New York, US, June 15, 2022 (GLOBE NEWSWIRE) -- According to a comprehensive research report by Market Research Future (MRFR),” Algorithmic Trading Market by Component, Type, Deployment Mode, and Type of Traders, Organization Size and Region (North America, Europe, Asia-Pacific, and Rest of the World)—Forecast till 2030” to grow at a 13.1% CAGR by 2030.
Algorithmic Trading Market Overview
The majority of financial services firms are increasing their AI and ML adoption in order to capitalize on data from digitally driven channels. Several companies in the insurance, banking, and asset management industries use it. This has resulted in the last decade's emerging trend of the data-driven investments. This, in turn, increased demand for high-frequency trading, also known as algorithmic trading. Such AI-powered trading systems analyze huge amounts of data faster than humans. As a result, AI and algorithms in financial services are opportunistic for market growth in the forecast period, as they enable market innovation.
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Report Scope:
Report Metrics | Details |
Market Size | 2030: USD Million |
CAGR | 13.1% CAGR (2022-2030) |
Base Year | 2021 |
Forecast Period | 2022-2030 |
Historical Data | 2019, 2020 |
Forecast Units | Value (USD Million) |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered | Component, Deployment, Type, Type of Trader, and Organization Size |
Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
Key Vendors | Thomson Reuters (US), 63 moons (India), Virtu Financial (US), Software AG (Germany), MetaQuotes Software (Cyprus), iRageCapital (India), Automated Trading SoftTech (India), Tethys (US), Trading Technologies (US), uTrade (India), Vela (US), and AlgoTrader (Switzerland). |
Key Market Opportunities | Rapid Adoption of AI in Financial Services. |
Key Market Drivers | Increasing demand for efficient Algorithmic Trading |
Opportunities
Growing Adoption of Cloud-Based Services for Algorithmic Trading to offer Robust Opportunities
The growing adoption of cloud-based services, cloud computing, and cloud-based solutions for algorithmic trading will offer robust opportunities for the algorithmic trading market over the forecast period. Cloud services are used by traders for trading strategies, backtesting, and run-time series analysis while executing trades. Traders prefer cloud computing because building one's own data centres for services like backup and recovery, data storage, trading networks, and data management is expensive. As a result, renting space via the cloud is more convenient than developing hardware or software infrastructure.
Restraints and Challenges
Insufficient Risk Valuation Capabilities to act as Market Restraint
The insufficient risk valuation capabilities and lack of observation may act as market restraints over the forecast period.
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Algorithmic Trading Market Key Players
Key players profiled in the global algorithmic trading market report includes,
- Thomson Reuters (US)
- 63 moons (India)
- Virtu Financial (US)
- Software AG (Germany)
- MetaQuotes Software (Cyprus)
- Symphony Fintech (India)
- InfoReach (US)
- Argo SE (US)
- Kuberre Systems (US)
- Tata Consultancy Services (India)
- QuantCore Capital Management (China)
- iRageCapital (India)
- Automated Trading SoftTech (India)
- Tethys (US)
- Trading Technologies (US)
- uTrade (India)
- Vela (US)
- AlgoTrader (Switzerland).
Algorithmic Trading Market Segmentation
The global algorithmic trading market is bifurcated based on component, type, traders, deployment mode, and organization size.
By component, the solutions segment will lead the market over the forecast period.
By type, the ETF segment will dominate the market over the forecast period.
By traders, institutional investors will spearhead the market over the forecast period.
By deployment mode, the cloud segment will have the lions share in the market over the forecast period.
By organization size, the large enterprises will have the largest share in the market over the forecast period.
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COVID-19 Analysis
According to the market, the COVID-19 breakout has possessed no impact on the global algorithmic trading market which has seen an increase in the use of algorithmic trading solutions in the midst of unusual conditions. The COVID-19 disease outbreak has significantly increased the market growth resulting in a growing transition forward into algorithmic trading for making decisions at a really fast pace while reducing potential mistakes. As a result, the rate of development of this algorithmic trading market has accelerated significantly. In a recent paper, the Reserve Bank of Australia stated that the COVID-19 epidemic may have only accelerated the industry's shift toward algorithmic trading & transactions.
Algorithmic Trading Market Regional Analysis
North America to Command Algorithmic Trading Market
In 2018, the North American market accounted for the majority of the global algorithm trading market, and it is expected to continue to lead the market all through the forecast timeframe. The market's rise may be attributed to the high level of technical knowledge required to create the algorithm using Python, MATLAB, C++, Perl, and JAVA. North America heads the algorithmic trading market for a variety of reasons, including massive investments in trading technologies and increased government support for global trading. Furthermore, the region's extensive presence of top algorithmic trading vendors propels market growth.
Rising investments in trading technologies especially blockchain, an increase in the presence of popular algorithmic trading companies, and increasing support from the government for global trading are expected to drive market growth during the forecast period. Because of technological advancements and increased use of algorithm trading amid various end-users like banks & financial institutions in the region, the North America algorithmic trading market contributed the largest market share in 2018. Furthermore, several North American algorithmic trading solution providers are working to integrate Artificial Intelligence & Machine Learning functionalities into their existing algorithmic trading platforms.
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In the United States, algorithmic trading accounts nearly for 60-73 percent of all stock trading. According to Select USA, the United States' financial markets are the most liquid and largest in the world. Sentient Technologies, a hedge fund run by a US-based AI startup, created an algorithm which analyses huge data points for uncovering trading patterns & forecast trends. Sentient's algorithms analyze trillions of the simulated trading scenarios for discovering and combining profitable trading patterns and to develop new techniques. This not only saves time and effort, but it also guarantees the top-most level of accuracy.
APAC to Have Admirable Growth in Algorithmic Trading Market
Due to heavy investments by the public and private sectors to improve trading technologies, Asia-Pacific is expected to have the highest growth rate during the forecast period, driving the need for algorithmic trading solutions for automating trading processes. Countries such as Japan, India, the Philippines, & Singapore have increased their use of algorithmic trading platforms, services, and software.
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