Global Trade Surveillance System Market Size USD 2,866.36 Million by 2030 | CAGR of 13.9%

Introduction

Trade surveillance systems monitor trade activity and find potentially unlawful or abusive trading. A working and current trade surveillance system is required by the vast majority of financial authorities worldwide. A trade surveillance system might be standalone software or a web application that automatically scans a firm's trade data for possible market abuse. Most governments assume that corporations will understand the need for trade surveillance. Therefore, businesses must be prepared to present any relevant documentation as well as the circumstances of the transaction.

Market Dynamics

The rising Need to Control Market Manipulation Drives the Global Market

Several organizations are also implementing sophisticated surveillance regulations, including Market Abuse Regulation (MAR), MAR, MiFID II, and Dodd-Frank, to spot trading malpractices that threaten consumer confidence in the markets and assist market expansion. Additionally, as the importance of the trading system grows, addressing business obstacles, including recognizing anomalous activity, enabling risk-based discovery, and others, encourages market expansion. More than 65% of organizations in the U.S. and Canada are putting trade surveillance systems into place to improve the efficiency of their trade services and revenue growth, contributing to the market's growth globally.

Increasing Demand for AI-Based Trade Surveillance System Creates Tremendous Opportunities

Artificial intelligence-based solutions can process both structured and unstructured data, automatically adapt to changing regulatory requirements, and promptly report suspicious events. An extensive data framework is fed historical warnings, trader interactions, orders, cancellations, and raw data on orders by the AI-Based Trade Surveillance System's architecture. Due to AI-based surveillance technologies, financial institutions and regulators can efficiently monitor suspicious behavior and trace the activities of market participants in real time, which has led to greater openness, efficient case management, and proactive market manipulations. These factors are anticipated to create tremendous opportunities for market growth.

Regional Analysis

Europe is the most significant global trade surveillance system market shareholder and is expected to grow at a CAGR of 13.4% during the forecast period. Europe provides industry participants with profitable opportunities in the global trade surveillance market. The market is primarily driven by two factors: the growing adoption of cloud-based trade monitoring systems by companies of all sizes and the growth of the European economy. Increasing living standards, rising per capita income, and increased acceptance of technical developments in surveillance and security systems are all likely to lead to regional market growth. The government has also placed various laws and regulations on financial institutions to enhance organizational security and privacy, which stimulates the market for trade monitoring systems.

North America is expected to grow at a CAGR of 12.7%, generating USD 884.62 million during the forecast period. North America is one of the major contributors to the expansion of the market for trade surveillance. The significant growth is due to increased investments in trade surveillance and monitoring technology by U.S. corporations, which supports the need for trade surveillance systems in the region. Furthermore, it is projected that the region will adopt trade surveillance systems due to its domination of solid and well-established economies that enable it to invest in R&D operations and encourage the developing and invention of new technologies.

The market for trade surveillance systems is expected to expand in the Asia-Pacific region due to the growth of the banking and insurance sectors in countries like India, China, Singapore, South Korea, and Japan. The governments of these countries have started to make significant investments in trade monitoring systems in response to increased security concerns from financial institutions for trading activity. Due to a surge in market abuse and fraud instances, as well as the complexity of regulatory compliance requirements for businesses, banks, and insurance firms, the Asia-Pacific area is experiencing substantial expansion in the trade surveillance system.

Key Highlights

• The global trade surveillance system market was valued at USD 888.42 million in 2021. It is projected to reach USD 2,866.36 million by 2030, growing at a CAGR of 13.9% during the forecast period (2022-2030). 
• Based on components, the global trade surveillance system market is bifurcated into solutions and services. The solution segment is the highest contributor to the market and is anticipated to grow at a CAGR of 13.7% during the forecast period.
• Based on the deployment model, the global trade surveillance system market is bifurcated into on-premise and cloud. The on-premise segment owns the highest market share and is expected to grow at a CAGR of 12.1% during the forecast period.
• Based on enterprise size, the global trade surveillance system market is bifurcated into large enterprises and SMEs. The large enterprise segment is the highest contributor to the market and is expected to grow at a CAGR of 13.2% during the forecast period.
• Based on end-user, the global trade surveillance system market is bifurcated into banks, institutional brokers, retail brokers, market centers, and regulators. The institutional broker segment owns the highest market share and is expected to grow at a CAGR of 12.1% during the forecast period.
• Europe is the most significant global trade surveillance system market shareholder and is expected to grow at a CAGR of 13.4% during the forecast period.

 

Competitive Players

Competitive Players

The global trade surveillance system market’s major key players are IBM, Accenture, B-next, Red Deer, Software AG, FIS, Celent, ACA Compliance Group Holdings, LLC, Scila AB, CINNOBER FINANCIAL TECHNOLOGY, Trapets AB, Abel Noser Holdings LLC, Crisil Limited, Aquis Technologies, Cognizant, IPC System, Inc., OneMarketData, and SIA S.P.A.

Recent Developments

Market News

• In February 2022, Crisil and Apparity LLC announced a partnership offering end-user computing and governance solutions for financial institutions.
• In October 2022, OneMarketData launched the OneTick Market data research environment for easier access to market data and analytics.

Segmentation

Global Trade Surveillance System Market: Segmentation

By Components

• Solutions
• Services

By Deployment Model

• On-premise
• Cloud

By Enterprise Size

• Large Enterprises
•  SMEs

By End-User

• Banks
• Institutional Brokers
• Retail Brokers
• Market Centers and Regulators

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA