Data Monetization Market Size, Share & Trends Analysis Report By Organization Size, By Method (Analytics-enabled Platform As A Service, Embedded Analytics), By Vertical, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global data monetization market size was valued at USD 1.30 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 24.1% from 2020 to 2027. Data monetization is the sharing of data between companies. It is the process of using data to generate revenue or create new revenue-generating streams. Data monetization is of two types direct data monetization and indirect data monetization. Direct data monetization is the selling of raw data. In this type, companies generate revenue directly by selling the data. Direct data monetization involves selling a companies' analysis, bartering or trading data, and creating one or many APIs. In terms of indirect monetization, companies use their data to create a measurable impact. Indirect monetization helps companies reduce costs, improve productivity and efficiency, develop new products or services, and discover new customer types or business categories, among others.

Several factors, such as rising enterprise data volume, awareness towards data monetization, and external data sources, are anticipated to drive the market growth. Furthermore, growing usage of data processing and artificial intelligence, adoption of data-driven decision-making approaches, and advancements in big analytics, among others, is expected to fuel the growth over the forecast period.

Several companies are inclined toward data monetization since it provides data usage optimization, customer loyalty, reduced operating costs, improved compliance, boosts profitability, strengthens partnerships, and enhances customer experience and understanding. Similarly, data monetization also adds maximum value to products and services, streamlines planning and decision-making activities, improves collaboration and data sharing amongst external and internal stakeholders, and increases targeted product/ service marketing and propositions. Such factors are anticipated to drive the market growth over the forecast period.

Data monetization is an umbrella term that covers additional revenue that an organization generates from the information it holds on its customers. It is expected to be vital to an organization's business since it focuses on upselling services, supporting customer care, and reducing churn. It is also anticipated to be crucial for business intelligence support for several commercial opportunities, such as mobile marketing. It does this by providing selling data as an insight.

Data monetization entails generating high revenue from available data sources. It controls data generated through sensors and electronic devices and business operations. This data is used to create useful insights for companies to create new business categories. The emergence of advanced technologies such as artificial intelligence, Internet of Things (IoT) big data, and cloud computing has paved the way for market growth. The ability of data monetization to synthesize and incorporate thousands of data, IoT records, and the ability to apply artificial intelligence and advanced analytics has encouraged several players to invest in data monetization.

Furthermore, the rising shift of companies towards data monetization has also accelerated cloud and cloud-based technology development. Additionally, storing and maintaining a massive amount of data on physical storage mediums or hardware is expensive. In this situation, cloud-based solutions offer huge computing and storage power. This has created an opportunity for cloud-based data monetization. Additionally, cloud technology promotes companies to share real-time data. Also, cloud computing is expected to pave the way for subscription-based information sharing platforms thereby resulting in market growth.

Organization Size Insights

Large enterprises segment held the largest market share of 77.11% in 2019. This is attributable to the rising presence of large organizations that have global dominance. The data monetization market includes companies that have marked a strong foothold in retail, BFSI, and telecommunication verticals. Furthermore, large enterprises have customers present across the globe and value chain. They have adequate technical expertise, business strategies, and capital. There is a growing requirement for advanced technologies such as cloud computing and Artificial Intelligence (AI) in the market. Large enterprises can easily invest in such new technologies to maintain business continuity.

SMEs are anticipated to expand at the highest CAGR of over 25% from 2020 to 2027. Rising adoption of data monetization by SMEs to sustain in the competitive market is expected to power the segment growth over the forecast period. Furthermore, SMEs are expected to face resource shortages, thereby resulting in business complexities and the increased need to optimize cost. In this situation, the rising presence of cloud-based data monetization is expected to play a pivotal role in ensuring reduced operations cost and increased efficiency thereby positively affecting the segment growth.

Method Insights

The analytics-enabled platform, as a service segment held the largest market share of 39.47% in 2019. This is attributable to the ability of the method to provide flexible data monetization to customers. This method comes pre-installed with BI and analytics tools and is implemented to give the consumers insights in real-time, along with high versatility. Additionally, it is compatible with all cloud-based solutions, supports wide arrays of data formats, and can be deployed on-premises and cloud. However, this method demands expert support for maintenance and installation.

