High-Frequency Trading Infrastructure Market Analysis (2023 - 2030)
The global high-frequency trading infrastructure market size was valued at USD 401.98 M in 2021 and is projected to witness a CAGR of 4.3 % from 2022 to 2027.The global high-frequency trading infrastructure market size is estimated to reach $ 517.5 M by 2027.
High-frequency trading (HFT) is a sort of algorithmic financial trading that uses high-frequency financial data and electronic trading instruments to achieve high speeds, high turnover rates, and high order-to-trade ratios. While there is no single definition of HFT, very advanced algorithms, co-location, and very short-term investment horizons are all significant characteristics.
A low-latency feed is required in a high-frequency trading environment to manage multiple orders and perform rapid data processing and correlation. As a result, trading businesses have moved their data centers closer to stock exchanges to provide speedier feeds for trading apps. Proximity to a stock market allows trading enterprises to have access to high-bandwidth networks with low latency connections, resulting in improved outcomes and product demand.
High–Frequency Trading Infrastructureis a subset of high-performance computing applications that include AI and deep learning capabilities. Traders can use these servers to forecast stock market patterns and execute trades in milliseconds. The demand for High-Frequency Trading applications is growing in large investment banks and organizations that offer hedge funds, resulting in industry growth potential.
Key Market Insights:
- In 2020, the x-86 sector had the highest revenue share of more than 80%. The large-scale adoption of x-86 core processors and industry reliance on software code based on the x-86 architecture can be contributed to the segment's rise. Furthermore, x86 processors are compatible with high-computing applications like data analytics workloads and AI, which require faster computing executions. These features enable financial service providers to conduct trade operations with minimal latency.
- Over the forecast period, the ARM-based CPU market is expected to grow at the quickest rate. The rising popularity of cloud-based migration solutions that assist vendors in porting server applications to ARM architecture can be related to the segment's rise. Furthermore, ARM-based servers are less expensive than X86 chips, promoting category expansion.
- In 2020, the 2U segment had the biggest revenue share of nearly 42 percent, and it will grow at the quickest CAGR from 2021 to 2028. SMEs may grow up their IT infrastructure at a cheaper cost using the 2U form size. The 2U form factor allows for more versatility in a single chassis, allowing for high-speed transactions across multiple computer systems. Furthermore, 2U servers provide excellent computational performance with a smaller footprint, allowing them to run high-performance workloads like high-frequency trading applications.
- Over the projected period, the 4U server category is expected to have the second-highest CAGR. The rising popularity of virtualized data centers can be linked to this expansion. Furthermore, with up to eight full-height and full-length PCI Express slots, 4U servers enable enhanced scalability when compared to their technical specifications. These servers, however, present issues due to their limited storage capacity and high power consumption.
- In terms of revenue, the stock trading category had the biggest market share in 2020, with over 41%. The significant penetration of HFT trading platforms, particularly in large-cap equities markets, can be credited to the segment's rise. The market has been divided into equities trading, foreign currency, commodities markets, and other applications.
- From 2021 to 2028, the Foreign Exchange (FOREX) market is expected to be the fastest-growing segment. The success of equity trading has impacted the adoption of high-frequency trading in FX markets, opening up new growth opportunities. Traders in these marketplaces hope to increase their profits by using low-latency servers to execute trades on stock exchanges. Forex traders can handle enormous volumes of data and conduct high-speed transactions using HFT servers with low latency features.
- In 2020, North America had the highest revenue share of more than 40%. Early technological use and trading platform penetration in the region aided regional market expansion. Furthermore, the presence of key suppliers such as HP Inc., Dell Technologies, and Hypertec, which provide crucial technical assistance for financial organizations to deploy after-sales services, is one of the factors driving the regional market growth. Over the projection period, increased use of algorithm-based trading in secondary markets for high-speed trading execution is likely to stimulate demand for HFT servers.
- Over the projection period, Asia Pacific is expected to be the fastest-growing regional market. Initiatives undertaken by the Chinese government to promote automated trading in financial markets led to the market expansion and this trend is projected to continue over the next several years. Developed economies like Japan and Australia are expected to grow slowly over the predicted period, thanks to the early adoption of HFT technologies. However, a lack of adequate IT infrastructure and technical capabilities may constrain industry expansion.
Market Segmentation:
By Processor:
- X-86-based
- ARM-based
- Non-x86-based
By Form Factor:
1U
By Application:
- Equity Trading
- Forex Markets
- Commodity Markets
- Bonds and Other Derivatives
By Region:
- North America
- Europe
- Asia-Pacific
- Latin America
- The Middle East and Africa
For More Info, Request Sample Copy Of This Report @ https://virtuemarketresearch.com/report/global-high-frequency-trading-infrastructure-market/request-sample
