$65+ Billion RegTech Market Analysis (2024-2032) by Component, Deployment Mode, Enterprises Size, Application, End-user, Region – Identify Emerging Trends and Lucrative Investment Opportunities
RegTech Market
Dublin, Oct. 07, 2024 (GLOBE NEWSWIRE) — The “RegTech Market Report by Component, Deployment Mode, Enterprises Size, Application, End User, Region (2024-2032)” report has been added to ResearchAndMarkets.com’s offering.
The global RegTech market reached US$ 13.2 billion in 2023. Looking forward, the market is expected to reach US$ 65.7 billion by 2032, exhibiting a growth rate (CAGR) of 19.5% during 2023-2032. The growing occurrence of fraudulent activities like money laundering and phishing, rising adoption of online payment modes, and increasing collaboration between national regulators and financial institutions are some of the major factors driving the RegTech market.
At present, the increasing demand for RegTech services as they improve risk management and provide enhanced data analysis capabilities is propelling the growth of the market. Besides this, the rising occurrence of fraudulent activities, such as money laundering and phishing, illegal transactions, and theft of money from other account holders, are contributing to the growth of the market. In addition, the growing adoption of online shopping methods to purchase products and services, along with the increasing emergence of e-commerce brands selling a wide range of products and delivering them to the doorstep of buyers, is offering a favorable market outlook.
Apart from this, the rising employment of RegTech to manage issues brought on by the digitization of processes and to allow monetary authorities to gain deeper insights and understand competition dynamics is supporting the growth of the market. Moreover, the increasing collaboration between national regulators and financial institutions is bolstering the growth of the market.
RegTech Market Trends/Drivers
- Rapid adoption of cloud computing solutions is propelling the market growth
- Rising adoption of online payment methods is driving the demand for RegTech
- Increasing digital transformation of processes in the banking, financial services, and insurance (BFSI) sector is impacting the overall market
RegTech Industry Segmentation
This report provides an analysis of the key trends in each segment of the global RegTech market report, along with forecasts at the global, regional, and country levels from 2024-2032. The report has categorized the market based on component, deployment mode, enterprises size, application, and end user.
Breakup by Component:
- Solution
- Services
RegTech solutions represent the most popular component
According to the report, solutions represented the largest segment. RegTech solutions manage regulatory processes and operations, such as compliance, reporting, and monitoring by leveraging high-end technologies and tools. They are utilized by private and public sector companies to avoid the ever-increasing costs associated with regulatory compliance and continually evolving and over-complicated regulations at national and international levels.
Services are bifurcated into professional services and managed services, wherein professional services are provided to organizations, and managed services are the practice of outsourcing the responsibility for improving operations. It allows companies to reduce various infrastructure maintenance costs and increase their overall productivity. Furthermore, availing RegTech services enables businesses to outsource their regulatory challenges to third-party service providers and focus on areas that require more planning and better execution.
Breakup by Deployment Mode:
- Cloud-based
- On-premises
On-premises hold the largest market share
According to the report, on-premises accounted for the largest market share. The main factors that are driving the growth of this segment are the growing digitization of business operations and the demand for full control over resources. On-premises offers more security in the area of data protection and low latency and provides complete control of resources, services, and data to the organization. It also offers an ample number of customizations according to specific requirements and access to servers and hardware.
Cloud-based services refer to infrastructure, platforms, or software that are hosted by third-party providers and made available to users through the Internet. They provide access to tools and services anywhere from any device, along with centralized data security. They also present business continuity and the spontaneous application of various regulations required for enhancing overall operations. Cloud-based solutions can also reduce the energy consumption and carbon footprint of companies by eliminating the requirement for in-house servers and software.
Breakup by Enterprises Size:
- Large Enterprises
- Small and Medium-sized Enterprises
Large enterprises account for the majority of the global market share
According to the report, large enterprises accounted for the largest market share. As large enterprises deal with a huge amount of data, it is difficult for them to efficiently manage and track information.
RegTech firms help large enterprises with their regulatory compliance obligations, improving efficiency, reducing risks, and enhancing user experience. They enable large enterprises to focus on enhancing their customer experience by providing the correct set of tools equipped with modern technology, such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT).
Small and medium-sized enterprises (SMEs) require RegTech solutions as they assist in reducing various expenses associated with infrastructure management and maintenance. RegTech enables SMEs to focus on areas that require better management and execution of processes and outsource the regulatory procedures to third-party service providers.
