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In 2023, the global regtech market was estimated to be worth $10.77B. Forecasts indicate that the market will expand from $12.92B in 2024 to $60.87B in 2031, representing a CAGR of 26.9%.
Businesses and organizations may find more efficient, accurate, and cost-effective ways to achieve regulatory compliance by utilizing technology like blockchain, artificial intelligence, data analytics, and automation. This is what the RegTech market is all about. To help businesses negotiate complex regulatory environments with minimal human work and reduced risk of noncompliance, RegTech solutions aim to automate and improve many areas of compliance management, risk assessment, reporting, and monitoring across industries.
The quick uptake of cutting-edge technology is one of the many forces propelling the RegTech industry forward. The RegTech sector has been driven by the urgent necessity for companies to tackle the growing complexity of regulatory obligations. With the proliferation of complicated regulations and their regular updates, the long-standing manual methods of compliance management are no longer viable options. Therefore, in order to simplify their compliance procedures, businesses are utilizing state-of-the-art technologies such as blockchain, artificial intelligence, machine learning, and big data analytics. Secure identity verification, predictive analysis of potential risks, real-time monitoring of transactions and data, and routine task automation are all made feasible by these technologies.
The market is expanding because of the increased emphasis on financial regulation. Nevertheless, firms face challenges in developing unified solutions that can meet distinct regulatory standards across several regions due to the market's complexity and irregularity caused by varied and contradictory legislation across different jurisdictions. Additionally, worries about privacy and security are preventing the business from expanding. In fact, new tools and technologies are in high demand as businesses look for ways to comply with stringent data protection regulations, which is good news for the market globally.
An increase in financial fraud and money laundering has led to a growth in the regulatory technology sector. A stronger RegTech framework is necessary to help risk and compliance teams manage the deluge of increasingly complicated regulatory compliance obligations, which financial institutions are facing as a result of an increase in fraudulent activities such as money laundering. With the help of IBM's cognitive fraud prevention solution, anti-fraud organizations may better detect and respond to emerging threats to financial transactions. As further evidence of the efficacy of their cognitive strategy for real-time fraud detection, IBM was also named Financial Crime Product of the Year that year. Therefore, with the growth of fraudulent actions, there is a greater need for RegTech solutions.
The expense of software maintenance is growing at an exponential rate and may make up as much as 70% of the product's overall cost. It becomes increasingly difficult to maintain them as time goes on, even when more software is being developed daily. The expense of maintaining software can triple that of developing it. The upfront expenses of software development and design are a tiny fraction of the total cost of ownership (TCO), which the firms fail to recognize.
With the help of RegTech, financial authorities are better able to handle the challenges posed by digitalization and the expansion of their duties. With the use of RegTech, central banks are able to better understand market dynamics, competitiveness, financial inclusion, innovation, stability, and the prevention of financial crime. The evidence base for rulemaking and rule implementation can be enhanced with RegTech solutions. As a result of new technological advancements, data collection has changed drastically. For instance, unlike the usual practice of human engagement, data obtained by chatbots during consumer encounters is unique. The laws that regulate the information gathered by these conversational systems will be influenced in part by this change.
As more and more businesses began to allow employees to work remotely as a result of the COVID-19 epidemic, regulatory technology solutions were quickly adopted. The necessity for oversight grew as staff members became more dependent on messaging and collaboration platforms. The risk of data theft is particularly significant in sectors that deal with sensitive information, including healthcare, retail, and the banking, financial services, and insurance industries. Companies were quite worried about cyber dangers and privacy risks. In the midst of the COVID-19 pandemic, this drove up demand for the remedy. Regulatory solutions were also in high demand due to developments such as the proliferation of COVID-19 vaccinations, online shopping, healthcare medications, and monetary transactions. There was a subsequent uptick in investments by businesses in technological regulatory solutions that are adaptable to different use cases. As a result, the desire for automated technology to govern and operate in compliance was spurred by the growth of digital systems during the pandemic crises. A major factor propelling the use of regtech is thus anticipated to be the pandemic.
Firms are seeking innovative ways to manage compliance as a result of the increase in regulatory complexity across industries and locations, which is driving the RegTech market trend. In addition, AI and ML are enhancing systems' predictive and prescriptive capacities, which allows for proactive compliance measures and real-time risk assessment. In addition, biometric and digital identity verification are revolutionizing KYC procedures, paving the way for safe and easy onboarding of new customers. Furthermore, by offering immutable record-keeping and secure data sharing, blockchain adoption is enhancing transparency and auditability in compliance operations. Government agencies and companies are also looking at ways to work together to create more adaptable and responsive regulatory frameworks, signaling a trend toward more collaborative regulatory settings. The increasing popularity of cloud-based solutions is attributed to their scalability and flexibility, which enables enterprises to deploy RegTech products more efficiently.
Report Coverage
Global Regtech research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global Regtech report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and Regtech competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key Regtech market players and analyses their core competencies in each global market sub-segments.
Key Points Covered in the Report
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global Regtech market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, Regtech market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
ACTICO GmbH (ACTICO), Ascent Technologies Inc. (Ascent), Ayasdi AI LLC (Ayasdi), Broadridge Financial Solutions, Inc. (Broadridge), Chainalysis Inc. (Chainalysis), IVXS UK Limited (ComplyAdvantage), Deloitte Touche Tohmatsu Limited (Deloitte), Fenergo, London Stock Exchange Group plc (LSEG), IdentityMind, International Business Machines Corporation (IBM), Jumio Corporation (Jumio), MetricStream Inc. (MetricStream), Actimize Inc. (Nice Actimize), Pole Star Space Applications (Pole Star Global), PricewaterhouseCoopers Private Limited (PwC), Thomson Reuters, Trulioo, Wolters Kluwer NV (Wolters Kluwer), CLAUSEMATC, H LIMITED (Clausematch), REGnosys Limited (REGnosys), CEPTINEL RegTech (Ceptinel), MindBridge, Tessian, Hummingbird RegTech, Inc. (Hummingbird), Coryltics, and CyberGRX.
Primary Target Market
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2031. INFINITIVE DATA EXPERT has segmented the global Regtech market based on the below-mentioned segments:
Global Regtech Market, By Component
Solution
Service
Global Regtech market, By Application
Anti-money laundering and Fraud Management
Regulatory Intelligence
Risk and Compliance Management
Regulatory Reporting
Identity Management
Global Regtech Market, By End User
IT and Telecom
Public Sector
Energy and Utilities
Others
Banks
Insurance Companies
FinTech Firms
Global Regtech market, Regional Analysis
Businesses and organizations may find more efficient, accurate, and cost-effective ways to achieve regulatory compliance by utilizing technology like blockchain, artificial intelligence, data analytics, and automation. This is what the RegTech market is all about. To help businesses negotiate complex regulatory environments with minimal human work and reduced risk of noncompliance, RegTech solutions aim to automate and improve many areas of compliance management, risk assessment, reporting, and monitoring across industries.
The quick uptake of cutting-edge technology is one of the many forces propelling the RegTech industry forward. The RegTech sector has been driven by the urgent necessity for companies to tackle the growing complexity of regulatory obligations. With the proliferation of complicated regulations and their regular updates, the long-standing manual methods of compliance management are no longer viable options. Therefore, in order to simplify their compliance procedures, businesses are utilizing state-of-the-art technologies such as blockchain, artificial intelligence, machine learning, and big data analytics. Secure identity verification, predictive analysis of potential risks, real-time monitoring of transactions and data, and routine task automation are all made feasible by these technologies.
The market is expanding because of the increased emphasis on financial regulation. Nevertheless, firms face challenges in developing unified solutions that can meet distinct regulatory standards across several regions due to the market's complexity and irregularity caused by varied and contradictory legislation across different jurisdictions. Additionally, worries about privacy and security are preventing the business from expanding. In fact, new tools and technologies are in high demand as businesses look for ways to comply with stringent data protection regulations, which is good news for the market globally.
An increase in financial fraud and money laundering has led to a growth in the regulatory technology sector. A stronger RegTech framework is necessary to help risk and compliance teams manage the deluge of increasingly complicated regulatory compliance obligations, which financial institutions are facing as a result of an increase in fraudulent activities such as money laundering. With the help of IBM's cognitive fraud prevention solution, anti-fraud organizations may better detect and respond to emerging threats to financial transactions. As further evidence of the efficacy of their cognitive strategy for real-time fraud detection, IBM was also named Financial Crime Product of the Year that year. Therefore, with the growth of fraudulent actions, there is a greater need for RegTech solutions.
The expense of software maintenance is growing at an exponential rate and may make up as much as 70% of the product's overall cost. It becomes increasingly difficult to maintain them as time goes on, even when more software is being developed daily. The expense of maintaining software can triple that of developing it. The upfront expenses of software development and design are a tiny fraction of the total cost of ownership (TCO), which the firms fail to recognize.
With the help of RegTech, financial authorities are better able to handle the challenges posed by digitalization and the expansion of their duties. With the use of RegTech, central banks are able to better understand market dynamics, competitiveness, financial inclusion, innovation, stability, and the prevention of financial crime. The evidence base for rulemaking and rule implementation can be enhanced with RegTech solutions. As a result of new technological advancements, data collection has changed drastically. For instance, unlike the usual practice of human engagement, data obtained by chatbots during consumer encounters is unique. The laws that regulate the information gathered by these conversational systems will be influenced in part by this change.
As more and more businesses began to allow employees to work remotely as a result of the COVID-19 epidemic, regulatory technology solutions were quickly adopted. The necessity for oversight grew as staff members became more dependent on messaging and collaboration platforms. The risk of data theft is particularly significant in sectors that deal with sensitive information, including healthcare, retail, and the banking, financial services, and insurance industries. Companies were quite worried about cyber dangers and privacy risks. In the midst of the COVID-19 pandemic, this drove up demand for the remedy. Regulatory solutions were also in high demand due to developments such as the proliferation of COVID-19 vaccinations, online shopping, healthcare medications, and monetary transactions. There was a subsequent uptick in investments by businesses in technological regulatory solutions that are adaptable to different use cases. As a result, the desire for automated technology to govern and operate in compliance was spurred by the growth of digital systems during the pandemic crises. A major factor propelling the use of regtech is thus anticipated to be the pandemic.
