Automated Algo Trading Market Overview (2022 to 2032)

The global Automated Algo Trading Market is anticipated to grow at a stupendous CAGR of around 10.6% during the forecast period from 2022 to 2032. Growth is attributable to the rising popularity of automated algo trading among end users like personal investors and credit unions.

Report Attribute Details
Automated Algo Trading Market Projected Growth Rate (2022 to 2032) 10.6% CAGR
Estimated Base Year Value (2021) USD 13,260.4 Million
Expected Market Value (2022) USD 14,520.1 Million
Expected Market Value (2032) USD 39,715.3 Million

The penetration of modern technologies is rapidly changing the way of traditional investment models or trading methods by automating all trading related processes. Latest trading platforms like automated algo trading have reduced the transitional costs and human errors, and significantly made the whole trading process cheaper and less cumbersome.

Automated algo trading uses a computer program that follows a defined set of instructions to place a trade (buying or selling of an asset). The defined set of instructions are based on quantity, price, timing or any other mathematical model. It initiates profit opportunities at great frequency and speed, by programming the computers to follow a specific set of calculations, guidelines, and instructions.

Rapid shift towards automated algo trading for taking the decisions at a very fast pace by reducing human errors is emerging as a key factor accelerating the growth of automated algo trading market.

Automated algo trading makes trading more systematic by eliminating human trader’s emotional impact on it. These platforms execute trading at the best prices and allow continuous monitoring of the trade market throughout the day and night. Adoption of automated algo trading therefore diversifies trading and allows businesses to make sure that there are no missed opportunities. In automated algo trading, the algorithms stick to an unwavering trading plan involving the trade’s price, timing, quantity and other mathematical parameters.

With growing penetration of advanced trading technologies across developed and developing economies and increasing participation of international markets, the global automated algo trading market is forecast to grow at prolific pace during the forecast period.

The liquidity in equity market due to integration of financial markets is a major factor that would drive the automated algo trading market during the forecast period.

Various end users including personal investors, credit unions, insurance firms, prime brokers, and multi-national investment banks are vigorously investing in adopting and upgrading the automated algo trading platforms. This will continue to boost market growth in the forthcoming years.

Which Factors are Spurring the Growth of Automated Algo Trading Market?

The robust expansion of automated algo trading market is attributable to the growing demand for fast, effective, and reliable order execution, favorable government regulations, reducing transactional costs, and rising demand for market surveillance.

During the last few years, demand for automated algo trading has risen at an incredible pace and the trend is likely to continue during the forecast period. It offers various advantages by executing trades at best possible prices and reducing transaction costs as well as manual errors.

Automated algo trading is being increasingly used by leading brokerage houses, personal investors, credit unions, insurance firms etc. to cut down costs associated with trading. Adoption of automated algo trading enables faster and easier execution of orders, which makes it ideal for exchanges. It is especially ideal for situations where a human trader is not able to handle enormous numbers of trading.

Similarly, rising penetration of artificial intelligence (AI) and machine learning across financial services companies and other trading businesses is expected to generate lucrative growth opportunities within the global automated algo trading market during the assessment period.

Additionally, introduction of advanced automated algo trading platforms by market players to serve various needs of end users is anticipated to further expand the size of automated algo trading market in future.

What are the Challenges Faced by the Automated Algo Trading Industry?

Despite the growing popularity of automated algo trading, there are various factors that are likely to challenge market growth during the forecast period. Some of these factors are the increase in the amount of data to be processed and certain risks such as sudden system failure, erroneous network connectivity, imperfect algorithms, and time lags in order and executions, associated with automated algo trading solutions.

Moreover, lack of availability of modern facilities and poor awareness about automated algo trading across various emerging nations is also limiting the market growth.

Will North America Retain its Dominant Position in the Global Automated Algo Trading Market?

As per FMI, North America was the largest market for automated algo trading in 2022 and is expected to retain its dominant position during the forecast period, owing to the owing to the increasing investments in trading technologies, heavy presence of leading market vendors, favorable government support, and significant penetration of automated algo trading solutions in the financial markets.

Countries like the United States are becoming the ideal destinations for automated algo trading vendors due to growing adoption of modern trading technologies and increase in the number of end users.

How Will Growth Unfold in Asia Pacific Market?

According to Future Market Insights, the Asia Pacific automated algo trading market is expected to grow at a healthy CAGR during the forecast period from 2022 to 2032, owing to the rapid economic boom in countries like China and India, growing consumer awareness about the benefits of automated algo trading, and increasing investments by public and private sectors for enhancing their trading technologies.

Market Competition

Some of the key participants present in the global automated algo trading market include Vela, AlgoTerminal LLC, AlgoTrader GmbH, Cloud9Trader, Quantopian, InfoReach, Inc., Trading Technologies International, Inc., QuantConnect, Tethys Technology, and Citadel, among others.

These leading market players are constantly introducing innovative automated algo trading solutions to help end users in smoothly running their businesses. Besides this, they have adopted growth strategies such as mergers, acquisitions, and partnerships to expand their global footprint.

Report Scope

Report Attribute Details
Growth Rate CAGR of 10.6% from 2022 to 2032
Base Year for Estimation 2021
Historical Data 2015 to 2020
Forecast Period 2022 to 2032
Quantitative Units Revenue in USD Million and CAGR from 2022 to 2032
Report Coverage Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered Application, End User, Region
Regions Covered North America; Latin America; Western Europe; Eastern Europe; APEJ; Japan; Middle East and Africa
Key Countries Profiled USA, Canada, Brazil, Argentina, Germany, UK, France, Spain, Italy, Nordics, BENELUX, Australia & New Zealand, China, India, ASEAN, GCC, South Africa
Key Companies Profiled Vela; AlgoTerminal LLC; AlgoTrader GmbH; Cloud9Trader; Quantopian; InfoReach, Inc.; Trading Technologies International, Inc.; QuantConnect; Tethys Technology; Citadel
Customization Available Upon Request

Key Segments Profiled in the Automated Algo Trading Industry Survey

By Application:

  • Trade Execution
  • Stealth/Gaming
  • Statistical Arbitrage
  • Strategy Implementation
  • Electronic Market-making
  • Liquidity Detection

By End User:

  • Personal Investors
  • Credit Unions
  • Trusts
  • Pension Funds
  • Insurance Firms
  • Prime Brokers
  • Investment Funds

By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • Middle East & Africa

Table of Content

  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032
  • 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Solution
    • 5.1. Automated Trading Platforms
    • 5.2. Algorithmic Trading Bots (API)
    • 5.3. Services
  • 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Trading Application
    • 6.1. Forex
    • 6.2. Stocks
    • 6.3. Commodities
    • 6.4. Bonds
    • 6.5. Cryptocurrencies
  • 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By End User
    • 7.1. Retail Traders
    • 7.2. Institutional Traders
    • 7.3. Asset Management Company (AMC)
    • 7.4. Others
  • 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region
    • 8.1. North America
    • 8.2. Latin America
    • 8.3. Europe
    • 8.4. East Asia
    • 8.5. South Asia & Pacific
    • 8.6. MEA
  • 9. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
  • 10. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
  • 11. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
  • 12. East Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
  • 13. South Asia & Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
  • 14. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
  • 15. Key Countries Market Analysis
  • 16. Market Structure Analysis
  • 17. Competition Analysis
    • 17.1. Alpha Novae Ltd
    • 17.2. AlgoTrader
    • 17.3. Inteligex LLC
    • 17.4. Trading Technologies International, Inc.
    • 17.5. SquareOff
    • 17.6. Greeksoft Technology
    • 17.7. NinjaTrader, LLC
    • 17.8. AvaTrade
    • 17.9. Kx Systems, Inc.
    • 17.10. Flip Investor, Inc.
    • 17.11. Kuberre Systems
    • 17.12. Horizon Software
    • 17.13. Finvasia
    • 17.14. InfoReach, Inc.
  • 18. Assumptions & Acronyms Used
  • 19. Research Methodology

