Algorithmic Trading Market Trends and Growth 2031

Algorithmic Trading Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Solution (Software and Services); By Services (Professional Services and Managed Services); By Deployment Outlook (Cloud and On-premise); Trading Types (Stock Markets, Foreign Exchange (FOREX), Exchange-Traded Fund (ETF), Bonds, Cryptocurrencies, Others); Type of Traders (Institutional Investors, Long-term Traders, Short-term Traders, Retail Investors) and Geography

  • Report Code : TIPTE100000699
  • Category : Banking, Financial Services, and Insurance
  • Status : Data Released
  • No. of Pages : 150
Buy Now

 

The algorithmic trading market size is expected to at a CAGR of 12.8% from 2023 to 2031. Since the introduction of matching engines in modern exchanges, algorithmic trading has been used worldwide. By eliminating human restrictions, such technological advancements have enhanced the capability of markets to process trades and orders. Thus driving the growth of algorithmic trading market growth.

Algorithmic Trading Market Analysis

The necessity for algorithmic trading is projected to be driven by favorable governmental guidelines, increasing demand for reliable, quick, and effective order execution, swelling demand for market surveillance, and decreasing transaction costs. Large institutional investors and brokerage firms use algorithmic trading to cut the expenses of bulk trading. Furthermore, it is projected that the development of financial service and artificial intelligence (AI) algorithms will generate lucrative market expansion opportunities during the forecast period. An increase in the demand for cloud-based solutions is also projected to support the algorithmic trading market growth.

Algorithmic Trading Market Overview

  • Algorithmic trading is a type of automation in which a computer program is used to efficiently execute a defined set of instructions or guidelines that comprises the selling or buying of an asset regarding varying market data.
  • Furthermore, the defined sets of rules or instructions are based on quantity, price, timing, or any mathematical model. Investors and traders are adopting algorithmic trading solutions as it helps them execute trades at the best possible prices.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Algorithmic Trading Market: Strategic Insights

algorithm-trading-market
Market Size Value inUS$ 8,790.7 Million in 2016
Market Size Value byUS$ 18,160.8 Million by 2025
Growth rateCAGR of 8.7% from 2017-2025
Forecast Period2017-2025
Base Year2017
Analyst Image

Naveen

Have a question?

Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

Analyst Image  Speak to Analyst

Algorithmic Trading Market Driver

The Emergence of Artificial Intelligence (AI) in the Financial Services Sector to Drive the Algorithmic Trading Market

  • Several financial services companies are increasing their AI and machine learning adoption to take advantage of the information from digitally driven channels. This has further led to the developing trend of data-driven investments in the past few years.
  • The usage of algorithmic trading is on the surge due to its complete automation, ease of diversification capabilities, and fast trade execution.

Algorithmic Trading Market Report Segmentation Analysis

  • Based on deployment, the algorithmic trading market is segmented into on-premise and cloud-based. The cloud-based segment is expected to hold a substantial algorithmic trading market share in 2023.
  • Cloud-based algorithmic trading platforms are anticipated to play a crucial role in the growth of the market, owing to various benefits, such as obtaining maximum profits, automating trading procedures, easy trade data maintenance, scalability, cost-effectiveness, and efficient management.

Algorithmic Trading Market Share Analysis By Geography

The scope of the algorithmic trading market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America dominated the algorithmic trading market share in 2023. The regional growth can be accredited to the presence of several market players in the region. These vendors are also implementing various growth strategies to strengthen their position in the market. Numerous factors, such as the increasing investments in trading technologies and growing government support for global trading activities, are anticipated to contribute to the regional growth of the North American market during the forecast period.

Algorithmic Trading Market Report Scope

The "Algorithmic Trading Market Analysis" was carried out based on type, mode, distribution channel, and geography. Based on the solution, the market is divided into platforms and software tools. Based on the service outlook, the market is divided into professional services and managed services. Based on deployment, the market is divided into cloud and on-premise. Based on trading types, the market is divided into foreign exchange (FOREX), stock markets, exchange-traded funds (ETF), bonds, cryptocurrencies, and others. Based on the type of traders, the market is divided into institutional investors, long-term traders, short-term traders, and retail investors. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Algorithmic Trading Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the market. Some of the recent key market developments are listed below:

  • In October 2022, Refinitiv, an LSEG business, announced the introduction of a personalized, secure, and frictionless global digital onboarding solution to support businesses in streamlining their approach to onboarding customers. Refinitiv's digital customer onboarding solution provides a completely configurable user interface, allowing organizations to offer the product application process that can be delivered via mobile, web, and API. [Source: Refinitiv, Company Website]

Algorithmic Trading Market Report Coverage & Deliverables

The algorithmic trading market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Algorithmic Trading Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

  • Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
  • Market dynamics such as drivers, restraints, and key opportunities.
  • Key future trends.
  • Detailed PEST & SWOT analysis
  • Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
  • Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
  • Detailed company profiles.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Functions ; and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

Frequently Asked Questions


What is the estimated market size for the global algorithmic trading market in 2023?

The global algorithmic trading market was estimated to grow at a CAGR of 12.8% during 2023 - 2031.

What are the driving factors impacting the global algorithmic trading market?

Growing technological adoption and adoption of automated algorithmic trading are the major factors that propel the global algorithmic trading market.

What are the future trends of the global algorithmic trading market?

The emergence of Artificial Intelligence (AI) and Machine Learning (ML) in algorithmic trading is anticipated to play a significant role in the global algorithmic trading market in the coming years.

Which are the key players holding the key market share of the algorithmic trading market?

The key players holding principal shares in the global algorithmic trading market are 63 moons Technologies Limited, AlgoTrader, Argo Software Engineering, InfoReach, Inc., and Kuberre Systems, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

Trends and growth analysis reports related to Algorithmic Trading Market