Alternative Data Market Overview: Rising Demand, Key Segments, and Global Outlook (2024–2030)

The Alternative Data Market, valued at US$ 6.74 billion in 2023, is undergoing a transformational boom driven by the rise of digital ecosystems, AI-led analytics, and the growing appetite for real-time, non-traditional insights. With an exceptional CAGR of 58.3% from 2024 to 2030, the market is projected to skyrocket to US$ 167.97 billion by 2030, redefining how organizations, investors, and enterprises leverage data for competitive advantage.

What is Alternative Data?

Alternative data refers to non-traditional information sources that offer fresh, predictive, and real-time signals beyond conventional datasets like corporate filings, annual reports, or analyst forecasts. These data points may originate from:

• Digital interactions (web traffic, web-scraped data)
• Consumer payments (credit/debit transactions)
• Geospatial activity (geo-location and foot-traffic records)
• Satellite imagery and weather patterns
• Social sentiment and mobile usage trends

Its increasing relevance lies in its ability to reveal hidden correlations, early warnings, and actionable intelligence, empowering financial institutions, hedge funds, retailers, and tech companies to operate with unprecedented agility.

To know the most attractive segments, click here for a free sample of the report:https://www.maximizemarketresearch.com/request-sample/121998/ 

Key Market Dynamics

1. Growing Adoption by Hedge Funds and Investment Firms

The investment community is one of the earliest and fastest adopters of alternative data. More than half of global hedge funds now integrate alternative datasets into their investment models to improve risk assessment, optimize portfolio strategies, and generate alpha. Around 400+ data providers support this growing ecosystem, signaling strong momentum across financial institutions.

2. Rise of Advanced Analytics, AI, and Machine Learning

Companies across sectors are shifting from traditional analytical models to AI-powered algorithms. Machine learning tools can integrate and interpret immense volumes of alternative datasets, enabling:

• Early detection of consumer trends
• Revenue forecasting capabilities
• Competitive intelligence
• Fraud detection and anomaly identification

The fusion of AI and alternative data has unlocked notable operational efficiencies and financial advantages.

3. Growing Role of Merchant Transaction Data

Merchant Transaction Analysis—or consumption data analysis—has emerged as one of the hottest segments due to its direct connection with consumer spending. This dataset offers precise demand forecasting and real-time insights into company performance. However, access challenges remain, especially in regions with stringent privacy regulations.

4. Privacy Regulations: A Key Market Challenge

Compliance frameworks like GDPR, CCPA, and other global privacy standards are reshaping the alternative data landscape. Data providers must ensure that all datasets are de-identified and free from personally identifiable information (PII). While these regulations pose challenges, they also encourage transparent, ethical data practices.

Segmentation Analysis

1. By Data Type

• Credit & Debit Card Transactions –
  This segment leads the market due to the high demand for spending-pattern intelligence. Innovations in categorizing transaction details by age, gender, and location enable investors to uncover deep consumer insights.
• Social & Sentiment Data –
  The second-largest segment. Retailers especially rely on social sentiment to analyze consumer preferences and assess brand visibility.
• Geo-Location (Foot Traffic) Records –
  Increasingly used for store performance evaluation, real-time consumer movement trends, and operational planning.
• Mobile Application Usage & Web Traffic Data –
  Supports product recommendation systems, ad targeting, and user behavior analysis.
• Email Receipts, Satellite Data, Weather Patterns, and Web-Scraped Data –
  These datasets continue to grow in importance, contributing to a well-rounded intelligence infrastructure.

2. By Industry

• BFSI – Market Leader
  Financial institutions such as hedge funds, mutual funds, and private equity firms are the dominant users. Their need for alpha-generating insights drives demand for diverse alternative datasets.
• IT & Telecommunications – Fast-Growing User Segment
  Telecom operators use alternative data for network optimization, predictive maintenance, and targeted marketing.
• Retail – Exceptional Growth Forecast (CAGR 60.6%)
  Retail brands use smartphone usage data, sentiment analysis, and geospatial tracking to improve customer engagement and optimize e-commerce platforms.
• Real Estate, Automotive, Transportation & Logistics, Energy, and Industrial Sectors
  These industries increasingly apply alternative data for demand planning, operational efficiency, and risk assessment.

3. By End User

• Hedge Fund Operators – Major revenue contributors.
• Investment Institutions – Driven by data-backed decision-making models.
• Retail Companies – Improve consumer mapping and market strategy.

To know the most attractive segments, click here for a free sample of the report:https://www.maximizemarketresearch.com/request-sample/121998/ 

Regional Insights

North America – Market Leader

North America captured the largest share in 2023, supported by the strong presence of major players such as:

• Eagle Alpha
• 1010Data
• M Science
• UBS Evidence Lab
• Advan

Over 70% of asset managers in the U.S. now consider leveraging alternative data in investment processes, demonstrating the region’s established and maturing ecosystem.

Europe – Second-Largest Market

Europe’s dominance is tied to its massive pool of alternative assets under management (AUM), especially in:

• Private equity
• Hedge funds
• Natural resources
• Real estate

Data-driven investment frameworks have become mainstream in the region.

Asia–Pacific – Fastest Growing Region

Rapid digitalization, rising fintech ecosystems, and increasing adoption by enterprises across China, India, Singapore, and Japan are making APAC a high-growth opportunity zone.

Competitive Landscape

Key market players include:

1. 1010Data
2. Advan
3. Dataminr
4. Earnest Research
5. M Science
6. Preqin
7. RavenPack
8. Thinknum
9. UBS Evidence Lab
10. YipitData
11. Nasdaq, Inc.
12. Eagle Alpha Ltd
13. 7Park Data
14. Convergence Inc
15. Geotab Inc
16. Jumpshot
17. JWN Energy
18. TalkingData

These companies continuously innovate to deliver more granular, accurate, and privacy-compliant insights.

Conclusion

The Alternative Data Market is entering a transformative era, fueled by the digitization of global economies and the evolution of AI-driven analytics. As organizations seek deeper, faster, and more predictive insights, the demand for alternative data will continue to grow exponentially.

While privacy regulations remain a challenge, they also create opportunities for vendors to develop transparent and secure data ecosystems. With its massive projected growth to US$ 167.97 billion by 2030, the market is poised to become a cornerstone of strategic decision-making across financial, technological, retail, and industrial sectors worldwide.