Trade Surveillance Systems Market Research Report and Outlook by 2028

The market for trade surveillance systems was valued at approximately US$ 958.65 million in 2021 and is anticipated to grow to around US$ 2,789.52 million by 2028, reflecting a compound annual growth rate (CAGR) of 16.5% during the period from 2021 to 2028.

In recent years, there has been a notable rise in suspicious trading activities, which has highlighted issues such as inflexible deployment options, high rates of false positives, and inadequately integrated data sources that do not meet compliance standards. This situation underscores the urgent need for effective trade surveillance systems within financial institutions in the near future. Additionally, to enhance the investor experience and maintain a competitive edge, providers of trade surveillance solutions are expected to expand their offerings throughout the forecast period. Financial institutions are likely to invest in systems capable of delivering real-time insights and managing both structured and unstructured data sets concurrently. Furthermore, significant market manipulations, including loss of investor trust, threats to market integrity, fraudulent behaviors, and insider trading, are expected to drive the demand for trade surveillance systems in financial organizations in the coming years.

When examining the components of the market, the solutions segment has captured the largest share of the global trade surveillance systems market. The increasing complexity of the regulatory, compliance, and risk management landscape has created a demand for risk and compliance solutions. These solutions enable risk and compliance teams to analyze and share data, providing a comprehensive view of the organization?s risk profile, which aids executives and boards in making informed strategic decisions. The growing adoption of risk and compliance software by organizations to mitigate financial and reputational risks associated with non-compliance is propelling market growth. Additionally, the digitization of banking operations has allowed businesses to optimize their processes, although it has also led to a rise in cyber threats and fraud. To combat the risks of compliance failures and fraudulent activities, financial institutions are increasingly investing in Enterprise Governance, Risk, and Compliance (EGRC) solutions. The rise of mobile payments, e-commerce, cloud computing, big data analytics, the Internet of Things (IoT), machine learning, artificial intelligence, and social media has heightened the need for robust risk and compliance solutions, as these technologies often involve the exchange of sensitive personal information, making individuals and organizations more susceptible to cyberattacks. The market is also segmented by deployment methods, which include on-premise and cloud solutions. Geographically, the Asia-Pacific (APAC) region exhibited the highest growth rate in 2020.

The COVID-19 pandemic has had a profound impact on industries worldwide, directly affecting economic growth in various regions. The surge in COVID-19 cases and the subsequent lockdowns implemented to curb the virus's spread during the first half of 2020 forced many businesses to halt operations. Consequently, technological investments saw a decline during this period. The abrupt lockdowns imposed globally due to the pandemic led to significant volatility in the stock market, resulting in reduced trading activities and a subsequent downturn in the trade surveillance market. However, as the economy began to stabilize in the latter part of 2020, trading activities started to recover, leading to increased investments in cloud-based trade surveillance solutions that facilitate remote monitoring of trading operations. Thus, the pandemic has had a moderate impact on the global trade surveillance market.

The overall size of the trade surveillance systems market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aimed to provide an overview and forecast of the trade surveillance systems market across all segments and regions. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants in this research included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the trade surveillance systems market. Key players in this market include ACA Group, Aquis Exchange, B-Next, CRISIL Limited, FIS Global, Nasdaq Inc., OneMarketData LLC, Scila AB, SIA S.P.A., and Software AG.