Data monetization is a process of sharing data between companies. It is the process of using data to generate revenue or create revenue-generating streams. There are two types of data monetization i.e. direct and indirect monetization. Direct monetization is the process of selling raw data. In this process, companies can generate revenue by selling data directly to other companies or third parties. Direct monetization means selling companies' analysis, bartering, or trading data and creating one or more application programming interface (API). In indirect monetization, companies are analyzing their own data to create insights that will improve their business performance. Indirect monetization helps companies to improve efficiency, reduce cost, develop new products and services, and discover new customer types and business categories among others.
The global data monetization market is expected to witness significant growth during the forecast period (2020–2027) due to an increase in large volumes of data and low cost of data storage. Data is used by many companies to improve and increase sales. Increasing digital technologies is expected to generate a huge amount of data and drive demand for data monetization. Digital technologies are used by companies to collect huge amounts of data such as consumer demographics, product preferred, and sales performance. The 5G technologies will be adopted in the near future and generate large volume of data that can be used to get meaningful insights. Moreover, a large volume of data creates many business opportunities. For instance, Microsoft launched new Azure data share service for its customers to easily share data with their partners and business customers. Every organization can collect and leverage information due to the rising demand for internet of things (IoT) and other connected devices. According to Coherent Market Insights analysis, moving of data across international borders increased global GDP by US$ 2.9 trillion in 2014. Furthermore, the cheapest cost of data storage adds value and encourages an organization to adopt data monetization tools in future. In order to deal with a large amount of data, companies are adopting data monetization techniques and fueling market growth during the forecast period.
The major factor restraining growth of the global data monetization market is the varying structure of regulatory policies. There is a need to share accurate and collaborated data details with employees in order to generate valuable insights. New policies are implemented by regulatory bodies and all the organization have to follow these regulation and policies. This process is time consuming and authorities must be aware of changed policies For instance, the General Data Protection Regulation (GDPR) is approved by the European Union parliament that has replaced Directive 95/46/EC. After the implementation of GDPR, organizations have to constantly change their data monetization tools to keep up with changing policies. This is expected to hinder the growth of the data monetization market during the forecast period.
Data Monetization Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic is expected to slow down the growth of the market during the forecast period. Due to the pandemic, several industries have witnessed significant shift in their businesses thereby impacting the growth of the data monetization market. Government agencies are leveraging the COVID-19 tracker dashboard available from IBM Corporation, Microsoft, covidvisualizer.com, and others to contain the spread of the COVID-19 pandemic. The increasing demand for media and entertainment is also creating demand for streaming services. For instance, Netflix reached 16.2 billion subscribers during the pandemic. However, network slowdown and analytics strategies are not able to handle increased traffic and create challenges for data streaming companies to monetize this data.
Data Monetization Market Report Coverage
|Base Year:||2019||Market Size in 2019:||US$ 2.4 Bn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||24.9%||2027 Value Projection:||US$ 12.3 Bn|
Cisco Systems Inc. (US), Google, Inc., Microsoft, Inc., IBM Corporation, Microsoft, Salesforce.com, inc., Oracle, Infosys Limited, SAP, SAS Institute Inc., Sisense Inc., QlikTech International AB, Domo, Inc., Virtusa Corporation, Accenture, Reltio, Openwave Mobility Inc., Thales Group, Adastra Corporation, Ness Technologies, Inc., NetScout Systems, Inc., Paxata, Inc. and others
|Restraints & Challenges:||
North America is expected to hold dominant position in the global data monetization market during the forecast period
North America held a dominant position in the global data monetization market in 2019, accounting for 41.2% share in terms of value, followed by Asia Pacific and Europe.
Figure 1: Global Data Monetization Market Share (%), By Region, 2019
North America is expected to account for the largest market share during the forecast period owing to the presence of key players in the region such as Salesforce.com, Inc., Microsoft, IBM Corporation, and Oracle. For instance, in November 2019, Oracle launched cloud native deployment option for Billing and Revenue Management (BRM). The BRM deployment option provides modern solutions to market leaders to quickly monetize 5G, IoT services and future digital models. This cloud native tool helps business organizations to design, test and deploy new services. Organizations can optimize their operations by managing business growth by taking advantage of public and private cloud infrastructure.
Asia Pacific is expected to exhibit highest growth during the forecast period owing to the increasing adoption of big data technologies, artificial intelligence (AI) and IoT technologies in this region. Major economies such as China, Japan, India, Australia, and Singapore are expected to drive high growth of the market in Asia Pacific. For instance, in September 2018, Infosys Limited, an Indian multinational company that provides consulting and outsourcing services announced a partnership with Google Cloud, a platform provided by Google, Inc. Through this partnership, Google Cloud will provide solutions and services to Infosys on Google Cloud Platform (GCP) to digitalize the data supply chain such as Analytics Workbench and will deliver end-to-end services of data supply chain on GCP. These solution help businesses modernize their IT infrastructure and move to Cloud and use their insights to increase digital journey and business growth.
The large enterprises segment is expected to drive the market growth during the forecast period.
On the basis of organization size, the large enterprises segment is expected to hold dominant position in the global data monetization market during the forecast period. Large enterprises consist of large corporate networks and can generate large revenue streams. Hence, large volume of data is generated by large enterprises and these organization prefer to implement monetization services on-premise. The on-premise deployment type can help organizations increase profits and maintain confidentiality of data. For instance, Salesforce.com, Inc., an American software company, launched Salesforce data studio, a data sharing platform that is designed to connect data owners with buyers and create new marketing opportunities to securely monetize their data assets and empower data owners to directly provide their data to buyers.
Figure 2: Global Data Monetization Market Value (US$ Bn) Analysis and Forecast, 2017 - 2027
The global data monetization market was valued at US$ 2.4 Bn in 2019 and is expected to reach US$ 12.3 Bn by 2027 at a CAGR of 21.9% between 2020 and 2027.
Major players operating in the global data monetization market are Cisco Systems Inc. (US), Google, Inc., Microsoft, Inc., IBM Corporation, Microsoft, Salesforce.com, inc., Oracle, Infosys Limited, SAP, SAS Institute Inc., Sisense Inc., QlikTech International AB, Domo, Inc., Virtusa Corporation, Accenture, Reltio, Openwave Mobility Inc., Thales Group, Adastra Corporation, Ness Technologies, Inc., NetScout Systems, Inc., Paxata, Inc. and others.
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