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.
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.
The Emergence of Artificial Intelligence (AI) in the Financial Services Sector to Drive the Algorithmic Trading Market
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.
The regional trends and factors influencing the Algorithmic Trading Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Algorithmic Trading Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ XX million |
| Market Size by 2031 | US$ XX million |
| Global CAGR (2023 - 2031) | 12.8% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Solution
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Algorithmic Trading Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Algorithmic Trading Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
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.
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the market. Some of the recent key market developments are listed below:
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-
The global algorithmic trading market was estimated to grow at a CAGR of 12.8% during 2023 - 2031.
Growing technological adoption and adoption of automated algorithmic trading are the major factors that propel 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.
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.