List of Tables

Table 1: Global Market Value (US$ Mn) Forecast by Region, 2017-2032

Table 2: Global Market Value (US$ Mn) Forecast by Solution, 2017-2032

Table 3: Global Market Value (US$ Mn) Forecast by Trading Application, 2017-2032

Table 4: Global Market Value (US$ Mn) Forecast by End User, 2017-2032

Table 5: North America Market Value (US$ Mn) Forecast by Country, 2017-2032

Table 6: North America Market Value (US$ Mn) Forecast by Solution, 2017-2032

Table 7: North America Market Value (US$ Mn) Forecast by Trading Application, 2017-2032

Table 8: North America Market Value (US$ Mn) Forecast by End User, 2017-2032

Table 9: Latin America Market Value (US$ Mn) Forecast by Country, 2017-2032

Table 10: Latin America Market Value (US$ Mn) Forecast by Solution, 2017-2032

Table 11: Latin America Market Value (US$ Mn) Forecast by Trading Application, 2017-2032

Table 12: Latin America Market Value (US$ Mn) Forecast by End User, 2017-2032

Table 13: Europe Market Value (US$ Mn) Forecast by Country, 2017-2032

Table 14: Europe Market Value (US$ Mn) Forecast by Solution, 2017-2032

Table 15: Europe Market Value (US$ Mn) Forecast by Trading Application, 2017-2032

Table 16: Europe Market Value (US$ Mn) Forecast by End User, 2017-2032

Table 17: East Asia Market Value (US$ Mn) Forecast by Country, 2017-2032

Table 18: East Asia Market Value (US$ Mn) Forecast by Solution, 2017-2032

Table 19: East Asia Market Value (US$ Mn) Forecast by Trading Application, 2017-2032

Table 20: East Asia Market Value (US$ Mn) Forecast by End User, 2017-2032

Table 21: South Asia & Pacific Market Value (US$ Mn) Forecast by Country, 2017-2032

Table 22: South Asia & Pacific Market Value (US$ Mn) Forecast by Solution, 2017-2032

Table 23: South Asia & Pacific Market Value (US$ Mn) Forecast by Trading Application, 2017-2032

Table 24: South Asia & Pacific Market Value (US$ Mn) Forecast by End User, 2017-2032

Table 25: MEA Market Value (US$ Mn) Forecast by Country, 2017-2032

Table 26: MEA Market Value (US$ Mn) Forecast by Solution, 2017-2032

Table 27: MEA Market Value (US$ Mn) Forecast by Trading Application, 2017-2032

Table 28: MEA Market Value (US$ Mn) Forecast by End User, 2017-2032

List of Figures

Figure 1: Global Market Value (US$ Mn) by Solution, 2022-2032

Figure 2: Global Market Value (US$ Mn) by Trading Application, 2022-2032

Figure 3: Global Market Value (US$ Mn) by End User, 2022-2032

Figure 4: Global Market Value (US$ Mn) by Region, 2022-2032

Figure 5: Global Market Value (US$ Mn) Analysis by Region, 2017-2032

Figure 6: Global Market Value Share (%) and BPS Analysis by Region, 2022-2032

Figure 7: Global Market Y-o-Y Growth (%) Projections by Region, 2022-2032

Figure 8: Global Market Value (US$ Mn) Analysis by Solution, 2017-2032

Figure 9: Global Market Value Share (%) and BPS Analysis by Solution, 2022-2032

Figure 10: Global Market Y-o-Y Growth (%) Projections by Solution, 2022-2032

Figure 11: Global Market Value (US$ Mn) Analysis by Trading Application, 2017-2032

Figure 12: Global Market Value Share (%) and BPS Analysis by Trading Application, 2022-2032

Figure 13: Global Market Y-o-Y Growth (%) Projections by Trading Application, 2022-2032

