LONDON, Feb. 26, 2025 /PRNewswire/ -- How big is the alternative data market for investment management use cases? A new report from data scouting platform Neudata suggests it might be as large as $15.4 billion in 2025 - and could potentially reach nearly $40 billion by 2030. The report is available to download here > [https://info.neudata.co/how-big-is-the-alternative-data-market-for-investment-managers]
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Neudata - a provider of market intelligence to data buyers and sellers - has estimated the investment management industry spent a minimum of $2.5 billion on buying alternative datasets in 2024.
The report analysed data from Neudata's proprietary research catalogue, which includes information on nearly 8,000 unique datasets that are being sold to the investment management vertical.
Key findings from the report include:
-- The alternative data market is growing. Since 2020, spending from
investment management clients has grown at an average rate of 21% per
year, but the rate of growth is picking up - in 2024, the market
spending growth increased by 33%.
-- Web-scraped and transactional datasets are dominating budgets. The two
popular dataset types account for nearly 30% of total market spend.
However, spending on datasets with global applicability is increasing
faster than any other region.
-- The average dataset generates $1.1 million per year, but a proportion of
elite datasets earn over $20 million annually from investment clients
alone.
-- The investment management industry spent a minimum of $2.5 billion on
alternative data in 2024, but the market's true spend last year could
have been as high as $12.7 billion after considering adjustments to
Neudata's methodology.
The report also makes some predictions about how the alternative data market will continue to evolve over the next five years, including:
1. Expanding buyer demand: 95% of data buyers expect their budgets to grow
this year, Neudata found in its September 2024 Future of Alternative Data
[https://info.neudata.co/the-future-of-alternative-data-industry-report]
report
[https://info.neudata.co/the-future-of-alternative-data-industry-report],
and firms new to alternative data could drive further market expansion.
2. Regulatory uncertainty: Tighter privacy laws and increased scrutiny from
the US Securities and Exchange Commission and global regulators could
reshape the market.
3. AI's double-edged impact: AI could both enhance data value and reduce
reliance on third-party vendors as investment firms build their own
datasets.
4. Market size projections: If current trends continue, Neudata estimates
the size of the alternative data market in 2030 could range from $8.6
billion to $39.9 billion.
"The battle for dominance in the alternative data space is heating up, and the decisions made by investors, regulators and vendors in the coming years will shape its trajectory," said Rado Lipu , CEO and founder of Neudata. "One thing is clear: alternative data is no longer a niche market - it's a multi-billion-dollar industry poised for even greater disruption."
About Neudata
The authoritative source for global data intelligence.
Neudata provides actionable, unbiased market intelligence to buyers and sellers of market and alternative data.
Combining human-powered data scouting services and a cutting-edge technology platform, Neudata's data expertise provides time - and money-saving insights for clients across the expanding data ecosystem.
Media Contact:
Sondra Campanelli
Head of News and Marketing
press@neudata.co [mailto:press@neudata.co]
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