The global alternative data market accounted to hit value of US$ 226.50 Mn in 2017 and expected to witness immense CAGR across the forecast period through 2018 to 2026.
Market Insights
Alternative data is the collection, packaging, cleaning, modelling and distribution of large structured and unstructured data sources to improve investment returns and build predictive insights. Alternative data set to transform the face of investment management (IM) over the coming years. In the following years, IM companies have shown positive intention to use social media, news feeds, online communities, satellite imagery, communication metadata and geospatial information for estimations. The lure of alternative data is largely potential for an information advantage over the market pertaining to investment decision. Such data is gathered from speeches, news stories, television press releases, websites, presentations, web traffic, Internet of Things (IoT) sensors, proprietary databases and government sets. Various industrial verticals are capitalizing on alternative data through advanced analytical techniques such as machine learning and cognitive computing. Adoption of alternative data is primarily driven by the development of sophisticated programs that rapidly analyze financial news, corporate interviews and social media sentiments. IBM stated 90% of alternative data available today has been created over the last two years.
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Overall alternative data market is segmented on the basis of data type and industrial vertical. Alternative data market is primarily commanded by the web data segment due to rising demand for such sources of data from both the sell side and by asset managers including hedge funds. These datasets integrate into investment process as they provide greater volume of data and information compared to traditional datasets. Financial firms are aiming to minimize potential legal cost as well as headline risk associated with web crawling. North America was the largest market for alternative data in 2017 closely followed by Europe, primarily due to early adoption of alternative data across various industrial verticals. 78 % of US hedge funds use alternative data for investment analysis, according to Eagle Alpha Ltd. The alternative data market is moving towards the end of the early phase of adoption. Today, there are many companies that work with alternative data, and most of these companies are in the US. Other regions, however, have begun to catch up at a rapid pace. In the Asia Pacific market, for example, there are approximately 40 discretionary companies that have at least one individual dedicated wing for alternative data.
The main driver for the adoption of alternative data across various industrial verticals is the eagerness to gain information advantage over competitors. To gain information advantage with alternative data, organisations are sorting out a number of ideas to find the one that really supports investment decisions. For continued success and to maintain a market edge, firms generate unique investment ideas along with alternative data sets on a regular basis. Although alternative data is early accepted throughout the world, it may be at higher risk than conventional data sources, given the content of the data fields and the different ways in which it is sourced and handled. However, with user being more sensitive about accuracy, alternative data expected to witness immense growth rate across the forecast period from 2018 to 2026.
“Web Scrapping Data Segment to Cement its Dominance in Alternative Data Market”
Web scrapping segment represented lion share in overall alternative data market value generated worldwide. Web scrapping data is frequently used to track e-commerce activities, public commentary, press releases, changes in corporate websites and government filings. Increasing competition across alternative data providers, demand for improved quality of data and rising outsourcing of web scrapping in order to effectively use of resources expected to surge the demand for web scrapping data. However, organizations utilizing web scrapping are constrained by associated compliance risk due to ever-growing regulations associated with practice aiming private data security. However, steady growth of web scrapping data is credited to practice of financial firms to calculate potential risks as well as the legal costs associated with web scrapping.
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ToC:
1. Preface
1.1. Report Scope and Description
1.1.1. Study Purpose
1.1.2. Target Audience
1.1.3. USP and Key Offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1. Phase I – Secondary Research
1.3.2. Phase II – Primary Research
1.3.3. Approach Adopted
1.3.4. Top-Down Approach
1.3.5. Bottom-Up Approach
1.3.6. Phase III – Expert Panel Review
1.3.7. Assumptions
1.4. Market Segmentation
2. Executive Summary
2.1. Global AD Market Snapshot, 2017 & 2026
2.2. Global AD Market, by Data Type, 2017 (US$ Mn)
2.3. Global AD Market, by Industrial Vertical, 2017 (US$ Mn)
2.4. Global AD Market, by Geography, 2017 (US$ Mn)
3. Market Dynamics
3.1. Overview
3.1.1. Global AD Market Value, 2016 – 2026 (US$ Mn)
3.2. Market Inclination Insights
3.3. Market Dynamics
3.3.1. Market Drivers
3.3.2. Market Restraint
3.4. Attractive Investment Proposition, by Geography, 2017
3.5. Market Positioning of Key Alternative Data Providers, 2017
3.5.1. Major Strategies Adopted by Leading Companies
4. Global Alternative Data (AD) Market, by Data Type, 2016 – 2026 (US$ Mn)
4.1. Overview
4.2. Sentiment Data
4.3. Geo-location Data
4.4. Credit/Debit Card Data
4.5. Satellite Data
4.6. Email Receipts
4.7. Web Scrapping
4.8. Web Traffic
4.9. Others
5. Global Alternative Data (AD) Market, by Industrial Vertical, 2016 – 2026 (US$ Mn)
5.1. Overview
5.2. Automotive
5.3. Retail Market
5.4. Energy
5.5. IT & Telecommunications
5.6. Transportation & Logistics
5.7. Others
6. North America Alternative Data (AD) Market Analysis, 2016 – 2026 (US$ Mn)
6.1. Overview
6.2. North America AD Market Value, 2016 – 2026 (US$ Mn)
6.3. North America AD Market, by Data Type, 2016 – 2026 (US$ Mn)
6.4. North America AD Market, by Industrial Vertical, 2016 – 2026 (US$ Mn)
6.5. North America AD Market, by Country/Region, 2016 – 2026 (US$ Mn)
6.5.1. U.S.
6.5.1.1. U.S. AD Market, by Data Type, 2016 – 2026 (US$ Mn)
6.5.1.2. U.S. AD Market, by Industrial Vertical, 2016 – 2026 (US$ Mn)
6.5.2. Rest of North America
6.5.2.1. Rest of North America AD Market, by Data Type, 2016 – 2026 (US$ Mn)
6.5.2.2. Rest of North America AD Market, by Industrial Vertical, 2016 – 2026 (US$ Mn)
7. Europe Alternative Data (AD) Market Analysis, 2016 – 2026 (US$ Mn)
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8. Asia Pacific Alternative Data (AD) Market Analysis, 2016 – 2026 (US$ Mn)
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9. Rest of the World Alternative Data (AD) Market Analysis, 2016 – 2026 (US$ Mn)
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10. Company Profiles
10.1. Eagle Alpha Ltd.
10.2. YipitData
10.3. 7Park Data, Inc.
10.4. M Science LLC
10.5. App Annie Inc.
10.6. Talkingdata
10.7. The NPD Group, Inc.
10.8. 1010Data, Inc
10.9. Genscape, Inc.
10.10. JWN Energy
10.11. Geotab
10.12. JumpShot
10.13. SimilarWeb
10.14. Quandl Inc.
10.15. Convergence Inc.
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