PUBLISHER: Coherent Market Insights | PRODUCT CODE: 1529973
PUBLISHER: Coherent Market Insights | PRODUCT CODE: 1529973
Global algorithmic trading market is estimated to be valued at US$ 3.01 Bn in 2024 and is expected to reach US$ 5.48 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.9% from 2024 to 2031.
Report Coverage | Report Details | ||
---|---|---|---|
Base Year: | 2023 | Market Size in 2024: | US$ 3.01 Bn |
Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 to 2031 |
Forecast Period 2024 to 2031 CAGR: | 8.90% | 2031 Value Projection: | US$ 5.48 Bn |
Global algorithmic trading market growth is driven by increasing automation and data analytics in the financial sector. Algorithmic trading utilizes quantitative and qualitative factors to analyze market behavior and execute trades accordingly. It allows for high-frequency and automated execution of transactions based on pre-defined rules and variables. This reduces human errors and minimizes marginal transaction costs. The growth of FinTech solutions further boosts the development of more sophisticated trading algorithms capable of processing huge volumes of data at speeds exceeding human capabilities. Major players are investing heavily in R&D to develop AI and machine learning based advanced algorithms for predictive analysis and optimal trade execution. Global algorithmic trading market can witness growth as automation is core to trading operations.
Global algorithmic trading market growth is driven by the need for speed, efficiency and accuracy in capital markets. Growing volumes of market data and real-time trading necessitate automated systems for optimal order execution. However, high initial investment and regulatory compliances can hamper the market growth. Developing economies experiencing increase in financial technology adoption and online trading can offer market growth opportunities. Increasing popularity of AI and cloud computing makes algorithmic strategies more powerful by enabling analysis of unconventional data sources. This prompt vendors to offer cloud-based algorithmic solutions. However, cybersecurity risks and inability to match human judgment can hamper the market growth.