Enjoy complimentary customisation on priority with our Enterprise License!
The high frequency trading servers market size is estimated to grow by USD 97.94 million at a Compound annual growth rate (CAGR) of 4.24% between 2022 and 2027. The growth of the market depends on several factors, including the growth opportunities and demand for online trading platforms in APAC, the high demand for market surveillance, and the rise in the integration of financial markets. HFT is a trading activity that relies on algorithms and gives faster transactions and executions. High frequency servers are designed to address issues such as low latency, as well as algorithms issues like tick-to-trade.
To learn more about this report, View Report Sample
This market report extensively covers market segmentation by type (x-86 based and arm-based), application (equity trading, forex market, commodity market, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
The market share growth by the X-86-based segment will be significant during the forecast period. The growth of the x-86-based segment is largely attributed to the widespread adoption of x-86 core processors and high reliance of high frequency trading servers on x86-based software code. In addition, x86 processors can be used for applications with high performance and operating at a higher speed, such as data analytic workloads and artificial intelligence to perform operations more quickly. These product attributes enable financial service providers to execute trading transactions with low latency.
Get a glance at the market contribution of various segments View Free PDF Sample
The X-86-based segments show a gradual increase in the market share of USD 318.75 million in 2017 and continue to grow by 2021. With the availability of cost-effective ARM-based HFT servers, the demand for x-86-based HFT servers might decline during the forecast period. However, the global market in focus growth will be supported by increased investments in trading and an increase in demand for Low Latency Platforms over the forecast period.
Based on application, the market has been segmented into equity trading, forex market, commodity market, and others. equity trading will account for the largest share of this segment. Equity trading is the process of selling or purchasing equity securities through exchanges in the financial markets. Electronic trading of stocks has replaced paper records as a form of stock with the development of technology. For foreign exchange, commodity, and equity it is possible to use HFT effectively. However, increasing awareness about the benefits of equity trading, such as better returns and fixed returns even in inflation conditions, is contributing to the growing demand for equity HFT servers which will drive the growth of the global high-frequency trading servers market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The trading activity in North America rose by 3.6% between October 2020 and October. This rise was attributed to continuous trade monitoring, which enhanced the growth of the high-frequency trading server market in the region. In the forecast period, increased demand for a real-time record of trade activities has been stimulated by tightening regulatory oversight on top suppliers following recent collusive acts and currency rate manipulation. Sell-side dealers may play a significant role during the forecast period, and this should increase the auditable standards in trading activities and may enable easy communication between traders. Safehaven currencies tend to have stable earnings, as well as big gains from their speculative counterparts, due to low volatility. Increasing awareness about better returns and increasing investment in trading are majorly driving the growth of the regional market in focus.
The market thrives on Ultra-Low Latency (ULL) systems, crucial for rapid transactions in financial services. Leveraging Quantum computing and Intent-based networking, HFT servers execute trades in nanoseconds, essential for investment banks, hedge funds, and stock exchanges. Leading brands like Ciara and Hypertec offer cutting-edge servers such as ORION HF210-G5, ORION HF610T-G4, and ORION HF310-G4, tailored for Original Design Manufacturers (ODMs). These servers support deep learning capabilities, empowering algorithmic-based equity trading and stop-loss strategies. With investments in technologies to minimize network latency, HFT servers play a pivotal role in the high-speed trading ecosystem, ensuring seamless and efficient transactions.
The surge in demand for online trading platforms in the APAC region marks a significant trend in the market. Developed economies like North America and Europe have already embraced advanced online trading platforms, with hedge funds, financial institutions, and brokers leveraging them to expand their operations efficiently. To capitalize on these opportunities, vendors are targeting countries within the market, facilitating increased competition.
Furthermore, global vendors and startups are actively developing cutting-edge solutions for online trading, offering valuable insights into high-frequency trading (HFT) server market trends in APAC. The heightened focus on enhancing online commerce solutions by sellers aims to broaden the customer base, while the rapid growth of regional vendors in APAC with advanced product portfolios for online trading platforms will drive the overall growth of the global high-frequency trading servers market in the forecast period.
The influence of digitalization is a primary trend in market. Due to the Internet of Everything revolution, smart connected devices are experiencing an exponential rise in demand around the world. Furthermore, data protection in the context of an enterprise is becoming more difficult to manage, monitor and maintain. Thus, the demand for high frequency trading servers will grow as it helps financial service providers manage, monitor, and maintain smart-connected devices.
In addition, due to the adoption of a fully digital workflow, enterprises are now experiencing significant improvements in their business processes. Effective decisions will also be made by companies in real time if they are more closely monitoring their business processes. Hence, the rise in the number of smart-connected devices increases the usage of trading servers with easy user interfaces globally, which will further boost the demand for high-frequency trading software during the forecast period.
The limitations associated with servers are a major challenge faced by the market. The major factors that may affect the world market for High Frequency Trading Server Systems are technical failures of servers from which trading takes place, a requirement to continuously monitor, and poor server performance. Trading companies use automated trading methods. A number of technological difficulties, such as Internet connection issues, may be encountered by computerized trading systems. In addition, power loss, system quirks, and computer crashes may hamper the overall trading process.
Continuous monitoring is required to reduce errors such as loss or duplication of trading orders. In order to spot problems in a timely manner and resolve them as soon as they arise, constant monitoring is helpful. In addition, 100% profit margins can be obtained when the trading plans are over-optimized. This may mislead traders into making profits in a particular market. Such limitations associated with trading servers may reduce their adoption to a certain extent, which is expected to limit the growth of the global high-frequency trading HFT server market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
2CRSi - The company offers high frequency trading servers under the brand, Boston Ltd.
Dell Technologies Inc. - The company offers high frequency trading servers such as CRS3260.
Exacta Technologies Ltd. - The company offers high frequency trading servers such as PowerEdge R9.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The High-Frequency Trading (HFT) Server Market is propelled by the demand for Ultra-Low Latency (ULL) systems in the financial services sector. With trading ecosystems reliant on lightning-fast transactions, HFT servers leverage Quantum computing and Intent-based networking to execute trades in nanoseconds. Leading brands like Ciara offer ORION HF210-G5, ORION HF610T-G4, and ORION HF310-G4 servers catering to Original Design Manufacturers (ODMs) and investment banks. These servers, equipped with x-86 and ARM-based processors, support high-performance computing and AI algorithms, enabling deep learning capabilities. Investment banks and stock exchanges rely on HFT servers to process high-frequency financial data, execute algorithmic-based equity trading, and implement stop-loss strategies. As the equity trading segment expands to include commodity and forex markets, HFT servers continue to evolve with advancements in ARM architecture and cloud-based migration tools, ensuring high speeds and low network latency for seamless electronic trading instruments.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
High Frequency Trading Servers Market Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.24% |
Market growth 2023-2027 |
USD 97.94 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.76 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
2CRSi, Arista Networks Inc., ASA Computers Inc., Cisco Systems Inc., Dell Technologies Inc., Exacta Technologies Ltd., Furukawa Electric Co. Ltd., Hewlett Packard Enterprise Co., HyperShark Technologies Corp., Hypertec Group Inc., Juniper Networks Inc., Lenovo Group Ltd., MiTAC Holdings Corp., NVIDIA Corp., Oracle Corp., Pegatron Corp., SMART Global Holdings Inc., Super Micro Computer Inc., XENON Systems Pty Ltd., and Advanced Micro Devices 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, and Market condition analysis for the forecast period. |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.