Global algorithmic trading market was valued at USD9.30 billion in 2017, and is projected to exhibit CAGR of 10.1 per cent over the forecast period (2018-2026), according to data released by Coherent Market Insights.
Among algorithmic trading market applications, the hedge fund segment is expected to exhibit the highest growth rate during the forecast period.
Growing demand for market surveillance is expected to accelerate growth of the algorithmic trading market. Traders keep track on their trading activities and investment portfolio by using market surveillance technology. Key players are focusing on developing new solutions and create effective marketing strategies for market surveillance and many companies use algorithmic trading to minimise their transaction cost and market risk.
The emergence of AI in the financial services sector is also expected to be a major factor aiding in the growth of the algorithmic trading market. Companies such as Sentient, Clone Algo, Alpaca, Walnut Algorithms, Binatix, and Aidyia are using AI for algorithmic trading strategies. For instance, Sentient Company has built trillions of AI traders and then distilled them into a single AI trader that they are considering to spin out as a separate company.
