The Global Algorithmic Trading market is projected to record a CAGR of 11.1% during the forecast period due to the growing need for efficiency in trading.

MRFR Press Release/Market Research Future has published a Half- Cooked Research Report on the Global Algorithmic Trading Market.

Market Research Future has published a research report on the Algorithmic Trading Market, 2019–2030. The global algorithmic trading market is projected to exhibit a CAGR of 13.1% during the forecast period of 2022 to 2030.

Market Research Future shas recognized the following companies as the key players in the global Algorithmic Trading market: Thomson Reuters (US), 63 moons (India), Virtu Financial (US), Software AG (Germany), MetaQuotes Software (Cyprus), Symphony Fintech (India), InfoReach (US), Argo SE (US), Kuberre Systems (US), Tata Consultancy Services (India), QuantCore Capital Management (China), iRageCapital (India), Automated Trading SoftTech (India), Tethys (US), Trading Technologies (US), uTrade (India), Vela (US), and AlgoTrader (Switzerland).

Market Highlights

The global algorithmic trading market is projected to grow at a CAGR of 13.1% during the forecast period.

Algorithmic trading is a form of automation that involves the use of algorithms to execute trades based on pre-defined rules. Algorithms are used to create automated rules for buying and selling. A computer program can be used to calculate the timing of when to purchase, sell or hold an asset based on the input parameters for that particular asset's market data. The benefits of using a virtual trading desk include the ability to execute trades in real-time at the best possible price, trade simultaneously by executing checks on multiple market conditions and without hesitation, execute trades faster with human intervention, and reduce costs involved. The emergence of AI and algorithms in financial services is expected to provide lucrative opportunities for the market during the forecast period. The increasing trend of global algorithmic trading industry is mainly driven by factors such as a rise in demand for effective order execution; favorable government regulations; and market surveillance capabilities. However, the lack of risk valuation guidelines may hamper the market growth in the coming years.

The COVID-19 outbreak appears to have had only a small, if any, negative effect on the overall growth of the algorithmic trading market as the focus has shifted very quickly toward algo trading. This shift is attributed to a general decrease in human error caused by algorithms and an increase in speed of execution when compared with non-algorithm based trades. For example, according to Reserve Bank of Australia in its recent publication, they "believe that the pandemic may have only furthered their industry’s shift toward electronic trading."

Segmental Analysis

The global algorithmic trading market has been segmented based on component, deployment, type, type of trader, organization size, and region.

By component, the global market has been segmented into solutions and services. The solutions segment is estimated to hold the largest market share in the global algorithmic trading market for the year 2022. This is because many stock market companies are introducing AI solutions to serve their customers. These technologies can provide algorithmic trading to multiple needs of companies which saves them time and energy.

Based on type, the market has been segmented into Stock Markets, FOREX, ETF, Bonds, Cryptocurrencies, and Others. Others include assets, commodities, collateral mortgage, Credit Default Swap (CDS), and Interest Rate Swap (IRS). The ETF segment is expected to gain the highest market share in the global Algorithmic Trading market over the forecasted period. This is because of the increased use of ETFs for automated trading. The average cost to trade is low, meaning you can easily make a quick profit when investing in an ETF.

By type of traders, the market has been segmented into institutional investors, long-term traders, short-term traders, and retail investors. The institutional investors segment held the largest market share in the global algorithmic trading market for the year 2021. Institutions handle investment accounts for groups or institutions and also use automated trading in order to reduce costs. They mostly use algorithmic trading, which allows them to act on their own behalf so they don't have to pay significant fees for the service of a broker.

By deployment mode, the global algorithmic trading market has been segmented as cloud and on-premise. The cloud segment is expected to hold the largest market share in the global algorithmic trading market in the year 2021. With their benefits such as easy trade data maintenance, cost-effectiveness, scalability, and effective management, the adoption of these is expected to grow.

By organization size, the global algorithmic trading market has been segmented into small and medium enterprises and large enterprises. The large enterprises segment held the largest market share in the global algorithmic trading market for the year 2021. However, the small and medium enterprises are expected to witness the highest CAGR in the forecast period as the number of such enterprises is increasing rapidly.

Regional Analysis

Geographically, the global algorithmic trading market has been categorized as North America, Europe, Asia-Pacific, and Rest of the World. As per analysis, North America constituted a dominant share of the algorithmic trading market in 2021 and Asia Pacific regional market is expected to grow at the highest CAGR during the forecast period.