (Credit & Debit Card Transactions, Email Receipts, Geo-location Records, Mobile Application Usage, Satellite & Weather Data, Social & Sentiment Data, Web Scraped Data, Web Traffic), industry (Automotive, BFSI, Energy, Industrial, IT & Telecommunications, Media & Entertainment, Real Estate & Construction, Retail, Transportation & Logistics), end-user (Hedge Fund Operators, Investment Institutions, Retail Companies), regions (North America, Europe, Asia Pacific, South America, Middle East & Africa).

Segment Market Methodology:

The alternative data market was segmented into data type, industry, end-user, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The alternative data market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into ten countries, namely, the U.S.; Canada; Mexico; the UK.; Germany; France; China; India; Japan; Brazil.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Alternative data market companies & financials:

The alternative data market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• 1010DATA - 1010data is a company that specializes in collaborative analytics, consumer intelligence, and alternative data. It has been operating as a fully-owned subsidiary of Advance, a privately held diversified media group in the U.S., since 2015. The company provides a variety of alternative data, including data from credit & debit cards, eCommerce, email receipts, online clickstreams, and mobile geo-locations. 1010data’s integrated solution, the Insights Platform, comprises several modules like market intelligence, enterprise analytics, and a collaboration portal. This platform offers clients a dynamic perspective on market trends and evolving consumer behavior, enabling them to make crucial business decisions. 1010data serves a range of industries, including banking, finance, retail, gaming, manufacturing, consumer goods, and telecommunications, among others. The company promotes its products through its websites, 1010data, 1010reveal, and 1010equities, and caters to customers in various regions, including the Americas, APAC, and Europe.

• Advan Research Corporation. -  Advan Research Corporation provides valuable data on vehicle movement and patterns to a variety of businesses including hedge funds, retailers, financial services companies, and real estate investors. This information aids these businesses in making informed investment and operational decisions. The company’s high-quality analytics deliver rapid and actionable insights into both corporate activities and consumer behavior. On average, Advan Research Corporation manages and processes billions of foot traffic observations from over 150 million locations, sourced from thousands of mobile applications and more than 2,500 companies across diverse sectors. The company utilizes its unique manual geofencing technology to compute the most precise and comprehensive location data, which is then made accessible via a self-service dashboard. In addition, the company processes data from six years of road traffic and two decades of weather statistics across all its operational locations. This data is particularly useful for commercial vehicles.

• Dataminr - Dataminr is a company that specializes in the creation of AI platforms. These platforms are designed to scrutinize vital information from publicly accessible data sets and provide its customers with immediate alerts for risk detection. The company’s services enable a quicker response, efficient risk reduction, and robust crisis management for companies in the public and private sectors worldwide. Dataminr’s AI platform utilizes data from more than 100,000 public sources, offering both local and global information in real-time. The company employs a team of researchers, data scientists, and engineers who use a variety of deep learning AI techniques. These techniques include natural language generation, understanding, and processing, audio classification and processing, computer vision, and anomaly detection of both human-generated and machine public data streams. This diverse range of methods allows the team to identify relevant events in real-time.

• Earnest Research - Earnest Research is a data analytics firm that delivers crucial insights into consumer spending patterns to entities such as government agencies, corporations, management consultants, and institutional investors, leveraging real-time data. The company employs deep fundamental analytics tools on various aspects like retail pricing, healthcare claims, consumer expenditure, and foot traffic to generate structured datasets with distinct and correlated indicators. These datasets are analyzed to comprehend national health trends and consumer behaviors. With a team of over 100 employees spread across multiple global locations, Earnest Research serves a wide range of industries. These include apparel & accessories, auto dealers, electronics, health & beauty, home decor & home improvement, media & entertainment, transportation, and restaurants.

• M Science - M Science is a research and analytics company that utilizes data to offer essential customer insights to top financial institutions, as well as private and government corporations. The firm combines data science, technology, and financial models to convert raw data into actionable insights, thereby empowering its clients to make intelligent and informed decisions. The company serves a variety of industries, including automotive, consumer durables, internet & telecommunication, and media. M Science is part of the portfolio of Leucadia Asset Management, a subsidiary of Jefferies Financial Group Inc., and has a global presence with locations in Oregon, New York, Hong Kong, London, and Portland.

