Algorithm Trading Market is Expected to Exhibit a CAGR of 11.9% by 2032

Market Research Future has Published a Half-Cooked Research Report on the Global Algorithm Trading Market

Overview

According to MRFR analysis, the Global Algorithm Trading Market was valued at USD 10.3 billion in 2019; it is expected to reach USD 44.4 billion, registering a CAGR of 11.9% during the forecast period (2023 - 2032). The market growth can be attributed to the surging demand for market surveillance software solutions, rising adoption of cloud-based algo trading solutions, and utilization of automated trading software by financial firms.

However, a lack of visibility and standard benchmarks associated with algorithm trading, and high technical expertise are some of the factors likely to hinder the growth of the global algorithm trading market during the forecast period.

The global algorithm trading market has been segmented based on component, trading type, organization size, deployment mode, and region

By component, the global algorithm trading market has been divided into solutions and services. The solution segment has been segmented into software tools and platform. The services segment has been categorized as professional services and managed services. The professional services accounted for a larger market share in 2018, and it is expected to dominate the market during the forecast period. This is due to the surge in need for customized solutions and services to implement algorithmic trading solutions effectively. However, the managed services segment is likely to exhibit higher CAGR during 2019–2024. The market growth is attributed to the rising inclination of financial investors to emphasize core tasks that propel the demand for managed services during the forecast period.

Based on trading type, the global algorithm trading market has been categorized as foreign exchange, stock markets, exchange-traded funds, bonds, and cryptocurrencies. The stock market segment accounted for the largest market share in 2018 owing to rising adoption of cloud-based solution and favorable government regulations that allow cloud-based solution in the stock markets.

Based on deployment mode, the algorithm trading market has been segmented into cloud  and on-premise. The cloud segment accounted for the larger market size in 2018 and is expected to  exhibit the higher CAGR. The market growth for the cloud-based segment is attributed to the increasing need for affordable, highly accessible, and  scalable trading solutions.

By organization size, the algorithm trading market has been segmented into large enterprise and small and medium enterprise. The large enterprise segment accounted for the larger market size in 2018 owing to high-end infrastructure and financial budgets on maintaining algo trading platforms.

Key Players

The key players in the global algorithm trading market are ALGOTRADES - Automated Algorithmic Trading System (US), iRageCapital (India),Software AG (Germany), QuantCore Capital Management (China), Tethys (US), Thomson Reuters (US), MetaQuotes Software (Cyprus), Trading Technologies (US), uTrade (India), Tata Consulting Services (India),  63 moons (India), InfoReach (US), Kuberre Systems (US), Argo SE (US), Vela (US), Virtu Financial (US), Symphony Fintech (India), and Automated Trading SoftTech (India).

Regional Analysis

By region, the global algorithm trading market has been segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. North America accounted for the largest market in 2018 owing to the availability of high technical expertise in the US and Canada and early adoption of AI and ML and their integration with algorithm trading. Asia-Pacific is expected to be the fastest-growing market for algorithm trading over the next few years. The market growth is due to the rapid adoption of algo trading solutions among professional traders to maximize the profits of various trading strategies regardless of stock market conditions.