Alternative Data Market: Trends, Growth, and Industry Insights (2025

Alternative Data Market Outlook

The global alternative data market size reached an estimated value of USD 6.31 billion in 2024 and is projected to experience exceptional growth at a CAGR of 40.20% during the forecast period from 2025 to 2034. By 2034, the market is anticipated to reach a staggering USD 185.14 billion. This unprecedented growth is driven by the growing demand for real-time and non-traditional data sources that provide deeper insights for decision-making in finance, retail, and other sectors.

As traditional data sources become saturated, organisations are turning to alternative data to gain a competitive edge. This includes data harvested from unconventional sources such as social media sentiment, satellite imagery, mobile apps, and transaction-level data. Investors, in particular, use this data to predict stock performance, understand market sentiment, and identify emerging trends earlier than conventional models.

The increasing use of AI and machine learning models to process large datasets further accelerates the value of alternative data. Moreover, the rising digital footprint of individuals and businesses globally contributes to the vast data pool that can be analysed for insights.

Alternative Data Market Trends

Surge in Demand from Financial Institutions

Hedge funds and investment firms are leading adopters of alternative data, leveraging it to detect market signals, improve trading strategies, and evaluate investment opportunities. High-frequency and algorithmic trading models rely heavily on non-traditional data inputs.

Growing Role of AI and Big Data Analytics

Advanced analytics tools powered by artificial intelligence and machine learning are essential in extracting meaningful patterns from complex and high-volume alternative datasets. These tools help turn raw data into actionable intelligence.

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Proliferation of Mobile and Web Data Sources

With widespread use of smartphones and online platforms, data from app usage, web traffic, and e-commerce activity is readily available. This trend continues to feed alternative data pipelines across industries.

Emphasis on Real-Time Data for Decision-Making

Organisations are increasingly seeking real-time or near-real-time data to respond quickly to changing market conditions. Alternative data sources like geo-location and credit card transactions offer fast and granular insights.

Integration of ESG and Sentiment Data

Environmental, social, and governance (ESG) analysis is becoming crucial in investment decisions. Social sentiment data, particularly from online forums and social media, is now used to assess public perception and potential reputational risks.

Alternative Data Market Growth

The alternative data market’s explosive growth is underpinned by its ability to offer predictive power and early signals that traditional datasets often fail to capture. Businesses and financial institutions are investing heavily in data infrastructure, analytics platforms, and third-party data providers to capitalise on these insights.

Startups and data aggregators are also entering the space, offering niche datasets tailored to specific industries such as real estate, retail, or logistics. This diversity of offerings continues to expand the applicability of alternative data across different sectors.

The rise in global digital transformation, increased internet penetration, and growing e-commerce activities provide constant streams of usable data. At the same time, regulatory clarity and ethical data sourcing practices are being refined to address privacy and compliance concerns, ensuring responsible growth.

With advancements in data processing capabilities and the democratisation of data access, even smaller firms can leverage alternative data, widening the market’s reach and encouraging innovation across industries.

Alternative Data Market Segmentation

By Data Type

Credit & Debit Card Transactions: Offer insights into consumer spending patterns and retail trends. Commonly used by hedge funds and retailers to gauge business performance.
Email Receipts: Provide transactional details and purchasing behaviour, particularly useful for e-commerce and retail analytics.
Geo-location (Foot Traffic) Records: Help track movement patterns and predict retail store performance, tourist footfall, and transport usage.
Mobile Application Usage: Offers valuable behavioural insights from app engagement, downloads, and in-app purchases. Popular in advertising and product development analysis.
Satellite & Weather Data: Used in agriculture, real estate, and supply chain logistics to assess environmental conditions and disruptions.
Social & Sentiment Data: Derived from social media platforms, reviews, and news sources. Used for brand analysis, market forecasting, and investor sentiment tracking.
Web Scraped Data: Extracted from websites, forums, or marketplaces to gather competitor intelligence, product pricing, and consumer feedback.
Web Traffic: Measures online behaviour and digital campaign effectiveness. A key metric in advertising, e-commerce, and financial analysis.
Others: Includes biometric data, wearable device data, and proprietary datasets used for niche applications.

By Industry

Automotive: Alternative data is used to analyse production levels, dealership activity, and consumer preferences for new vehicles.
BFSI: The largest user of alternative data, particularly in investment analysis, fraud detection, and credit scoring enhancements.
Energy: Energy consumption trends, satellite data on plant activity, and weather forecasts are used to monitor production and demand.
Industrial: Supply chain tracking, logistics activity, and factory output are assessed using satellite images and transport data.
IT and Telecommunication: Utilises web traffic and app usage data for network optimisation, customer experience, and digital marketing insights.
Media and Entertainment: Social sentiment and streaming analytics are used to evaluate audience engagement and content performance.
Real Estate and Construction: Geo-location and satellite imagery offer real-time updates on property developments and market trends.
Retail: One of the fastest-growing segments, using transaction data, foot traffic, and sentiment analysis to optimise inventory, pricing, and marketing.
Transportation and Logistics: Real-time tracking and weather data are used to manage route efficiency, demand forecasting, and performance.
Others: Includes agriculture, education, tourism, and legal sectors, all of which use alternative data for strategic planning and forecasting.

By End Use

Hedge Fund Operators: Early adopters of alternative data, using it to enhance market predictions, build models, and develop trading strategies.
Investment Institutions: Banks and asset management firms use alternative data to assess market risks, uncover investment opportunities, and drive portfolio performance.
Retail Companies: Retailers rely on foot traffic, sales data, and customer sentiment to make informed decisions on product launches, marketing, and location planning.
Others: Includes consultants, academics, and government agencies utilising alternative data for research, public policy, and economic analysis.

By Region

North America: The largest market, led by the U.S., which is home to major hedge funds, financial institutions, and tech firms actively using alternative data.
Europe: Rapidly adopting alternative data for finance and commercial applications, with increasing emphasis on data privacy and compliance.
Asia Pacific: A fast-growing region due to expanding internet usage, e-commerce boom, and interest from regional investment firms in countries like China, India, and Japan.
Latin America: An emerging market where retail and finance sectors are beginning to explore the use of mobile data and social insights.
Middle East and Africa: Gaining momentum with investments in smart city projects, fintech, and the digital economy, creating a demand for data-driven decision-making.

Market Key Players

Dataminr, Inc.: Specialises in real-time event detection using social media and public data for security, finance, and corporate clients.
1010data, Inc.: Offers analytics and alternative data insights for retail, financial, and CPG sectors, with robust data integration capabilities.
Advan Research Corporation: Known for its location-based analytics using mobile data to track foot traffic, used by investors and real estate firms.
M Science LLC: A pioneer in data-driven research and analytics, providing actionable insights to institutional investors and corporations.
Preqin Ltd: Offers alternative data related to private equity, venture capital, and real assets, aiding investment decision-making.
Eagle Alpha Limited: Connects clients with hundreds of alternative data providers, offering discovery, onboarding, and integration support.
RavenPack International S.L.U.: A leader in sentiment and news analytics, serving hedge funds, banks, and asset managers with AI-powered tools.
Thinknum Alternative Data: Aggregates data from web sources such as job listings, social media, and corporate websites for financial analysis.
UBS AG: One of the few global banks integrating alternative data into research and portfolio strategies for its institutional clients.
Yipit LLC: Provides structured consumer data from email receipts and transactional insights to track market trends in e-commerce.
Earnest Analytics: Focuses on data from credit card transactions and consumer panels to provide actionable intelligence for retail and healthcare.
Others: Includes various startups and data providers offering specialised or regional datasets, contributing to the dynamic nature of this high-growth market.