Global Alternative Data Market By Type, By Industry Vertical, By Region, Industry Analysis and Forecast, 2020 - 2026

Global Alternative Data Market By Type, By Industry Vertical, By Region, Industry Analysis and Forecast, 2020 - 2026

  • September 2020 •
  • 227 pages •
  • Report ID: 5977147 •
  • Format: PDF
The Global Alternative Data Market size is expected to reach $11.1 billion by 2026, rising at a market growth of 44% CAGR during the forecast period. Alternative data (Alt-data) can be considered as undiscovered data that isn’t inside the domain of customary data sources, for example, SEC filings, fiscal reports, official statements, and the management presentation. An Alternative data set can be composed of different sources, for example, e-commerce sites, public records, social media, monetary exchanges, web traffic, cell phones, sensors, satellites, and so on.

On applying explicit analytics on this composed data, it yields extra bits of knowledge that were earlier obscure, and are utilized by investors to assess investment opportunities. As this new data is a significant differentiator that adds to the alpha (market outperformance), the buy-sides elements, for example, hedge funds, mutual funds, private equity funds, pension funds, unit trusts, and life insurance organizations, are effectively utilizing it to construct fundamental investment models to beat the market.

The key drivers credited to the market development include the noteworthy increment in the kinds of Alternative data sources over the last decade. The most well-known sources of alt data are web scarping and financial transactions, the rising sources, including cell phones, social media, satellites, sensors, IoT-enabled gadgets, and others, are gaining extensive prevalence. Accordingly, the organizations are effectively extending their offering by collecting data from every such source. The rising demand for Alternative data from hedge funds is anticipated to fuel market development significantly. The majority of hedge fund managers are currently utilizing Alternative data to get a competitive edge by producing outperformance and supporting risk management measures.

During the COVID outbreak, the organizations are utilizing Alternative data collected from social media, cell phones, applications, wearables, and other IoT-based gadgets to calculate changes in the behavior pattern of a consumer associated with purchases and interests. The segment related to the transactions with credit and debit cards is foreseen to show the highest CAGR from 2020 to 2026 attributable to the high precision of the data type and high demand from asset administrators.

Based on Type, the market is segmented into Credit & Debit Card Transactions, Mobile Type Usage, Web Traffic & Scraped Data, Social & Sentiment Data, Geo-location, Satellite & Weather Data, and Others. Based on Industry Vertical, the market is segmented into BFSI, IT & Telecom, Transportation & Logistics, Retail & eCommerce, Energy & Utilities, Media & Entertainment, Real Estate & Construction, and Others. Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa.

The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Nasdaq, Inc. is the major forerunner in the Alternative Data Market. Companies such as Eagle Alpha Ltd., RevenPack International SL, YipitData, Preqin Ltd., 1010Data, Inc., Thinknum, Inc., The Earnest Research Company, and Advan Research Corporation are some of the key innovators in the market.

The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Nasdaq, Inc. (Quandl, Inc.), Advan Research Corporation, Dataminr, Inc., The Earnest Research Company, Preqin Ltd. (Dynamo Software), RevenPack International SL, Thinknum, Inc., YipitData, 1010Data, Inc., and Eagle Alpha Ltd.

Strategies deployed in Alternative Data Market

Partnerships, Collaborations, and Agreements:

Jan-2020: Preqin came into collaboration with S&P Global Market Intelligence, the division of S&P Global that provides data, essential insights, and powerful analytics to help navigate the finance markets. The collaboration was aimed to share data between their respective platforms. As part of the collaboration, Preqin data would be made available through the Market Intelligence platform and vice versa. This collaboration provided professionals investing in private markets with access to a wider range of differentiated datasets in an integrated platform.

Nov-2018: Advan Research came into partnership with Consumer Edge, the preeminent equity research, and alternative data insights firm focusing on the global consumer sector. The partnership was focused on integrating foot traffic counts with credit card transaction data on over 200 companies. Combining Advan traffic data with credit card transaction data helped the companies to cross-validate the independent data sets, improve predictive signals on many tickers, and deliver both data sets in a unified platform.

Nov-2018: RavenPack collaborated with CloudQuant LLC, the most powerful and comprehensive data analytics platform. The latter company added RavenPack analytics within their trading strategy incubator. Crowd researchers can now use RavenPack historical data to discover tradable alpha signals on CloudQuant’s online Python and JupyterLab-based tools.

Acquisition and Mergers:

Jan-2020: Earnest Research acquired Alpha Hat, a leading mobile geolocation intelligence provider. Alpha Hat’s team and proprietary methodologies have high quality and accuracy. This acquisition is a perfect complement of Earnest Research’s product suite.

Product Launches and Product Expansions:

Jul-2020: Earnest Research announced the launch of a new foot traffic data product, the Earnest Foot Traffic. This product captures visitation activity to over 650,000 points of interest throughout the U.S. from 30m+ anonymized mobile phone devices. Foot traffic data would provide Earnest’s clients with increased conviction while assessing the real-time performance of companies.

Jul-2020: RavenPack unveiled a news-driven forecasting model for the upcoming US presidential election. RavenPack’s forecasting model combined the level of media attention generated by both presidential candidates, the sentiment for each candidate in those media stories across all 50 states, and social and economic sentiment.

Apr-2020: Advan Research introduced a hot-spot map, a new and easy way to view locations around the world. The explicitly opt-in and fully anonymized data would be provided through cell-phone applications. Residential areas are excluded from the data and no specific device information is shown or can be inferred. The data provides the information of those city blocks where people gather for longer than 15 minutes, excluding drive-by locations, based on the number of devices intersecting at that location.

Nov-2019: Nasdaq’s Quandl announced the launch of the E-Commerce Intelligence (ECI) dataset. The dataset allowed investors to track product-level e-commerce transactions on a near real-time basis. The exclusive dataset follows the day-to-day transactions of 800 brands and 500 companies across more than 350 e-retailers in North America and EMEA, capturing US$15 billion worth of product sales annually.

Oct-2019: Preqin made advancements in its ESG Scoring platform by launching ESG Indicators. The ESG indicators can drive improved transparency and engagement in the private markets. It helps the managers in assessing performance against ESG and financial targets.

Aug-2019: Eagle Alpha unveiled the Alpha Capture, the tool to help buy-side firms identify and prioritize datasets that deliver actionable, alpha-generating data. Alpha Capture was provided to Eagle Alpha’s clients as part of the firm’s Data Sourcing module, which enabled clients to solve problems of dataset discovery, prioritization, and quality screening.

Jul-2019: Thinknum Media introduced Web Wielder, a before-market newsletter. The newsletter covers alternative data and its growing impact on business and markets. This newsletter is published every Monday, pre-market, to get the readers actionable information that guides their day and their week.

Jun-2019: Eagle Alpha announced the launch of the new alternative data solution for private equity due diligence. The solution helped private equity firms to acquire alternative data on a per-company basis instead of an entire dataset and a pay-as-you-go basis over an annual license.

Mar-2019: Black Box launched Black Box AI, a system for automated decision making often based on machine learning over big data. Explainable AI is an essential component of a Human AI, i.e., an AI that expands human experience, instead of replacing it.

Mar-2019: Advan Research released the new US Truck dataset. The dataset measures traffic in factories, storage facilities, and distribution centers of 700 companies. It also provides custom cross-traffic truck analyses, thereby allowing measurements of suppliers and customers of specific companies; these analyses can be performed on any custom locations.

Dec-2018: YipitData is launching a new service, ReadyPipe. The service helped clients in collecting their web data by using YipitData’s internal technology platform. ReadyPipe is an outgrowth of the firm’s internal web scraping technology that has been used over the past few years to identify, collect and database the web data used by their analysts to analyze the 70 companies currently under coverage.

Oct-2018: RavenPack released a query tool called Analytics Search. The tool connects to 20 years of news, social media, and other textual content, with analysis performed in the cloud and in real-time. It can be used for comparative keyword research and to discover event-triggered spikes across billions of articles. Users can measure interest in a particular topic across thousands of global sources, right down to the sentence level.

Sep-2018: Eagle Alpha launched the Eagle Edge platform. The platform was designed for the fundamental analysts to help them easily digging deep into alternative data. Eagle Edge enabled fundamental analysts to work with alternative data without the need for additional data engineering and data science.

Scope of the Study

Market Segmentation:

By Type

• Credit & Debit Card Transactions

• Mobile Type Usage

• Web Traffic & Scraped Data

• Social & Sentiment Data

• Geo-location, Satellite & Weather Data

• Others

By Industry Vertical

• BFSI

• IT & Telecom

• Transportation & Logistics

• Retail & eCommerce

• Energy & Utilities

• Media & Entertainment

• Real Estate & Construction

• Others

By Geography

• North America

o US

o Canada

o Mexico

o Rest of North America

• Europe

o Germany

o UK

o France

o Russia

o Spain

o Italy

o Rest of Europe

• Asia Pacific

o China

o Japan

o India

o South Korea

o Singapore

o Malaysia

o Rest of Asia Pacific

• LAMEA

o Brazil

o Argentina

o UAE

o Saudi Arabia

o South Africa

o Nigeria

o Rest of LAMEA

Companies Profiled

• Nasdaq, Inc. (Quandl, Inc.)

• Advan Research Corporation

• Dataminr, Inc.

• The Earnest Research Company

• Preqin Ltd. (Dynamo Software)

• RevenPack International SL

• Thinknum, Inc.

• YipitData

• 1010Data, Inc.

• Eagle Alpha Ltd.

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