RegTech Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 16.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
RegTech Market Analysis
The global expansion in the use and adoption of online and digitalized financial services has had a big impact on various industries, especially during the COVID-19 pandemic, substantially impacting the growth of the RegTech sector. Furthermore, numerous countries have ordered lockdowns to prevent the spread of the virus; as a result, RegTech players through software-as-a-service platforms are gaining traction during the pandemic situation. This, in turn, has become one of the major growth factors for the RegTech market during the global health crisis.
RegTech, or regulatory technology, is a subset of financial technology that focuses on technologies that may enable a firm's existing capabilities to provide regulatory obligations more effectively and efficiently. Different technology-enabled procedures, such as machine learning, cloud computing, and blockchain, are used in RegTech solutions. RegTech has several advantages, including lowering compliance costs and simplifying and standardizing the compliance process. It delivers long-term and scalable solutions to help the company expand. KYC, Transaction Monitoring, Customer Credit Scoring, AML screening, trade data tracking, fraud prevention, compliance risk analysis, and many more banking and financial services use RegTech solutions. Compliance management, identity management reporting, and risk management are just a few of the primary RegTech applications.
One of the primary reasons driving the worldwide RegTech market throughout the analysis period is the rise in compliance costs. The need for RegTech solutions has grown because of the rapid increase in financial services regulations following the financial crisis, which grew by more than 60% in retail and corporate banks. RegTech solutions are low-cost and high-quality. Furthermore, the growing tendency for regulatory sandboxing has enabled RegTech businesses to develop new and enhanced regulatory solutions for the financial industries, which will aid the global RegTech market's growth in the coming years. Furthermore, one of the primary reasons contributing to the market's growth during the study period was the low entry barriers for SaaS-based solutions. RegTech firms use cloud technology and software-as-a-service to assist businesses in complying with laws more efficiently and affordably. In the projection term, the increasing expansion of applications based on artificial intelligence (AI), machine learning, and blockchain will provide new opportunities for RegTech companies.
The high cost of the software and the regulatory discrepancies across different regions are likely to hamper the growth of the market.
RegTech Market Trends
This section covers the major market trends shaping the Regtech Market according to our research experts:
Large Enterprises Account for a Major Portion of the RegTech Market
The large enterprise segment dominates the RegTech industry, which can be linked to the fact that these businesses deal with a lot of data and are consequently forced to use regulatory programs. As a result, the large number of publicly traded companies in this industry underscores the relevance of RegTech solutions and services.
Furthermore, because laws and regulations change by industry and region, keeping track of all operations manually is impossible, emphasizing the significance of RegTech solutions and services. Deloitte, IBM, PwC, and Thomson Reuters, among others, help major organizations reap the benefits of efficiently managing their business processes by compliance rules by enabling them to effectively adopt RegTech solutions tailored to their business needs.
Large global financial institutions are leveraging innovative technologies to help manage their regulatory compliance requirements, resulting in significant efficiencies in compliance, risk, and internal audit functions. Prompted by the COVID-19 pandemic, the financial services industry came up with new and innovative ways to interact with people and continue to conduct site visits, even in the face of stay-at-home orders and global travel restrictions. Many organizations launched a digital product or digital service between January 2020 and March 2021.
Specifically, the top three types of alternative data sources being used are geolocation data, phone usage data, and spending patterns. Other common alternative sources are biometric data, psychometric data, and social media data.
In addition to reducing regulatory risk, alternative data means are helping financial services firms become more efficient, provide a better customer experience, and offer products and services better tailored to their customers.
North America Dominates the RegTech Market
North America is expected to continue its dominance with the highest concentration of players and consumer adoption levels. This is due to North American financial institutions' early adoption of RegTech solutions to minimize compliance costs by using sophisticated technologies like Artificial Intelligence (AI), Machine Learning (ML), blockchain, Big Data, and cloud computing. North America is made up of industrialized economies like the United States and Canada. In terms of technology and application deployments, these countries are far ahead of the pack. Furthermore, the necessity to comply with strict regulations is projected to boost market expansion in North America.
Europe is the second-largest RegTech market in the world, and it is anticipated to remain such over the forecast period. The considerable capital raised by FinTech companies has contributed greatly to the region's growth. In the projection period, Asia Pacific is expected to grow at the fastest rate. Latin America and Middle East & Africa are expected to have a lucrative market for RegTech solutions.
RegTech Industry Overview
The major growth strategies adopted by the companies operating in the RegTech market are partnerships, collaborations and agreements, and new product launches/product enhancements. This report's key market players include International Business Machines (IBM), Thomson Reuters, ACTICO, Deloitte Touche Tohmatsu Limited, Broadridge Financial Solutions, Inc., MetricStream Inc., Ascent London Stock Exchange Group (LSEG), Accuity Inc., and Wolters Kluwer.
RegTech Market Leaders
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IBM
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MetricStream Inc.
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Thomson Reuters
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ACTICO
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Broadridge Financial Solutions, Inc.
*Disclaimer: Major Players sorted in no particular order
RegTech Market News
- June 2021 - BearingPoint RegTech, a leading European provider of innovative regulatory, risk, and supervisory technology solutions, signed an agreement regarding the acquisition of Vizor Software. Vizor is a global leader in regulatory and supervisory technology headquartered in Dublin, Ireland. The combination of the two companies follows a clear strategic rationale as the companies fit perfectly together and complement each other ideally with their solution portfolios.
