The global data monetization market size is expected to reach USD 7.34 billion by 2027, registering a CAGR of 24.1% from 2020 to 2027, according to a study conducted by Grand View Research, Inc. Data monetization is a strategy used by several organizations to increase their revenue. It is the process of utilizing data to obtain quantifiable economic benefits. There are two types of data monetization techniques, direct data monetization, and indirect data monetization.
There are several types of data monetization methods wherein organizations use data to discover new customers and business opportunities. These data monetization methods are data as a service, insight as a service, analytics-enabled platform as service, and embedded analytics. The analytics-enabled platform as a service method is anticipated to witness significant growth as it provides real-time access to data on the cloud along with consistent triggers/alerts.
Data monetization is expected to be a catalyst for several brands as it enables them towards becoming a pioneer in data-driven principles. It creates new revenue streams for organizations. Additionally, it also promotes companies to reduce operating costs and overall general expenses and enables them to take adequate actions in improving their sales. Several end-use industries have leveraged the benefits of data monetization, and many more are moving towards data monetization.
For instance, data monetization offers geofencing and geotargeting in the retail and tourism industries. For the healthcare sector, government, and advertisement agencies, it ensures density planning and traffic flow. Similarly, it provides fraud detection for credit card companies and financial institutes. It offers smart targeting, Internet of Things (IoT), click-stream insights for digital and brand advertisers, and several other companies. Such factors are anticipated to power market growth over the forecast period.
However, factors such as data security and privacy, rising complexities in data structures, and varying regulatory policies are anticipated to hinder the market growth over the forecast period. Nevertheless, data monetization is capable of identifying and mitigating risk, improving compliance, streamlining planning and decision making, and creating a competitive advantage in the market. It has significantly shadowed market hindering factors and has enabled organizations to take adequate measures.
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Further key findings from the study suggest:
- SMEs are anticipated to expand at a CAGR of over 30% from 2020 to 2027. Rising demand for BI has significantly impacted the adoption of data monetization amongst SMEs
- The insight as a service segment is anticipated to expand at a CAGR of over 20% from 2020 to 2027. This is attributable to the ability of the method to combine external and internal data sources and use analytics to provide insights to customers
- The manufacturing segment was valued at over USD 200.0 million in 2019 and is expected to exceed USD 1,300.0 million by 2027, expanding at a CAGR of over 24% from 2020 to 2027. This is attributed to the rising usage of data monetization in the automotive industry
- For instance, in the automotive industry, data monetization ensures several benefits, such as tracking in case of real-time diagnostics and predictive maintenance. Technological advancements and increased digitalization resulted in easy tracking of vehicle performance. The implementation of IoT, telematics, and automation is also expected to increase the market demand in the industry