The global data monetization market is expected to grow at a compound annual growth rate of 6.02% over the analyzed period to reach a market size of US$278.234 billion in 2026 from US$184.778 billion in 2019. Data Monetization is a form of monetization that refers to the art of generating measurable economic benefits from the available data sources.
Data monetization can be segmented into two parts- direct data monetization and indirect data monetization. Direct data monetization selling the raw data or insights directly to the third-party organization. An example, sharing the contact list of customers including credentials such as name and mobile number to a third party to generate revenue. Indirect data monetization involves data optimization, analysis, insights, prediction, and forecasting to save cost, avoid risk, and enable a streamlined operation.
Moreover, indirect data encourage data-driven business models and strategies. This facilitates discovering new business opportunities, enhancing the existing ones. Further, internal data monetization gives a competitive edge to a company over in the market. While external data monetization enables an organization to gain extra revenue over its core operations.
Growing internet penetration accompanied by surging cloud computing will significantly drive the market data monetization.
The key developer of the market of data monetization is rising internet penetration around the globe, clubbed with the growing use of cloud computing. Internet connectivity is becoming the prime source for institutions to gather information in an economic and time convenient way. It enables to gather reviews, feedbacks, complaints, opinions, and experiences of consumers for better business operations. Moreover, faster and speedier connectivity enables editing and analysis. Further, rising cloud computing has a huge potential for the data monetization market. Especially in the small and medium enterprises (SMEs) that are growing adoption of cloud computing. As per a report by the World Bank, 17% of global SMEs use public platforms for cloud computing, while 11% of global SMEs use private cloud services.
The number is growing as SMEs receive support from governments around the World. In India, for instance, the government launched a set of programs such as the Credit Guarantee Fund scheme, Mini tool rooms, and training centers, Market Development assistance scheme, and credit linked capital subsidy fund scheme to support and promote the operation of SMEs. The training scheme facilitates knowledge and implementation of modern technology, such as cloud computing, for better business operations. Combined, these factors are anticipated to boost the market.
Rising privacy concerns, regulations, and demand for a private life may constrain the market.
Rising privacy and data concerns may constrain the market. The prime reason for growing privacy concerns is surging consumer awareness and rising episodes of cybercrime that result in huge personal and economic loss. Previously, consumers were unable to fully grasp the quantity of personal data that was being collected by the companies. However, consumers today are more cautious and knowledgeable about the data being collected. Moreover, third-party data service provided by a firm concerns the consumers as their credentials are been shared without their permission or knowledge. This may result in unwanted advertisements or disturbance by the third party, intending to sell their product. This may also result in data bleaching and fraud, bringing financial strain on the consumers.
And not just consumers, governments around the world are also concerned as collected data is prone to theft and robbery, severely affecting the individuals and economy. Moreover, cyberattack episodes, such as that on Starwood hotels, where hackers stole the financial information of 500 million people, financially constraining 325 million of them, raise government attention and interference in the industry. The European Union established General Data Protection Regulation (GDPR), putting power in the hands of the consumers. GDPR highly regulates data monetization and collection undertaken by the companies and implement guiding rules and regulations. One such regulation is that the company needs to state clearly the data it will be collecting and that information shouldn’t deep be hidden in terms and conditions, but separately written and highlighted. Such regulations may constrain the market as they limit and hinder operations.
The North American region holds a significant market during the forecasted period.
Based on geography, the market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific regions. The North American region is anticipated to hold a dominating position in the market due to its state-of-the-art infrastructure and technological advancement. The Asia Pacific region is also forecasted to grow at a significant growth rate. Rising internet connectivity along with growing cloud computing and small and medium enterprises are the prime drivers of the market.
Covid pandemic and Data Monetization industry.
The coronavirus pandemic had a positive impact on the Data Monetization industry. Nationwide lockdown and a physical shutdown resulted in economies going online, increasing the use of the internet and computers. Operations such as online education, online shopping, online working space, and others, increased the quantity of information available, boosting the market. Moreover, the pandemic surged the use of cloud computing, hence increasing the market base.
|The market size value in 2019||US$184.778 billion|
|The market size value in 2026||US$278.234 billion|
|Growth Rate||CAGR of 6.02% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Offering, Deployment Model, End-User Industry, Enterprise Size, and Geography|
|Regions covered||North America, South America, Europe, Middle East, and Africa, Asia Pacific|
|Companies covered||1010data, Accenture, Adastra, Adstra, Dawex Systems, Elevondata, EMU Analytics, Gemalto NV, Infosys, Monetize, IBM, Google, SAP, SAS|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What are the growth prospects for data monetization market?
A1. The data monetization market is expected to grow at a CAGR of 6.02% during the forecast period.
Q2. What will be the data monetization market size by 2026?
A2. The global data monetization market is expected to reach a market size of US$278.234 billion by 2026.
Q3. What is the size of global data monetization market?
A3. Data Monetization market was valued at US$184.778 billion in 2019.
Q4. Which region holds the maximum market share in the data monetization market?
A4. The North American region is anticipated to hold a dominating position in the data monetization market owing to its state of art infrastructure and technological advancement.
Q5. What factors are anticipated to drive the data monetization market growth?
A5. Growing internet penetration accompanied by surging cloud computing will significantly drive the data monetization market.