Figure 14: Global Market Value (US$ Mn) Analysis by End User, 2017-2032

Figure 15: Global Market Value Share (%) and BPS Analysis by End User, 2022-2032

Figure 16: Global Market Y-o-Y Growth (%) Projections by End User, 2022-2032

Figure 17: Global Market Attractiveness by Solution, 2022-2032

Figure 18: Global Market Attractiveness by Trading Application, 2022-2032

Figure 19: Global Market Attractiveness by End User, 2022-2032

Figure 20: Global Market Attractiveness by Region, 2022-2032

Figure 21: North America Market Value (US$ Mn) by Solution, 2022-2032

Figure 22: North America Market Value (US$ Mn) by Trading Application, 2022-2032

Figure 23: North America Market Value (US$ Mn) by End User, 2022-2032

Figure 24: North America Market Value (US$ Mn) by Country, 2022-2032

Figure 25: North America Market Value (US$ Mn) Analysis by Country, 2017-2032

Figure 26: North America Market Value Share (%) and BPS Analysis by Country, 2022-2032

Figure 27: North America Market Y-o-Y Growth (%) Projections by Country, 2022-2032

Figure 28: North America Market Value (US$ Mn) Analysis by Solution, 2017-2032

Figure 29: North America Market Value Share (%) and BPS Analysis by Solution, 2022-2032

Figure 30: North America Market Y-o-Y Growth (%) Projections by Solution, 2022-2032

Figure 31: North America Market Value (US$ Mn) Analysis by Trading Application, 2017-2032

Figure 32: North America Market Value Share (%) and BPS Analysis by Trading Application, 2022-2032

Figure 33: North America Market Y-o-Y Growth (%) Projections by Trading Application, 2022-2032

Figure 34: North America Market Value (US$ Mn) Analysis by End User, 2017-2032

Figure 35: North America Market Value Share (%) and BPS Analysis by End User, 2022-2032

Figure 36: North America Market Y-o-Y Growth (%) Projections by End User, 2022-2032

Figure 37: North America Market Attractiveness by Solution, 2022-2032

Figure 38: North America Market Attractiveness by Trading Application, 2022-2032

Figure 39: North America Market Attractiveness by End User, 2022-2032

Figure 40: North America Market Attractiveness by Country, 2022-2032

Figure 41: Latin America Market Value (US$ Mn) by Solution, 2022-2032

Figure 42: Latin America Market Value (US$ Mn) by Trading Application, 2022-2032

Figure 43: Latin America Market Value (US$ Mn) by End User, 2022-2032

Figure 44: Latin America Market Value (US$ Mn) by Country, 2022-2032

Figure 45: Latin America Market Value (US$ Mn) Analysis by Country, 2017-2032

Figure 46: Latin America Market Value Share (%) and BPS Analysis by Country, 2022-2032

Figure 47: Latin America Market Y-o-Y Growth (%) Projections by Country, 2022-2032

Figure 48: Latin America Market Value (US$ Mn) Analysis by Solution, 2017-2032

Figure 49: Latin America Market Value Share (%) and BPS Analysis by Solution, 2022-2032

Figure 50: Latin America Market Y-o-Y Growth (%) Projections by Solution, 2022-2032

Figure 51: Latin America Market Value (US$ Mn) Analysis by Trading Application, 2017-2032

Figure 52: Latin America Market Value Share (%) and BPS Analysis by Trading Application, 2022-2032

Figure 53: Latin America Market Y-o-Y Growth (%) Projections by Trading Application, 2022-2032

Figure 54: Latin America Market Value (US$ Mn) Analysis by End User, 2017-2032

Figure 55: Latin America Market Value Share (%) and BPS Analysis by End User, 2022-2032

Figure 56: Latin America Market Y-o-Y Growth (%) Projections by End User, 2022-2032