The embedded analytics segment is expected to expand at a CAGR exceeding 20% from 2020 to 2027. Embedded analytics can integrate existing applications with additional features such as data visualization, dashboard reporting, and analytics. This method accelerates time to market, creates customized embedded analytics solutions, and lowers TCO. Similarly, insight as a service is a combination of external and internal data sources that uses analytics to provide data insights. This method is capable of supporting specific datasets and ensures providing updated data to customers.

Vertical Insights

The BFSI segment held the highest share of 21.44% in 2019. This is attributable to the growing presence of most data-rich businesses in the banking sector. According to the industry experts operating in banking and financial security companies, BFSI organizations manage over 3.8 petabytes of data. This has created a massive demand for data monetization in the BFSI segment. Furthermore, data monetization in BFSI accelerates customer interactions and operating income by over 50%. Such factors are anticipated to power market growth over the forecast period.

The healthcare segment is expected to expand at a CAGR of around 13% from 2020 to 2027. Rising inclination of healthcare companies towards data monetization is anticipated to fuel the market growth. Healthcare companies are engaged in launching new programs wherein they are focused on monetizing patient’s medical data by providing access to innovators and researchers. This has positively impacted the adoption of data monetization in the healthcare sector.

Regional Insights

North America held the largest market share of 33.45% in 2019. This is attributable to the presence of major players in the region. Furthermore, the region’s growth is highly influenced by the U.S. Companies based in the U.S. and Canada are engaged in investing and rapidly adopting advanced technologies such as cloud computing, big data, and analytics. This gave North America the first-mover advantage. Also, rising demand among enterprises to automate decision-making processes, optimized infrastructure costs, and technology enhancements have significantly affected regional growth.

The Asia Pacific region is anticipated to expand at the highest CAGR of over 30% from 2020 to 2027. The growing adoption of cloud, IoT, and big data solutions in the region is further expected to fuel the region's market growth over the forecast period. The rising advancements in networking technologies, the rapid boom of e-commerce, increasing manufacturing and the automotive sector, and increasing regulatory mandates have positively impacted the regional growth.

Key Companies & Market Share Insights

The market is fragmented and characterized by intense competitive rivalry as several market players are conducting their business operations worldwide. The market has witnessed various inorganic growth strategies such as acquisitions and mergers, partnerships, and collaboration adopted by companies over the recent past. For instance, in April 2019, Accenture announced the extension of its partnership with Pitney Bowes Inc. This collaboration has enabled Accenture to use and implement Pitney Bowes Inc.’s data assets to introduce advancement in existing solutions and create new intelligent solutions for its clients. Additionally, this collaboration is also expected to widen the advanced analytics functionality of Pitney & Bowes. Companies are also engaged in entering new market areas to expand their product offerings and market presence. For example, in September 2019, IBM Corporation announced its plan to invest in automotive data monetization. This is expected to create new opportunities and also maintain its presence in cloud computing. Some of the prominent players in the data monetization market include:

• Accenture Plc.

• Adstra

• Cisco Systems, Inc.

• Gemalto NV

• IBM Corporation

• Infosys Limited

• Comviva

• Monetize

• Reltio

• SAP SE

Data Monetization Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global data monetization market report on the basis of organization size, method, vertical, and region:

• Organization Size Outlook (Revenue, USD Million, 2016 - 2027)

  • Large Enterprises

  • SMEs

• Method Outlook (Revenue, USD Million, 2016 - 2027)

  • Data as a Service

  • Insight as a Service

  • Analytics-enabled Platform as a Service

  • Embedded Analytics

• Vertical Outlook (Revenue, USD Million, 2016 - 2027)

  • BFSI

  • E-commerce & Retail

  • Telecommunications & IT

  • Manufacturing

  • Healthcare

  • Energy & Utilities

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • The Middle East & Africa