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Algorithmic Trading Software Market By Software (On-premise, Cloud), By Services (Managed Services, Professional Services), By Trading Type (Forex, Stock Market, Commodities, Bonds, Cryptocurrency) - Growth, Future Prospects & Competitive Analysis, 2018 – 2026

Algorithmic trading can be described as an application powered by artificial intelligence and a sophisticated algorithm to carry out trading decisions without any human intervention. The dynamics of the trading sector are changing at a brisk pace, and new technologies such as algorithmic trading are giving a head start to trading institutes and financial organizations. This is one of several factors acting as catalysts for the growth of algorithmic trading software.

In 2017, the global market value of algorithmic trading software was US$ 11.67 billion, indicating investors' growing confidence in such software. Given its growing popularity, the market is expected to reach a market value of US$ 26.08 billion by 2026, growing at a notable CAGR of 9.4% from 2018 to 2026.

Market Synopsis

Cloud Software Snitching Opportunities from the On-premises Software Segment

In 2017, on-premises software for algorithmic trading ran the show by acquiring the majority of the market share and a higher market value. Initially, on-premise software was the only source an organization could procure such applications. However, the introduction and acceptance of the cloud concept opened new doors of opportunity not only for algorithmic trading but across all the end-use application sectors.

When compared to traditional on-premise counterparts, these applications require less infrastructure and provide faster processing. Besides all the aforementioned merits, cost-effectiveness is the biggest driver of cloud algorithmic trading, as it allows the company to extract more profits with better flexibility and scalability. All of these advantages favor cloud-based algorithmic trading, which is expected to outperform on-premise algorithmic trading in the coming years.

A Boom in Cryptocurrency Brought New Energy to Cryptocurrency Algorithmic Trading

Algorithmic trading for the stock market by far leads the overall segment in terms of market value and is expected to continue its good run in the coming year. Rising financial literacy attracts more people to invest in the stock market. This opened a new window of opportunity for software firms to concentrate and develop algorithmic trading tools for the stock market, considering its nuances and dynamics.

Aside from stock market commodities, consumer goods such as metals, oil, and gas account for a sizable portion of the overall market. Forex and bonds are expected to grow at a moderate pace. However, the sudden exponential growth in cryptocurrency trading drew several software companies to develop cryptocurrency trading applications. Consequently, cryptocurrency is expected to emerge as the fastest-growing segment in terms of market value throughout the forecast period from 2018 to 2026.

Algorithmic Trading Expands From Developed to Developing Countries

The North American region is known for its initiative to accept new technology, and algorithmic trading is no exception. At present, North America is considered the torchbearer in the global market for algorithmic trading software, with the largest market share. The region is estimated to dominate the market in the coming year owing to the fact that a majority of trade goes through such software and applications.

North America is followed by Europe in close quarters. Open economies in European countries allow for facilitated trade and create more opportunities for algorithmic trading to flourish. Asia Pacific is estimated to be the fastest-growing market, as major stock exchanges in this region are accepting new trading forms. Organizations in India, such as SEBI and the national stock exchange, welcomed and encouraged such trading alternatives. Growing trade and developing economies are projected to contribute to the development of the overall algorithmic trading software market in the Asia Pacific.

Market Segmentation

Companies developing algorithmic trading software are racing to keep up with the volatile nature of the trading sector.

Software companies face intense competition from each other in this highly fragmented market. These companies have been on their toes and have dedicated themselves to developing software for different trading sectors and on different compatible platforms. The biggest challenge for these companies is to incorporate all the constraints and elements of trading into their software for maximum profitability while mitigating potential losses.

The companies are in a race to capture the attention of their potential customers and engage themselves with them for long-term partnerships. Some of the most prominent algorithmic trading software developers and service providers profiled in this research study include AlgoTrader GmbH, Trading Technologies International, Inc., Argo Software Engineering, Inc., Automated Trading SoftTech Pvt. Ltd., InfoReach, Inc., Kuberre Systems, MetaQuotes Software Corp., Software AG, Thomson Reuters Corporation, trade, and Vela Trading Systems LLC, among others.

Key questions are answered in this report.

  • What are the most prominent trends in the market for algorithmic trading software and the most promising prospects for software developers?
  • How will the volatile nature of the trading sector, as well as the factors that influence it, affect the global and regional markets for algorithmic trading software?
  • Which is the largest and fastest-growing segment in terms of software, services, and trading type?
  • Which is the most attractive geographical region or country for the overall market for algorithmic trading software?
  • How will cybersecurity and different platforms play a vital role in the overall algorithmic trading software market in the coming years?
  • What are the market sizes and trends in developing regions such as the Asia Pacific, the Middle East, Africa, and Latin America?

Frequently Asked Question:

The market for Algorithmic Trading Software Market is expected to reach USD$ XX Mn in 2026.

The Algorithmic Trading Software Market is expected to see significant CAGR growth over the coming years, at XX%.

The report is forecasted from 2018 -2026.

The base year of this report is 2017.

Trading Technologies International, Inc., Argo Software Engineering, Inc., Automated Trading SoftTech Pvt. Ltd., InfoReach, Inc., Kuberre Systems, MetaQuotes Software Corp. are some of the major players in the global market.

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Published Date:  Sep 2018
Category:  Technology & Media
Report ID:   59355
Report Format:   PDF
Pages:   120
Rating:    4.1 (69)
Delivery Time: 24 Hours to 48 Hours   
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