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Global Automated Algo Trading Market Size Forecast 2024 - 2033

19 Dec, 2024

What Is The Scope Of The Global Automated Algo Trading Market?

Automated algo trading refers to the practice of using computer algorithms to execute trading decisions automatically, without human intervention. Automated algo trading aims to capitalize on market inefficiencies and execute trades with precision and speed, often across multiple markets and asset classes, by enabling traders to implement complex trading strategies, manage risk, and capitalize on market opportunities more efficiently.

Automated Algo Trading Global Market Report 2024 provides data on the global automated algo trading market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Automated Algo Trading market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.

What Are The Forecasted Market Size And Growth Rates For Global Automated Algo Trading?

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 in the historic period can be attributed to the increased complexity of financial markets, the rise in the need for cost efficiency, the rise in the globalization of financial markets, and the increased 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 in the forecast period can be attributed to the increasing use of artificial intelligence and machine learning algorithms in automated trading systems, expansion into new asset classes, growing demand for real-time data analytics and predictive analytics capabilities, increased focus on environmental, social, and governance (ESG) factors, and rise in enhanced risk management solutions. Major trends in the forecast period include the integration of artificial intelligence (AI) and machine learning (ML) technologies, adoption of cloud computing technology, focus on data security and privacy, adoption of cryptocurrencies, the emergence of decentralized finance (DeFi) platforms, and integration of environmental, social, and governance (ESG) criteria into algorithmic trading strategies.

What Factors Are Driving Growth In The Automated Algo Trading Market?

An increase in the use of cloud-based solutions is expected to propel the growth of the automated algo trading market going forward. Cloud-based solutions, which are accessed over the Internet rather than locally, offer scalability, cost-effectiveness, flexibility, and remote accessibility. These features are crucial for automated algorithmic trading, facilitating real-time market data access, rapid trade execution, and seamless integration with trading platforms. For instance, in January 2023, a survey by Google revealed that 93% of IT leaders in large enterprises were predominantly using cloud solutions, up from 83% two years earlier, with 48% adopting hybrid models, compared to 40% previously. Thus, the rise in cloud-based solutions is a key driver for the growth of automated algo trading, enhancing efficiency and profitability for traders.

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What Are The Main Segments Of The Global Automated Algo Trading Market?

The automated algo trading market covered in this report is segmented –
1) By Component: Solution, Service
2) By Trading Type: Stock Markets, FOREX, Exchange Traded Funds (ETF), Bonds, Cryptocurrencies, Other Trading types
3) By Deployment Mode: On-Premises, Cloud
4) By Application: Trade Execution, Stealth Or Gaming, Statistical Arbitrage, Strategy Implementation, Electronic Market Making, Liquidity Detection
5) By End User: Personal Investors, Credit Unions, Trusts, Pension Funds, Insurance Firms, Prime Brokers, Investment Funds

What Emerging Trends Are Influencing The Growth Of The Automated Algo Trading Market?

Major companies in the automated algo trading market are focusing on developing advanced solutions, such as fully automated crypto trading software, to improve trading efficiency and profitability. Fully automated crypto trading software executes cryptocurrency trading strategies automatically without manual intervention. For instance, in March 2023, SMARD LLC, a US-based trading tool provider, launched a fully automated crypto trading software that allows users to trade in the cryptocurrency market without extensive programming knowledge. This software uses sophisticated algorithms and machine learning to execute trades and continuously monitors market conditions to make informed decisions. It aims to enhance trading efficiency by providing algorithmic trading capabilities supported by academic research and multiple strategies. The emphasis on advanced trading solutions is expected to drive the automated algo trading market, with market sizes projected to reach $BB billion in 2023, $CC billion in 2024, and $DD billion in 2028.

What Is The Largest Region In The Automated Algo Trading Market?

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.