Home Technology Data Monetization Market Size, Share, Forecast Report 2031

Data Monetization Market

Data Monetization Market Size, Share & Trends Analysis Report By Organization Size (Large Enterprises, SMEs), By Method (Data as a Service, Insight as a Service, Analytics-enabled platform as a Service, Embedded Analytics), By Vertical Type (BFSI, E-commerce and Retail, Telecommunications and IT, Manufacturing, Healthcare, Energy and Utilities) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, -

Report Code: SRTE55833DR
Study Period 2020- CAGR 25.1%
Historical Period 2020-2022 Forecast Period -
Base Year 2023 Base Year Market Size
Forecast Year Forecast Year Market Size
Largest Market North America Fastest Growing Market Europe

Market Overview

The global data monetization market size was valued at USD 2.4 billion in 2022. It is estimated to reach USD 18.6 billion by 2031, growing at a CAGR of 25.1% during the forecast period (2023–2031). The growth of the market is driven by the increasing volume and variety of data generated by various sources, like social media, IoT devices, cloud computing, mobile applications, and e-commerce platforms. With this vast amount of data generated, there is also a growing concern regarding data privacy and security, owing to the rising number of data breaches occurring worldwide, thereby driving global data monetization market growth.

Data monetization refers to deriving financial gain or value from data assets. Data assets encompass unprocessed, consolidated, or inferred data that organizations acquire, store, examine, or disseminate. Data monetization can be achieved through diverse methods, including the sale of data to external entities, the development of data-based products or services, the enrichment of existing offerings with data, or the mitigation of costs or risks through data utilization. Data monetization can be categorized into direct and indirect approaches. Direct data monetization refers to trading data for monetary compensation, whereas indirect data monetization entails utilizing data to enhance business performance or customer satisfaction.

Market Dynamics

Global Data Monetization Market Drivers:

Growing Data Generation

The market is expanding because of the increasing volume and diversity of data from multiple sources. As per the Cisco Annual Internet Report, 2018-2023, it is estimated that by 2023, around two-thirds of the global population will be able to connect to the Internet. There will be an estimated 5.3 billion internet users worldwide by that year, representing 66% of the total population. This is an increase from 3.9 billion users in 2018, which accounts for 51% of the total. This is expected to result in a higher amount of data generated, indicating a positive trend in the market for data monetization.

Furthermore, the proliferation of e-commerce and social media has transformed customers' purchasing behaviors. The scope of consumer data has been increasing in both structured and unstructured formats. Hence, industry participants utilize this information to enhance their business plans by acquiring up-to-the-minute insights. These insights improve the efficiency of marketing, sales, operations, and supply chain management. Google LLC's advertising income in 2020 amounted to USD 146.92 billion, reflecting a growth of 8.98% from the previous year and suggesting an upward trend in advertising. The proliferation of data in terms of its diversity, amount, and velocity has increased data monetization, thus fueling market growth.

Growing Need for Data Security and Privacy

Data security and privacy encompass the precautions to safeguard data from unauthorized entry, utilization, disclosure, alteration, or eradication. Data security and privacy are crucial for data monetization since data assets possess significant value and sensitivity, making them susceptible to various potential risks, including cyberattacks, data breaches, data theft, data loss, and data assault. IBM's analysis reveals that the worldwide average expense of a data breach in 2023 amounted to USD 4.45 million, marking a 15% surge compared to the previous three years.

According to the research, 51% of firms want to augment their security spending following a breach. This includes enhancing incident response (IR) planning and testing, providing employee training, and acquiring threat detection and response solutions. The surging demand for data security and privacy is propelling the market, as companies can securely and compliantly monetize their data while leveraging it to improve their data security and privacy capabilities. Organizations can use data to identify and preempt cyberattacks, promptly discover and address data breaches, employ encryption and anonymization techniques for data protection, and establish data governance and compliance standards.

Global Data Monetization Market Restraint:

Lack of Data Quality and Standardization

Data quality and standardization encompass the actions implemented to guarantee the accuracy, comprehensiveness, consistency, reliability, and relevance of data for their intended use. Ensuring high-quality and standardized data is essential for data monetization, as data assets serve as both the basis and the result of this process. However, numerous businesses encounter difficulties in guaranteeing the quality and uniformity of their data, primarily as a result of variables such as data silos, data fragmentation, data duplication, data inconsistency, data incompleteness, data inaccuracy, or data irrelevance.

