The latest report by IMARC Group, titled “Algorithmic Trading Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the global algorithmic trading market reached a value of US$ 13.0 Billion in 2021. Algorithmic trading or automated trading refers to the process of executing automated pre-programmed trading instructions and evaluating variables like volumes, price, and time. It uses a computer program that follows a defined set of instructions to place a trade. Algorithmic trading generates profits at a speed and frequency that is impossible for a human trader. The process benefits traders with the data processing speed over the conventional human traders. It also facilitates transactions in the financial sector by utilizing advanced mathematical tools. Algorithmic trading transforms the market by making it more liquid and systematizes the trading by ruling out the impact of human emotions on trading activities. It is increasingly employed to generate profits, minimize transactional costs, and enable investors to control the trading process.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Algorithmic Trading Market Trends:
The market is primarily driven by the increasing adoption of algorithmic trading across small and medium enterprises to increase efficiency and generate profit. Besides this, the rising need for fast, reliable, and effective order execution and reducing transaction costs are fueling the market growth. Apart from this, institutional investors and big brokerage houses use algorithmic trading to cut down on costs associated with bulk trading. Moreover, algorithmic trading is utilized in various situations, including order execution, arbitrage, and trend trading strategies. It also leverages the speed and computational resources of computers relative to human traders. In addition to this, favorable government regulations and the growing demand for market surveillance are propelling the demand for algorithmic trading across the globe. Furthermore, advancements in technology, such as the integration of artificial intelligence (AI), cloud computing, and application programming interface (API) with algo-trading, is also creating a positive outlook for the market. Looking forward, the market is expected to grow at a CAGR of 11.4% during the forecast period (2022-2027).
- Based on the trading type, the market has been segmented into foreign exchange (FOREX), stock markets, exchange-traded fund (ETF), bonds, cryptocurrencies, and others.
- On the basis of the components, the market has been classified into solutions (platforms and software tools) and services (professional and managed services).
- The market has been categorized based on the deployment model into on-premises and cloud.
- On the basis of the organization size, the market has been segregated into small and medium, and large enterprises.
- Region-wise, the market has been divided into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
- The competitive landscape of the market has been examined, with some of the key players being Vela Trading Systems LLC, Meta-Quotes Limited, Trading Technologies International Inc., Software AG, AlgoTrader, uTrade Solutions Private Limited, Automated Trading SoftTech Private Limited, Kuberre Systems Inc., InfoReach Inc., Virtu Financial Inc., Tata Consultancy Services, Argo Group International Holdings Limited, Thomson Reuters Corporation, iRageCapital Advisory Private Limited, and 63 Moons Technologies Ltd.
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