Arizton is pleased to announce its latest report, the alternative data market - global outlook & forecast 2024-2029, shedding light on the dynamic and rapidly evolving industry. The comprehensive report unveils valuable market trends, growth opportunities, and the competitive landscape of the business. With in-depth analysis and meticulous research, this report serves as a strategic guide for industry players, investors, and decision-makers, offering a comprehensive understanding of the current alternative data industry dynamics and future prospects.   

Browse 87 market data Tables and 70 Figures spread through 289 Pages and in-depth TOC on the alternative data market by type (credit & debit card transactions, email receipts, geo-location records, mobile application usage, satellite & weather data, and other data types), industry (BFSI, automotive, retail, energy, real estate & construction, industrial, and other industries), end-user (hedge fund operators, retail companies, investment institutions, and other end-users), geography: North America, Europe, APAC, Latin America, and Middle East & Africa – Global Outlook & Forecast 2024-2029 

Arizton estimated the global alternative data market size was valued at USD 6.27 billion in 2023 and is expected to reach USD 79.22 billion by 2029, growing at a CAGR of 52.61% during the forecast period.  

To Know More, Click: https://www.arizton.com/market-reports/alternative-data-market 

The alternative data industry is experiencing unprecedented growth as organizations increasingly recognize the value of non-traditional data sources. With businesses moving beyond reliance on structured and historical datasets, alternative data—encompassing satellite imagery, social media interactions, web-crawled data, and IoT sensor data—is reshaping the landscape of data-driven decision-making. 

This diverse market spans a variety of industries, including finance, retail, media & entertainment, transportation & logistics, and real estate. The shift towards alternative data is largely driven by the demand for more accurate, real-time insights and enhanced predictive capabilities, which traditional data sources often fail to provide. 

As businesses continue to recognize the strategic importance of alternative data, the market is expected to evolve rapidly, offering new opportunities for organizations to enhance their decision-making capabilities. Companies that harness these innovative data sources will be better positioned to navigate dynamic market environments and achieve sustainable growth. 

Global Alternative Data Industry: Driven by Demand in North America, Europe, and APAC 

The global alternative data industry is experiencing significant growth, primarily driven by demand in North America, Europe, and the Asia-Pacific (APAC) region. North America currently holds the largest market share, a testament to its early adoption of advanced data analytics and the concentration of financial institutions and hedge funds that actively leverage alternative data for investment strategies. 

The market's expansion in North America is fueled by robust regulatory frameworks and the availability of diverse data sources. This growth is particularly evident in the financial services and retail sectors, where data-driven decision-making has become essential for maintaining competitive advantages. 

Europe closely follows, characterized by a growing awareness of the value of alternative data in investment management and business strategy optimization. The region benefits from high levels of digitalization, increased integration of artificial intelligence, and strong regulatory support for data usage, especially within financial markets. Furthermore, the emphasis on sustainability and Environmental, Social, and Governance (ESG) data is playing a pivotal role in shaping the region’s alternative data landscape. 

The APAC region is also witnessing rapid growth in the alternative data industry, driven by the rise of fintech companies and increasing digital transformation across various industries. The surge in e-commerce, mobile payment systems, and expanding financial services is propelling the adoption of alternative data in APAC. Countries such as China and India are particularly notable for generating large volumes of unstructured data through online platforms, social media, and mobile transactions. As businesses in this region seek to harness the power of alternative data, they are well-positioned to improve decision-making and maintain competitive advantages in dynamic markets. 

As the global alternative data market evolves, organizations across North America, Europe, and APAC are poised to leverage innovative data sources for enhanced insights and strategic decision-making. 

The Growing Importance of Mobile Application Usage Creating Market Expansion 

The global alternative data industry derived from mobile application usage is projected to reach $12 billion by 2029.  

Mobile application usage data has become a significant resource in the realm of alternative data, offering businesses valuable insights into consumer behavior and company performance. As internet users rapidly shift from traditional platforms like desktop computers to mobile devices, app usage data has emerged as a crucial tool for analyzing user interactions, preferences, and trends. The availability of this data provides a comprehensive view of how consumers engage with mobile apps, making it an essential element for decision-makers across various industries. 

The Landscape of Mobile Apps 

The sheer volume of apps available on mobile platforms underscores the importance of this data. Recent statistics reveal there are just under 3 million apps on the Google Play Store and almost 2 million apps on Apple’s App Store. With consumers spending 90% of their mobile time on apps, as reported by Consumer Insights, app usage data has become one of the most popular categories of alternative data. The data generated by these apps—including metrics such as daily and monthly active users (DAU/MAU), customer retention rates, and churn rates—offers companies a clear view of an app's popularity and longevity in the market. 

Key Performance Metrics 

Key performance metrics derived from app data are particularly useful for assessing the health and success of an application. Metrics like customer stickiness, which reflects how often users return to the app, and retention rates, which measure how long users remain engaged, provide clear indicators of consumer loyalty. Companies can gauge the effectiveness of their mobile strategy by analyzing these metrics, revealing whether their user base is growing or declining over time. 

Other performance indicators, such as lifetime value (LTV) and average revenue per user (ARPU), offer deeper insights into an app’s financial success. LTV estimates the total revenue a business can expect from a single customer throughout their relationship with the app, while ARPU reflects the average revenue generated per user over a specified period. These metrics enable companies to better understand their revenue streams and evaluate the effectiveness of their monetization strategies. Marketing acquisition metrics—tracking the effectiveness of campaigns in acquiring new users—and behavior flow rate—showing how users navigate different sections of an app—further contribute to an in-depth analysis of both user behavior and app performance. 

Mobile Internet Traffic in the U.S. 

In the U.S., mobile devices account for 43.09% of total web traffic, with apps representing 70% of digital media usage. A typical smartphone user downloads and engages with ten applications daily and 30 apps monthly. This significant reliance on mobile applications is reflected in the alternative data market, where users frequently interact with apps to collect, analyze, and interpret non-traditional data sources. Mobile apps are thus pivotal in driving real-time data usage in this market, including social media activity, location data, and financial transactions. 

Navigating Privacy Concerns 

Despite the clear benefits of mobile app usage data, growing concerns surrounding data privacy and protection have emerged. As reliance on mobile apps to collect detailed user data increases, issues of transparency and consent have come to the forefront. Notable developments, such as Apple’s iOS 14.5 update—which introduced new privacy features requiring apps to obtain user permission before tracking data across websites and other apps—have raised questions about how companies gather and utilize app data. 

As privacy concerns continue to rise, companies must navigate the complexities of collecting mobile app data responsibly. Striking a balance between leveraging this valuable data for business insights while respecting user privacy will be a key challenge moving forward. The regulatory landscape surrounding data privacy, including laws like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), is likely to evolve, further shaping how companies collect and utilize mobile app usage data. 

Market Competition and Strategies by Market Players  

The alternative data industry is highly fragmented, featuring a mix of established players and a growing number of specialized providers. Larger companies dominate by offering diverse data sources and advanced analytics platforms that cater to various industries, including finance, retail, and real estate. These players often pursue inorganic growth strategies, such as mergers and acquisitions, to expand their data offerings and geographic reach. Their technological advantages and data integration capabilities allow them to deliver comprehensive and actionable insights, while their scalability helps mitigate the costs associated with acquiring and processing large datasets. 

On the other hand, smaller and niche providers focus on customization and specific data types, addressing specialized use cases or industries. These players differentiate themselves by offering unique datasets or innovative data collection methods, such as satellite imagery, social media sentiment, or foot traffic data. Competition in this space is driven by the quality, accuracy, and relevance of data, as well as pricing flexibility, with smaller providers often offering customized data packages tailored to client needs. 

The market is experiencing increased demand from hedge funds, investment firms, and corporations seeking competitive insights and better decision-making tools. This demand has led to a surge of new entrants, particularly in the APAC region, where advancements in AI and machine learning are enhancing the collection and processing of alternative data. In North America and Europe, regulatory compliance related to data privacy and usage has become a key differentiator, with companies investing heavily in secure and compliant data infrastructure. 

Consolidation is also a significant trend in the market, with acquisitions occurring frequently as companies seek to acquire proprietary datasets or technological capabilities. This trend is expected to continue, with larger players focusing on strengthening their data portfolios. The evolving regulatory landscape, especially with laws like GDPR and CCPA, will be crucial in shaping the competitive environment. Companies with strong compliance mechanisms and transparent data practices will have an advantage, while smaller players may struggle to scale their operations to meet regulatory demands. 

Key competitive factors in the alternative data industry include data accuracy, breadth of data coverage, ease of integration, compliance with privacy regulations, and the ability to provide actionable insights through advanced analytics and AI-driven tools. 

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