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2023

RegTech Market

RegTech Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, by Deployment Mode, by Enterprise Size, by Application, by End User : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : IT in BFSI

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Author's: Ravi Raj| Pradeep Ravi | Onkar Sumant
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RegTech Market Research, 2032

The global regtech market was valued at $9 billion in 2022, and is projected to reach $66.9 billion by 2032, growing at a CAGR of 22.6% from 2023 to 2032.

The RegTech market is an industry that focuses on using technology, such as artificial intelligence, automation, data analytics, and blockchain, to assist businesses and organizations achieve regulatory compliance more efficiently, precisely, and cost-effectively. RegTech solutions attempt to automate and improve various areas of compliance management, risk assessment, reporting, and monitoring across industries, allowing businesses to navigate complicated regulatory environments while minimizing manual work and lowering the risk of noncompliance.

RegTech Market Insights

The RegTech market is driven by several factors which include the rapid increase in adoption of advanced technologies. The compelling need for businesses to address the increased complexity of regulatory requirements has propelled the RegTech market. Traditional manual techniques of compliance management have become unsustainable as regulations get more complex and change more frequently. As a result, companies are turning to cutting-edge technology like artificial intelligence, machine learning, big data analytics, and blockchain to help them streamline their compliance operations. These technologies enable routine task automation, real-time monitoring of transactions and data, predictive analysis of possible threats, and secure identity verification.

Furthermore, improve focus on financial regulation are drive the growth of market. However, Varied and conflicting regulations across different jurisdictions hinder the  market by increasing complexity and inconsistency, making it difficult for organizations to build unified solutions capable of meeting diverse regulatory standards across multiple geographies. Furthermore, privacy and security concern are hamper the growth of market. On the contrary, increase general data protection regulation concerns across regions are lucrative for the market as companies seek technological solutions to easily manage and assure compliance with severe data protection requirements, boosting demand for novel tools and technology.

The report focuses on growth prospects, restraints, and trends of the RegTech market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the RegTech market.

Segment Review

The RegTech market is segmented on the basis of component, deployment model, enterprise size, application, end users. Based on component, the market is bifurcated into solution and service. On the basis of deployment model, it is divided into on-premise, and cloud. By application, it is classified into anti-money laundering (AML) and fraud management, regulatory intelligence, risk & compliance management, regulatory reporting, and identity management. As per end user, it is segmented into banks, insurance companies, FinTech Firms, IT & Telecom, public sector, energy & utilities, and others. Region wise, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.

RegTech Market by End User

On the basis of end user, the banks segment attained the highest growth in 2022. This is attributed to its highly regulated nature, strict compliance standards, and the necessity to prevent financial crimes. Banks must comply with stringent regulations such as anti-money laundering (AML) and know your customer (KYC) rules, which necessitate modern technology to expedite processes, manage risks, and assure compliance, creating increasing demand for RegTech solutions. On the other hand, the public sector segment is attributed to be the fastest-growing segment during the forecast period. This is due to increasing regulatory complexities and the requirement for government agencies to efficiently monitor, enforce, and report on compliance with regulations. As governments impose harsher laws across many industries, the public sector's desire for advanced technical solutions to speed regulatory processes, improve transparency, and manage risks has increased fast.

RegTech Market by Region

On the basis of region, North America attained the highest growth in 2022. This is attributed to a strong financial industry, complicated and developing regulatory frameworks, a high degree of technology usage, and a proactive commitment to compliance are all important considerations. Because of the region's concentration of financial institutions, tech-savvy startups, and regulatory issues, there is a great demand for innovative solutions that may speed compliance processes and assist enterprises in more successfully navigating intricate laws. Meanwhile, Asia-Pacific is considered to be the fastest-growing region during the forecast period. This is attributed to fact that the region's dynamic economies, which include China, India, Singapore, and Australia, are undergoing fast technological adoption and digital transformation across a wide range of businesses. As organizations develop abroad and interact with varied regulatory frameworks, there is a greater awareness of the need for effective regulatory compliance. Therefore, financial services focus, and regulatory diversity are drive the growth of RegTech market share.

The report analyzes the profiles of key players operating in the RegTech market outlook such as ACTICO GmbH, Acuant, Inc., Ascent, Broadridge Financial Solutions, Inc., ComplyAdvantage, International Business Machines (IBM), MetricStream Inc., NICE Ltd., Thomson Reuters, and Wolters Kluwer N.V. These players have adopted various strategies to increase their market penetration and strengthen their position in the RegTech market size.   