Breakup by Application:
- Anti-Money Laundering (AML) and Fraud Management
- Regulatory Intelligence
- Risk and Compliance Management
- Regulatory Reporting
- Identity Management
Risk and compliance management exhibits a clear dominance in the market
According to the report, risk and compliance management accounted for the largest market share.
The main factors that are driving the growth of this segment are the rising number of cybersecurity breaches and fraudulent activities associated with finances. Risk and compliance management involves the identification of financial losses or legal penalties, calculating the uncertainties, and predicting their impact, consequently giving organizations a basis upon which they can make decisions.
AML and fraud management involve the utilization of deception and dishonesty to generate illegal proceeds. RegTech plays a crucial role in AML and fraud detection, as it confirms the identity of the user and flags any suspicious activity, both during the onboarding and transaction stages.
Regulatory intelligence is the process that keeps businesses aware of and adaptable to changes as they arise. It enables enterprises to access regulatory insights and real-time information, and updates from national authorities across the globe. RegTech utilizes highly advanced tools to scan, scrape, and enrich content, helping businesses understand and manage regulatory risks.
Breakup by End User:
- Banks
- Insurance Companies
- FinTech Firms
- IT and Telecom
- Public Sector
- Energy and Utilities
- Others
RegTech is widely utilized in banks around the world
According to the report, banks accounted for the largest market share. Banks utilize RegTech solutions for multiple purposes, including maintenance of transactional security, compliance management, and prevention of phishing and other fraudulent activities. They also utilize RegTech services to predict potential risk areas and access analytics tools that are required for staying successfully compliant with regulatory bodies.
Insurance companies employ RegTech services to present tailor-made or customized services to their targeted customer. It allows insurance company compliance professionals to work over and around legacy infrastructure impediments to connect and analyze information more smartly and understand where the organization may have risk and exposure based on a larger data population that was previously accessible.
Other than that, FinTech firms, IT and telecom, the public sector, energy and utilities, and various other industries employ RegTech services for managing numerous regulatory processes.
Breakup by Region:
- North America
- Asia-Pacific
- Europe
- Latin America
- Middle East and Africa
North America exhibits a clear dominance, accounting for the largest RegTech market share
According to the report, North America was the largest market for RegTech.
North America held the biggest market share due to the presence of a high degree of regulatory complexity in sectors, such as finance and healthcare. Financial institutions in North America are investing in RegTech solutions to minimize compliance costs by using sophisticated technologies, such as artificial intelligence (AI), machine learning (ML), blockchain technology, and big data.
Asia Pacific is estimated to expand in this domain during the forecast period owing to the growing adoption of innovative technologies, rising emergence of domestic businesses, and increasing investments in digital transformation.
Competitive Landscape
The key market players in the global RegTech market are tackling excessive demand from various enterprises due to the rising occurrence of cybersecurity breaches. They are also focusing on mergers and acquisitions to expand their business. Leading companies are improvising their services by integrating various sophisticated technologies, such as artificial intelligence (AI) and machine learning (ML), to provide real-time information about compliance management. They are also providing efficient solutions for firms to interact with regulators, helping them with new business models. Furthermore, key RegTech providers are taking the GDPR into account and are expected to make the required changes.
The report has provided a comprehensive analysis of the competitive landscape in the global RegTech market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- ACTICO GmbH
- Acuant Inc.
- Ascent
- Broadridge Financial Solutions Inc.
- ComplyAdvantage
- Deloitte Touche Tohmatsu Limited
- International Business Machines Corporation
- Jumio
- London Stock Exchange Group plc
- MetricStream Inc.
- NICE Ltd.
- PricewaterhouseCoopers
- Thomson Reuters Corporation
- Trulioo
- Wolters Kluwer N.V.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 147 |
| Forecast Period | 2023-2032 |
| Estimated Market Value (USD) in 2023 | $13.2 Billion |
| Forecasted Market Value (USD) by 2032 | $65.7 Billion |
| Compound Annual Growth Rate | 19.5% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/wa3wxs
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
CONTACT:
CONTACT: ResearchAndMarkets.com
Laura Wood,Senior Press Manager
[email protected]
For E.S.T Office Hours Call 1-917-300-0470
For U.S./ CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