Based on a survey from Experian, U.S. firms have an average perception that 32 percent of their data is erroneous, a 28 percent rise compared to last year's 25 percent. The absence of data quality and standards is impeding the market for data monetization, as it negatively impacts the worth and usability of data while also raising the expenses and intricacy of data monetization.

Global Data Monetization Market Opportunities:

Strategic Initiatives by Key Players

The major players in this market are engaged in strategic efforts such as mergers and acquisitions, expansions, collaborations, and product launches to augment their market dominance. For instance, in February 2023, Snowflake enhanced its Data Cloud functionalities to cater to the telecom industry by introducing the Telecom Data Cloud before the Mobile World Congress Barcelona 2023. The program aims to assist telecommunications companies in generating revenue from data and improving their operational efficiency.

Additionally, in September 2023, Gulp Data, a company that offers loans based on data, and Eagle Alpha, a company that provides alternative data solutions, formed a cooperation to increase opportunities for businesses to profit from their data and obtain quick finance without dilution. The partnership will facilitate the recognition of data as a real asset on the balance sheets of small and medium-sized firms and larger corporations. Providing access to knowledge and safe data platforms will enable these companies to utilize the value of their datasets. These activities create opportunities for the expansion of the market.

Regional Analysis

Based on region, the global data monetization market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global data monetization market shareholder and is expected to expand substantially during the forecast period. The data monetization market share is dominated by North America, primarily because of the substantial amount and diversity of data produced by the expansion of several sources, including social media, IoT devices, cloud computing, mobile applications, and e-commerce platforms. Statista predicts that the eCommerce market in North America will experience robust growth, with an average annual revenue increase of 14% from 2022 to 2026. This growth is expected to propel the sector over the significant milestone of USD 1 trillion in eCommerce revenues by 2023. North America exhibits a notable prevalence of data analytics and business intelligence technologies, facilitating data processing, analysis, and visualization, hence generating valuable insights and benefits for businesses.

Moreover, the North American region is experiencing a rise in the frequency of data breaches. The average number of breaches in the US has been trending upward in recent years, according to data from the Identity Theft Resource Center (ITRC). The United States had a rise in the amount of data breaches, with the count increasing from 1,506 breaches in 2017 to 1,826 breaches in 2021. According to the 2022 Cost of Data Breach Report issued by IBM, Canada ranked third in terms of the highest average total cost of data breaches. In 2021, the country's average cost of data breaches was USD 5.40 million, which is an increase from USD 4.50 million in 2020. The rising incidence of data breaches across different sectors is anticipated to expedite the demand for data monetization in the forecast period.

Europe plays a crucial role in the global market, as it strongly needs data-driven innovation and competitiveness across many industries and sectors, including BFSI, retail, telecom, healthcare, and manufacturing. Europe possesses a robust regulatory and legal structure for data monetization, exemplified by the General Data Protection Regulation (GDPR) and the Digital Single Market Strategy. These initiatives are designed to safeguard the rights and interests of individuals, data providers, and data users while promoting the unrestricted movement and fair utilization of data throughout the region.

Furthermore, market participants are engaged in various strategic initiatives to augment their market share. For instance, in July 2023, Yandex, a prominent European technology company, initiated the testing phase of a novel advertisement placement solution for Telegram conversations. Yandex Advertising Network is utilized by more than 350,000 advertisers, resulting in an amazing average of 4.5 billion ad placements daily. Yandex provides extensive advertising solutions in 50 countries across the globe. Utilizing its vast expertise, Yandex has successfully merged its efficient advertising platform with Telegram, a widely-used messaging application, enabling channel owners to generate revenue from their content. These factors enhance the expansion of the regional market.

Report Scope

Report Metric Details
Segmentations
By Organization Size
  1. Large Enterprises
  2. SMEs
By Method
  1. Data as a Service
  2. Insight as a Service
  3. Analytics-enabled platform as a Service
  4. Embedded Analytics
By Vertical Type
  1. BFSI
  2. E-commerce and Retail
  3. Telecommunications and IT
  4. Manufacturing
  5. Healthcare
  6. Energy and Utilities
Company Profiles Accenture Cisco Systems, Inc. IBM Corporation Infosys Limited SAP SE Reltio Comviva Thales Group (Gemalto N.V) Adstra Dawex Systems
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global data monetization market is segmented by organization size, method, and vertical type.

