RegTech Market (2024-2031)
The RegTech Market was valued at $9.2 billion in 2023. This market is expected to reach $32.6 billion by 2031 from an estimated $10.7 billion in 2024, at a CAGR of 17.3% during the forecast period from 2024 to 2031. RegTech Market Size & Forecast The growth of this market is driven by the rising need
- Published
- Sep 2024
- Pages
- 250
- Format
- PDF + Excel
- Report ID
- MRICT - 104665
- Base year
- 2023
- 2023 · BASELINE
- $9.20B
- 2031
- $32.60B
- CAGR 2024–2031
- 17.3%
2023 baseline · 2024–2031 forecast at 17.3% CAGR · hover a bar for the value
Key highlights
By Component: In 2024, the Solutions/Platforms Segment to Dominate the RegTech Market
By Application: In 2024, the Cybersecurity/Information Security Segment to Dominate the RegTech Market
By Technology: In 2024, the Cloud Computing Segment to Dominate the RegTech Market
By Organization Size: In 2024, the Large Enterprises Segment to Dominate the RegTech Market
By Deployment Mode: In 2024, the On-premise Segment to Dominate the RegTech Market
By End-use Industry: In 2024, the BFSI Segment to Dominate the RegTech Market
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 250 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR (Value) | 17.3% |
| Market Size (Value) | $32.6 Billion by 2031 |
| Segments Covered | By Component · Solutions/Platforms · Fraud Prevention Solutions · Anti Money Laundering And Counter-terrorist Financing Solutions · Creditworthiness Assessment Tools · Suptech Solutions · ICT Security Tools · Prudential Reporting Solutions · Services · Professional Services · Managed Services · By Application · Cybersecurity/Information Security · Regulatory Compliance · Financial Crime Management · Identity Management/Identification & Background Checks · Risk Management · Onboarding Verification · Compliance Support · Transaction Monitoring · Other Applications · By Technology · Cloud Computing · Machine Learning · Predictive Data Analytics · Natural Language Processing · Data Transfer Protocols · Deep Learning · Semantics/Graph Analysis · Robotic Process Automation · Blockchain · Biometrics · Other Technologies · By Organization Size · Large Enterprises · Small & Medium-sized Enterprises · By Deployment Mode · On-premise · Cloud-based · By End-use Industry · BFSI · IT & Telecommunications · Government & Public Sector · Healthcare · Retail · Transportation & Logistics · Food & Beverage · Manufacturing · Energy & Utilities · Other End-use Industries |
| Countries Covered | North America (U.S. and Canada), Europe ( Germany, U.K., France, Italy, Spain, Switzerland, Netherlands, and Rest of Europe), Asia-Pacific ( China, Japan, India, South Korea, Singapore, Australia & New Zealand, Taiwan, Indonesia, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, Rest of Latin America) and the Middle East & Africa (UAE, Israel, Saudi Arabia, and Rest of Middle East & Africa) |
| Key Companies Profiled | NICE Ltd. (Israel), Ascent Technologies, Inc. (U.S.), SymphonyAI LLC (U.S.), Broadridge Financial Solutions, Inc. (U.S.), Chainalysis Inc.(U.S.), cleversoft group GmbH (Germany), CORLYTICS Limited (Ireland), DataCo GmbH (Germany), Deloitte Touche Tohmatsu Limited (U.K.), Hummingbird Regtech, Inc. (U.S.), International Business Machines Corporation (U.S.), Jumio Corporation (U.S.), MetricStream, Inc. (U.S.), MindBridge Analytics Inc. (Canada), Pole Star Space Applications Limited (U.K.), REGnosys Limited (U.K.), Trulioo Information Services Inc. (Canada), and Wolters Kluwer N.V. (Netherlands) |
Report overview
Segments covered: component, solutions/platform, fraud prevention solution, creditworthiness assessment tool, suptech solution, ict security tool, prudential reporting solution, service, professional service, managed service, application, cybersecurity/information security, regulatory compliance, financial crime management, risk management, onboarding verification, compliance support, transaction monitoring, other application, technology, cloud computing, machine learning, predictive data analytic, natural language processing, data transfer protocol, deep learning, semantics/graph analysis, robotic process automation, blockchain, biometric, other technology, organization size, large enterprise, small & medium-sized enterprise, deployment mode, on-premise, cloud-based, end-use industry, bfsi, it & telecommunication, government & public sector, healthcare, retail, transportation & logistic, food & beverage, manufacturing, energy & utility, other end-use industry. Regions: North America, Europe, Asia-Pacific, Latin America.
