Professional investors at hedge funds, asset managers and pension funds are set to boost spending on alternative data in 2026, reflecting both growing demand and strong support from senior management, according to new research from Exabel, a platform specializing in alternative data insights and analytics, part of the BattleFin Group.
The global study, conducted with senior staff at investment organisations across the US, UK, Hong Kong and Singapore, found that 94% of respondents expect to increase spending on alternative data this year, with 18% predicting a substantial rise compared to the previous year. The survey covered firms managing around $2.4 trillion in assets.
Budget expansion has already been significant in recent years: more than half of respondents (54%) reported that budgets for buying and managing alternative data increased by 50% or more over the past two years, while 5% of firms reported budgets that have more than doubled. All firms surveyed confirmed some level of increase in spending.
Support from senior management remains a key factor in driving adoption. Around 58% of respondents said senior management are very committed to using alternative data in investment research, with a further 42% describing their commitment as quite strong.
The research highlights typical levels of investment in alternative data among professional investors. Most organisations surveyed (84%) reported annual spending of $500,000 to $2.5 million on alternative datasets, with 4% spending more than $2.5 million. Spending is allocated across software and technology, headcount, and data acquisition, with the following breakdown:
| Area of spending on alternative data | How many spend up to 10% | How many spend between 10% and 25% | How many spend between 25% and 50% | How many spend between 50% and 75% | How many spend between 75% and 100% |
| Software/technology | 1% | 10% | 36% | 41% | 12% |
| Headcount | Zero | 29% | 39% | 15% | 17% |
| Buying data | Zero | 25% | 29% | 34% | 12% |
Tim Harrington, CEO of BattleFin and Exabel, noted that “Budgets for alternative data are set to rise this year and senior management commitment to the use of this insight in investment research is high. Most of the investment organisations we surveyed currently spend between $500,000 and $2.5 million a year on alternative datasets indicating meaningful but disciplined investment levels.”
The study underscores the continuing integration of alternative data into investment processes, with senior leadership support and disciplined spending enabling firms to enhance research, improve decision-making and maintain competitive advantage.