- March 2020 - MetricStream expanded its presence in Asia-Pacific to accelerate the business growth in Australia and New Zealand. This business expansion is a gateway to the growing Asian market of MetricStream. It will enable the company to cater to Asian clients with its Governance, Risk and Compliance (GRC) products and solutions.
RegTech Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights into Technology Adoption Across Various Industries Driving the Growth of Regtech Industry
4.5 Regulatory Aspects Governing the Business Landscape
4.6 Porter's Five Forces Analysis
4.7 Imapct of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Application
5.1.1 Compliance Management
5.1.2 Regulatory Intelligence and Reporting
5.1.3 Risk Management
5.1.4 Identity Management
5.1.5 Fraud Management
5.1.6 Other Applications
5.2 By Organization Size
5.2.1 Large Enterprise (More than 1 USD Billion Annual Revenue)
5.2.2 SMEs (Less than 1 USD Billion Annual Revenue)
5.2.3 Individuals
5.3 By Region
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 International Business Machines (IBM)
6.2.2 Thomson Reuters
6.2.3 ACTICO
6.2.4 Deloitte Touche Tohmatsu Limited
6.2.5 Broadridge Financial Solutions Inc.
6.2.6 MetricStream Inc.
6.2.7 Ascent
6.2.8 London Stock Exchange Group (LSEG)
6.2.9 Accuity Inc.
6.2.10 Wolters Kluwer*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
RegTech Industry Segmentation
The report on Global RegTech Industry offers an up-to-date analysis of the current global market scenario, the latest trends and drivers, and the overall market environment. It is segmented by Application (Compliance Management, Regulatory Intelligence and Reporting, Risk Management, Identity Management, Fraud Management, and Other Applications), Organization Size (Large Enterprise, SMEs, and Individuals), and Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa, and Rest of the World).
| By Application | |
| Compliance Management | |
| Regulatory Intelligence and Reporting | |
| Risk Management | |
| Identity Management | |
| Fraud Management | |
| Other Applications |
| By Organization Size | |
| Large Enterprise (More than 1 USD Billion Annual Revenue) | |
| SMEs (Less than 1 USD Billion Annual Revenue) | |
| Individuals |
| By Region | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East & Africa |
RegTech Market Research FAQs
What is the current Global Regtech Market size?
The Global Regtech Market is projected to register a CAGR of 16% during the forecast period (2024-2029)
Who are the key players in Global Regtech Market?
IBM, MetricStream Inc., Thomson Reuters, ACTICO and Broadridge Financial Solutions, Inc. are the major companies operating in the Global Regtech Market.
Which is the fastest growing region in Global Regtech Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Regtech Market?
In 2024, the North America accounts for the largest market share in Global Regtech Market.
What years does this Global Regtech Market cover?
The report covers the Global Regtech Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Global Regtech Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key segments of the RegTech Market?
The key segments of the RegTech Market are a) By Deployment: Cloud and On-premises b) By Enterprise Type: Large Enterprises and SMEs (Small and Medium-sized Enterprises) c) By Application: Risk Management, Regulatory Compliance and Governance d) By End-user: BFSI, Manufacturing, Healthcare, IT & Telecom
Which segment is expected to have the highest growth in RegTech Industry by Application Type?
Based on Application Type Regulatory Compliance segment have the highest growth in RegTech Industry.
RegTech Industry Report
The Global Regulatory Technology (RegTech) Market Analysis is segmented by Application, Organization Size, and Region. The global RegTech market is poised for substantial growth, driven by heightened demand from various sectors and bolstered by leading RegTech services companies. Market segmentation by deployment shows a preference for on-premises solutions due to security concerns, while cloud-based alternatives are favored for their flexibility and AI integration. Large enterprises are major contributors, leveraging solutions to manage multi-country compliance, whereas small and medium enterprises are rapidly embracing RegTech for better regulatory and technical management. Dominated by the need for regulatory compliance, the market also benefits from industries like BFSI, healthcare, and manufacturing, each meeting unique regulatory demands. The integration of new technologies and government backing supports growth, though challenges like inconsistent industry standards and varying data security laws remain. RegTech's crucial role in boosting operational efficiency and compliance emphasizes its importance in global markets, driving the market size upward. For detailed statistics and forecasts on RegTech market size, share, revenue and RegTech industry growth access free sample PDF reports from Mordor Intelligence™ Industry Reports.
The market size and market growth are key indicators of the industry's expansion. This industry report also provides a comprehensive market overview and industry report, which includes market analysis and market forecast. The global industry is segmented by region, with North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa being major contributors. The industry overview highlights the largest companies driving the market forward, while the market research and market share provide insights into the competitive landscape. Additionally, market statistics and industry trends are crucial for understanding the market dynamics.
The growth rate of the RegTech market is influenced by various factors, including industry analysis and industry information. The industry outlook remains positive, supported by industry reports and industry research. With increasing industry sales and industry size, the market leaders continue to shape the market outlook. The market predictions and market review further emphasize the potential for growth. Market segmentation by application and organization size provides a detailed market value, while report examples and report PDFs offer valuable insights. Research companies play a significant role in providing accurate market data and market forecast.
