Artificial Intelligence is fastest growing segment fueling the growth of algorithmic trading market.

The global algorithmic trading Market is estimated to be valued at US$ 2.18 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview: Algorithmic trading involves the use of computer programs and software to automatically place a large number of orders and trades based on predefined rules. It provides advantages like faster execution of orders, lower transaction cost and minimizes human errors. With the increasing digitization and development of advanced technologies, there is a growing need for automated trading strategies in financial markets.

Market key trends: One of the key trends in the algorithmic trading market is growing adoption of artificial intelligence and machine learning technologies. These advanced technologies are helping market participants build more sophisticated algorithms and predictive trading models. Machine learning algorithms can analyze huge amounts of historical market and trading data to identify patterns and trends. This data-driven approach allows algorithms to learn from past behaviors and outcomes. As a result, AI-powered algorithms are becoming more accurate in predicting price movements and timing of trades, thereby improving overall trading performance.
Segment Analysis

Content: The algorithmic trading market is segmented by type into forex, stock markets, exchange-traded funds (ETFs), cryptocurrencies, and bonds. Among these, the forex segment dominated the market in 2022 and is expected to continue its dominance during the forecast period. This is owing to high liquidity in the forex market compared to other markets. Forex experiences almost round-the-clock trading due to its decentralized structure. The risk/reward ratio and average daily trading volumes in the forex market attract algorithmic traders the most.

Key Takeaways

Market size: The global algorithmic trading market size was valued at US$ 2.18 Bn in 2023. The market is expected to witness high growth, exhibiting a CAGR of 7.2% over the forecast period of 2023 to 2030, owing to increasing demand for advanced trading technologies to gain a competitive advantage.

Regional analysis: North America held the largest share of the global algorithmic trading market in 2023 due to presence of majority global investment banks and hedge funds investing heavily in the trading space. Europe and Asia Pacific are expected to be the fastest growing regional markets supported by increasing adoption of algorithmic trading models among retail traders in these regions.

Key players: Key players operating in the algorithmic trading market include 63 Moons Technologies Limited, MetaQuotes Software Corp., Algo Trader AG, Refinitiv Ltd, and Virtu Financial Inc. 63 Moons Technologies Limited and MetaQuotes Software Corp. are established developers and providers of algorithmic trading platforms globally.

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