Algorithmic Trading Market to Reach USD 31.49 billion by 2028 In-depth analysis of current trends & future analysis
The market growth for algorithmic trading is significantly influenced by the financial services industry's broad adoption of AI, ML, and big data.
PORTLAND, PORTLAND, OR, UNITED STATE, October 17, 2022 /EINPresswire.com/ -- Allied Market Research published a new report, titled, "Algorithmic Trading Market to Reach USD 31.49 billion by 2028 In-depth analysis of current trends & future analysis ." The report offers an extensive analysis of key growth strategies, drivers, opportunities, key segment, Porter’s Five Forces analysis, and competitive landscape. This study is a helpful source of information for market players, investors, VPs, stakeholders, and new entrants to gain thorough understanding of the industry and determine steps to be taken to gain competitive advantage.
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Increase in demand for rapid, reliable, and effective order execution, supportive government regulations, and demand to reduce the costs of transaction fuel the growth of the global algorithmic trading market. However, lack of appropriate risk valuation capabilities restrains the market growth. Contrarily, emergence of AI and various algorithms in financial services and rise in demand for cloud-based solutions present new opportunities in the new few years.
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The report offers detailed segmentation of the global algorithmic trading market based on component, type, deployment mode, type of traders, and region.By component, the solution segment contributed to the highest share in 2020, accounting for nearly two-thirds of the total market share, and is expected to maintain its lead during the forecast period. However, the services segment is projected to witness the highest CAGR of 13.8% from 2021 to 2028.
By type, the stock markets segment accounted for the largest market share, contributing to more than one-fourth of the global algorithmic trading market in 2020, and is projected to maintain its leadership status during the forecast period. However, the cryptocurrencies segment is expected to portray the largest CAGR of 16.9% from 2021 to 2028.
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By region, North America held the highest share in 2020, contributing to more than two-fifths of the total market, and is expected to continue its dominance by 2028. However, Asia-Pacific is projected to witness the fastest CAGR of 15.3% during the forecast period
Leading players of the global algorithmic trading market analyzed in the research include 63MOONS, Virtu Financial, Software AG, Refinitiv Ltd. MetaQuotes Software Corp. Symphony Fintech Solutions Pvt Ltd. Argo SE, Tata Consultancy Services, Algo Trader AG, and Tethys.
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Covid-19 Scenario:
• Traders have been inclined to opt for algorithmic trading for reducing human errors and taking fast decisions during the times of uncertainty that arose due to the Covid-19 pandemic.
• Moreover, increase in popularity of high-frequency traders (HFT) has been experienced during the pandemic, which led to the growth of the algorithmic trading market.
• Novel algorithmic trading products have been launched to carry out better decision-making than before and cater to the rise in volumes of trading.
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