The Rise of Alternative Data: What Investors Can Learn from Exabel’s 2025 Report
The investing landscape is undergoing a profound shift as alternative data transforms from niche intelligence into an indispensable asset. Exabel’s newly released 2025 research report, developed in collaboration with BattleFin and based on a survey of 130 fundamental portfolio managers and analysts managing approximately $820 billion in assets, delivers a compelling window into this transformation.
Why alternative data matters now
A decisive 98% of respondents agreed that “traditional data/official figures are becoming too slow in reflecting changes in economic activity”—underscoring the pressing need for real-time insights. As global markets move quickly, waiting for quarterly filings or headline economic data can mean missing critical inflection points. Alternative data bridges that gap.
Key findings from institutional investors
75% of surveyed investment managers believe consumer spending datasets will deliver an “outsized informational edge” in the near future.
86% expect their use of alternative data to increase over the next two years, with geolocation and consumer spending data singled out for particularly rapid growth.
79% described the biggest challenge with alternative data as combining datasets from different sources.
85% plan to use more third-party software to help manage and integrate alt data over the next five years.
What this means for investors
1. Speed equals alpha
Alternative data delivers faster signals than traditional sources. With techniques such as real-time credit and debit transaction flows, web traffic, or foot-traffic monitoring, investors can see emerging trends—and react—well before earnings or macro data is published.
2. Data diversity builds resilience
Relying on a single dataset leaves portfolios vulnerable. The survey highlights how combining consumer spending, geolocation, sentiment, and employment data builds a more rounded, robust understanding of market conditions.
3. Integration is key
With nearly four in five citing data integration as their top obstacle, it’s clear that success depends on tools that harmonize diverse datasets, align them to business metrics, and enable seamless workflows across teams.
4. Platforms and partnerships power scaling
Eighty-five percent anticipate increased reliance on third-party platforms—like Exabel itself—to simplify onboarding, analysis, and insight extraction from alternative data.
Industry-wide momentum
Exabel and BattleFin’s findings echo broader market trends: the global alternative data market is projected to grow from $11.6 billion in 2025 to over $19 billion by 2030—a compound annual growth rate of 10.8%—fueled by interest in credit/debit transactions, geolocation, email receipts, satellite, and sentiment data.
Financial technology analysts underscore that alt data is now mainstream:
“Alternative data is no longer a niche tool for hedge funds—it has gone mainstream...”
Another commentator added:
“Alternative data is now mainstream. Adoption ... is accelerating, and those who hesitate risk being left behind.”
How investors and quants extract value
Reddit users and professional quants note that alternative data requires more than access—it requires skill:
“Often, data sources are one of the guarded parts in the research pipeline for this very reason too ... The problem with alt data is that ... it becomes significantly less valuable when everyone has the data and trades on it immediately.”
“The most logical approach to alternative data is … build up an explainable model that predicts where a KPI is going to go.”
These comments highlight that real advantage comes from clever integration, thoughtful modeling, and maintaining alpha through proprietary processing.
What readers should do next
Explore the full Exabel report to dive deep into survey results, graphs, and strategic insight.
Evaluate your use of alternative data—what datasets are already in play, and where are there gaps (e.g., could consumer spending or geolocation data help refine your picture)?
Assess your data infrastructure—do you have reliable pipelines, governance, and integration tools in place? Consider platforms that facilitate unified data exploration and modeling.
Benchmark against peers—understand which datasets leading firms are prioritizing and how they’re combining them.
Final Takeaway
Alternative data is now fundamental to generating alpha. As investors increasingly turn to real-time, diverse, and integrated datasets, platforms like Exabel—and complementary tools—will play a central role in translating raw signals into actionable strategies. The Exabel 2025 report underscores the critical timing: in a world where traditional data lags, alternative data offers a meaningful competitive edge.
Ready to go further? Download “Alternative Data Buy-side Insights & Trends 2025” from Exabel to explore detailed findings and strategic recommendations tailored for forward-thinking investment professionals.
