Key Takeaways
- • 94% of fund managers and investment analysts globally plan to increase spending on alternative data in 2026, with 18% expecting substantial increases, according to Exabel's Alternative Data Buy-side Insights & Trends 2026 report.
- • Senior management commitment is nearly universal: 58% of surveyed investment organizations report senior management are "very committed" to alternative data use, with an additional 42% "quite committed," signaling institutional-level prioritization across the buy-side.
- • Alternative data budgets have expanded significantly in the near term: 54% of firms report budget increases of 50% or more over the past two years, with 5% experiencing budget doublings, indicating accelerating investment cycles across the sector.
- • Spending concentration is meaningful: 84% of surveyed organizations allocate between $500,000 and $2.5 million annually to alternative datasets, with 4% spending in excess of $2.5 million, reflecting material capital commitment by institutional investors.
- • The survey captured $2.4 trillion in total assets under management across investment organizations in the US, UK, Hong Kong, and Singapore, providing a substantial institutional-level data set for market trends.
Summary
The alternative data market is experiencing robust expansion among institutional investors, with new research from Exabel revealing that nearly all fund managers and investment professionals plan to increase capital allocation to alternative data sources in 2026. According to the Alternative Data Buy-side Insights & Trends 2026 report, 94% of surveyed firms expect higher spending this year compared to 2025, with 18% projecting substantial budget increases. This near-unanimous commitment reflects deepening reliance on non-traditional data sources—including satellite imagery, web traffic, credit card transactions, and other alternative datasets—as core components of investment research infrastructure.
The survey's scope is substantial, encompassing senior investment professionals across hedge funds, asset managers, and pension funds representing approximately $2.4 trillion in total assets under management across major financial hubs: the United States, United Kingdom, Hong Kong, and Singapore. The research underscores that alternative data adoption is not limited to early-stage adopters but has become mainstream practice among institutional capital allocators. Senior management support appears virtually complete: 58% of organizations report that senior leadership is "very committed" to alternative data integration, while 42% describe commitment as "quite committed," indicating zero-friction strategic alignment on the importance of these data sources.
Budget trajectory data reveals sustained expansion across the buy-side. More than half (54%) of firms report that alternative data budgets increased by 50% or more in the past two years alone, suggesting a compounding growth pattern. Notably, 5% of organizations experienced budget doublings over the two-year period, pointing to strategic repositioning by a subset of major institutional players. All surveyed firms reported year-over-year spending increases, indicating no segment of the market is contracting its alternative data investments.
Spending patterns show meaningful institutional commitment: 84% of organizations allocate between $500,000 and $2.5 million annually to alternative datasets, representing material operational budgets for data acquisition and analytics infrastructure. An additional 4% of firms spend in excess of $2.5 million annually on alternative data, concentrating substantial capital within the highest-spending tier. These figures reflect that alternative data is no longer a discretionary research tool but an embedded operational necessity requiring consistent, significant capital deployment across investment organizations of varying sizes.
The survey's scope is substantial, encompassing senior investment professionals across hedge funds, asset managers, and pension funds representing approximately $2.4 trillion in total assets under management across major financial hubs: the United States, United Kingdom, Hong Kong, and Singapore. The research underscores that alternative data adoption is not limited to early-stage adopters but has become mainstream practice among institutional capital allocators. Senior management support appears virtually complete: 58% of organizations report that senior leadership is "very committed" to alternative data integration, while 42% describe commitment as "quite committed," indicating zero-friction strategic alignment on the importance of these data sources.
Budget trajectory data reveals sustained expansion across the buy-side. More than half (54%) of firms report that alternative data budgets increased by 50% or more in the past two years alone, suggesting a compounding growth pattern. Notably, 5% of organizations experienced budget doublings over the two-year period, pointing to strategic repositioning by a subset of major institutional players. All surveyed firms reported year-over-year spending increases, indicating no segment of the market is contracting its alternative data investments.
Spending patterns show meaningful institutional commitment: 84% of organizations allocate between $500,000 and $2.5 million annually to alternative datasets, representing material operational budgets for data acquisition and analytics infrastructure. An additional 4% of firms spend in excess of $2.5 million annually on alternative data, concentrating substantial capital within the highest-spending tier. These figures reflect that alternative data is no longer a discretionary research tool but an embedded operational necessity requiring consistent, significant capital deployment across investment organizations of varying sizes.
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