Global Algorithmic Trading Market 2023-2030

Global Algorithmic Trading Market 2023-2030

Global Algorithmic Trading Market Size, Share & Trends Analysis Report by Types of Trading (Institutional Investors, Retail Investors, Long-term Trading, and Short-term Trading), By Components (Solutions and Services), By Deployment (Cloud and On-premise), By Organization Size (Small and Medium Enterprises and Large Enterprises) Forecast Period (2022-2030)

The global algorithmic trading market is anticipated to grow at a CAGR of 8.5% during the forecast period. The presence of cohesive government rules, the rising demand for quick, reliable, and efficient order execution, the increasing demand for market surveillance, and declining transaction costs has been driving the growth of the global algorithmic trading market. Large brokerage firms and institutional investors use algorithmic trading to reduce the expenses of bulk trading. The integration of Artificial Intelligence (AI) in algorithmic trading is creating huge scope for the market growth. Additionally, the increasing investment in research regarding algorithmic trading is projected to bring opportunities to the market growth. For instance, in July 2022, Horizon Software has been investing more in financial research by funding a research project in partnership with the university of Paris-Saclay-Ecole Doctorale de Mathématiques Hadamard. The study will focus on optimal execution, measurement, and control of liquidity risk, aiming to find a way to beat the benchmark of an execution algo.

Algorithmic trading has increased to cop up with the volatile market circumstances, large trading volume, and need for quick digital transformation to deal with distant working environments. Tomeet the growing demand market players are launching new solutions. For instance, in May 2023, ARK36, the Cyprus-based alternative investment digital asset fund, has launched a proprietary machine learning-based trading software system, “to improve the way its portfolio management team can navigate the dynamic world of crypto currency trading.” The new software will “leverage advanced algorithms to enable ARK36’s traders to make more informed decisions, navigate market challenges and optimize their trading strategies with precision and confidence.”

Segmental Outlook

The global algorithmic trading market is segmented based on type of trading, deployment, component, and organization size. Based on type, the market is segmented into institutional investors, retail investors, long-term trading, and short-term trading. Based on deployment, the market is sub-segmented into cloud and on-premises. Based on component, the market is sub-segmented into solutions and services. Based on organization, the market is sub-segmented into small and medium enterprises and large enterprises.

Institutional Investors Segment to Hold a Prominent Market Share in the Global Algorithmic Trading Market

Institutional investors, such as BFSI sector, credit unions, hedge funds, and investment advisors, pool their money to purchase real estate, securities, or any other kind of investment assets. Moreover, institutional investors regularly use various computer-driven algorithmic strategies in the unpredictable trading marketplace; which is contributing to the growth of this market segment. Algorithmic trading techniques enable the users to improve their profitability and effectively cut down the costs of trades.

Regional Outlooks

The global algorithmic trading market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, the Asia-Pacific market is anticipated to cater to a considerable growth over the forecast period.

Global Algorithmic trading Market Growth, by Region 2023-2030

Source: OMR Analysis

North America to Hold a Considerable Share in the Global Algorithmic Trading Market

North America held a considerable share in the global algorithmic trading market. In North America, the US held a major market share. The rising investments in trading technologies (such as blockchain), the growing presence of algorithmic trading suppliers, and the cohesive government policies for international trading are all backing the regional market growth.

Moreover, the rising funding for algorithmic trading providers across the region has further driving the market growth. For instance, in March 2023, Auros, a crypto-native algorithmic trading and market making firm with operations in Hong Kong and New York , has raised $17 million in a funding round led by global high frequency trading firm, Vivienne Court. Auros will also use the funds to continue scaling its derivatives solutions business, where projects, decentralized autonomous organizations (DAOs), miners, and accredited institutions can gain access to yield, protection and participation structures from a trusted, market-leading provider.

Market Players Outlook

The major companies serving the global algorithmic trading market include 63 Moons Technologies Ltd., MetaQuotes Software Corp., Algo Trader AG, Refinitiv Ltd., and Virtu Financial Inc. among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in February 2023, Options Technology, a Capital Markets services provider partnered with Digital Reality for further expanding services to its customers in Singapore via PlatformDIGITAL. The partnership will provide customers with cost-effective, low-latency access to multi-asset trading environments, enabling next-generation trading methods including algorithmic trading.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global algorithmic trading market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.