The rise in the integration of financial markets and market surveillance is providing thrust to the algorithm trading market. The growth in the financial institution and rise in investments is creating a positive impact on the market growth. Algorithmic trading is a form of automation, where, a computer program is executed on a defined set of instructions that includes the buying or selling of an asset. Reduced transaction costs, automated checks on multiple market conditions, and execution of trade at the best possible prices are accelerating the market growth. Algorithmic traders use a high-frequency trading technology, that enables the firm to make tens of thousands of trades per second.
The global algorithm trading market size is predicted to reach over USD 27.03 billion by 2028. This can be ascribed to the growing awareness pertaining to the advancement of financial technology, such as algorithms and using business intelligence analytics tools, growing awareness, and adoption of algorithmic trading that offers new opportunities for key players operating in the global Algorithmic Trading Market. Besides, the implementation of cloud-based solutions and AI is affecting the market in a positive manner.
However, insufficient risk valuation capabilities is hampering the market growth. Furthermore, the increase in the adoption of machine learning, NLP, and artificial intelligence is likely to provide lucrative development opportunities for the factoring market in the forthcoming years.
Algorithmic Trading Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 27.03 billion|
|Growth Rate||CAGR of 10% during 2021-2028|
|Segment Covered||Trading Type, Component, Application, Deployment, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Thomson Reuters, 63 moons, Virtu Financial, Software AG, MetaQuotes Software, Symphony Fintech, InfoReach, Argo SE, Kuberre Systems, Tata Consulting Services, QuantCore Capital Management, iRageCapital, Automated Trading SoftTech, Tethys, Trading Technologies.|
Key Segments of the Global Factoring Market
Trading Type Overview, 2021-2028 (USD Billion)
- Foreign Exchange (FOREX)
- Stock Markets
- Exchange-Traded Fund (ETF)
Component Overview, 2021-2028 (USD Billion)
- Software Tools
- Professional Services
- Managed Services
Application Overview, 2021-2028 (USD Billion)
- Small and Medium sized Enterprise
- Large Enterprise
Deployment Overview, 2021-2028 (USD Billion)
Regional Overview, 2021-2028 (USD Billion)
- North America
- Asia Pacific
- Middle East and Africa
- South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global algorithm trading market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global algorithm trading market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the algorithm trading industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Product. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global algorithm trading market. The report will benefit Every stakeholder involved in the algorithm trading market.
- Managers within the Algorithm Trading industry looking to publish recent and forecasted statistics about the global algorithm trading market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global algorithm trading market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
The algorithmic trading market is growing rapidly and experiencing a transformation from legacy system to modern application. Algorithmic trading is an emerging technology for financial institutions to gain an edge over other market players. Algorithmic trading has improved the restraining factors through better strategy design, testing, and execution, and profitability. Investors are adopting algorithmic trading technology to bring enhanced efficiency to financial markets.
Furthermore, the algorithmic trading market comprises a number of local and global vendors based on factors such as solution cost, reliability, and support services. The growth of the market is impacted by advances in electronic trading offerings and industry development. Moreover, vendors operating in the market are offering advanced algorithmic trading products to improve the experience using an algorithmic trading platform.
The growing demand for sources of financing among SMEs is expected to offer immense growth opportunities for the market players. However, the lack of risk overcome capability is expected to hinder the growth of the market. The market is consolidated as several major market players currently hold the major market share. However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Trading Type Segment
Based on the Trading Type segment, the market is bifurcated into Foreign Exchange (FOREX), Stock Markets, Exchange-Traded Fund (ETF), Bonds and Cryptocurrencies. In 2020, the exchange trade fund segment accumulated the maximum market share and it is likely to continue its dominance throughout the forecast years because of the low average costs to the traders. However, the other segments is projected to attain major growth throughout the forecast years owing to the increasing need for algos in trading system.
Based on the component, the market is segmented into solution and services. The solution segment seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. The growth of this segment is largely ascribed to the reduced transaction costs and accurate trade order placement. The services segment is influencing the market by the adoption of professional services among end-users.
Based on the application, the market is segmentd into small and medium sized enterprises and large enterprise. Large enterprises are using the algorithm trading services and it will increase in the upcoming years. The small and medium enterprises are adoptiong the trading market due to the use of cloud-based solutions and increasing adoption of BI (Busines Intelligence) and AI (Artificial Intelligence).
Based on the Deployment segment, the market is bifurcated into cloud-based and on-premise. In 2020, the cloud-based accumulated the maximum market share and it is likely to continue its dominance throughout the forecast years. However, the On-premise segment had projected to attain major growth throughout the previous years owing to the increasing need to provide uninterrupted on-premise services.
The North American region is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the rising investment in trading technology and increase in the presence of algorithmictrading vendors. However, the Asia-Pacific is likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the algorithm trading market in this region is mostly ascribed to the growing development of the regions’ economies and significant growth of trade operations. Algorithm trading by companies in countries such as India, Japan, and China to compete against other regional players.
The major players of the global algorithm trading market Thomson Reuters, 63 moons, Virtu Financial, Software AG, MetaQuotes Software, Symphony Fintech, InfoReach, Argo SE, Kuberre Systems, Tata Consulting Services, QuantCore Capital Management, iRageCapital, Automated Trading SoftTech, Tethys, and Trading Technologies. Renowned companies are offering new and modern algorithm trading software solutions. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.