Anti-Money Laundering Software Market Expected to Reach $8.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Anti-Money Laundering Software Market," The anti-money laundering software market was valued at $2.2 billion in 2022, and is estimated to reach $8.7 billion by 2032, growing at a CAGR of 15.3% from 2023 to 2032.

Anti-money laundering software evaluates each client's transaction patterns, usually in comparison to a library of rules or filters. It establishes if patterns of transactional behavior are consistent with criminal profiles as well as whether anomalous transactions by a client may require further investigation or not. Money laundering is rising as a result of rapidly changing financial crime typologies that take the use of technical advancements and digitalized money, which further provide lucrative opportunities for the global market. There is a rising need for intelligent banking systems that may enhance the flow of payment systems due to the expansion of urbanization. Overall, the demand for sophisticated and automated payment systems that can process and analyze massive volumes of data in real time is the factor that propels the anti-money laundering software market, allowing BFSI organizations to take alternatives and take actions based on data-driven insights.

On the basis of component, the software segment dominated the anti-money laundering software market size in 2022 and is expected to continue this trend during the forecast period. As anti-money laundering software is increasingly being deployed in several organizations. Such factors further drive the demand for anti-money laundering software market globally. In addition, increase in digitalization and rise in adoption of advanced technology such as artificial intelligence, cloud computing, Internt of Things (IoT) and others are expected to propel the AML market growth during the forecast period.  However, the service segment is expected to exhibit the highest growth during the forecast period. This is attributed to the cost-efficient solutions provided by various organizations. Furthermore, the adoption of anti-money laundering solution is expected to increase in several industry sectors, due to an increase in the need to propel its customer base.

By region, Europe dominated the market share in 2022 for the AML software market. Businesses in this area are embracing anti-money laundering software solutions at an increasing rate, which in turn are expected to propel global market growth. However, Asia-Pacific is expected to exhibit the highest AML software market growth during the forecast period. The presence of strong government policies regarding privacy and security in this region has been driving the growth of the anti-money laundering software industry.

The outbreak of COVID-19 is projected to provide a range of new avenues for the market to grow over the forthcoming period. These novel opportunities include a surge in integration for IoT, artificial intelligence, and other advanced technologies coupled with the growing adoption of cloud solutions in banking-related operations. Besides, the robust demand for emerging technologies that are suitable for consumer needs has grown substantially in the last few years. Thus, such factors support AML market growth across the globe. 

Additionally, several companies are also incorporating advanced and innovative solutions, as well as providing advanced payment system execution in bank operations to seamless transfer of condition-based and predictive banking requirements. For instance, in February 2021, HPE collaborated with Tookitaki, to provide an AI-powered anti-money laundering solution, delivered as a service through HPE GreenLake, to banks and financial institutions across Asia-Pacific. Such strategic initiatives create numerous opportunities for the anti-money laundering software market forecast.

Key Findings of the Study

• By component, the software segment accounted for the largest anti-money laundering software market share in 2022.
• By product type, the customer identity management segment accounted for the largest anti-money laundering software market share in 2022.
• By deployment, the on-premise segment accounted for the largest anti-money laundering software market share in 2022.
• By organization size, the large enterprises segment accounted for the largest anti-money laundering software market share in 2022.
• Region wise, Europe generated the highest revenue in 2022.

The market players operating in the anti-money laundering software market analysis are ACI Worldwide, Inc., Ascent Technology Consulting, Eastnets Holding Ltd., FICO, NICE Actimize, Moody Corporation, LexisNexis Risk Solution, SAS Institute Inc., Thomson Reuters Corporation, and Verafin Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the anti-money laundering software industry globally.