What is Data Marketplace?

Data marketplace allows users to purchase and sell their data. Data marketplaces are an easy method for data companies to promote, manage and market their own data. The marketplaces let buyers browse, compare and buy data from a variety of sources in a single, simple-to-use marketplace.

A data market operates similarly to any other market online that allows the exchange of commodities. For instance, Alibaba is a marketplace for wholesale items, while Airbnb is an online marketplace for short-term real estate specifically rental properties for vacations. The most important thing to remember is the fact that Alibaba or Airbnb do not control the majority of the capital traded through these marketplaces. Alibaba does not carry products for retail or food in their inventory as well as Airbnb isn't any property.

They're both examples for "two-sided markets.". Two-sided markets allow to trade commodities. They don't have the commodities being traded. Instead, they're a way to connect the two'sides of the equation: sellers to buyers and vendors to customers, demand to supply...you can see the picture.

The data marketplaces are two-sided. There's the data supplier, who wants to market the data they have, while the buyer of data, looking for the right data source to meet the requirements of their. Data marketplaces are to benefit both sides and that's why increasing numbers of companies are using them to develop effective strategies for data.

Let's take a closer review of the elements that are responsible for bringing data marketplaces into the spotlight as a popular data exchange service.

How did the data marketplaces come to be?

Many factors are at play when we look at the growth of the marketplace for data. In short, they're a fantastic solution to the issues related to accessing, managing, and monetizing data from outside. They offer a solution that is urgently needed. The external data market was worth $26 billion value during the year 2019 and the value is expected to continue growing. The reason businesses are turning to marketplaces for data to get their fair share from expanding industry that is rapidly growing:

There's more information out there

The Big Data market just keeps expanding. It's predicted to reach $274 billion by 2022 (International Data Cooperation). This growth in the market is driven by the exponential growth in the production of data which is primarily due in part to IoT or web scraping applications.

IoT also known as the "Internet of Things' is the ever-growing number of physical assets that are digital twins or have counterparts. Buildings, vehicles and TVs, headphones and wearable medical devices power plants weather sensors, AR glasses These are just a few examples of the countless number of physical objects that make part of the Internet of Things. The other aspect of IoT is the data generated and stored in the software that allows these devices to function. The information produced is continuously and makes the IoT an incredible source of and real-time information about areas and the people living who live there. IoT data IoT is such a huge source of information that it's possible to find IoT data marketplaces that trade information derived exclusively through IoT signals (we'll explore IoT marketplaces for data in greater in the future).

In addition to IoT and the rise in web scraping technology has led to an Big Data revolution. Web scraping tools are ways to search the web to find content that is posted in news media and search engine queries. They also include websites for social networking, videos on websites blogs, as well as E-commerce websites. The content is referred to as "user-generated content," and can be divided into visual, textual or audio-based content. Web scraping tools permit users to use this information at a massive the scale they require. It's estimated that every minute, 500,000 tweets were shared. 3.6 million Google searches processed and 42 million Whatsapp messages are sent (Domo Statista, Domo). This is a huge amount of content created by users. With web scraping tools that can crawl huge quantities of data in a matter of minutes, it's not difficult to observe the ways that web scraping has contributed towards growing the Big Data boom.

This means that IoT as well as web scraping are a part of what led to over 2.5 million bytes produced every day around the world in 2017. This will only grow and the amount of data produced worldwide predicted to exceed about 149 zettabytes in 2045 (Domo).