Data monetization. There are many things driving the rise of data marketplaces. First there is the notion there is a “data goldrush” where established companies and startups are eager to exploit the latent value of data that has been locked up in internal data systems for decades. Accenture pegs the value of this market at a whopping $3.6 trillion.
Data ecosystems. Perhaps more importantly, data marketplaces are forming to support the free flow of information with various types of social, political, cultural, or commercial ecosystems. A data marketplace can serve a “town square” or marketplace where players from all parts of the ecosystem gather to exchange information, gain knowledge, and improve their position in the ecosystem. These ecosystems span governments, countries, regions, industries, consortiums, and data-oriented communities, among other things.
Data science. The growth of machine learning and artificial intelligence has created a huge demand for data to train and feed analytical models. Data scientists seek external data to enrich internal data sets and create new features that improve model accuracy.
Strategic initiatives. Organizations use data scientists to support a multiplicity of strategic initiatives, from customer 360, to intelligent supply chains, to digital transformation.
Data clean rooms. With the advent of strict privacy regulations and the decision by browser vendors and device manufacturers to stop using cookies to track advertising effectiveness, digital marketing companies, publishers, and advertisers are seeking new ways to track audience responsiveness. As a result, data clean rooms, which can be built into data marketplaces, are becoming popular.
Competitive intelligence. Data marketplaces make it easier for organizations to find data about market trends and competitors, and to integrate this content into competitive intelligence applications for anxious executives.
There is a “data goldrush” happening in which companies are eager to exploit the latent value of data that has been locked up for decades.
Market Drivers for Data Marketplaces