High-Frequency Trading Server Market Growth & Trends
The global high-frequency trading server market size is expected to reach USD 501.0 million by 2028, registering a CAGR of 3.5% from 2020 to 2028, according to a study conducted by Grand View Research, Inc. In the trading industry, servers play a pivotal role in reducing tick-to-trade delays; this is driving the product demand. Furthermore, with improvements in server technology over the years, high-frequency trading (HFT) servers, in particular, have witnessed several advancements in terms of processor technology, which is creating opportunities for industry growth. These advancements are fueled by the need to track stock markets where every nanosecond counts and are expected to become an indispensable element of the finance sector over the coming years.
Increased adoption of algorithmic trading in global financial markets has encouraged companies in the financial sector to opt for high-speed transactions. Technological advancements, such as integrating AI and social media feeds with electronic trading, are expected to drive the demand for high-speed trading transactions. Thus, the demand for low-latency trading servers has increased tremendously among the derivatives, quantitative, and proprietary trading firms. Asia Pacific has become one of the new revenue pockets for market growth.
Favorable government regulations for the implementation of automated trading and new investment law in China have emerged as potential revenue streams for the vendors. Furthermore, the surge in adoption of Artificial Intelligence (AI) and machine learning technology by small-sized hedge fund firms, is anticipated to drive the overall product demand over the forecast period. A competitive edge is now determined by nanoseconds and microseconds. Speed is important to market participants, such as large investment banks, hedge funds, and other financial companies, because it impacts profitability, and hence the deployment of HFT servers is of paramount importance.
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High-frequency Trading Server Market Report Highlights
- The x-86 based processor segment accounted for the highest revenue share in 2020 and is estimated to retain the dominant position throughout the forecast period registering a steady CAGR from 2021 to 2028
- The large-scale adoption of operating systems based on x86-based architecture for high computing applications is expected to drive the segment growth over the forecast period
- 4U form factor is anticipated to register a CAGR exceeding 3% over the forecast period due to rising usage on account of its capability to handle high-performance computing application
- The foreign exchange segment accounted for over 29% of the overall global revenue share in 2020
- Early adoption of automating currency management solutions in the currency derivatives market by hedge fund firms is anticipated to favor segment growth over the forecast period
- Europe is anticipated to register the second-highest CAGR over the forecast period due to the early adoption of HFT technology and favorable MIFID II regulations for traders and investors in the region
High-frequency Trading Server Market Segmentation
Grand View Research has segmented the global high-frequency trading server market on the basis of processor, form factor, application, and region:
HFT Servers Processor Outlook (Volume, Units; Revenue, USD Million, 2017 - 2028)
- Non-x86-based (MIPS, Imagination)
HFT Servers Form Factor Outlook (Volume, Units; Revenue, USD Million, 2017 - 2028)
- Others (3U, 5U, 6U, 7U)
HFT Servers Application Outlook (Volume, Units; Revenue, USD Million, 2017 - 2028)
- Equity Trading
- Forex Markets
- Commodity Markets
- Others (Bonds and Other Derivatives)
HFT Servers Regional Outlook (Volume, Units; Revenue, USD Million, 2017 - 2028)
- North America
- The Netherlands
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
List of Key Players of High-frequency Trading (HFT) Server Market
- ASA Computers, Inc.
- Blackcore Technologies
- Business Systems International Ltd.
- HP Enterprise Development LP
- Hypershark Technologies
- Penguin Computing
- Super Micro
- Tyrone Systems
- XENON Systems Pty Ltd.
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.