• Preqin - Preqin provides a range of services and products, including information, financial data, and tools, to facilitate investment in the alternative assets market. The company’s scope encompasses various asset classes such as hedge funds, private equity, private debt, venture capital, real estate, infrastructure, secondaries, and natural resources. In addition to this, Preqin generates research reports and develops tools for analytics, portfolio management, and due diligence, assisting fund managers in making optimal investment decisions. Over 1,10,000 investment professionals across more than 90 countries utilize Preqin’s services and products for diverse tasks like market research, marketing, investor relations, and fundraising. The company’s product and solution offerings comprise of preqin pro, preqin insights, mobile, ESG solutions, API, partner solutions, and data feeds. Preqin has a global footprint with offices in cities such as Chicago, London, San Francisco, New York, Sydney, Singapore, Hong Kong, Tokyo, Dubai, Guangzhou, Bangalore, and Manila.

• RavenPack - RavenPack specializes in offering big data analytics solutions to companies in the financial services sector. Numerous financial services organizations rely on RavenPack for the precise and swift analysis and computation of vast volumes of unstructured data. The company’s solutions and products empower its clients to mitigate risk, enhance returns, and boost efficiency by incorporating the influence of public data into their workflows or models. RavenPack sources data from a variety of channels, including press releases, real-time news, regulatory feeds, and social media, from over 22,000 sources. The company’s product suite includes text analytics, news analytics, insider transaction, and corporate events. These products assist clients in enhancing their operational efficiency and overall corporate strategy, with improved investor relations, measurable product development, and precise risk management. RavenPack’s analytics platform provides market information analysis across a range of asset classes, from equities and fixed income to commodities and foreign exchange. The company’s clientele comprises hedge funds, banks, and asset managers globally. RavenPack maintains a regional presence in North America, Europe, and Asia.

• Thinknum Alternative Data - Thinknum Alternative Data specializes in the organization, processing, and analysis of public data from the internet, providing over 300 global companies with unique, real-time insights. Its clientele encompasses hedge funds, universities, internet companies, and investment firms. The company offers more than 35 datasets that cover over 450,000 companies worldwide, enabling analysis across a variety of key metrics. Clients of Thinknum Alternative Data can access these datasets through an API and UI. Key datasets include job listings, LinkedIn profiles, Facebook followers, issued loans, app ratings on Apple Store & Google Play, REIT tenants, and Twitter followers, among others. These datasets are instrumental in uncovering strategic activities within companies, such as tracking hiring or firing trends, product movement, customer interaction, and other metrics indicative of company performance.

• UBS - UBS specializes in delivering data-driven insights by collecting, purifying, and linking a multitude of data items across various specialized domains. The company offers insights to over 1,000 companies of all sizes on a subscription basis through its Evidence Lab Innovations platform. UBS provides insightful datasets across more than 55 specialized products. The company’s diverse alternative data offerings encompass geospatial data, pricing data, sentimental data, social media data, and transaction data, among others. Additionally, UBS offers a multitude of datasets through market research, natural language processing, and quantitative modeling. The company’s clientele includes entities from over 50 industries and industry verticals, such as agriculture, banking, hedge funds, construction, consumer goods, finance, healthcare, manufacturing, retail, and telecommunications. UBS has a global presence, spanning over 30 countries across the Americas, APAC, EMEA, and other regions. UBS operates as a fully-owned subsidiary of UBS, a publicly-traded multinational investment bank and financial services company headquartered in Switzerland. The parent company is listed as SIX: UBSG, SIX: UBSN, and NYSE: UBS on the SIX Swiss Exchange and the New York Stock Exchange.

• YipitData - YipitData specializes in the collection and analysis of web data, along with other alternative data types. They supply fundamental datasets to over 60 companies across more than ten sectors, such as real estate, shipping, internet, automotive, and airlines. Their dataset subscription service provides investment professionals with in-depth insights into alternative data related to a specific ticker. The company integrates web data with other data sources, enabling their research analyst team to comprehend the trends and performance of each company. This integration of data sources results in a comprehensive research and data product that offers precise and detailed insights into a company’s metrics, competitive dynamics, and strategic developments. YipitData boasts an internal team of over 200 professionals, including data analysts, data engineers, and analysts from both sell-side and ex-buy-side. They cover 70 tickers and operate in 8 countries. The existence of this dedicated team, handling everything from research to data collection, ensures the creation of a focused and consistent product that is aware of the biases and challenges at every stage of data handling.

   

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Alternative Data Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Alternative Data Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.