Figure 57: Latin America Market Attractiveness by Solution, 2022-2032

Figure 58: Latin America Market Attractiveness by Trading Application, 2022-2032

Figure 59: Latin America Market Attractiveness by End User, 2022-2032

Figure 60: Latin America Market Attractiveness by Country, 2022-2032

Figure 61: Europe Market Value (US$ Mn) by Solution, 2022-2032

Figure 62: Europe Market Value (US$ Mn) by Trading Application, 2022-2032

Figure 63: Europe Market Value (US$ Mn) by End User, 2022-2032

Figure 64: Europe Market Value (US$ Mn) by Country, 2022-2032

Figure 65: Europe Market Value (US$ Mn) Analysis by Country, 2017-2032

Figure 66: Europe Market Value Share (%) and BPS Analysis by Country, 2022-2032

Figure 67: Europe Market Y-o-Y Growth (%) Projections by Country, 2022-2032

Figure 68: Europe Market Value (US$ Mn) Analysis by Solution, 2017-2032

Figure 69: Europe Market Value Share (%) and BPS Analysis by Solution, 2022-2032

Figure 70: Europe Market Y-o-Y Growth (%) Projections by Solution, 2022-2032

Figure 71: Europe Market Value (US$ Mn) Analysis by Trading Application, 2017-2032

Figure 72: Europe Market Value Share (%) and BPS Analysis by Trading Application, 2022-2032

Figure 73: Europe Market Y-o-Y Growth (%) Projections by Trading Application, 2022-2032

Figure 74: Europe Market Value (US$ Mn) Analysis by End User, 2017-2032

Figure 75: Europe Market Value Share (%) and BPS Analysis by End User, 2022-2032

Figure 76: Europe Market Y-o-Y Growth (%) Projections by End User, 2022-2032

Figure 77: Europe Market Attractiveness by Solution, 2022-2032

Figure 78: Europe Market Attractiveness by Trading Application, 2022-2032

Figure 79: Europe Market Attractiveness by End User, 2022-2032

Figure 80: Europe Market Attractiveness by Country, 2022-2032

Figure 81: East Asia Market Value (US$ Mn) by Solution, 2022-2032

Figure 82: East Asia Market Value (US$ Mn) by Trading Application, 2022-2032

Figure 83: East Asia Market Value (US$ Mn) by End User, 2022-2032

Figure 84: East Asia Market Value (US$ Mn) by Country, 2022-2032

Figure 85: East Asia Market Value (US$ Mn) Analysis by Country, 2017-2032

Figure 86: East Asia Market Value Share (%) and BPS Analysis by Country, 2022-2032

Figure 87: East Asia Market Y-o-Y Growth (%) Projections by Country, 2022-2032

Figure 88: East Asia Market Value (US$ Mn) Analysis by Solution, 2017-2032

Figure 89: East Asia Market Value Share (%) and BPS Analysis by Solution, 2022-2032

Figure 90: East Asia Market Y-o-Y Growth (%) Projections by Solution, 2022-2032

Figure 91: East Asia Market Value (US$ Mn) Analysis by Trading Application, 2017-2032

Figure 92: East Asia Market Value Share (%) and BPS Analysis by Trading Application, 2022-2032

Figure 93: East Asia Market Y-o-Y Growth (%) Projections by Trading Application, 2022-2032

Figure 94: East Asia Market Value (US$ Mn) Analysis by End User, 2017-2032

Figure 95: East Asia Market Value Share (%) and BPS Analysis by End User, 2022-2032

Figure 96: East Asia Market Y-o-Y Growth (%) Projections by End User, 2022-2032

Figure 97: East Asia Market Attractiveness by Solution, 2022-2032

Figure 98: East Asia Market Attractiveness by Trading Application, 2022-2032

Figure 99: East Asia Market Attractiveness by End User, 2022-2032

Figure 100: East Asia Market Attractiveness by Country, 2022-2032

Figure 101: South Asia & Pacific Market Value (US$ Mn) by Solution, 2022-2032

Figure 102: South Asia & Pacific Market Value (US$ Mn) by Trading Application, 2022-2032

Figure 103: South Asia & Pacific Market Value (US$ Mn) by End User, 2022-2032

Figure 104: South Asia & Pacific Market Value (US$ Mn) by Country, 2022-2032

Figure 105: South Asia & Pacific Market Value (US$ Mn) Analysis by Country, 2017-2032

