RegTech Market Share, Size, Trends, Industry Analysis Report, By Deployment Type (Cloud and On-premises); By Application; By Organization Size; By Component; By Region; Segment Forecast, 2022 - 2030
- Published Date:Dec-2022
- Pages: 118
- Format: PDF
- Report ID: PM2919
- Base Year: 2021
- Historical Data: 2018-2020
Report Outlook
The global RegTech market was valued at USD 7.08 billion in 2021 and is expected to grow at a CAGR of 21.5% during the forecast period.
The rapid increase in demand for regulatory intelligence and high compliance costs coupled with the rising number of penalties for non-compliance with several regulations and ability of these types of solutions to connect businesses and regulators while protecting consumer interests are key factors driving the adoption of growth of the global market. Moreover, increasing government efforts to encourage the adoption of regulatory technology through making KYC (Know Your Customer) document mandatory for creating and opening new bank accounts and all types of financial transactions are expected to develop high market growth opportunities shortly.
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Moreover, various RegTech firms worldwide frequently partner with financial institutions and regulatory organizations. They are providing better assistance to the industry with the help of innovative technologies. RegTech service providers are currently active in a wide range of financial and regulatory sectors globally. They have a wide range of products aided in the automation of various operations such as personnel monitoring, fraud prevention, compliance data management, and anti-money laundering, which will positively contribute to market growth over the coming years.
For instance, in March 2022, Actico, a global AI-powered decision-making solutions provider, announced its new partnership with Coinfirm, a leading crypto anti-money laundering, and analytics firm. With this agreement, several financial providers, including banking organizations, will be capable of investigating and assessing the risks associated with crypto transactions with money laundering very quickly.
The outbreak of the COVID-19 pandemic has positively impacted the growth of the RegTech market. The rapid emergence of coronavirus has forced many countries to impose lockdowns on getting control over the spread of it. As a result, the technology solutions that offer efficient, quicker, and much safer processes have gained high traction. Many institutions were likely to increase their investment in RegTech solutions, which influenced the market adoption and contributed significantly during the pandemic.
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Industry Dynamics
Growth Drivers
Increasing cross-border money transactions, rapid surge in fintech industry in recent years across many developing nations such as India and China, and high growth in the volume and intricacy of data of financial transactions coupled with the growing pressure on payment service providers to efficiently compliance their duties are major factors projected to boost the adoption and growth of the market significantly over the forecast period.
Furthermore, increasing number of fraudulent transactions like money laundering in the banking industry, which has created high demand for a better robust RegTech framework to assist the risk and compliance teams in managing the more complex requirements of regulatory compliance, is also expected to be a key driving factor for the growth of the global market rapidly.
Report Segmentation
The market is primarily segmented based on deployment type, application, organization size, component, and region.
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By Deployment Type |
By Application |
By Organization Size |
By Component |
By Region |
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Cloud segment accounted for the highest market share in 2021
The cloud segment accounted for a significant global market share in 2021 and is likely to retain its position over the anticipated period. The growth of the segment market is mainly driven by its ability to transform fixed costs into variable costs so that consumers pay according to their pattern of consumption and consumers have access to begin and end any service anytime while using this solution.
In addition, cloud-based solutions are on rise due to their wide range of benefits, including lower maintenance expenses, comparatively smaller physical infrastructure, and constant access to data from anywhere and at any time, coupled with the rising efforts by key market service providers on the improvement and enhancement of their offerings and new product/services launches across the globe. For instance, in February 2021, Plenitude launched the RegSight, enabling institutions & organizations to improve their operational efficiency and manage FCC obligations.
Risk and compliance segment held the largest market revenue share
The risk and compliance segment held a significant market revenue share with a healthy rate of growth, which is accelerated by growing need to manage complex procedures in the banking sector for the better execution of compliance management & high rate of adoption in developed countries such as U.S., U.K., France, Germany, and Canada. In addition, rising prevalence of assimilation of RegTech solutions into the existing technology platforms is projected to improve operational efficiency, financial transparency, and agility and lower the overall compliance costs of financial institutions.
