The global automated algo trading market revenue was around US$ 14.8 billion in 2022 and is estimated to reach US$ 35 billion by 2031, growing at a compound annual growth rate (CAGR) of 10.1% during the forecast period from 2023 to 2031.
Automated algo trading is a type of automation, that utilizes a computer program to perform a determined set of rules or instructions that contain the selling or buying of an asset regarding the varying market data. The described sets of rules or instructions are based on quantity, price, timing, or any mathematical model.
Factors Influencing Market Growth
- Factors like the emergence of favorable government regulations, the rise in demand for fast, reliable, and effective order execution, and the requirement for market surveillance primarily push the growth of the automated algo trading market.
- The increase in demand for reducing transaction costs boots the demand for an automated algo trading market.
- The emergence of algorithms and artificial intelligence in financial services is anticipated to deliver lucrative opportunities for the growth of the automated algo trading market during the forecast period.
- The low-risk valuation capabilities are anticipated to hinder the growth of the automated algo trading market to some extent.
- The increase in demand for cloud-based solutions is anticipated to be opportunistic for the growth of the automated algo trading market during the forecast period.
Impact of COVID-19
The COVID-19 pandemic outbreak had a low impact on the growth of the automated algo trading market, as the adoption of automated algo trading solutions has expanded in the face of exceptional circumstances. The COVID-19 pandemic has particularly boosted the growth rate of the automated algo trading market because of the increased change toward automated algo trading for bringing decisions at a very fast pace by lowering human errors.
Regional Analysis
In 2022, North America dominated the global automated algo trading market in terms of revenue. This is attributed to the full expansion of the automated algo trading market because of the growth in demand for effective, fast, and reliable order execution, favorable government laws, drop in transactional costs, and increase in demand for market surveillance in North America.
Leading Companies
The leading prominent companies profiled in the global automated algo trading market are: -
- 63MOONS
- AlgoTrader
- Argo Software Engineering
- Ava Trade Markets Ltd.
- India Algo
- InfoReach, Inc.
- LEHNER INVESTMENTS
- MetaQuotes Ltd
- NinjaTrader
- QuantConnect
- Software AG
- Symphony
- Tethys Technology
- VIRTU Financial Inc.
- Tata Consultancy Services Limited
- Next Algo
- Myalgomate Technologies LLP
- Other prominent key players
Segmentation Outline
The global automated algo trading market segmentation focuses on Component, Deployment Model, Enterprise Size, Application, Trading Type, and Region.
Segmentation based on Component
- Solution
- Service
Segmentation based on Deployment Model
- On-premises
- Cloud
Segmentation based on Enterpriser Size
- Large Enterprises
- Small and Medium-sized Enterprises (SMEs)
Segmentation based on Application
- Trade Execution
- Statistical Arbitrage
- Liquidity Detection
- Others
Segmentation based on Trading Type
- Stock Markets
- FOREX
- ETF
- Bonds
- Cryptocurrencies
- Others
Segmentation based on Region
- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa