The UK data market value will hit £1.1 billion ($1.58 billion) in 2018, making it the second largest data market in the world and the biggest in Europe.
The figures come from OnAudience.com, which is part of the Cloud Technologies group who are one of the largest data warehouses in the world, and show a pretty rapid expansion in the UK market. In 2016, the estimated value of the UK data market was £0.7 billion, increasing by 26% to hit £0.9 billion the following year.
The company is predicting further double-digit growth of 22% this year to tip the market value over the one billion mark. The research also shows big growth in the global data market size, growing 34% from $13.5 billion in 2017 to an estimated $18.2 billion in 2018.
“Data has become the currency of 21st century. On the data market, there is a significant upward trend that we can notice at least since 2016. We can say that the need for data is growing simultaneously with the rate of digitalisation,” commented Maciej Sawa, Chief Commercial Officer at OnAudience.com, Cloud Technologies capital group.
“In highly developed countries, such as the UK or the US, there is a big awareness of benefits from the processing and monetizing of data. This is why firms are more likely to buy and sell data – they are aware of profits generated thanks to the information collected.”
The global data market is currently highly-concentrated, with 90% of global data spend coming from 28 markets. The marketing industry is the main driver of data market growth, with its seemingly insatiable appetite for consumer data over the last few years.
Information about demographics, user interests and purchase intentions are now considered essential knowledge for marketers to have if they are to properly tailor their ad campaigns. The digitalisation of companies is another key driver of the growth in the data market, with many firms changing their model to be more data driven.
”Organisations of all sizes and representing all industries start to look for revenue in data streams, flowing constantly into their systems. Harnessing information and turning it into more insights, better informed decisions and more customer engagement scenarios are among key topics discussed with our customers nowadays,” said Tomasz Pelczarski, Business Solution Professional at Enterprise Group, Microsoft.
“Artificial intelligence has a key role in analysing and processing information. Since each organisation is unique, they need to find their own way to make the most of AI systems.”