Artificial Intelligence
Data Monetization Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)
New York, Nov. 17, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Data Monetization Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www.reportlinker.com/p06363563/?utm_source=GNW
Thus, the scope of data monetization in the post-pandemic era is bound to increase.
Key Highlights
In the current technological scenario, independent software vendors have turned to self-service business intelligence to increase application revenue and differentiate their offerings. Similarly, for enterprises developing applications, self-service BI can contribute to application ROI by increasing adoption and improving operational efficiencies.
Data monetization is gaining interest as companies become more interested in discovering the value in their otherwise underutilized data. Monetizing data requires time, energy, and investment and combining business and technical experts with complementary skills.
Data can be monetized directly by selling raw data or 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, new data-based features such as reviews, suggestions, and personalized content make more customers return to the forum.
Moreover, data marketplaces are playing a crucial role in achieving external data monetization. With data marketplaces, buyers can purchase datasets to enhance their analytics and offer new services to their customers while sellers monetize their data. A data marketplace is a platform where users buy or sell different data sets and data streams from several sources. Data marketplaces are mostly cloud services where individuals or businesses upload data to the cloud. Those platforms enable self-service data access while ensuring both parties’ security, consistency, and high data quality.
Furthermore, a continuous rise in the volume of enterprise data increased the focus on generating new revenue streams. A rise in awareness of the potential benefits of data monetization is also expanding the market’s growth. For instance, ride-hailing companies such as Uber, Lyft, and Ola use location-based analytics to gather insight into their customer’s data that is extracted from pick-up and drop-off locations. Uber might sell this data to other businesses with the user’s permission that other companies can use to provide different vouchers, promotions, or discounts, encouraging consumers to spend money on their products.
However, laws such as European Union’s GDPR and the California Consumer Privacy Act (CCPA) present challenges to data monetization plans. GDPR has made companies cautious concerning 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 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 cross-selling offer targeting. Financial services and insurance companies are increasingly promoting merchant-based reward programs that leverage a bank’s data and simultaneously provide discounts to their customers.
Another important trend triggering the growth of data monetization in the sector is the role of automation. For instance, in September 2022, Cygnet Infotech, a Digital Engineering Services provider, partnered with Algorithmic Scale, a service provider in data commercialization and monetization for Nordic businesses. With this partnership, the companies aim to collaborate in the areas of Data Engineering and AI-enabled accelerators.
On the other hand, consumer data has been growing in structured and unstructured formats. The rise of E-commerce and social media has changed consumer buying behavior. Hence, industry players leverage this data to improve their business strategies by gaining real-time insights. These insights are generally used to optimize supply chain management, operations, sales, 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. Also, the rise of global cloud deployment in the BFSI industry is driven by a shift in preference toward the cloud, an increase in digital disruptions, and technological advances such as the integration of edge computing, the internet of things (IoT), and artificial intelligence.
However, the COVID-19 pandemic caused a surge in cloud deployment in the BFSI market, owing to increased demand for greater computing power among banks and the fintech sector. The rise in cloud deployment in BFSI will further drive the need for Data Monetization.
Asia Pacific is Expected to Hold Major Share
The region is witnessing the 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 institutions (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 monetizing 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.
Competitive Landscape
The data monetization market is highly fragmented due to the presence of both global players and small and medium-sized enterprises. Moreover, data monetization is used in various industries to provide 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.
September 2022 – Evergent, customer management and monetization provider for streaming and digital subscription businesses announced a partnership with XroadMedia, specialists in building innovative and ground-breaking content discovery and personalization solutions. This partnership is aimed at the joint development of solutions to deliver enhanced results for customer relationship management (CRM) and monetization.
February 2022 – MarkiTech.AI, an AI development company in healthcare and technology, implemented its unique data monetization platform SIGNIA in early 2022 as a proof of concept for one of the largest ICT providers in North America. This platform enables enterprises to bring their solutions, services, and technology products to the developer and the software community in a fully self-service-friendly manner.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06363563/?utm_source=GNW
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