Based on organization size, the global data monetization market is classified into large enterprises and SMEs.

The large enterprises segment owns the highest market share. A large enterprise, sometimes called a large corporation or company, is a business entity that functions considerably, usually with a sizable number of employees, enormous financial assets, and a widespread market influence. Large enterprises can utilize data monetization tactics to earn income, streamline operations, and obtain a competitive advantage. Data monetization can enhance decision-making processes for large enterprises by using data-driven insights.

Utilizing business intelligence and analytics solutions facilitates making well-informed decisions across multiple departments, including marketing, sales, finance, and operations. Large enterprises frequently handle significant volumes of data subject to diverse regulatory requirements. Monetizing the provision of compliance and governance services, which guarantee data privacy and security, can be achieved by offering these services to other organizations.

Based on the method, the global data monetization market is bifurcated into Data as a Service, Insight as a Service, Analytics-enabled platform as a Service, and Embedded Analytics.

The Analytics-enabled platform as a Service segment dominates the global market. An Analytics-enabled Platform as a Service is a cloud computing service offering a platform specifically designed for creating, implementing, and overseeing analytics applications and solutions. It integrates the functionalities of Platform as a Service (PaaS) with sophisticated analytics tools and services, enabling enterprises to develop, operate, and expand data analytics applications without the challenges of overseeing the underlying infrastructure. Analytics-enabled PaaS can incorporate effortless connection with many data sources, such as databases, data warehouses, and external APIs, to streamline the gathering and manipulation of data.

Analytics-enabled Platform as a Service (PaaS) products aim to expedite the development process, minimize the burden of managing infrastructure, and enable enterprises to extract valuable insights from their data by offering a comprehensive analytics development and deployment environment. These platforms are especially advantageous for firms seeking to leverage analytics without significant investments in infrastructure and specialist expertise.

Based on vertical type, the global data monetization market is bifurcated into BFSI, E-commerce and retail, telecommunications and IT, manufacturing, healthcare, energy, and utilities.

The BFSI segment dominates the global market. BFSI, or banking, financial services and insurance industry, handles a range of financial products and services as well as financial transactions. BFSI firms can examine client data to understand preferences, behavior, and requirements. The provided data can be utilized to develop precise marketing strategies, enhancing consumer involvement and boosting the probability of promoting or selling supplementary financial goods.

Moreover, BFSI firms can detect fraudulent actions by analyzing data and identifying patterns. Preventive measures can be implemented to deter fraud by analyzing transaction data and customer behavior. By doing so, not only does it safeguard the firm and its clients, but it also strengthens the overall confidence in the financial system.

Market Size By Organization Size

Recent Developments

  • December 2023- Dappier is launching its covert to provide media brands and marketplaces with branded AI conversation experiences, beginning with the industry-leading web3 data intelligence platform EdgeIn. Dappier is creating new avenues for marketers to sell data access through marketplaces, directories, and media publishers in response to the increasing use of LLM-driven natural language.
  • January 2024- GAMURS Group, a prominent gaming, esports, and entertainment publisher, announced a collaboration with ArcSpan Technologies. The purpose of this relationship is to utilize the ArcSpan AMS platform, which specializes in monetizing audience data for publishers.

Top Key Players

Data Monetization Market Share of Key Players

Accenture Cisco Systems, Inc. IBM Corporation Infosys Limited SAP SE Reltio Comviva Thales Group (Gemalto N.V) Adstra Dawex Systems

Frequently Asked Questions (FAQs)

How big is the Data Monetization Market?
The global data monetization market size was valued at USD 2.4 billion in 2022. It is estimated to reach USD 18.6 billion by 2031, growing at a CAGR of 25.1% during the forecast period (2023–2031).
North America has the highest growth in the global market.
Key verticals adopting the market include: Accenture, Cisco Systems, Inc., IBM Corporation, Infosys Limited, SAP SE, Reltio, Comviva, Thales Group (Gemalto N.V), Adstra, and Dawex Systems, among others.
Growing Data Generation and Growing Need for Data Security and Privacy
The BFSI segment dominates the global market.


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