The global algorithm trading market size is likely to attain over USD 27.03 billion by the year 2028. Besides, it is likely to project a CAGR of nearly 10% during the forecast years 2021-2028. The algorithm trading market is driven by emergence of artificial intelligence (AI), algorithms in financial services, and rise in demand for cloud-based solutions. Financial services are driven by up-to-date information to make crucial decisions. The algorithm trading market is accelerated by growth in government favorable regulations, effective order execution, reducing transaction costs, increasing demand for fast and reliable financial execution.
The present and future of algorithm trading market progress is summarized to conclude the attractiveness of the entire market. Also, prime factors that influence the algorithm trading market opportunities during the forecast year are factors such as the increase in adoption of online portals to automate and expand the property business and demand for outsourced algorithm trading services is expected to drive the algorithm trading market
The algorithm trading sector is at an accelerated pace of transition due to the rise in financial institutions and investments made by the clients. Financial institutions use algos and AI to expand their customer base by using the technology platforms. The algorithmic trading market is primarily driven by the rise in financial market and emergence of favorable government regulations, and the rise in need for better customer handling and support
The report also emphasizes several distinctiveness of the global algorithm trading industry by valuing the market from value chain breakdown. Moreover, the report encompasses numerous qualitative features of the algorithm trading industry which comprises market restraints, drivers, as well as key industry opportunities. Furthermore, the report offers an inclusive evaluation of the company profiling along with the market rivalry of local and global vendors.
The algorithm trading market has tough competition among the new emerging and pre-established market vendors. Besides, the algorithm trading industry vendors are trying to capture the prospective markets to grab a competitive advantage over the remaining industry vendors. To capture the market, market players are forming agreements, acquiring other companies & startups, mergers & acquisitions, partnerships & collaboration, and escalating their business existence.
In terms of the deployment, the market is categorized into cloud and on-premise. The cloud segment is predicted to achieve the largest growth during the forecast years 2021-2028. The cloud computing seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years.
North America 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 huge investments in trading technologies and favorable government regulations by companies in countries such as the US and Canada to compete against other regional players. However, the Asia Pacific region is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the demand for algorithmic trading solutions and heavy investments in public and private sectors.
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, Trading Technologies. Renowned companies are offering new and modern algorithm trading software solutions. In addition, 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.
Segment Overview of Global Algorithm Trading Market
Trading Type Overview, 2021-2028 (USD Million)
- Foreign Exchange (FOREX)
- Stock Markets
- Exchange-Traded Fund (ETF)
- Bonds
- Cryptocurrencies
Component Overview, 2021-2028 (USD Million)
- Solution
- Platform
- Software Tools
- Service
- Professional Services
- Managed Services
Application Overview, 2021-2028 (USD Million)
- Small and Medium sized Enterprise
- Large Enterprise
Deployment Overview, 2021-2028 (USD Million)
- Cloud-based
- On-premise
Regional Overview, 2021-2028 (USD Million)
- North America
- U.S.
- Europe
- UK
- Germany
- Asia Pacific
- China
- India
- Middle East and Africa
- South America
- Brazil