The global algorithmic trading market is foreseen to progress from $ 11.1 billion in 2020 to $ 18.8 billion in 2025, recording an annual growth rate (of 11.1% during the conjecture period.
Algorithmic trading, automated trading or black box trading is a technological advancement in the stock market. It is a programmed process that runs on a computer that follows a specific set of instructions to complete a trade in order to generate profits at a speed and frequency that human traders cannot.
Traditionally, traders keep track of their trading activity and investment portfolio with the help of market surveillance. Applications like algorithmic trading offers the intelligence to seek out opportunities that exist in the market, based on performance and other user-defined criteria. Factors such as favorable government regulations, growing demand for fast, reliable and efficient order execution, increasing demand for market surveillance and reduced transaction costs are expected to spearhead the market's need for algorithmic trading.
Recent Developments:
Market growth and trends:
Institutional investors should have a significant stake in Algorithmic Traders Market
Market Drivers and Restraints:
The growing demand for AI-based services in the financial industry is driving the growth of the global algorithmic trading market. In algorithmic trading, AI helps to adopt market conditions, learn from experiences, and make trading decisions accordingly. Trading houses like Blackrock, Renaissance Technologies, and Two Sigma, among others, use AI to select stocks.
Therefore, the increasing adoption of AI in the financial industry is expected to drive the growth of the algorithmic trading market during the forecast period. Additionally, the increasing adoption of stockless trading algorithms by institutional asset managers is another growth driver in the global algorithmic trading market.
Market Segmentation:
Regional analysis:
Depending on the region, the global algorithmic trading market is segmented into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa. The algorithmic trading market in North America contributed the largest share in 2018 due to technological advancements and the increasing application of algorithmic trading among various end-users such as banks and financial institutions in the area.
North America is supposed to hold its dominant size in the global algorithmic trading market through the adoption and expansion of algorithmic trading. Increasing investments in trading technologies like blockchain, the growing presence of algorithmic trading providers, and growing government support for global trade are the main factors contributing to the growth of the market during the outlook period. Furthermore, significant technological advances and the considerable application of trading algorithms in various applications such as banks and financial institutions in the locale are expected to drive market growth.
Key market players:
Some of the major players operating in the global algorithmic trading market include AlgoTrader GmbH, Trading Technologies International, Inc., Tethys Technology, Inc., Tower Research Capital LLC, Lime Brokerage LLC, InfoReach, Inc., FlexTrade Systems, Inc., Hudson River Trading LLC, Citadel LLC and Virtu Financial.
1. Introduction
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.1.1 Drivers
4.1.2 Restaints
4.1.3 Opportunities
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.2 Products/Service
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Algorithmic Trading Market, By Trading Type
6.1.1 FOREX
6.1.2 Stock Markets
6.1.3 ETF
6.1.4 Bonds
6.1.5 Cryptocurrencies
6.1.6 Market Size Estimations & Forecasts (2019-2024)
6.1.7 Y-o-Y Growth Rate Analysis
6.1.8 Market Attractiveness Index
6.2 Algorithmic Trading Market, By Application
6.2.1 Investment Banking
6.2.2 Funds
6.2.3 Personal Investors
6.2.4 Market Size Estimations & Forecasts (2019-2024)
6.2.5 Y-o-Y Growth Rate Analysis
6.2.6 Market Attractiveness Index
6.3 Algorithmic Trading Market, By Component
6.3.1 Solutions
6.3.2 Services
6.3.3 Market Size Estimations & Forecasts (2019-2024)
6.3.4 Y-o-Y Growth Rate Analysis
6.3.5 Market Attractiveness Index
6.4 Algorithmic Trading Market, By Deployment Mode
6.4.1 On-Premises
6.4.2 Cloud
6.4.3 Market Size Estimations & Forecasts (2019-2024)
6.4.4 Y-o-Y Growth Rate Analysis
6.4.5 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.1.1 USA
7.2.1.2 Canada
7.2.2 By Trading Type
7.2.3 By Application
7.2.4 By Component
7.2.5 By Deployment Mode
7.3 Europe
7.3.1 By Country
7.3.1.1 UK
7.3.1.2 France
7.3.1.3 Germany
7.3.1.4 Spain
7.3.1.5 Italy
7.3.1.6 Rest of Europe
7.3.2 By Trading Type
7.3.3 By Application
7.3.4 By Component
7.3.5 By Deployment Mode
7.4 Asia Pacific
7.4.1 By Country
7.4.1.1 China
7.4.1.2 India
7.4.1.3 Japan
7.4.1.4 South Korea
7.4.1.5 South East Asia
7.4.1.6 Australia & NZ
7.4.1.7 Rest of Asia-Pacific
7.4.2 By Trading Type
7.4.3 By Application
7.4.4 By Component
7.4.5 By Deployment Mode
7.5 Latin America
7.5.1 By Country
7.5.1.1 Brazil
7.5.1.2 Argentina
7.5.1.3 Mexico
7.5.1.4 Rest of Latin America
7.5.2 By Trading Type
7.5.3 By Application
7.5.4 By Component
7.5.5 By Deployment Mode
7.6 Middle East and Africa
7.6.1 By Country
7.6.1.1 Middle East
7.6.1.2 Africa
7.6.2 By Trading Type
7.6.3 By Application
7.6.4 By Component
7.6.5 By Deployment Mode
8. Key Player Analysis
8.1 AlgoTrader GmbH
8.1.1 Business Description
8.1.2 Products/Service
8.1.3 Financials
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 Trading Technologies International, Inc
8.3 Tethys Technology, Inc
8.4 Tower Research Capital LLC
8.5 Lime Brokerage LLC
8.6 InfoReach, Inc
8.7 FlexTrade Systems, Inc
8.8 Hudson River Trading LLC
8.9 Citadel LLC
8.10 Virtu Financial
9. Market Outlook & Investment Opportunities
Appendix
List of Tables
List of Figures