Algorithmic Trading Market Size Worth $42.99 Billion By 2030

November 2022 | Report Format: Electronic (PDF)

Algorithmic Trading Market Growth & Trends

The global algorithmic trading market size is expected to reach USD 42.99 billion by 2030, registering a CAGR of 12.2% from 2022 to 2030, according to a new report by Grand View Research, Inc. The growth can be attributed to the increasing demand for effective, reliable, fast order execution and reduced transaction costs. Algorithmic trading solutions are widely used to process orders using pre-programmed and automated trading instructions to account for variables such as timing, price, and volume.

Investors and algorithmic traders regularly use high-frequency trading technology, enabling their firms to carry out tens of thousands of trades per second. Moreover, algorithmic trading solutions are widely used by investors and algorithmic traders in a wide variety of conditions, including arbitrage, order execution, and trend trading strategies, among others. Furthermore, the increasing trading volumes put pressure on trading desks to efficiently improve execution performance. This, as a result, is expected to create demand for algorithmic trading solutions.

The increasing use of algorithmic trading platforms by brokerage houses and institutional investors to cut down on costs associated with trading is expected to propel market growth over the forecast period. Brokerage houses and institutional investors are using these platforms to trade large order sizes. Furthermore, businesses across the globe use these platforms to create liquidity.

The COVID-19 outbreak is anticipated to impact the market positively. The increasing shift towards algorithmic trading solutions for making trade decisions at a rapid pace by eliminating human errors is further expected to propel market growth. Moreover, the Reserve Bank of Australia stated that the impact of the COVID-19 pandemic had advanced the industry’s shift toward electronic trading. These aforementioned factors are expected to propel market growth over the forecast period.

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Algorithmic Trading Market Report Highlights

  • Investors and traders widely adopt algorithmic trading software tools to ensure the accurate and effective execution of trade orders. As a result, the software tools segment is expected to witness significant growth over the forecast period

  • The managed services segment is expected to register the highest CAGR throughout the projection period. The growth is attributed to the ability of managed services to provide traders with support, maintenance, and infrastructure management for efficiently developing trading strategies

  • The increasing adoption of cloud-based algorithmic trading solutions owing to their scalability, cost-effectiveness, effective management, and easy trade data maintenance capabilities is expected to propel the segment growth over the forecast period

  • The cryptocurrencies segment is anticipated to register significant growth during the forecast period. The rising awareness among traders in cryptocurrency trading is expected to create growth opportunities for segment growth over the forecast period

  • The short-term traders segment is expected to register the highest CAGR over the forecast period. Short-term traders are widely adopting algorithmic trading platforms to make it smooth and easy for the financial markets to sell and purchase their stocks at reasonable prices

  • North America dominated the algorithmic trading industry in 2021. The regional growth can be attributed to the increasing investments in trading technologies and the presence of many algorithmic trading companies in the region. Moreover, growing government support for international trade is anticipated to fuel the growth

Algorithmic Trading Market Segmentation

Grand View Research has segmented the global algorithmic trading market based on solution, service, deployment, trading types, types of traders, and region:

Algorithmic Trading Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Platforms

  • Software Tools

Algorithmic Trading Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Professional Services

  • Managed Services

Algorithmic Trading Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premise

Algorithmic Trading Types Outlook (Revenue, USD Million, 2017 - 2030)

  • Foreign Exchange (FOREX)

  • Stock Markets

  • Exchange-Traded Fund (ETF)

  • Bonds

  • Cryptocurrencies

  • Others

Algorithmic Trading Types of Traders Outlook (Revenue, USD Million, 2017 - 2030)

  • Institutional Investors

  • Long-term Traders

  • Short-term Traders

  • Retail Investors

Algorithmic Trading Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

List of Key Players in the Algorithmic Trading Market

  • 63 moons technologies limited

  • AlgoTrader

  • Argo Software Engineering

  • InfoReach, Inc.

  • Kuberre Systems, Inc.

  • MetaQuotes Ltd.

  • Refinitiv

  • Symphony

  • Tata Consultancy Services Limited

  • VIRTU Finance Inc.

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