PUBLISHER: The Business Research Company | PRODUCT CODE: 1499998
PUBLISHER: The Business Research Company | PRODUCT CODE: 1499998
Automated algorithmic trading involves the utilization of computer algorithms for executing trading decisions automatically, devoid of human intervention. This strategy aims to capitalize on market inefficiencies and swiftly and accurately execute trades, often spanning multiple markets and asset classes. It enables traders to efficiently implement intricate strategies, manage risk, and capitalize on market opportunities.
The main components of automated algorithmic trading consist of solutions and services. A solution component denotes a specific element or module within the overall system that contributes to the functionality and effectiveness of automated trading processes. Diverse trading types encompass stock markets, FOREX, exchange-traded funds (ETFs), bonds, cryptocurrencies, and others. These solutions can be deployed either on-premises or in the cloud to facilitate various applications such as trade execution, stealth or gaming, statistical arbitrage, strategy implementation, electronic market making, and liquidity detection. End-users involved in this domain include personal investors, credit unions, trusts, pension funds, insurance firms, prime brokers, and investment funds.
The automated algo trading market research report is one of a series of new reports from The Business Research Company that provides automated algo trading market statistics, including the automated algo trading industry global market size, regional shares, competitors with automated algo trading market share, detailed automated algo trading market segments, market trends, and opportunities, and any further data you may need to thrive in the automated algo trading industry. These automated algo trading market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The automated algo trading market size has grown rapidly in recent years. It will grow from $18.74 billion in 2023 to $21.20 billion in 2024 at a compound annual growth rate (CAGR) of 13.2%. The growth observed during the historic period can be credited to several factors, including the heightened complexity of financial markets, the growing demand for cost efficiency, the globalization of financial markets, and the escalating need for effective risk management tools and strategies.
The automated algo trading market size is expected to see rapid growth in the next few years. It will grow to $35.09 billion in 2028 at a compound annual growth rate (CAGR) of 13.4%. The growth of automated algo trading witnessed in the future period can be attributed to various factors, such as the rising popularity of automated algo trading among end users such as personal investors and credit unions, and the penetration of modern technologies changing traditional investment models. Major trends in the forecast period include penetration of modern technologies, adoption of growth strategies such as mergers, acquisitions, and partnerships by key players to expand their global footprint, and rising popularity of automated algo trading among end users such as personal investors and credit unions.
The anticipated rise in the utilization of cloud-based solutions is expected to drive the expansion of the automated algo trading market in the foreseeable future. Cloud-based solutions encompass software, services, or resources hosted and accessed over the Internet, offering scalability, cost-effectiveness, flexibility, and accessibility from any location with an Internet connection. This increased adoption of cloud-based solutions facilitates automated algorithmic trading by providing real-time access to market data, enabling swift execution of trades, and seamlessly integrating with trading platforms and systems, thereby enhancing efficiency and profitability for traders. For example, in January 2023, a survey conducted by Google revealed that 93% of IT leaders from enterprises with 1,500 or more employees claimed they were 'mostly cloud' in some form in 2022, up from 83% two years prior, underscoring the growing prevalence of cloud adoption. Similarly, 48% reported being 'mostly hybrid', up from 40% two years ago. Consequently, the rise in the use of cloud-based solutions is a key driver behind the growth of the automated algo trading market.
Key players in the automated algo trading market are concentrating on the development of advanced solutions, such as fully automated crypto trading software, to enhance trading efficiency and profitability for users. Fully automated crypto trading software refers to specialized solutions designed to execute cryptocurrency trading strategies automatically without manual intervention. For instance, in March 2023, SMARD LLC launched a fully automated crypto trading software that empowers users to trade on the cryptocurrency market without the need for programming or extensive knowledge of the crypto space. Leveraging sophisticated algorithms and machine learning, this software executes trades automatically, continuously monitoring market conditions to make informed decisions. Its aim is to optimize trading efficiency by offering algorithmic trading capabilities supported by academic research and multiple strategies.
In March 2022, Trading Technologies International Inc. acquired RCM-X to enhance the value proposition of its trading platform by integrating RCM-X's product suite of algorithmic execution strategies, trade analytics, and transaction cost analysis (TCA) services. RCM-X specializes in developing automated execution algorithms and quantitative trading products tailored for institutional clients, contributing to Trading Technologies' commitment to providing advanced solutions for algorithmic trading.
Major companies operating in the automated algo trading market are Citadel Securities LLC, Virtu Financial Inc., Susquehanna International Group LLP, Optiver Holding B.V., Jane Street Capital LLC, DRW Holdings LLC, Flow Traders B.V., Tower Research Capital LLC, Hudson River Trading LLC, Jump Trading LLC, FlexTrade Systems Inc., Wolverine Trading LLC, Two Sigma Securities LLC, Quantopian Inc., Allston Trading LLC, Ronin Capital LLC, XR Trading LLC, Trading Technologies International Inc., InfoReach Inc., Geneva Trading LLC, Tethys Technology Inc., AlgoTrader GmbH, Cloud9Trader, KCG Holdings Inc., QuantConnect Corporation
North America was the largest region in the automated algo trading market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automated algo trading market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the automated algo trading market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automated algo trading market includes revenues earned by entities by providing services, such as back testing and optimization, real-time market data feeds, portfolio management, and integration with brokerage platforms. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automated Algo Trading Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automated algo trading market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automated algo trading ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automated algo trading market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.