Market Landscape and Trends

One of the major RegTech market trends is the raise in regulatory complexity across industries and geographies is driving firms to look for new ways to manage compliance. Furthermore, the use of artificial intelligence and machine learning is improving systems' predictive and prescriptive capabilities, enabling real-time risk assessment and proactive compliance measures. Moreover, the rise of digital identity verification and biometric technologies is transforming KYC processes, enabling secure and frictionless customer onboarding. In addition, blockchain adoption is increasing transparency and auditability in compliance processes by providing immutable record-keeping and secure data sharing. Furthermore, there is a shift towards collaborative regulatory environments, with regulators and businesses exploring collaboration to develop flexible and responsive regulatory frameworks. Because of their scalability and flexibility, cloud-based solutions are becoming more popular, allowing firms to deploy RegTech products more efficiently.

Top Impacting Factors

Increased Adoption of Advance Technologies

The RegTech industry has become the fastest adopter of technologies such as cloud computing, application programming interfaces (APIs), data analytics, artificial intelligence, robotic process automation (RPA), chatbots, machine learning, and blockchain. In addition, significant requirements to improve the quality of reported data across various regimes & jurisdictions are experiencing growth with the changing country regulatory and government policy.

Furthermore, several regulatory bodies are implementing advance technologies and providing integrated and value-added services to maintain associated demand for the digital processing of regulations. Moreover, the RegTech solutions frequently use automation and artificial intelligence (AI) technology to process and analyze massive volumes of regulatory data. This reduces the amount of manual labor necessary for compliance duties, reduces errors, and allows for faster and more accurate decision-making. Therefore, adoption & implementation of technologies to reduce operational cost, maintain security, and provide convenience & efficiency services drive the RegTech market demand.

Increased Collaboration between National Regulators & Financial Institutions

Regulatory bodies across Asia-Pacific, the U.S., and the European region are continuously looking forward for collaboration with the fintech community globally. In addition, this robust inclination between the fintech community & regulators to collaborate aims at a win-win for business and governments alike. For instance, the Global Financial Innovation Network (GFIN) which was formally launched in January 2019 by an international group of financial regulators & related organizations, committed to supporting financial innovation in the interests of consumers. Moreover, GFIN seeks to provide efficient solutions for innovative firms to interact with regulators, helping them with new business models across more than one jurisdiction. Therefore, this increased collaboration between national regulators & financial institution propels the RegTech market growth during the forecast period.

Varied and Conflicting Regulations Across Different Jurisdictions

Various laws set different standards & regulation across different jurisdictions with an increased unified approach taken by financial centers toward regulation. This becomes a crucial factor for RegTech companies to elaborate solutions across manifold regulations such as MiFID II, GDPR, and others which brings an inter-regulation conflict and therefore hinders the growth of the  market. For instance, in the U.S., banks stand by the Dodd-Frank Act, while in Europe MiFID II regulations are considered for businesses under its jurisdiction. Furthermore, the solutions frequently necessitate significant investments in R&D and testing. Developing solutions that can accommodate the complexities of numerous regulatory systems raises the costs for RegTech firms. They must account for differences in data formats, reporting standards, and legal interpretations, which can stifle innovation and make providing cost-effective solutions more difficult. Therefore, higher development costs in varied and conflicting regulation across different jurisdiction are hamper the RegTech industry.

Increased General Data Protection Regulation (GDPR) Concerns Across Regions

RegTech solutions are disrupting the regulatory landscape by providing technologically advanced solutions within the financial industry. In addition, the General Data Protection Regulation (GDPR) guidelines become a mandatory application over the consumers personal data. It governs the use of personal data and introduces a right for individuals to object to profiling, which is therefore expected to create lucrative opportunities for the market in terms of gaining trust & build service loyalty in the market. Furthermore, the GDPR prohibits the transfer of personal data outside the EU to countries that are not regarded to have an appropriate degree of data protection. This has an impact on businesses that operate abroad and move data between jurisdictions. RegTech solutions that provide encryption, secure data storage, and compliance checks can assist organizations in navigating these cross-border data transmission problems. Therefore, with GDPR requirements, the solution providers have an opportunity to improvise technology implications by taking the GDPR into account, which is expected to boost the RegTech market opportunities in the upcoming years.

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the RegTech market forecast from 2023 to 2032 to identify the prevailing RegTech market opportunity.
  • Market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the RegTech market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes an analysis of the regional as well as global RegTech market trends, key players, market segments, application areas, and market growth strategies.