Figure 106: South Asia & Pacific Market Value Share (%) and BPS Analysis by Country, 2022-2032

Figure 107: South Asia & Pacific Market Y-o-Y Growth (%) Projections by Country, 2022-2032

Figure 108: South Asia & Pacific Market Value (US$ Mn) Analysis by Solution, 2017-2032

Figure 109: South Asia & Pacific Market Value Share (%) and BPS Analysis by Solution, 2022-2032

Figure 110: South Asia & Pacific Market Y-o-Y Growth (%) Projections by Solution, 2022-2032

Figure 111: South Asia & Pacific Market Value (US$ Mn) Analysis by Trading Application, 2017-2032

Figure 112: South Asia & Pacific Market Value Share (%) and BPS Analysis by Trading Application, 2022-2032

Figure 113: South Asia & Pacific Market Y-o-Y Growth (%) Projections by Trading Application, 2022-2032

Figure 114: South Asia & Pacific Market Value (US$ Mn) Analysis by End User, 2017-2032

Figure 115: South Asia & Pacific Market Value Share (%) and BPS Analysis by End User, 2022-2032

Figure 116: South Asia & Pacific Market Y-o-Y Growth (%) Projections by End User, 2022-2032

Figure 117: South Asia & Pacific Market Attractiveness by Solution, 2022-2032

Figure 118: South Asia & Pacific Market Attractiveness by Trading Application, 2022-2032

Figure 119: South Asia & Pacific Market Attractiveness by End User, 2022-2032

Figure 120: South Asia & Pacific Market Attractiveness by Country, 2022-2032

Figure 121: MEA Market Value (US$ Mn) by Solution, 2022-2032

Figure 122: MEA Market Value (US$ Mn) by Trading Application, 2022-2032

Figure 123: MEA Market Value (US$ Mn) by End User, 2022-2032

Figure 124: MEA Market Value (US$ Mn) by Country, 2022-2032

Figure 125: MEA Market Value (US$ Mn) Analysis by Country, 2017-2032

Figure 126: MEA Market Value Share (%) and BPS Analysis by Country, 2022-2032

Figure 127: MEA Market Y-o-Y Growth (%) Projections by Country, 2022-2032

Figure 128: MEA Market Value (US$ Mn) Analysis by Solution, 2017-2032

Figure 129: MEA Market Value Share (%) and BPS Analysis by Solution, 2022-2032

Figure 130: MEA Market Y-o-Y Growth (%) Projections by Solution, 2022-2032

Figure 131: MEA Market Value (US$ Mn) Analysis by Trading Application, 2017-2032

Figure 132: MEA Market Value Share (%) and BPS Analysis by Trading Application, 2022-2032

Figure 133: MEA Market Y-o-Y Growth (%) Projections by Trading Application, 2022-2032

Figure 134: MEA Market Value (US$ Mn) Analysis by End User, 2017-2032

Figure 135: MEA Market Value Share (%) and BPS Analysis by End User, 2022-2032

Figure 136: MEA Market Y-o-Y Growth (%) Projections by End User, 2022-2032

Figure 137: MEA Market Attractiveness by Solution, 2022-2032

Figure 138: MEA Market Attractiveness by Trading Application, 2022-2032

Figure 139: MEA Market Attractiveness by End User, 2022-2032

Figure 140: MEA Market Attractiveness by Country, 2022-2032

Frequently Asked Questions

At what rate will the global automated algo trading market grow?

FMI projects the global automated algo trading market to expand at around 10.5% to 11.0% CAGR between 2022 and 2032.

Which is the most lucrative market for automated algo trading?

North America will continue to remain the most lucrative market for automated algo trading during the forecast period.

Which are some prominent players in automated algo trading market?

Vela, AlgoTerminal LLC, AlgoTrader GmbH, Cloud9Trader, and Quantopian, InfoReach, Inc. are some prominent market players operating in the automated algo trading market.

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