Data Monetization Market - Snapshot

Data monetization is the process of transforming the large unstructured volume of enterprise data into valuable insights for drawing economic value or exchange of service. Data monetization is the use of data assets for generating value to an organization. Monetization can be carried out in two ways: indirectly and directly. The large amount of data generated can be packaged into data products and sold (direct monetization) or processed to extract insights (indirect monetization) and can be used to support business decisions. The data monetization market has been expanding due to the increase in volume of data across a number of industries. Monetization of data has led to realization of the significant financial value, which is held by data in any organization. This has created a niche for data monetization in the global market. The market for data monetization is expected to expand to reach US$ 708.86 Bn by 2025 at a CAGR of 21.4% during the forecast period.

Data monetization is helping organizations to reduce costs or increase revenue by investing in an analytics platform, which converts unstructured data into valuable insights from the real-time data streams. For example, a telecommunication company with large volume of information can either sell the data by converting it into valuable insights or charge a fee for the ability to access and analyze the data.

global data monetization market

The data monetization market is driven by the increase in data volume as well as enhanced capabilities to collect a wide range of data types. Large amount and variety of data is available with companies. Therefore, companies are more focused on utilizing this data in their business processes in order to enhance the processes and identify or estimate future trends. The global data monetization market is anticipated to expand significantly during the forecast period, due to the strong adoption of data monetization by mobile carriers and the BFSI sector. The mobile data traffic increased nearly 40 times from 2008 to 2015. The revenues associated with it tripled during the period. Additionally, many companies are inclined toward the use of data monetization in order to attain enhanced customer experience and expand market reach at a fast pace. Globally, telecom operators are facing competition due to the gradual loss of their core infrastructure revenues. The emergence of Over-The-Top (OTT) services has led to the gradual loss of top line revenues of communication service providers (CSP). Thus, the need for a strong infrastructure setup has grown significantly. However, concerns related to data privacy and ownership are relatively high. This is a major factor affecting the large-scale monetization of big data. The framework for the collection of personal data is fragmented based on national and regional laws & regulations that govern the extent of permissible processing/analysis and transfer to third parties with and without consent.

Rapid advancement in big data and analytics solutions is a key trend boosting market growth. Monetizing utility data is likely to be the next logical step in the evolution of data generated from automation technology in sources such as connected home and smart utility meters. Through the use of smart meter data, utility companies have high possibility of improving operational cost structure, customer experience, and overall performance. For instance, Google’s smart thermostat product, Nest, monetizes the collected data by providing it to utility providers.

The data monetization market has been segmented based on component, method, industry vertical, and application. Based on component, the market can be segmented into platform, software (standalone, suite), and services (professional services and data as a service). In terms of method, the market has been bifurcated into direct monetization and indirect monetization. In terms of industry vertical, the market has been classified into telecom, e-commerce & retail, BFSI (consumer finance/banking, business banking, capital markets, and insurance) healthcare, travel & logistics, and others. Based on application, the marked has been split into sales & marketing, supply chain management, capital asset management, remote equipment monitoring, and others.

From a geographical standpoint, North America is expected to hold major share of the data monetization market. Growth in this region is attributed to the strong adoption and penetration of the data monetization platform, software, and services as well as presence of large number of data providers. Asia Pacific is anticipated to witness lucrative growth due to the rise in adoption of digital services such as over-the-top services, Internet of Things (IoT), cloud, mobility, and artificial intelligence. Furthermore, the data monetization market in Middle East & Africa (MEA) and South America is also estimated to expand significantly during the forecast period.

Rise in awareness about data monetization and increase in adoption of data monetization across Asia Pacific and Middle East & Africa are offering new opportunities for key players operating in the global data monetization market. Tapping into digital data is expected to offer significant opportunities for companies to understand the demand trends to enhance their business, thereby simultaneously providing a new revenue stream by monetizing the data.

Attracted by this fast expanding market, underlying technological advancements, and rising trend for data as a service, many players are developing comprehensive suite of software and services for a number of industries. Various companies across industries are striving to strengthen their foothold in the data monetization market. For instance, in 2017, SAP SE partnered with Vodafone to launch the Internet of Things (IoT) foundation bundle for SAP HANA, with device connectivity management capability from Vodafone. Through this partnership, the company would be able to collect and shift data from the devices into the SAP HANA platform for various uses such as predictive maintenance. However, existing software providers are rapidly increasing their distribution network in order to reach most distant customers. Key players profiled in the data monetization market report include Adastra Group, CellOS Software Ltd, Connectiva Analytics and Insights Ltd., Dawex Systems, Infosys Limited, Mahindra ComViva, Mnubo, Netscout Systems, Inc., Paxata, Inc., Optiva Inc., (Redknee Solutions Inc.), ALC, SAP SE, SQLstream, Inc. and Virtusa Corporation.

Data Monetization Market: Overview

The data monetization market report provides analysis for the period 2015 to 2025, wherein the period from 2017 to 2025 is the forecast and 2016 is the base year. The report covers all the major trends and technologies that play an important role in the market growth. It also highlights drivers, restraints, and opportunities for the analysis of market growth during the said period. The study provides a complete perspective on the evolution of the global data monetization market throughout the forecast period in terms of revenue (US$ Bn).

The market overview section of the report demonstrates market dynamics such as drivers, restraints, and opportunities that influence the current nature and future status of the market, key indicators, integration challenges, end-user adoption analysis, and trends. Furthermore, key market indicators included in the report provide significance of the factors which are capable of changing the market scenario. These indicators are expected to define the market position during the forecast period and provide an overview of the global data monetization market. A market attractiveness analysis has also been provided for every segment in the report in order to provide a thorough understanding of the overall scenario of the data monetization market. The report also provides an overview of various strategies adopted by the key players operating in the market.

Global Data Monetization Market: Scope of Report

Based on component, the report segments the market  into platform, software (standalone and suite), and services (professional service and data as a service). Based on method, the market has been bifurcated into direct monetization and indirect monetization. In terms of industry vertical, the market has been divided into telecom, e-commerce & retail, BFSI (consumer finance/banking, business banking, capital markets, and insurance) healthcare, travel & logistics, and others. Based on application, the market has been split into sales & marketing, supply chain management, capital asset management, remote equipment monitoring, and others. The report provides in-depth segment analysis of the global data monetization market, thereby providing valuable insights at the macro as well as micro levels.

The report also highlights the competitive landscape of the global data monetization market, positioning all the major players according to their presence in different regions of the world and recent key developments initiated by them in the data monetization market. The comprehensive data monetization market estimates are the result of an in-depth secondary research, primary interviews, and in-house expert panel reviews. These market estimates have been analyzed by taking into account the impact of different political, social, economic, and technological factors along with the current market dynamics affecting the data monetization market.

This report provides all the essential information required to understand the key developments in the data monetization market, growth trends of each segment, and region. It also includes companies’ strategies, financial information, SWOT analysis, and developments under the company profile section. Furthermore, the report provides insights related to trends and their impact on the market. Porter’s Five Forces analysis explains the five forces, namely bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and degree of competition. The report also provides the comprehensive ecosystem analysis for the data monetization market. It explains the various participants including software & platform vendors, system integrators, data providers and data marketplaces within the ecosystem of the market.

Global Data Monetization Market: Research Methodology

The research methodology is a perfect combination of primary research, secondary research, and expert panel reviews. Secondary research sources such as annual reports, company websites, broker reports, financial reports, SEC filings and investor presentations, national government documents, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, statistical databases, World Bank database, and industry white papers have been referred.

Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews on the data monetization market across geographies. Primary interviews are usually conducted on an ongoing basis with industry experts and participants in order to obtain the latest market insights and validate the existing data and analysis. Primary interviews offer firsthand information on important factors such as market trends, market size, competitive landscape, growth trends, and outlook. These factors help validate and strengthen secondary research findings. They also help develop the analysis team’s expertise and market understanding. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by an expert panel.

Global Data Monetization Market: Competitive Dynamics

The research study includes profiles of leading companies operating in the global data monetization market. Key players profiled in the data monetization market include Adastra Group, CellOS Software Ltd, Connectiva Analytics and Insights Ltd., Dawex Systems, Infosys Limited, Mahindra ComViva, Mnubo, Netscout Systems, Inc., Paxata, Inc., Optiva Inc., (Redknee Solutions Inc.), ALC, SAP SE, SQLstream, Inc. and Virtusa Corporation.

The global data monetization market is segmented as below:

Global Data Monetization Market, by Component

  • Platform
  • Software
    • Standalone
    • Suite
  • Services
    • Professional Services
    • Data as a Service

Global Data Monetization Market, by Method

  • Indirect Data Monetization
  • Direct Data Monetization

Global Data Monetization Market, by Industry Vertical

  • Telecom
  • E-Commerce & Retail
  • BFSI
    • Consumer
    • Finance/Banking
    • Business Banking
    • Capital Markets
  • Insurance
  • Healthcare
  • Travel & Logistics
  • Others (Media & Entertainment)

Global Data Monetization Market, by Application

  • Sales & Marketing
  • Supply Chain Management
  • Capital Asset Management
  • Remote Equipment Monitoring
  • Others (Workforce Management)

Global Data Monetization Market, by Geography

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific (APAC)
    • India
    • China
    • Japan
    • Rest of APAC
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of MEA
  • South America
    • Brazil
    • Rest of South America
.