Data Monetization Market Size, Share, Opportunities, And Trends By Offering Type (Solution, Services), By Deployment Model (On-premise, Cloud), By Enterprise Size (Small, Medium, Large), By End-User Industry (Retail, Manufacturing, Automotive, BFSI, Media And Entertainment, Others), And By Geography - Forecasts From 2023 To 2028

The global data monetization market is expected to grow at a compound annual growth rate of 6.82% over the analysed period to reach a market size of US$309.043 billion by 2028 from US$194.752 billion in 2021.

Data monetization is the process in which the data is shared between companies. The rapid adoption of digitization of businesses, rise in enterprise data volume, growing awareness towards the potential benefits of data monetization and huge investments by key players operating in the market are anticipated to drive the market growth.

For instance, ride-hailing companies such as Uber, Lyft, and Ola use location-based analytics to gather information related to their customer’s data that is extracted from pick-up and drop locations. Companies such as Uber and Ola sell this data to other organizations or businesses with the 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.

Growth Drivers of the global data monetization market

The adoption of technologies such as 5G, Edge computing, AI, the Internet of Things, and Machine learning is predicted to boost the volume of data being generated tremendously and is projected to drive market growth. Moreover, rising investments in data centre technology are correlated with market growth. For instance, Vantage has completed its acquisition of Etix to facilitate wholesale data center capacity delivery to help enterprise customers expand in Frankfurt. Google has come into partnership with Poland’s Domestic Cloud Provider (DCP) and announced its plan to open a new cloud region in Poland to accelerate the adoption of cloud computing across Poland. The adoption of 5G continues to surge, and organizations and enterprises across the globe have started adopting 5G technology to improve their business growth.

Rising adoption of cloud computing worldwide

One of the prime reasons supporting the growth of the overall market growth is the increasing adoption of cloud technology worldwide. The government of various countries is making huge efforts to increase the adoption of advanced technologies such as IoT, cloud computing and AI.  For instance, the government of Singapore has launched the Government Commercial Cloud Service that will introduce the innovations and capabilities of commercial cloud computing platforms to less sensitive government systems. Telecom providers in various developed nations are also adopting cloud technology for the growth of their businesses and to provide cloud services to end-users which will further augment the demand for data monetization solutions and services during the forecast period. Additionally, the increasing shift of organizations towards the adoption of digital transformation is expected to drive the adoption of cloud computing services which in turn is anticipated to drive the overall market growth.

Small enterprise is projected to grow significantly.

The growing number of small & micro businesses in major economies coupled with the favourable investment inflows and government policies to elevate small businesses has increased the overall strength of small business establishments. For instance, according to the US Small Business Administration, in 2022, the total number of small businesses in the US stood at 33.2 million which represented a 2.2% increase over 2021’s strength. Furthermore, as per the same source, small enterprises gained 8.7 million job openings in 2022.

Also, in a March 2022 press release, the Minister of State for MSME (Ministry of Micro, Small, and Medium Enterprises) stated that till March 2022, the total number of small enterprises registered on the government’s Udyam portal stood at 3.5 lakhs and 28,864 micro business have flourished into small size business since their registration on the portal.

The data monetization market for the BFSI industry  

Companies in the banking, financial services, and insurance (BFSI) sectors are among the biggest investors and users of data monetization strategies. The industry is very interested in using data to generate income. Credit card companies and retail banks use client transaction data all over the world to better target cross-sell offers. Companies that provide financial services and insurance are increasingly marketing merchant-based incentive programs that make use of bank data and provide clients discounts at the same time.

 The role of automation is another significant trend that is fuelling the expansion of data monetization in the industry. For instance, the First Bank of Nigeria and Io-Tahoe, a US company, worked together in June 2020 to achieve digital transformation in the Oracle environment. The organization was able to immediately see the information, identify new models for monetizing the data, and grant autonomy to the various data units thanks to the new technologies.

The United States in North America is an Expected Dominant Market

In line with the evolving market demands, numerous players are scaling up their operations to meet emerging requirements and offer improved services and solutions. Notable partnerships have emerged in the industry, exemplified by the collaboration between UBDI, a data monetization platform, and AXIA in July 2021. This partnership has empowered AXIA's initiative to democratize money, enabling users to have greater control over their data and explore novel ways to monetize it. By leveraging each other's infrastructure, the alliance aims to develop essential tools for users.

The growth of the market in the USA is primarily attributed to the well-developed economy, rapid digitalization, and advancements in technologies such as IoT, big data, and AI. The adoption of these technologies has fuelled the demand for data monetization services, as businesses strive to leverage their data assets for competitive advantage.

Key Developments

• In 2021, Canada made a significant investment in Artificial Intelligence in its federal budget for 2021 where the country announced that it will invest $185 million to support the commercialization of AI research. The investments are made to support the Pan-Canadian Artificial Intelligence Strategy to $443.8 million over 10 years which is anticipated to have a positive impact on the overall market growth (Source: ITA).
• In June 2020, New York-based YourData Connect launched its new data monetization platform which would enable the enterprises to assess the value of their data assets.
• In In 2022, Cygnet Infotech collaborated with Algorithmic Scale to expand the scope of data monetization, Engineering & AI-enabled ecosystem as well.
• In February 2021, BDEX and InfoSum joined forces to provide an effective identity resolution solution that aligns with privacy regulations. InfoSum's clients gained access to BDEX's extensive identity graph and other data assets, empowering them to generate targeted audiences and derive fresh insights from their first-party data while safeguarding consumer privacy.

Data Monetization Market Scope:

Segmentation:

• By Offering Type
  • Solution
  • Service
• By Deployment Model
  • On-Premise
  • Cloud
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End-User Industry
  • Retail
  • Manufacturing
  • Automotive
  • BFSI
  • Media and Entertainment
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others