For many companies in the post-pandemic period, data monetization has been a strategic method to leverage the data held in their systems to promote innovation and increase revenue sources. Data monetization is the practice of exploiting company-generated data to generate demonstrable advantages, which can range from selling it to third parties to using it within to enhance processes and develop new service offers.

With the worldwide data monetization market valued at $3.38 billion in 2022 and expected to reach $10.41 billion by 2028, the demand for data monetization is only increasing as more businesses realize the true worth of their data. Let’s take a closer look at the current condition of the data monetization market and what trends may develop over the next few years.

The data monetization market represents the total global demand for monetized data across industries, verticals, and countries. Every day, emerging technologies such as edge computing, IoT, 5G networking, AI, machine learning (ML), and blockchain generate vast amounts of data all over the world.

When the COVID-19 epidemic disrupted global markets in 2020, several businesses were compelled to pivot and modify their business models to cope. Organizations all over the world had to make quick and significant adjustments to their operations to stay up with operational constraints and changing customer behavior.

The quickest and easiest approach to handle these difficulties was to tap into their data, using analytics and business intelligence tools to accelerate flexible, reactive solutions. The need for data increased dramatically in 2020, and the data monetization market has grown since then.

What is an Example of Data Monetization?

Some examples of data monetization include selling data to licensed third parties, using data internally to drive product and service innovation, and exchanging data with partners. Data monetization can be separated into internal and external data monetization. 

Internal data monetization is the process of harnessing data internally to improve operational efficiencies and generate additional revenue. External data monetization is about creating products or services based on the data that you offer to other businesses or third parties. 

Internal data monetization examples

• Data-driven innovation of products and services.
• Using analytics tools to identify opportunities for cost-savings, market trends, and mitigate risks.
• Improving the customer experience by analyzing data collected via AI and NLP processes. 

External data monetization examples

• Creating benchmarking or forecasting reports.
• Creating subscription services to data and analytics.
• Selling or licensing data to third parties.
• Exchanging data with existing partners.

The data monetization market was valued at a total of $3.38 billion in 2022 and is expected to reach $10.41 billion by 2028, with a CAGR of 19.98%. The market is segmented and measured according to component, deployment type, industry verticals, enterprise size, and region:

• Component – relates to whether the data monetization is software or service-based.
• Deployment type – on-premises or cloud-based monetization of data.
• Industry verticals – divided into the categories of BFSI, IT and telecommunications, retail and e-commerce, healthcare, manufacturing, media and entertainment, and more.
• Enterprise size – organizations that drive the global data monetization market size are large enterprises and SMEs. 

Region – the market is evaluated across Europe, North America, Asia-Pacific, and LAMEA.

Global Market Trends in Data Monetization

Large enterprises accounted for the largest revenue share in 2022, with 67.6% of total revenue generated. This is likely because larger enterprises adopt new and emerging technologies more rapidly than small to medium enterprises. Large enterprises also tend to have a greater global customer base compared to SMEs. 

This doesn’t mean that SMEs should be overlooked, however. The SME segment is expected to grow at a CAGR of 29.3% during the forecast period. A key challenge faced by SMEs is resource shortages for implementation processes. Cloud-based data monetization tools can play a vital role here in reducing operational costs and making it easier for SMEs to compete with larger enterprises through better data management.

Vertical Statistics

In terms of verticals, BFSI produced the largest revenue share of 20.9% in 2022. It’s also predicted to grow at the fastest CAGR out of all the verticals, with an estimated 27% CAGR over the forecast period. This is largely due to the enormous volumes of data being collected from users’ financial habits, purchasing histories, product sales, and preferences. 

Read Also: Monetizing IoT Data: Opportunities and Challenges

The IT and telecommunications sector is projected to experience significant growth, with an estimated CAGR of 26.6% thanks to the increased adoption of cloud computing and the popularity of big data analytics. This makes it easier for IT and telecommunications businesses to collect, store, and monetize their data based on real-time, continuous data updates. 

Regional Statistics

Examining regional performance, North America accounted for the largest share of revenue generated in 2022, with a total of 32.9%. The increasing utilization of IoT devices and cloud-based applications is largely responsible for this, along with the surge of data being generated from these technologies. Additionally, U.S.-based and Canadian companies comprise a large number of North American enterprises, working with greater data volumes compared to other regions. 

North America

North America continues to lead the data monetization market, driven by technological advancements and a high adoption rate of data-driven strategies. The U.S. market, in particular, is seeing significant growth due to the increasing demand for private data and analytics by emerging industries. The region’s robust infrastructure and investment in AI and machine learning are key factors propelling this growth.

Europe

Europe is not far behind, with a strong emphasis on data privacy and regulatory compliance. The General Data Protection Regulation (GDPR) has set a high standard for data handling, which has, in turn, boosted consumer trust. This regulatory landscape is fostering a more secure and transparent data monetization environment. Companies are increasingly focusing on creating value through data while ensuring compliance with stringent regulations.