RegTech Market Report Highlights

Aspects Details
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Market Size By 2032

USD 66.9 billion

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Growth Rate

CAGR of 22.6%

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Forecast period

2022 - 2032

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Report Pages

552

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By Component
  • Solution
  • Service
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By Deployment Mode
  • On-premise
  • Cloud
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By Enterprise Size
  • Large Enterprises
  • Small and Medium-sized Enterprises
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By Application
  • Anti-money laundering and Fraud Management
  • Regulatory Intelligence
  • Risk and Compliance Management
  • Regulatory Reporting
  • Identity Management
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By End User
  • IT and Telecom
  • Public Sector
  • Energy and Utilities
  • Others
  • Banks
  • Insurance Companies
  • FinTech Firms
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

ASCENT, Broadridge Financial Solutions, Inc., Wolters Kluwer N.V, IBM Corporation, Thomson Reuters Corporation, NICE Ltd., ACUANT, INC., METRICSTREAM INC., ACTICO GMBH, ComplyAdvantage Limited

Analyst Review

The RegTech market is seeing dynamic trends and robust growth as a result of several important factors, including the increasing complexity of global laws across industries, which is driving demand for advanced RegTech solutions. Businesses want agile solutions that can read and adapt to changing compliance standards, as well as automate and optimize operations to decrease operational pressures. Additionally, data proliferation and technology improvements are altering the RegTech scene. Artificial intelligence, machine learning, and data analytics are allowing RegTech systems to provide predictive insights, risk assessment, and anomaly detection, increasing risk management techniques and preventing financial crimes.

Moreover, the growth of digital operations as a result of remote work arrangements and increased online transactions has highlighted the importance of digital identity verification and cybersecurity. To ensure secure and compliant digital transactions, RegTech solutions are responding with powerful identity verification capabilities and strengthened cybersecurity protections. Furthermore, collaborations between RegTech providers and regulatory authorities are increasing, fostering regulatory sandboxes and innovation projects that allow for controlled testing of RegTech solutions under regulatory scrutiny. This collaborative approach allows for the speedier implementation of breakthrough technologies while yet adhering to regulatory requirements.

Furthermore, market players are adopting various strategies for enhancing their services in the market and improving customer satisfaction. For instance, in April 2020, Wolters Kluwer's Finance, Risk & Reporting (FRR) division and Vizor Software announced a partnership for the Singapore market that would improve regulatory reporting quality while saving regulatory compliance time and effort. Furthermore, the Wolters Kluwer's OneSumX for Regulatory Reporting will now automatically consume published machine-readable regulatory rules and data models directly from Singapore's regulatory system via the Vizor Reporting API.

For instance, in April 2021, NICE Actimize launched AI RegTech  platform for wealth and insurance products. Furthermore, the NICE Actimize announced the release of SURVEIL-X Suitability for Wealth and Insurance, a complete AI-powered surveillance and suitability solution that expands on the capabilities of NICE Actimize's industry-leading SURVEIL-X Holistic Conduct Surveillance platform. In addition, the SURVEIL-X Suitability is a cloud-native platform that combines communications surveillance, sales practices and suitability, and Regulation Best Interest (Reg BI) surveillance.  

Some of the key players profiled in the report include ACTICO GmbH, Acuant, Inc., Ascent, Broadridge Financial Solutions, Inc., complyadvantage limited, Metricstream inc., Nice LTD., Thomson Reuters Corporation, Wolters Kluwer N.V, and IBM Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the RegTech market.

Author Name(s) : Ravi Raj| Pradeep Ravi | Onkar Sumant
Frequently Asked Questions?

The global RegTech market was valued at $2672.75 million in 2022 and is projected to reach $18260.08 million by 2032, growing at a CAGR of 21.5% from 2023 to 2032.

By the end of 2032 the market value of RegTech Market is estimated to be $18,260.08 million.

Increased collaboration between national regulators & financial institutions, and increased adoption of advance technologies.

ACTICO GmbH, Acuant, Inc., Ascent, Broadridge Financial Solutions, Inc., ComplyAdvantage, International Business Machines (IBM), MetricStream Inc., NICE Ltd., Thomson Reuters, and Wolters Kluwer N.V.

The estimated industry size of RegTech Market is $18260.08 million

North America is the largest regional market for RegTech.

The leading application for RegTech market fianancial institutions such as, banking, and insurance

The upcoming trends in the RegTech market include increased use of artificial intelligence and machine learning for compliance automation, expanding regulatory technology solutions for cryptocurrencies and digital assets, and a focus on ESG (Environmental, Social, Governance) compliance solutions to address sustainability requirements.

U.S., and China have the highest market share in RegTech

Insurance Companies is leading the end user industries in RegTech market.

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RegTech Market

Global Opportunity Analysis and Industry Forecast, 2023-2032