Global Trade Surveillance System Market Report and Forecast 2024-2032

Global Trade Surveillance System Market Size

The global trade surveillance system market value reached nearly USD 1.36 billion in 2023. The market is projected to grow at a CAGR of 18.4% between 2024 and 2032 to reach a value of around USD 6.23 billion by 2032.

Global Trade Surveillance System Market Growth

A trade surveillance system, or market surveillance system, is designed to monitor and detect illegal and unethical activities conducted by firms and their employees, which is driving increased demand in the trade surveillance system market.

Trade surveillance systems help ensure regulatory compliance, identify fraud, manage risk, enhance market integrity, and improve operational efficiency by automating monitoring and reporting tasks. This reduces the need for manual oversight and boosts financial performance. The growing use of these systems by small and medium-sized enterprises to detect potential market abuses is fuelling the growth of the trade surveillance system market.

Global Trade Surveillance System Market Analysis

The increasing occurrence of market manipulation, fraud, insider trading, and false speculation is boosting the demand for trade surveillance systems. Cloud-based solutions, known for their cost-effectiveness, speed, and lower error rates, are anticipated to play a major role in shaping trade surveillance system market trends and dynamics in the forecast period.

The expansion of the trade surveillance system industry is driven by the widespread use of reporting and monitoring tools. These systems are crucial for identifying illegal trading activities, including unlawful shipping, and trafficking. Additionally, these tools assist governments in overseeing trading practices, which contributes to the trade surveillance system industry growth and stability of the trading sector.

Global Trade Surveillance System Industry Outlook

The U.S. imposed USD 2.7 billion in penalties across 61 incidents, China issued $53.1 million in fines from 10 incidents, and Hong Kong reported USD 47.2 million from 8 incidents. The UK levied USD 36.1 million from 4 incidents, Canada’s penalties totalled USD 4.2 million from seven incidents, and Australia reported the lowest, with USD 0.27 million from six incidents.

According to the Australian Bureau of Statistics, from 2020 to 2022, "Marking the Close" constituted 3% of global market abuse incidents, resulting in USD 1.18 billion in penalties, mainly in the US. "Spoofing/Layering" made up 16% of incidents with USD 1.08 billion in fines, also primarily in the US. Insider dealing accounted for 11% of incidents, leading to USD 0.13 billion in fines, prevalent in the US, China, and Australia. Spreading false information accounted for 20% of incidents, resulting in $0.11 billion in penalties, predominantly in the US and China. "Other Surveillance" encompassed 22% of incidents, leading to USD 0.28 billion in fines, mainly in the US and Hong Kong, which contributes to driving the trade surveillance system industry revenue.

According to the Federal Bureau of Investigation, in 2020, commercial banks saw the highest number of robberies, totalling 1,338 incidents. Credit unions came next with 133 reported robberies. Armoured carrier companies and mutual savings banks had significantly fewer incidents, reporting 6 and 5 robberies respectively. Savings and loan associations reported 14 robberies. When it comes to burglaries, commercial banks again led with 252 incidents. Credit unions reported 21 burglaries, with armored carrier companies and savings and loan associations experiencing 3 and 2 incidents respectively, contributing to the increased demand for the trade surveillance system market.

Growing regulatory requirements drive demand for trade surveillance systems, as firms seek to avoid fines and legal issues by ensuring compliance with trading regulations.

• These systems effectively detect and prevent fraudulent activities such as insider trading and market manipulation, enhancing market integrity and trust.

• Continuous innovation in AI and machine learning improves the accuracy and efficiency of trade surveillance systems, offering sophisticated analytics and real-time monitoring.

The initial investment and ongoing maintenance costs for advanced surveillance systems can be significant, potentially deterring smaller firms.

• Integrating sophisticated systems with existing infrastructure can be complex and time-consuming, requiring specialized knowledge and resources.

• Handling and analysing large volumes of sensitive trading data can raise concerns about data privacy and security.

The expansion of global financial markets and heightened regulatory oversight present the trade surveillance system market opportunities to broaden its solutions across different regions and sectors.

• Integrating surveillance systems with blockchain and advanced data analytics can enhance functionality and provide new business opportunities.

• Rising demand for automated compliance and monitoring solutions provides potential for growth in the trade surveillance market.

Evolving regulations and standards can impact system requirements and necessitate frequent updates, adding to costs and complexity.

• Increased cyber threats pose risks to the security of surveillance systems and the sensitive data they handle.

• Intense competition from established and new players can lead to market saturation and pricing pressures, affecting profitability.

Key Players in the Global Trade Surveillance System Market and Their Key Initiatives

Software AG

• Introduced Super iPaaS, enhancing integration with generative AI. 

• Launched AI-driven trade surveillance solutions. 

NICE CXone Cloud Services

• Implemented enhanced AI-driven compliance tools.

• Expanded cloud-based trade surveillance offerings to tap into the trade surveillance system market opportunities.

IBM Corporation

• Enhanced its hybrid cloud services with IBM Cloud Satellite.

• Launched advanced AI-powered trade surveillance solutions. 

Nasdaq, Inc.

• Integrated generative AI in market surveillance to meet the growing demand of the trade surveillance system market.

• Partnered with Amazon AWS to develop AI-driven.

Global Trade Surveillance System Industry Segmentation

“Global Trade Surveillance System Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component 

• Solution

• Services

Market Breakup by Deployment Type 

• Cloud Based

• On-premises

Market Breakup by Organisation Size 

• Small and Medium Size Enterprises

• Large Size Enterprises

Market Breakup by Vertical 

• Banking

• Capital Markets

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Trade Surveillance System Market Share

Cloud-based and on-premises trade surveillance systems each offer distinct benefits. Cloud-based systems are cost-effective due to their subscription model, eliminating the need for large upfront investments in hardware and software boosting the trade surveillance system market demand. They are highly scalable, allowing for easy adjustments to growing data and user needs. Cloud solutions provide remote access, enabling monitoring from any location, and include automatic updates and robust disaster recovery options, reducing IT burdens and ensuring data protection.

On-premises systems offer greater control and customization, allowing organizations to tailor the system to their specific needs and integrate seamlessly with existing internal processes. These systems also provide enhanced data security by keeping sensitive information within the organization’s physical infrastructure, which is crucial for meeting stringent compliance requirements. Additionally, on-premises solutions often deliver better performance with lower latency, as they are not reliant on internet connectivity driving the trade surveillance system demand growth.

Leading Companies in the Trade Surveillance System Market

The companies provide a wide range of cloud-based customer experience solutions, such as contact centre software and analytics.

• Software AG 

• NICE CXone Cloud Services 

• IBM Corporation 

• Nasdaq, Inc. 

• OneMarketData, LL 

• ACA Group 

• IPC Systems, Inc. 

• Sia Partners 

• Aquis Exchange 

• eFlow Ltd. 

• Others

Key Highlights of the Report

Trade Surveillance System Market Report Snapshots

Trade Surveillance System Market Size

Trade Surveillance System Market Growth

Trade Surveillance System Market Analysis

Trade Surveillance System Market Share

Trade Surveillance System Companies