Firms are seeking innovative ways to manage compliance as a result of the increase in regulatory complexity across industries and locations, which is driving the RegTech market trend. In addition, AI and ML are enhancing systems' predictive and prescriptive capacities, which allows for proactive compliance measures and real-time risk assessment. In addition, biometric and digital identity verification are revolutionizing KYC procedures, paving the way for safe and easy onboarding of new customers. Furthermore, by offering immutable record-keeping and secure data sharing, blockchain adoption is enhancing transparency and auditability in compliance operations. Government agencies and companies are also looking at ways to work together to create more adaptable and responsive regulatory frameworks, signaling a trend toward more collaborative regulatory settings. The increasing popularity of cloud-based solutions is attributed to their scalability and flexibility, which enables enterprises to deploy RegTech products more efficiently.
Report Coverage
Global Regtech research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global Regtech report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and Regtech competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key Regtech market players and analyses their core competencies in each global market sub-segments.
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2017-2031 |
| Base Year | 2023 |
| Forecast Period | 2023-2031 |
| Historical Period | 2017-2021 |
| Unit | Value (USD Billion) |
| Key Companies Profiled | ACTICO GmbH (ACTICO), Ascent Technologies Inc. (Ascent), Ayasdi AI LLC (Ayasdi), Broadridge Financial Solutions, Inc. (Broadridge), Chainalysis Inc. (Chainalysis), IVXS UK Limited (ComplyAdvantage), Deloitte Touche Tohmatsu Limited (Deloitte), Fenergo, London Stock Exchange Group plc (LSEG), IdentityMind, International Business Machines Corporation (IBM), Jumio Corporation (Jumio), MetricStream Inc. (MetricStream), Actimize Inc. (Nice Actimize), Pole Star Space Applications (Pole Star Global), PricewaterhouseCoopers Private Limited (PwC), Thomson Reuters, Trulioo, Wolters Kluwer NV (Wolters Kluwer), CLAUSEMATC, H LIMITED (Clausematch), REGnosys Limited (REGnosys), CEPTINEL RegTech (Ceptinel), MindBridge, Tessian, Hummingbird RegTech, Inc. (Hummingbird), Coryltics, and CyberGRX. |
| Segments Covered | • By Product |
| Customization Scope | Free report customization (equivalent to up to 3 analyst working days) with purchase. Addition or alteration to country, regional & segment scope |
Key Points Covered in the Report
- Market Revenue of Regtech Market from 2021 to 2031.
- Market Forecast for Regtech Market from 2021 to 2031.
- Regional Market Share and Revenue from 2021 to 2031.
- Country Market share within region from 2021 to 2031.
- Key Type and Application Revenue and forecast.
- Company Market Share Analysis, Regtech competitive scenario, ranking, and detailed company
profiles. - Market driver, restraints, and detailed COVID-19 impact on Regtech
Market
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global Regtech market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, Regtech market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
ACTICO GmbH (ACTICO), Ascent Technologies Inc. (Ascent), Ayasdi AI LLC (Ayasdi), Broadridge Financial Solutions, Inc. (Broadridge), Chainalysis Inc. (Chainalysis), IVXS UK Limited (ComplyAdvantage), Deloitte Touche Tohmatsu Limited (Deloitte), Fenergo, London Stock Exchange Group plc (LSEG), IdentityMind, International Business Machines Corporation (IBM), Jumio Corporation (Jumio), MetricStream Inc. (MetricStream), Actimize Inc. (Nice Actimize), Pole Star Space Applications (Pole Star Global), PricewaterhouseCoopers Private Limited (PwC), Thomson Reuters, Trulioo, Wolters Kluwer NV (Wolters Kluwer), CLAUSEMATC, H LIMITED (Clausematch), REGnosys Limited (REGnosys), CEPTINEL RegTech (Ceptinel), MindBridge, Tessian, Hummingbird RegTech, Inc. (Hummingbird), Coryltics, and CyberGRX.
Primary Target Market
- Market Players of Regtech
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Third-party knowledge providers
- Value-Added Resellers (VARs)
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2031. INFINITIVE DATA EXPERT has segmented the global Regtech market based on the below-mentioned segments:
Global Regtech Market, By Component
Solution
Service
Global Regtech market, By Application
Anti-money laundering and Fraud Management
Regulatory Intelligence
Risk and Compliance Management
Regulatory Reporting
Identity Management
Global Regtech Market, By End User
IT and Telecom
Public Sector
Energy and Utilities
Others
Banks
Insurance Companies
FinTech Firms
Global Regtech market, Regional Analysis
- Europe: Germany, Uk, France, Italy, Spain, Russia, Rest of Europe
- The Asia Pacific: China,Japan,India,South Korea,Australia,Rest of Asia Pacific
- South America: Brazil, Argentina, Rest of South America
- Middle East & Africa: UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa
About This Research
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