Product Code: 71513
The global data monetization market (henceforth, referred to as the market studied) was valued at USD 1.68 billion in 2020, and is expected to reach USD 7.47 billion by 2026, registering a CAGR of 22.54%, over the period of 2021-2026 (henceforth, referred to as the forecast period). Because of the COVID-19 pandemic, almost every industry is experiencing volatility, risks, and changes in customers' buying behaviors. To thrive in the post-pandemic world, banks and financial services firms require a data-driven approach to create more value for the business as well as customers. Thus, scope of data monetization in post-pandemic era is bound to increase.
- Data can be monetized directly by selling raw data, or by taking out insights from processed and analyzed data. For instance, big giants like Google monetize data through real-time bidding and continue to optimize their platform's experience by reinvesting data into their platform. Additionally, by analyzing consumer behavior, creating new data-based features such as reviews, suggestions, and personalized content makes more customers come back to the platform.
- Furthermore, continuous rise in the volume of enterprise data, increased focus to generate new revenue streams, and a rise in awareness towards the potential benefits of data monetization are also proliferating the growth of the market. For instance, ride-hailing companies such as Uber, Lyft, and Ola use location-based analytics to gather insight about it's customer's data that is extracted from pick-up and drop-off locations. Uber might sell this data to other businesses with user's permission that can be further used by other companies to provide different vouchers, promotions, or discounts, that encourage consumers to spend money on their products.
- For instance, in June 2020, the National Institutes of Health has launched a centralized, secure enclave as a part of National COVID Cohort Collaborative (N3C) initiative to store and study vast amounts of medical record data from people diagnosed with coronavirus disease and is made available to researchers and healthcare providers which is further used for developing treatments.
- However, new laws such as European Union's GDPR and the California Consumer Privacy Act (CCPA) present challenges in data monetization plans. GDPR has made companies cautious with regard to data security, so for many, the risk of using data for internal and external monetization seems to outweigh the potential benefits.
Key Market Trends
Banking, Financial Services, and Insurance (BFSI) to hold Significant Share for the Future Demand
- Banking, Financial Services, and Insurance (BFSI) companies are some of the major investors and adopters of the data monetization techniques. The industry is highly focused on generating revenue by leveraging data. Across the globe, credit card issuers and retail banks use customer transaction data to enhance the targeting of cross-sell offers. Financial services and insurance companies are increasingly promoting merchant basedreward programs that leverage a bank's data and provide discounts to their customers at the same time.
- Another important trend that is triggering the growth of data monetization in the sector is the role of automation. For instance, in June 2020, US-based Io-Tahoe collaborated with the First Bank of Nigeria to achieve digital transformation in the Oracle environment. The new technologies allowed the company to discover the data in a new way, to quickly see the information, to have new models for monetizing the data, and giving autonomous to the different data units.
- Moreover, a growing number of M2M applications, such as smart meters, video surveillance, healthcare monitoring, transportation, and package or asset tracking, are contributing in a significant way to the growth of devices, connections and data monetization. By 2023, M2M connections will be half or 50 percent of the total devices and connections.
- On the other hand, consumer data has been growing in both structured as well as unstructured formats. The rise of E-commerce and social media has changed consumer buying behavior. Hence, industry players are leveraging this data to improve their business strategies by gaining real-time insights. These insights are generally used to optimize supply chain management, operations, sales, and marketing, etc.
- Furthermore, the continuously evolving artificial intelligence and machine learning technology, along with IoT, has enhanced the capability of big data as the latter depends heavily on the former for success. According to Wipro, IoT monetization is expected to reach USD 542.92 billion by 2023 globally. According to GSMA, the mobile ecosystem revenue will cross nearly USD 3 trillion by 2021. Also, 5G technologies are expected to contribute USD 2.2 trillion to the global economy between 2024 and 2034. According to Ericsson, the data traffic per smartphone will grow to 10 times than its current volume by 2022.
