e-Trading Software Developers
Business for Sale Industry Economics
2003 - 2020
2020 - 2026
Revenue for the e-Trading Software Developers industry, defined as companies that operate online securities trading websites and other software programs for the securities market, has increased at an annualized rate of 3.6% to $10.7 billion over the five years to 2020.
Industry profit has also increased in line with revenue gains.
Large companies in this industry, including the Charles Schwab Corporation and Fidelity Investments Inc.
recorded robust revenue growth during the period, as investors increased their use of online trading platforms.
However, the effect of the COVID-19 (coronavirus) pandemic and its economic consequences are expected to dampen revenue growth, resulting in revenue declining 2.5% in 2020 alone.
However, the online nature of the industry will likely ameliorate this decline somewhat, as industry services are still largely usable even with social distancing measures in place.
Revenue for the e-Trading Software Developers industry has expanded an annualized 3.6% to $10.7 billion over the five years to 2020, including a decline of 2.5% in 2020 alone.
For most of the period, new technology trends have underpinned increases in electronic trading and spending by financial institutions on industry software.
However, although revenue has grown, growth has been tempered somewhat by increased competition in the downstream financial services sector.
Furthermore, the COVID-19 (coronavirus) pandemic is expected to adversely affect industry revenue, as a general economic contraction and a sharp rise in investor uncertainty is expected to fuel a decline in revenue in 2020.
Over the five years to 2025, new product offerings and higher demand from downstream financial services companies will continue to drive revenue growth in the e-Trading Software Developers industry.
Revenue is expected to rise at an annualized rate of 3.5% to $12.7 billion over the five years to 2025.
Investors are expected to increasingly demand and invest in new trading platforms that combine advanced data management, analytics and quicker execution times across numerous asset classes into a single interface.
Profit is also expected to remain near 2020 levels, though heightened competition and increases in labor is expected to result in profit marginally declining during the outlook period.
However, these projections are subject to a degree of uncertainty regarding the long-term effect of the COVID-19 (coronavirus) pandemic.
This industry includes operators that primarily develop independent, third-party software, which enables institutional and retail investors to access, execute and monitor positions in securities markets.
It excludes trading platforms developed by exchanges and alternative trading systems.
Trading platforms developed internally by institutional investors and financial intermediaries, such as banks and securities broker-dealers, are also excluded from this industry.