The growth of this market is driven by the rising need for faster transactions, increased focus on automating regulatory compliance processes, and growing instances of fraud. However, the high costs associated with RegTech solutions/platforms/dashboards are expected to restrain the growth of this market.
The growing popularity of automated regulatory compliance & identity verification solutions in the online gaming industry and the increasing demand for risk assessment & regulatory compliance solutions in the pharmaceutical industry are expected to create market growth opportunities for the market players. However, the lack of data standardization is a major challenge for the players operating in this market. Moreover, the Increased focus on real-time data analysis to help organizations stay compliant with evolving regulatory scenarios is a prominent market trend in the microalgae market.
Market dynamics
3 factors across 2 forcesIncreased Focus on Automate Regulatory Compliance Processes
Automated compliance solutions are particularly beneficial for organizations that deal with sensitive data. They offer several benefits that positively impact security, cost savings, and reporting. By adopting automated compliance solutions, companies can reduce compliance risks, increase process efficiency, and access real-time data to make informed decisions. The growing adoption of RegTech dashboards that manage regulatory compliance as per different business frameworks has increased significantly as these solutions automate labor-intensive and time-consuming compliance processes, saving time and resources.
With the growing focus on automating the regulatory compliance process, several companies are making developments. For instance, in 2021, Broadridge Financial Solutions, Inc. (U.S.) acquired the cloud-based execution compliance & surveillance service (ECS) assets of Jordan & Jordan (U.S.) to enhance its regulatory compliance capabilities for broker-dealers. Such developments are driving the growth of the RegTech market.
Rising Need for Faster Transactions
In recent years, financial institutions and banks have increasingly faced issues associated with traditional cross-border payment systems, such as extra processing fees, the risk of cyberattacks in payment pathways, security breaches, and increasing failure points. Also, sending a global payment through established banking channels is a complex and multistep process due to the involvement of several intermediaries. Blockchain-based payment systems are faster, more secure, and cheaper. They streamline transactions and store every transaction in a secure distributed ledger.
Several companies are focused on launching blockchain-based compliance solutions to facilitate faster transactions. For instance, in June 2022, Cogent Bank (U.S.) launched a fully integrated digital banking platform powered by Tassat Group Inc. (U.S.). This platform facilitates secured real-time payments in compliance with banking regulations. Furthermore, in March 2022, Sopra Steria (France) partnered with Chainalysis Inc. (U.S.) to offer leading blockchain compliance solutions to customers across Europe. The emergence of such RegTech solutions and the rising need for faster transactions are driving the growth of the RegTech market.
Table of contents
14 chapters · 159 sections · 250 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Component | Solutions/Platforms | — |
| By Application | Cybersecurity/Information Security | Onboarding verification |
| By Technology | Cloud Computing | Natural language processing |
| By Organization Size | Large Enterprises | — |
| By Deployment Mode | On-premise | — |
| By End-use Industry | BFSI | BFSI |
By Component
- The solutions/platforms segment is expected to account for a larger share of over 83.0% of the global RegTech market.
- The segment's large market share is attributed to the growing adoption of RegTech solutions in business for streamlining and auditing marketing, the rising need to improve risk management and centralized regulatory filings in organizations, and the growing development of launching money laundering & financial crime management solutions by leading RegTech players.
- However, the services segment is expected to register a higher CAGR during the forecast period.
- The growth of this segment is attributed to the increasing demand for RegTech services for the management and maintenance of regulatory monitoring and reporting and the rising need for RegTech-managed services in organizations for technical support and onsite system inspections.
By Application
- The cybersecurity/information security segment is expected to account for the largest share of over 25.0% of the global RegTech market.
- The segment's large market share is attributed to the growing requirement for highly secure information security and cybersecurity solutions in organizations and increasing social engineering attacks, scams, and identity theft.
- However, the onboarding verification segment is expected to register the highest CAGR during the forecast period.
- This segment's growth is attributed to the growing demand from banking institutions to automate the onboarding process, the rising adoption of RegTech solutions to reduce manual error risks and increase onboarding rates, and the increasing use of remote onboarding processes to enhance customer experience.
By Technology
- The Cloud Computing Segment to Dominate the RegTech Market
- The cloud computing segment is expected to account for the largest share of over 24.5% of the global RegTech market.
- The segment's large market share is attributed to the growing adoption of cloud computing solutions to implement governance, risk, and compliance (GRC) framework to address potential risks, the rising need for cloud computing solutions to improve data management and auditing capabilities to ensure effective compliance, and increasing use of cloud computing solutions due low operational cost.
- However, the natural language processing segment is expected to register the highest CAGR during the forecast period.
- This segment's growth is attributed to the growing development and launch of AI-powered AML solutions by leading players, the surge in demand for AI technology by RegTech providers to implement effective transaction monitoring systems, and the increasing use of natural language in RegTech solutions for automation of regulatory change tracking and monitoring.
By Organization Size
- The large enterprises segment is expected to account for a larger share of over 75.0% of the global RegTech market.
- The segment's large market share is attributed to the growing demand for RegTech solutions in large enterprises for fraud management, the increasing emergence of digital and operational regulatory compliance solutions in large enterprises, and increasing cyberattacks in large enterprises.
- However, the small and medium-sized enterprises segment is expected to register a higher CAGR during the forecast period.
- This segment's growth is attributed to the increasing demand for regulatory compliance solutions by small-scale enterprises and the rising use of RegTech solutions in SMEs to streamline marketing, improve risk management, and enhance time and cost efficiency.
By Deployment Mode
- The On-premise Segment to Dominate the RegTech Market
- The on-premise segment is expected to account for a larger share of over 53.0% of the global RegTech market.
- The segment's large market share is attributed to the growing use of on-premise RegTech solutions in businesses to improve service flexibility and enhanced customer experience, increasing demand for on-premise RegTech solutions for greater security and privacy, and rising need to develop new modules, make new integrations, and customize existing back or front-end.
- However, the cloud-based segment is expected to register a higher CAGR during the forecast period.
- The growth of this segment is attributed to the growing demand for cloud-based RegTech solutions to enhance user operability, the increasing use of cloud-based RegTech solutions to deploy different types of infrastructure components as a service with more flexibility and scalability, and the rising need to lower costs of internal system design, implementation, and maintenance.
By End-use Industry
- The BFSI Segment to Dominate the RegTech Market
- The BFSI segment is expected to account for the largest share of over 35.0% of the global RegTech market.
- The segment's large market share is attributed to the growing adoption of RegTech solutions in banking and financial instructions to simplify and expedite the compliance process, growing demand for RegTech solutions for high-profile compliance breakdowns and increased emphasis on consumer protection, and rising product launched by key player for BFSI to control financial crimes intelligence.
- Also, the BFSI segment is expected to register the highest CAGR during the forecast period.
Geographic analysis
Europe
Largest shareIn 2024, Europe is expected to account for the largest share of over 34.0% of the global RegTech market. Europe’s significant market share is attributed to the growing deployment of RegTech solutions for BFSI in the region and the rising European regulatory framework for businesses to lower cyberattacks. Additionally, several companies are launching RegTech solutions in the region. For instance, in 2022, Microsoft Corporation (U.S.) and Worldline Group S.A. (France) launched a next-generation fraud solution for online payments. The solution enables global merchants to optimize fraud detection and protect revenue. In 2024, Europe Region to Dominate the RegTech Market
Asia-Pacific
Fastest growthHowever, Asia-Pacific is expected to register the highest CAGR of over 18.6% during the forecast period. The growing presence of fintech hotspots across the regional countries, rising adoption of digital payment technologies in the region's businesses, and increasing use of various technologies such as cloud computing, natural language processing, AI, and blockchain in the region for RegTech solutions are further fueling the growth of this regional market.
Competitive landscape
- March 2023
Consilient Inc. (U.S.) launched a federated learning RegTech solution for financial crime detection and prevention. This solution enables banks and financial institutions to detect high-risk entities and behaviors by sharing insights across different data environments and organizations.
- March 2022
NICE Ltd. (Israel) launched its advanced X-Sight Entity Risk SaaS solution. This solution produces a single risk score that enables a financial institution and offer a greater understanding of clients.
- NICE Ltd. · Israel
- Ascent Technologies, Inc. (U.S.)
- SymphonyAI LLC (U.S.)
- Broadridge Financial Solutions, Inc. (U.S.)
- Chainalysis Inc.(U.S.)
- CORLYTICS Limited · Ireland
- DataCo GmbH · Germany
- Deloitte Touche Tohmatsu Limited (U.K.)
- Hummingbird Regtech, Inc. (U.S.)
- International Business Machines Corporation (U.S.)
- Jumio Corporation (U.S.)
- MetricStream, Inc. (U.S.)
- MindBridge Analytics Inc. · Canada
- Pole Star Space Applications Limited (U.K.)
- REGnosys Limited (U.K.)
- Trulioo Information Services Inc. · Canada
- Wolters Kluwer N.V. · Netherlands
Frequently asked questions
The RegTech market study focuses on market assessment and opportunity analysis based on the sales of RegTech products across various countries, regions, and market segments. The study includes a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years.
Cite this report
Meticulous Research. (2024). RegTech Market - Global Opportunity Analysis And Industry Forecast (2024-2031) (Report No. MRICT - 104665). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/regtech-market-5349