Regtech Market Forecasts to 2030 - Global Analysis By Component (Solution and Services), Enterprise Type (Large Enterprises and Small & Medium Enterprises), Deployment Type, Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Regtech Market is accounted for $10.7 billion in 2023 and is expected to reach $35.8 billion by 2030 growing at a CAGR of 18.8% during the forecast period. Regulatory technology refers to the use of technology, particularly advanced software solutions, to streamline and automate regulatory compliance processes within industries such as finance, healthcare, and manufacturing. Regtech solutions help organizations navigate complex regulatory landscapes more efficiently and effectively by automating compliance tasks, monitoring regulatory changes, and ensuring adherence to relevant laws and standards.

According to Protected Health Information (PHI) OF 26 million U.S citizens was impacted with such cyber-attacks.

Market Dynamics:

Driver:

Digital transformation

As businesses undergo digital transformation initiatives to modernize operations and enhance agility, they increasingly recognize the need for technology-driven approaches to address regulatory compliance challenges effectively. Regtech solutions play a crucial role in enabling digital transformation by offering advanced tools and technologies to automate and streamline compliance processes. Furthermore, regtech solutions leverage artificial intelligence, machine learning, and data analytics to enhance efficiency, accuracy, and transparency in compliance activities. Therefore, digital transformation is a significant factor propelling the market demand.

Restraint:

Excessive cost of software

Developing and maintaining advanced software solutions requires substantial investment in research, development, and ongoing updates to ensure compliance with evolving regulatory standards. Furthermore, the customization and integration of regtech software with existing infrastructure add another layer of complexity and cost. The licensing fees associated with proprietary regtech software can be prohibitively expensive for many organizations, particularly small and medium-sized enterprises (SMEs) with limited budgets, which hamper market expansion.

Opportunity:

Rising concerns about financial crime

With the proliferation of sophisticated financial crimes such as money laundering, fraud, and terrorist financing, regulatory authorities worldwide are intensifying their focus on combating illicit activities within the financial sector. Regtech solutions offer powerful tools and technologies to detect and prevent financial crimes effectively. Moreover, regtech solutions facilitate enhanced due diligence processes, transaction monitoring, and regulatory reporting, empowering organizations to strengthen their anti-financial crime measures and comply with stringent regulatory requirements. These factors accelerate the market demand.

Threat:

Data privacy and security concerns

Regtech solutions involve the collection, processing, and analysis of sensitive data, including personal and financial information. However, the collection storage and processing of such data raise concerns about privacy breaches, unauthorized access and compliance with data protection regulations. Moreover, the complexity of regulatory requirements surrounding data privacy and security adds layers of compliance challenges for regtech providers and users alike. These factors hinder market demand.

Covid-19 Impact

The COVID-19 pandemic had a profound impact on the market. The pandemic underscored the importance of agile and resilient compliance frameworks capable of adapting to rapidly evolving regulatory landscapes and remote work dynamics. Moreover, the pandemic accelerated digital transformation initiatives across industries, driving greater adoption of cloud-based regtech solutions and fostering collaboration between regulatory agencies and technology providers to address emerging compliance challenges.

The regulatory intelligence segment is expected to be the largest during the forecast period

The regulatory intelligence segment is estimated to hold the largest share. Regulatory intelligence solutions leverage advanced technologies such as natural language processing, machine learning, and data analytics to monitor and interpret regulatory changes from diverse sources, including government publications, regulatory agencies, industry associations, and legal databases. Furthermore, by providing real-time updates and personalized alerts, regulatory intelligence solutions enable organizations to proactively manage regulatory risks, enhance compliance practices, and ensure adherence to evolving regulatory standards.

The BFSI segment is expected to have the highest CAGR during the forecast period

The BFSI segment is anticipated to have lucrative growth during the forecast period. Regtech offers the BFSI sector a suite of advanced technologies to automate and streamline compliance processes, enhance risk management capabilities, and ensure adherence to regulatory standards. Moreover, regtech enables BFSI firms to reduce operational costs associated with manual compliance tasks, minimize regulatory fines and penalties resulting from non-compliance, and enhance overall operational efficiency and agility.

Region with largest share:

North America commanded the largest market share during the extrapolated period. With its stringent regulatory environment and highly digitized economy, North America presents fertile ground for the development and deployment of regtech solutions. Moreover, the region boasts a thriving ecosystem of technology start-ups, established enterprises, and regulatory agencies collaborating to drive innovation in the regtech space.

Region with highest CAGR:

Asia Pacific is expected to witness profitable growth over the projection period. With its diverse and dynamic markets, APAC presents a unique set of regulatory challenges and compliance requirements across various industries, including finance, healthcare, and manufacturing. Furthermore, the growing digitalization and adoption of technology in APAC economies provide fertile ground for the proliferation of regtech solutions.

Key players in the market

Some of the key players in the Regtech Market include Ascent Technologies, Inc., IBM Corporation, Symphonyai Sensa Llc, Hummingbird Regtech, Inc., Nice Ltd., Dataco Gmbh, Chainalysis Inc., Jumio Corporation, Corlytics, Mindbridge Analytics Inc., Metricstream, Inc., Regnosys Limited, Actico Gmbh, Deloitte Touche Tohmatsu Limited and Accuity Inc.

Key Developments:

In October 2023, Jumio has announced that it is expanding its strategic partnership with NextWealth, an AI data services provider. NextWealth will continue to provide identity verification services as well as back-office operations.

In September 2023, IBM announced the expansion of its collaboration with Parle Products, the largest selling biscuit brand in India, to further the company's digital transformation journey. By deploying cloud and AI for business solutions through the course of engagement, Parle was able to reduce sourcing cost, enhance sales forecast accuracy, lower cost to serve and optimize overall IT infrastructure.

In July 2023, Nice, a global leader in Home and Building Management solutions, announced the launch of two transformative resources for partners in North America: a revamped Partner Portal and Nice University, a comprehensive education and training platform.

In October 2021, IBM announced new collaborations and expanded partner relationships to further the company's capabilities in hybrid cloud, AI, network automation and security at Mobile World Congress Los Angeles (MWC LA)

In April 2021, Jumio, a leading provider of AI-powered end-to-end identity verification and eKYC solutions, announced the collaborationwith Microsoft for the rollout of its Azure Active Directory (Active AD) verifiable credentials to help provide self-service enrollment and fast onboarding of remote users.

Components Covered:

• Solution
• Services

Enterprise Types Covered:

• Large Enterprises
• Small & Medium Enterprises

Deployment Types Covered:

• On-Premises
• Cloud

Technologies Covered:

• Blockchain
• Data Transfer Protocols
• Cloud Computing
• Robotic Process Automation
• Machine Learning
• Predictive Data Analytics
• Other Technologies

Applications Covered:

• Anti-Money Laundering and Fraud Management
• Risk and Compliance Management
• Identity Management
• Regulatory Intelligence
• Regulatory Reporting
• Onboarding Verification
• Other Applications

End Users Covered:

• Healthcare
• Government & Public Sector
• Food & Beverage
• BFSI
• Manufacturing
• Transportation & Logistics
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances