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Algorithmic Trading Market by Component and Geography - Forecast and Analysis 2021-2025

  • Published: Apr 2021
  • Pages: 122
  • SKU: IRTNTR44209
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The algorithmic trading market share is expected to increase by USD 3.79 bn from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 5.98%.

This algorithmic trading market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers algorithmic trading market segmentations by component (solutions and services) and geography (North America, Europe, APAC, South America, and MEA). The algorithmic trading market report also offers information on several market vendors, including AlgoTrader AG, Argo SE, Citadel Enterprise Americas LLC, InfoReach Inc., Optiver VOF, Tata Consultancy Services Ltd., Thomson Reuters Corp., Tower Research Capital LLC, uTrade, and VIRTU Financial Inc. among others.

What will the Algorithmic Trading Market Size be During the Forecast Period?

Download the Free Report Sample to Unlock the Algorithmic Trading Market Size for the Forecast Period and Other Important Statistics

 

Algorithmic Trading Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The high demand for market surveillance is notably driving the algorithmic trading market growth, although factors such as wider bid-ask spread in Apac may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the algorithmic trading industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Algorithmic Trading Market Driver

The high demand for market surveillance is notably driving the global algorithmic trading market growth. There is an increase in the demand for market surveillance in the global algorithmic trading market that should drive compliance requirements so that market participants can keep track of their investment patterns and trading activities over the forecast period. Top vendors in the global algorithmic trading market are trying to optimize their data management strategies and fill gaps in systems. It is important that vendors should build a market with international as well as regional interdependencies. This, in turn, will help market players have the best assets globally. Therefore, strategies are being formulated to build high-risk infrastructures and augment the equity market over the forecast period.

Key Algorithmic Trading Market Trend

Growing opportunities and demand in APAC is the key trend driving the global algorithmic trading market growth. Developed economies in North America and Europe have adopted advanced platforms for algorithmic trading. Hedge funds, financial institutions, and brokers in developed countries have adopted algorithmic trading to grow their businesses effectively. Financial investors and other trading companies that require algorithmic trading are focusing on countries such as China, Japan, Singapore, and India in APAC. This has increased the opportunities for vendors of algorithmic trading to gain a competitive advantage. The increasing focus of vendors on developing algorithmic trading solutions to expand the customer base and the rapid growth of regional vendors with advanced product portfolios for algorithmic trading in APAC are fueling the overall growth of the global algorithmic trading market.

Key Algorithmic Trading Market Challenge

Wider bid-ask spread in APAC is the major challenge impeding the market's global algorithmic trading growth. APAC faces many issues in implementing algorithmic trading due to its wider bid-ask spread in different stocks. In markets such as Singapore, the average dealing spread of stocks is around 75bps. The algorithmic trading market in APAC is in its infancy. Countries such as China, Japan, Hong Kong, Singapore, and South Korea are ahead of others. Local domestic players in APAC are not as advanced in algorithmic trading strategies as those in the Americas and Europe.

This algorithmic trading market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global algorithmic trading market as a part of the global application software market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the algorithmic trading market during the forecast period.

Who are the Major Algorithmic Trading Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

  • AlgoTrader AG
  • Argo SE
  • Citadel Enterprise Americas LLC
  • InfoReach Inc.
  • Optiver VOF
  • Tata Consultancy Services Ltd.
  • Thomson Reuters Corp.
  • Tower Research Capital LLC
  • uTrade
  • VIRTU Financial Inc.

 

This statistical study of the algorithmic trading market encompasses successful business strategies deployed by the key vendors. The algorithmic trading market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

  • AlgoTrader AG - The company offers AlgoTrader showing the AlgoTrader live trading front end as well as three example strategies trading Forex, Equities, and Futures.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The algorithmic trading market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Algorithmic Trading Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the algorithmic trading market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Algorithmic Trading Market?

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34% of the market’s growth will originate from North America during the forecast period. The US is the key market for the algorithmic trading market in North America. Market growth in this region will be faster than the growth of the market in Europe.

Continuous trade monitoring and surveillance in the trading market, presence of retail and institutional traders, increasing focus on technology development, growing focus on AI and machine learning tools, and presence of prominent vendors are the major factors that will facilitate the algorithmic trading market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Component Segments in the Algorithmic Trading Market?

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The algorithmic trading market share growth by the solutions segment will be significant during the forecast period. The solutions segment of the global algorithmic trading market mainly includes the software used by traders for algorithmic trading. Customization as per user requirement, fast, automatic processing of high-volume data, reliability, cost-effectiveness, and availability of a guidance for installation and customization are the major features associated with this software solution acting as the major drivers.

This report provides an accurate prediction of the contribution of all the segments to the growth of the algorithmic trading market size and actionable market insights on post COVID-19 impact on each segment.

 

Algorithmic Trading Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 5.98%

Market growth 2021-2025

$ 3.79 billion

Market structure

Fragmented

YoY growth (%)

3.07

Regional analysis

North America, Europe, APAC, South America, and MEA

Performing market contribution

North America at 34%

Key consumer countries

US, China, UK, Japan, and Germany

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

AlgoTrader AG, Argo SE, Citadel Enterprise Americas LLC, InfoReach Inc., Optiver VOF, Tata Consultancy Services Ltd., Thomson Reuters Corp., Tower Research Capital LLC, uTrade, and VIRTU Financial Inc.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period

Customization purview

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What are the Key Data Covered in this Algorithmic Trading Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive algorithmic trading market growth during the next five years
  • Precise estimation of the algorithmic trading market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the algorithmic trading industry across North America, Europe, APAC, South America, and MEA
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of algorithmic trading market vendors

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Read More Read Less

1 Executive Summary

2 Market Landscape

  • 2.1 Market ecosystem
    • Exhibit 01: Parent market
    • Exhibit 02: Market characteristics
  • 2.2 Value chain analysis
    • Exhibit 03: Value Chain Analysis: Application software market

3 Market Sizing

  • 3.1 Market definition
    • Exhibit 04: Offerings of vendors included in the market definition
  • 3.2 Market segment analysis
    • Exhibit 05: Market segments
  • 3.3 Market size 2020
    • 3.4 Market outlook: Forecast for 2020 - 2025
      • Exhibit 06: Global - Market size and forecast 2020 - 2025 ($ million)
      • Exhibit 07: Global market: Year-over-year growth 2020 - 2025 (%)

    4 Five Forces Analysis

    • 4.1 Five forces summary
      • Exhibit 08: Five forces analysis 2020 & 2025
    • 4.2 Bargaining power of buyers
      • Exhibit 09: Bargaining power of buyers
    • 4.3 Bargaining power of suppliers
      • Exhibit 10: Bargaining power of suppliers
    • 4.4 Threat of new entrants
      • Exhibit 11: Threat of new entrants
    • 4.5 Threat of substitutes
      • Exhibit 12: Threat of substitutes
    • 4.6 Threat of rivalry
      • Exhibit 13: Threat of rivalry
    • 4.7 Market condition
      • Exhibit 14: Market condition - Five forces 2020

    5 Market Segmentation by Component

    • 5.1 Market segments
      • Exhibit 15: Component - Market share 2020-2025 (%)
    • 5.2 Comparison by Component
      • Exhibit 16: Comparison by Component
    • 5.3 Solutions - Market size and forecast 2020-2025
      • Exhibit 17: Solutions - Market size and forecast 2020-2025 ($ million)
      • Exhibit 18: Solutions - Year-over-year growth 2020-2025 (%)
    • 5.4 Services - Market size and forecast 2020-2025
      • Exhibit 19: Services - Market size and forecast 2020-2025 ($ million)
      • Exhibit 20: Services - Year-over-year growth 2020-2025 (%)
    • 5.5 Market opportunity by Component
      • Exhibit 21: Market opportunity by Component

    6 Customer landscape

    7 Geographic Landscape

    • 7.1 Geographic segmentation
      • Exhibit 23: Market share by geography 2020-2025 (%)
    • 7.2 Geographic comparison
      • Exhibit 24: Geographic comparison
    • 7.3 North America - Market size and forecast 2020-2025
      • Exhibit 25: North America - Market size and forecast 2020-2025 ($ million)
      • Exhibit 26: North America - Year-over-year growth 2020-2025 (%)
    • 7.4 Europe - Market size and forecast 2020-2025
      • Exhibit 27: Europe - Market size and forecast 2020-2025 ($ million)
      • Exhibit 28: Europe - Year-over-year growth 2020-2025 (%)
    • 7.5 APAC - Market size and forecast 2020-2025
      • Exhibit 29: APAC - Market size and forecast 2020-2025 ($ million)
      • Exhibit 30: APAC - Year-over-year growth 2020-2025 (%)
    • 7.6 South America - Market size and forecast 2020-2025
      • Exhibit 31: South America - Market size and forecast 2020-2025 ($ million)
      • Exhibit 32: South America - Year-over-year growth 2020-2025 (%)
    • 7.7 MEA - Market size and forecast 2020-2025
      • Exhibit 33: MEA - Market size and forecast 2020-2025 ($ million)
      • Exhibit 34: MEA - Year-over-year growth 2020-2025 (%)
    • 7.8 Key leading countries
      • Exhibit 35: Key leading countries
    • 7.9 Market opportunity by geography
      • Exhibit 36: Market opportunity by geography ($ million)

    8 Drivers, Challenges, and Trends

    • 8.1 Market drivers
      • 8.2 Market challenges
        • Exhibit 37: Impact of drivers and challenges
      • 8.3 Market trends

        9 Vendor Landscape

        • 9.1 Overview
          • Exhibit 38: Vendor landscape
        • 9.2 Landscape disruption
          • Exhibit 39: Landscape disruption
          • Exhibit 40: Industry risks
        • 9.3 Competitive scenario

          10 Vendor Analysis

          • 10.1 Vendors covered
            • Exhibit 41: Vendors covered
          • 10.2 Market positioning of vendors
            • 10.3 AlgoTrader AG
              • Exhibit 43: AlgoTrader AG - Overview
              • Exhibit 44: AlgoTrader AG - Product and service
              • Exhibit 45: AlgoTrader AG - Key offerings
            • 10.4 Argo SE
              • Exhibit 46: Argo SE - Overview
              • Exhibit 47: Argo SE - Product and service
              • Exhibit 48: Argo SE - Key offerings
            • 10.5 Citadel Enterprise Americas LLC
              • Exhibit 49: Citadel Enterprise Americas LLC - Overview
              • Exhibit 50: Citadel Enterprise Americas LLC - Product and service
              • Exhibit 51: Citadel Enterprise Americas LLC - Key offerings
            • 10.6 InfoReach Inc.
              • Exhibit 52: InfoReach Inc. - Overview
              • Exhibit 53: InfoReach Inc. - Product and service
              • Exhibit 54: InfoReach Inc. - Key offerings
            • 10.7 Optiver VOF
              • Exhibit 55: Optiver VOF - Overview
              • Exhibit 56: Optiver VOF - Product and service
              • Exhibit 57: Optiver VOF - Key offerings
            • 10.8 Tata Consultancy Services Ltd.
              • Exhibit 58: Tata Consultancy Services Ltd. - Overview
              • Exhibit 59: Tata Consultancy Services Ltd. - Business segments
              • Exhibit 60: Tata Consultancy Services Ltd.– Key news
              • Exhibit 61: Tata Consultancy Services Ltd. - Key offerings
              • Exhibit 62: Tata Consultancy Services Ltd. - Segment focus
            • 10.9 Thomson Reuters Corp.
              • Exhibit 63: Thomson Reuters Corp. - Overview
              • Exhibit 64: Thomson Reuters Corp. - Business segments
              • Exhibit 65: Thomson Reuters Corp. – Key news
              • Exhibit 66: Thomson Reuters Corp. - Key offerings
              • Exhibit 67: Thomson Reuters Corp. - Segment focus
            • 10.10 Tower Research Capital LLC
              • Exhibit 68: Tower Research Capital LLC - Overview
              • Exhibit 69: Tower Research Capital LLC - Product and service
              • Exhibit 70: Tower Research Capital LLC - Key offerings
            • 10.11 uTrade
              • Exhibit 71: uTrade - Overview
              • Exhibit 72: uTrade - Product and service
              • Exhibit 73: uTrade - Key offerings
            • 10.12 VIRTU Financial Inc.
              • Exhibit 74: VIRTU Financial Inc. - Overview
              • Exhibit 75: VIRTU Financial Inc. - Business segments
              • Exhibit 76: VIRTU Financial Inc. - Key offerings
              • Exhibit 77: VIRTU Financial Inc. - Segment focus

            11 Appendix

            • 11.1 Scope of the report
              • 11.2 Currency conversion rates for US$
                • Exhibit 78: Currency conversion rates for US$
              • 11.3 Research methodology
                • Exhibit 79: Research Methodology
                • Exhibit 80: Validation techniques employed for market sizing
                • Exhibit 81: Information sources
              • 11.4 List of abbreviations
                • Exhibit 82: List of abbreviations

              Research Framework

              Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

              TechnavioINFORMATION SOURCES

              Primary sources

              • Manufacturers and suppliers
              • Channel partners
              • Industry experts
              • Strategic decision makers

              Secondary sources

              • Industry journals and periodicals
              • Government data
              • Financial reports of key industry players
              • Historical data
              • Press releases
              Technavio

              TechnavioDATA ANALYSIS

              Data Synthesis

              • Collation of data
              • Estimation of key figures
              • Analysis of derived insights

              Data Validation

              • Triangulation with data models
              • Reference against proprietary databases
              • Corroboration with industry experts
              Technavio

              TechnavioREPORT WRITING

              Qualitative

              • Market drivers
              • Market challenges
              • Market trends
              • Five forces analysis

              Quantitative

              • Market size and forecast
              • Market segmentation
              • Geographical insights
              • Competitive landscape
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              The algorithmic trading market market growth will increase by $4.27 billion during 2019-2024.
              The algorithmic trading market market is expected to grow at a CAGR of 6.44% during 2019-2024.
              Technavio has segmented the algorithmic trading market market by component (Solutions and Services) and geographic (North America, Europe, APAC, South America, and MEA).
              AlgoTrader AG, Argo SE, Citadel Enterprise Americas LLC, InfoReach Inc., Optiver VOF, Tata Consultancy Services Ltd., Thomson Reuters Corp., Tower Research Capital LLC, uTrade, VIRTU Financial Inc. are a few of the key vendors in the algorithmic trading market market.
              North America will register the highest growth rate of 34.89% among the other regions. Therefore, the algorithmic trading market market in North America is expected to garner significant business opportunities for the vendors during the forecast period.
              The key factors driving the algorithmic trading market market growth are:
              • High demand for market surveillance
              • Technological advancements
              The algorithmic trading market market vendors should focus on grabbing business opportunities from the solutions segment as it accounted for the largest market share in the base year.
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