PUBLISHER: Orion Market Research | PRODUCT CODE: 1778461
PUBLISHER: Orion Market Research | PRODUCT CODE: 1778461
Global Algorithmic Trading Market Size, Share & Trends Analysis Report by Trading Type (Institutional Investors, Retail Investors, Long-term Trading, and Short-term Trading), By Components (Solutions and Services), By Deployment (Cloud and On-Premises), By Organization Size (Small and Medium Enterprises and Large Enterprises, Forecast Period (2025-2035)
Algorithmic trading market was valued at $18.3 billion in 2024 and is projected to reach $59.4 billion by 2035, growing at a CAGR of 11.3% during the forecast period (2025-2035). The growth of the algorithmic trading market is primarily driven by the increasing demand for automation in trading processes across financial institutions and individual investors. Algorithmic trading enables faster and more accurate trade execution by utilizing complex mathematical models and advanced computational algorithms. The market is further fueled by the rising adoption of innovative technologies such as artificial intelligence (AI), machine learning, and cloud computing, which enhance trading strategies, predictive analytics, and risk management.
Institutional Investors Segment to Hold a Prominent Market Share in the Global Algorithmic Trading Market.
The institutional investor segment is expected to dominate the global algorithm trading market owing to several major factors. Hedge funds, mutual funds, pension funds, and insurance companies enable large-scale trading volume algorithm trading, enabling efficient order execution and reducing market effects. The demand for high-speed execution further accelerates this trend, as institutions take advantage of advanced algorithms to increase trading accuracy and reduce delays. Additionally, algorithm trading helps with cost efficiency by breaking large orders into smaller ones, which leads to significant, rapid market growth. Regulatory compliance and risk management also play an important role, encouraging the use of refined trading algorithms with structures such as MiFID II and the Dodd-Frank Act. Integration of AI and machine learning further strengthens institutional dominance, allowing advanced market trend analysis and future trading.
The global algorithmic trading market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN countries, Australia & New Zealand and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). The Asia-Pacific market is anticipated to experience considerable growth over the forecast period.
The North American algorithmic trading market is growing owing to the rising need for financial trade automation. Technology adoption, such as AI and ML, is improving trading effectiveness and decision-making. Support from regulation towards algorithmic trading practices is also propelling market expansion. High-frequency trading (HFT) methods are growing popular, driving market growth. The increasing intertwinement of cloud computing and big data analytics is streamlining trading operations. Also, the increasing presence of institutions is driving the need for advanced algorithmic trading platforms.
The major companies serving the algorithmic trading market include Tradetron, Software AG, Metaquotes Software Corp, Tata Consultancy Services (TCS), Algo Trader AG, Speedbot, and others. These market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market.
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