Asia Pacific is Expected to Hold Major Share
- The region is witnessing advanced and dynamic adoption of new technologies. Additionally, the commercialization of AI, big data, and IoT technologies and the need for further advancements to leverage such technologies to the best are likely to drive the adoption of data monetization tools and services in the region.
- According to SAS, 60% of Asia Pacific organizations name customer experience as a key reason to invest in big data. 54% of Asia Pacific organizations invest in big data to achieve product/service innovation.
- Many financial service institution (FSIs) in the region have invaluable and voluminous data which can be monetized and deliver a significant return. Doing data-to-digital allows FSIs to compete digitally and capture digital transformation benefits.
- Additionally, once transformed through data-to-digital, an FSI's data assets might produce significant new external revenue streams. FSI can monetize data by using data and analytics better, producing data-based products, and building platforms of insights and services. China Unicom used blockchain to create a new data monetization revenue stream. The company's objective was to share data with enterprise customers whilst also complying with security and privacy and keeping an eye on the overhead costs and data storage.
- Furthermore, Indian-based Infosys, one of the vendors in the market, has been accredited as a partner with the Google Cloud Platform Partner Program in the data analytics specialization space. The company enables enterprises in the journey of digital transformation by helping them move away from conventional or point solution-led approaches to building industrialized capabilities and monetize data.
- In addition, there have been efforts by the regulatory bodies to improve the quality of financial data in the country. For instance, In May 2020, the China Banking and Insurance Regulatory Commission (CBIRC) launched a new campaign to shore up the quality of financial data after issuing a slew of fines to banks for improper reporting.
The data monetization market is highly fragmented due to the presence of both global players as well as small and medium-sized enterprises. Moreover, data monetization is used in various industries for various purposes providing vendors with growth opportunities. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- April 2021 - Salesforce started using Google Analytics 360 to refine its understanding of digital marketing analytics and website user intelligence metrics. Salesforce, which owns Customer 360 and Einstein AI, is leveraging Google Marketing Analytics and data warehouse BigQuery to modernize its approach to digital analytics and marketing intelligence.
- January 2020 - Cisco introduced an IoT security architecture that provides enhanced visibility across both IT and IoT environments and protects processes. Cisco's new solutions enable the collection and extraction of data from the IoT edge so organizations can increase efficiencies to make better business decisions and accelerate digitization projects.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Assessment of Impact of COVID-19 on Data Monetization Market
- 4.4 Market Drivers
- 4.4.1 Rapid Adoption of Advanced Analytics and Visualization
- 4.4.2 Increasing Volume and Variety of Business Data
- 4.5 Market Restraints
- 4.5.1 Interoperability With Existing Systems
- 4.5.2 The Varying Structure of Regulatory Policies
- 4.6 Market Challenge
- 4.6.1 Increasing Complexities in Data Structures and Availability of Consistent Data
5 MARKET SEGMENTATION
- 5.1 By Organization Size
- 5.1.1 Small and Medium-Sized Enterprises
- 5.1.2 Large Enterprises
- 5.2 By End-user Industry
- 5.2.1 Banking, Financial Services, and Insurance
- 5.2.2 Telecom and IT
- 5.2.3 Manufacturing
- 5.2.4 Healthcare
- 5.2.5 Retail
- 5.2.6 Others (Transportation and Logistics, Energy and Utilities)
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia Pacific
- 5.3.4 Latin America
- 5.3.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Accenture PLC
- 6.1.2 Adastra Corporation
- 6.1.3 Cisco Systems, Inc.
- 6.1.4 Dawex Systems SAS
- 6.1.5 Emu Analytics Ltd.
- 6.1.6 Thales Group
- 6.1.7 Google, Inc.
- 6.1.8 IBM Corporation
- 6.1.9 Infosys Limited
- 6.1.10 Ness Technologies, Inc.
- 6.1.11 NetScout Systems, Inc.
- 6.1.12 Openwave Mobility, Inc.
- 6.1.13 SAP SE
- 6.1.14 SAS Institute
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET