Digital Assets Report


Like this article?

Sign up to our free newsletter

Hedge fund demand to drive growth in alternative market data sector

Related Topics

Rising demand from hedge funds is expected to propel the growth of the alternative data market in the coming years, according to a new report from Research & Markets, with the market expected to grow to $18.94 billion in 2027 at a CAGR of 41.4%. 

The global alternative data market grew from $3.23 billion in 2022 to $4.74 billion in 2023 at a compound annual growth rate (CAGR) of 46.7%. 

According to study in 2020, jointly published by AIMA and SS&C, which quizzed nearly 100 hedge fund managers globally, out of which approximately 25% of those surveyed are considered “market leaders” – hedge fund managers who have been using alternative data for more than five years – and over two-thirds (69%) of these market leaders are using alternative data to generate outperformance.

Moreover, in next one to five years, 61% of market leaders and 82% of the rest of the market expect alternative data to become increasingly popular among hedge funds. 

The launch of next-generation platforms has emerged as a key trend in the alternative data market. Major companies operating in the alternative data sector are focusing on introducing next-generation platforms to deliver new and timely insights to researchers, analysts, and businesses.

For instance, in October 2020, ESG Data Services Inc, a Canada-based alternative data provider launched the next generation AI-powered ESG data, research, and analytics platform-ESG Analytics. ESG Analytics is an API and web-based solution that uses artificial intelligence (AI) and broad-based alternative data sources to uncover opportunities and risks in social, environmental, and governance practices of companies, ETFs, and countries.

Like this article? Sign up to our free newsletter

Most Popular

Further Reading