However, the regulatory intelligence segment is likely to register fastest growth rate during the projected period owing to a rapid increase in adoption across various fields such as baking, financial services, and insurance as it helps in monitoring, gathering, and analyzing and ease of tracking down the developments in a rapidly changing environment.
Large enterprises segment dominated the market in 2021
In 2021, large enterprises held the largest revenue share & were expected to maintain their dominance over the projected period due to the rising popularity of advanced compliance management solutions in large enterprises across various industry verticals. Increasing implementation of RegTech applications and growing use of robotics for workflow automation, advanced analytics, and process automation to enable digitalization of the different risk & compliance management solutions.
Furthermore, SMEs are expected to witness highest growth over the coming years because the vendors of regulatory technology are increasingly stepping up their efforts towards the growth prospects by offering small and medium enterprises cost-effective services and solutions.
Solutions segment is expected to expand fastest during the projected period
The solutions segment is forecasted to increase on account of its ability to assist financial institutions in automating anti-money laundering, identify and analyze significant laws, and optimize and manage the KYC data collection procedures. These solutions are not confined to a single kind or category and might be found in various applications like identity authentication and compliance management.
These solution technologies mainly assist firms in meeting the regulations coupled with the enhanced consumer experience, making better recommendations, and regulatory intelligence, which is further anticipated to fuel the adoption of RegTech solutions extensively in the coming years.
North America dominated the RegTech market in 2021
North America accounted for the largest market revenue share and is expected to grow considerably throughout the forecast period. The growth of the regional market can be attributed increasing list of regulatory requirements and goal to minimize the number of fraudulent activities happening in the region. Moreover, the United States has a strong inclination towards the automation of regulatory processes and risk & compliance management, which is likely to augment the market growth at a high rate in the region.
Furthermore, Asia Pacific is witnessing significant growth with a high CAGR during the forecast period. An extensive rise in the demand for effective digital payment services, presence of well-established fintech hotspots, and a growing emphasis on virtual currencies such as cryptocurrency mainly drive the market’s growth.
Competitive Insight
Key players include ACTICO, Ascent Technologies, Broadridge Financial Solutions, Deloitte Touche Tohmatsu, London Stock Exchange, IBM, Jumio Corporation, Pole Star Space, Thomson Reuters, REGnosys, MindBridge, Coryltics, Ayasdi AI LLC., and Chainalysis.
Recent Developments
In December 2021, MetricStream partnered with HCL Technologies. With this agreement, they will provide a highly improved IT and Cyber Risk Management solution to mid-sized enterprises and corporates, allowing them to make smarter & quicker decisions, remove IT threats, and quantify risks.
In September 2021, Trulioo, a Canada-based ID verification firm, partnered with Neobank Zolve to provide their clients with real-time identity verification solutions and services. Currently, the Trulioo platform offers services of real-time verification to 5 billion consumers and 330 million entities worldwide.
RegTech Market Report Scope
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Report Attributes |
Details |
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Market size value in 2022 |
USD 8.58 billion |
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Revenue forecast in 2030 |
USD 40.83 billion |
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CAGR |
21.5 % from 2022 – 2030 |
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Base year |
2021 |
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Historical data |
2018 – 2020 |
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Forecast period |
2022 – 2030 |
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Quantitative units |
Revenue in USD billion and CAGR from 2022 to 2030 |
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Segments Covered |
By Deployment Type, By Application, By Organization Size, By Component, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key Companies |
ACTICO GmbH, Ascent Technologies Inc., Broadridge Financial Solutions Inc., Deloitte Touche Tohmatsu Ltd., London Stock Exchange Group Plc., International Business Machines Corporation, Jumio Corporation, Pole Star Space Applications, Thomson Reuters, REGnosys Ltd., MindBridge, Coryltics, Ayasdi AI LLC., and Chainalysis Inc. |
