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According to MRFR analysis, the Global Algorithm Trading Market was valued at USD 9.2 billion in 2019; it is expected to reach USD 20.0 billion, registering a CAGR of 12.5% during the forecast period. 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 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).
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 2019 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.
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 2019, 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 2019 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 2019 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 2019 owing to high-end infrastructure and financial budgets on maintaining algo trading platforms.
LIST OF TABLES
Table 1 Global Algorithm Trading Market, By Region, 2019–2024
Table 2 North America: Algorithm Trading Market, By Country, 2019–2024
Table 3 Europe: Algorithm Trading Market, By Country, 2019–2024
Table 4 Asia-Pacific: Algorithm Trading Market, By Country, 2019–2024
Table 5 Middle East & Africa: Algorithm Trading Market, By Country, 2019–2024
LIST OF FIGURES
FIGURE 1 Global Algorithm Trading Market Segmentation
FIGURE 2 Forecast Methodology
FIGURE 3 Porter’s Five Forces Analysis Of The Global Algorithm Trading Market
FIGURE 4 Value Chain Of The Global Algorithm Trading Market
FIGURE 5 Share Of The Global Algorithm Trading Market, By Country, 2019 (In %)
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