The global high-frequency trading server market size is expected to reach USD 918.0 million by 2030, registering a CAGR of 6.2% from 2023 to 2030, 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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The x-86 based processor segment accounted for the highest revenue share in 2022 and is estimated to retain the dominant position throughout the forecast period registering a steady CAGR from 2023 to 2030
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 Significant CAGR over the forecast period due to rising usage on account of its capability to handle high-performance computing application
Asia Pacific is expected to be the fastest-growing region capturing a CAGR of 8.6% over the forecast period. Initiatives undertaken by the Chinese government to promote automated trading in financial markets contributed to market growth, and this trend is expected to continue over the next few years.
Grand View Research has segmented the global high-frequency trading server market based on processor, form factor, application, and region:
HFT Server Processor Outlook (Revenue in USD Million, 2017 - 2030)
X-86 Based
ARM-Based
Non-X86 based
HFT Server Form Factor Outlook (Revenue in USD Million, 2017 - 2030)
1U
2U
4U
Others
HFT Server Application Outlook (Revenue in USD Million, 2017 - 2030)
Equity Trading
Forex Markets
Commodity Markets
Others
HFT Server Regional Outlook (Revenue in USD Million, 2017 - 2030)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Asia Pacific
China
Japan
India
Australia
South Korea
Latin America
Brazil
Mexico
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
List of Key Players in High-frequency Trading (HFT) Server Market
ASA Computers, Inc.
Exacta Technologies
Hypertec Group Inc.
Dell Inc.
Hewlett Packard Enterprise Development LP
HyperShark Technologies Corp.
Lenovo
SMART Global Holdings, Inc.
Super Micro Computer, Inc.
Tyrone Systems
XENON Systems Pty Ltd.
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