The alternative data market is projected to expand significantly, growing from approximately US$ 5,549.16 million in 2022 to an impressive US$ 156,230.65 million by 2030, reflecting a remarkable compound annual growth rate (CAGR) of 51.8% during this period.
In Europe, various sectors including Banking, Financial Services, and Insurance (BFSI), Information Technology and Telecommunications (IT & telecom), as well as manufacturing, are making strides towards sustainability by leveraging advanced technologies such as cloud computing, the Internet of Things (IoT), edge computing, and artificial intelligence (AI). The European Union is actively fostering the development of innovative technological solutions through research and innovation initiatives under the Horizon 2020 Programme. These EU-funded projects are instrumental in promoting the adoption of digital solutions among businesses, thereby facilitating their growth. Furthermore, in February 2022, the European Commission introduced the European Data Act, aimed at enhancing data accessibility in alignment with the European Data Strategy. The provision of reliable and validated data is crucial for enterprises across various sectors, including BFSI, IT & telecom, and automotive, thereby driving the demand for alternative data. Consequently, supportive government policies and an increase in digital transformation are pivotal factors propelling the demand for alternative data in Europe, which in turn boosts the alternative data market size.
Moreover, the European Commission, along with national regulatory authorities, has initiated several programs to advance the automotive sector within the region. Notable initiatives include the CARS 2020 Action Plan, GEAR 2030, and Horizon 2020, all of which aim to enhance vehicle production in Europe. The Horizon 2020 Plan specifically allocates funding for research and development (R&D) in the automotive field, launching initiatives like the European Green Vehicles Initiative, which focuses on smart mobility, road transport, and logistics. In March 2022, Ford unveiled its strategy to launch three new electric passenger vehicles and four electric commercial vehicles in Europe by 2024, with a target of selling over 600,000 electric vehicles in the region by 2026. The utilization of alternative data within the automotive sector enables companies to gain insights into consumer behavior and market trends, ultimately enhancing their sales and profitability. Thus, the robust automotive industry significantly contributes to the rising demand for alternative data, further amplifying the market share of alternative data in Europe.
The alternative data market in the Middle East and Africa (MEA) is categorized into regions such as Saudi Arabia, the UAE, South Africa, and the broader MEA area. This region has witnessed a swift increase in internet connectivity over recent years. Government initiatives have been launched to encourage the adoption of digital technologies across various industries, enhancing efficiency and competitiveness in the global arena. For example, in March 2021, the Saudi Arabian government established the Digital Government Authority (DGA) to oversee the national digital strategy. Additionally, the region is home to several emerging economies, including the UAE, Saudi Arabia, Oman, Kuwait, and Qatar, which are becoming promising markets for digitalization due to rapid industrial growth and the increasing adoption of advanced technologies. Therefore, the surge in digital transformation, combined with industrial expansion, is driving the demand for alternative data across multiple sectors. The growth of industries such as automotive, BFSI, IT & telecommunications, and media & entertainment in the MEA region further fuels the need for alternative data. This data is essential for understanding consumer preferences and adapting business operations to align with current market trends. For instance, Nissan Middle East reported a 9.9% increase in sales across the Gulf region in the first three quarters of 2021 compared to the previous year, highlighting the impact of data-driven insights. These factors collectively contribute to the growth of the alternative data market in the MEA region.
Key players in the alternative data market include Dataminr Inc, FactSet Research Systems Inc, Moody's Analytics Inc, Preqin Ltd, RavenPack International SL, Refinitiv Ltd, Eagle Alpha Ltd, RetailStat, Visible Alpha LLC, and Yipit LLC. A comprehensive analysis of these and other significant players provides a well-rounded perspective on the market and its ecosystem.
The overall size of the alternative data market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the alternative data market. This approach also aimed to provide an overview and forecast of market growth across all segments. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights. Participants included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the alternative data sector.