Asia Pacific

The Asia Pacific region is experiencing rapid growth in data monetization, fueled by the digital transformation of economies like China and India. The market is projected to expand significantly, driven by the increasing adoption of IoT and 5G technologies. The region’s diverse and large consumer base offers a plethora of opportunities for businesses to monetize data effectively.

Emerging Technologies Shaping Data Monetization

Internet of Things (IoT)

The Internet of Things (IoT) is revolutionizing data monetization by connecting everyday devices to the internet, enabling them to collect and share data. This vast network of interconnected devices generates a massive amount of data that businesses can leverage to gain valuable insights and create new revenue streams. IoT’s ability to provide real-time data is particularly beneficial for industries like healthcare, manufacturing, and retail, where timely information can lead to significant improvements in efficiency and customer satisfaction.

Edge Computing

Edge computing brings data processing closer to the source of data generation, reducing latency and improving response times. This technology is crucial for applications that require real-time processing and analysis, such as autonomous vehicles and smart cities. By processing data at the edge, businesses can make quicker decisions and offer more personalized services to their customers. Edge computing also helps in reducing the bandwidth required to transfer data to centralized cloud servers, making it a cost-effective solution for data monetization.

5G Networks

The rollout of 5G networks is set to transform data monetization by providing faster and more reliable internet connections. With 5G, the volume of data that can be transmitted and processed will increase exponentially, opening up new possibilities for data-driven applications and services. Industries such as entertainment, gaming, and telecommunication are expected to benefit significantly from 5G’s high-speed connectivity. The enhanced capabilities of 5G networks will enable businesses to offer innovative solutions and improve customer experiences, driving further growth in data monetization.

Data generation in the healthcare sector has skyrocketed thanks to the widespread adoption of digitalization. Patient data, medical histories, and healthcare records or electronic health records (EHRs) are increasingly moving into the cloud across private and public healthcare clinics and facilities. 

Also, smart devices like smartwatches and other wearables have become increasingly common, boosting daily volumes of data being collected. Digitalization in healthcare has made it possible to monetize data while simultaneously improving the quality of clinical care being delivered to patients. 

The adoption of IoT devices and technology, as well as data analytics within healthcare, will generate even more data beyond 2023. Healthcare organizations can monetize these analytics as a revenue generator. 

Future Predictions for Data Monetization

Revenue Projections

The future of the global data monetization market looks promising with opportunities in various sectors such as BFSI, e-commerce & retail, telecommunications & IT, manufacturing, healthcare, and energy & utility markets. The global data monetization market is expected to grow with a CAGR of 25.8% from 2024 to 2030. This growth is driven by rising data volumes, data-driven decisions, and the growing awareness of data monetization potential.

Technological Advancements

Technological advancements will play a crucial role in shaping the future of data monetization. Innovations in AI, machine learning, and blockchain are expected to enhance the efficiency and security of data transactions. The question is no longer, “are we tracking this data?” but rather, how can we leverage it to generate revenue?

Market Expansion

The expansion of external data sources and the proliferation of data-driven strategies will lead to significant market growth. Companies are increasingly recognizing the value of their data assets and are investing in analytics-enabled platforms to maximize their returns. The market is set to expand across various regions, with North America, Europe, and Asia Pacific leading the charge.

Asia-Pacific’s market growth

Asia-Pacific is expected to be the fastest-growing regional market over the forecast period thanks to its rapid adoption of AI, IoT, and big data analytics. The commercialization of these technologies and the need for further leveraging of them in response to evolving market and customer needs will propel widespread demand for and adoption of data monetization tools across the region. 

The Asia-Pacific region has the largest consumer base in the world, with high numbers of smartphone users and other handheld devices, making it an area ripe for a rapid spread of data monetization. Enterprises in Asia and the Pacific with access to data have the potential to generate significant revenue from mobile device advertising, in particular. 

Data monetization offers significant benefits for businesses seeking to optimize internal workflows, explore new revenue streams, and enhance their operations.

By partnering with a data agency, you gain access to high-quality zero-party data directly from users. This data can fuel innovation and enable the development of new products and services, providing you with a competitive advantage and boosting profitability.

Conclusion

As we look ahead, the future of data monetization is full of promising and exciting options. With the market expected to develop dramatically, organizations across industries are preparing to unlock new revenue streams and improve their offers through creative data tactics. The rise of AI, machine learning, and blockchain technology will surely shape this landscape, increasing the value and security of data like never before. So, whether you’re a giant corporation or a little business, now is the time to use the power of your data and watch it work wonders for you. The adventure of data monetization is only beginning, and the opportunities are limitless.

Data monetization is gaining traction due to the rising volumes of data, increased awareness of its value, and the proliferation of external data sources. Companies are realizing the potential of data to create new revenue streams and enhance decision-making.

Future trends in data monetization include the rise of AI and machine learning, increased adoption of Data as a Service (DaaS), and the use of blockchain for secure data transactions. The market is expected to grow significantly, with new technologies and business models emerging.