News

Alternative Data Market | Major Players are Eagle Alpha Ltd., YipitData, 7Park Data Inc., M Science LLC, App Annie Inc., Talkingdata, Genscape Inc. and others.

According to a new market research report published by Acute Market Reports “Alternative Data Market – Growth, Future Prospects, and Competitive Analysis, 2018 – 2026”, the global alternative data market accounted to hit a 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 a collection, packaging, cleansing, modeling as well as the 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 next few years. In the following years, IM firms are showing positive intention towards using social media, news feeds, online communities, satellite imagery, communication metadata and geospatial information for estimates.

Browse Full Report Originally Published by Acute Market Reports at https://www.acutemarketreports.com/report/alternative-data-market

The lure of alternative data is a large potential for an information advantage over the market pertaining to the investment decisions. 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. The 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.

The overall alternative data market is segmented on the basis of data type and industrial vertical. The 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 the investment process as they provide a 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 the early adoption of alternative data across various industrial verticals. According to Eagle Alpha Ltd. 78% of US hedge funds are using alternative data for investment analysis. The alternative data market is moving towards the end of the early adoption phase. There are numerous firms that are working with alternative data today and the majority of these firms are in the US. However, other regions have started to catch-up at a rapid pace. For instance, there are approximately 40 discretionary firms in the Asia Pacific market that have at least one individual dedicated wing for alternative data.

Eager to get information advantage over competitors is the major driver for the adoption of alternative data across various industrial verticals. To gain information advantage with alternative data, organizations sort through several ideas to find the once that truly support an investment decisions. For continued success as well as to keep an edge on the market, firms are generating unique investment ideas along with alternative data sets with regularity. Even though alternative data is early accepted across the world it may carry a higher risk than conventional data sources, given the content of the data fields and the various ways it is sourced and handled. However, with the user being more sensitive about the accuracy, alternative data expected to witness immense growth rate across the forecast period from 2018 to 2026.

List of Companies Covered: