PUBLISHER: The Business Research Company | PRODUCT CODE: 1672609
PUBLISHER: The Business Research Company | PRODUCT CODE: 1672609
RegTech, short for regulatory technology, comprises a set of enterprises utilizing cloud computing technology and software-as-a-service (SaaS) to help businesses achieve more efficient and cost-effective compliance with regulations. Its primary functions involve regulatory surveillance, monitoring, and compliance, particularly within the financial industry, utilizing advanced technologies.
The main components in RegTech are solutions and services. RegTech services play a crucial role in mitigating threats such as cyberattacks, security breaches, or money laundering through regulatory-driven transformations. Deployment modes include cloud and on-premises, catering to various organization sizes, including large enterprises and small and medium-sized enterprises (SMEs). RegTech finds application in risk and compliance management, identity management, regulatory reporting, anti-money laundering (AML) and fraud management, as well as regulatory intelligence. It is implemented across several verticals, including banking, insurance, non-banking financial end-users, non-financial sectors, and others.
The RegTech market research report is one of a series of new reports from The Business Research Company that provides RegTech market statistics, including RegTech industry global market size, regional shares, competitors with a RegTech market share, detailed RegTech market segments, market trends and opportunities, and any further data you may need to thrive in the RegTech industry. This RegTech market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The regtech market size has grown rapidly in recent years. It will grow from $16.18 billion in 2024 to $18.92 billion in 2025 at a compound annual growth rate (CAGR) of 17.0%. The growth in the historic period can be attributed to rising need for faster transactions, a rise in disposable income and growing cost of compliance.
The regtech market size is expected to see rapid growth in the next few years. It will grow to $33.81 billion in 2029 at a compound annual growth rate (CAGR) of 15.6%. The growth in the forecast period can be attributed to rising number of fraudulent activities, strategic partnerships and collaborations and rising trend of digitization. Major trends in the forecast period include use of artificial intelligence (AI) technologies, focus on machine learning and natural language processing-based products, focus on cloud-based solutions, focus regulatory intelligence platforms and focus on blockchain-based platforms.
The anticipated increase in fraudulent activities, particularly in the financial sector such as money laundering, is poised to drive the growth of the RegTech market in the forecast period. The surge in fraudulent activities necessitates robust RegTech frameworks for financial organizations, empowering risk and compliance teams to effectively manage the escalating challenges of regulatory compliance and increasingly sophisticated breaches. A report by LexisNexis Risk Solutions in 2022 revealed a rise in the costs of fraud for U.S. and Canadian financial services companies. U.S. financial services companies experienced a 16.2% increase, paying $4.23 for every $1 lost to fraud, compared to $3.64. Similarly, Canadian financial services companies saw a 19.6% increase, from $3.16 in 2020 to $3.78 in 2022. Consequently, the growing instances of fraudulent activities underscore the heightened demand for the RegTech market.
The escalating trend of digitization is a driving force behind the growth of the RegTech market. Businesses increasingly recognize the essential role of digitization in achieving success, leveraging digital technologies to transform business models and create new value-producing opportunities. Global spending on the digital transformation of business practices, products, and organizations reached USD 1.8 trillion in 2022, marking a significant 17.6% increase over 2021. Thus, the pervasive trend of digitization is a catalyst for the growth of the RegTech market.
Major companies in the RegTech market are concentrating on developing innovations, such as artificial intelligence, to enhance corporate loan credit risk assessments. Artificial intelligence (AI) is a branch of computer science focused on creating machines and software that can perform tasks typically requiring human intelligence. For example, in April 2022, the Hong Kong Monetary Authority, a central banking institution in China, launched the Regtech Knowledge Hub to promote the adoption of regulatory technology (RegTech) within the financial sector. This hub offers an online platform for banks and RegTech providers to exchange success stories and implementation experiences. It includes use cases like digital ledger technology for foreign exchange settlement, alternative credit risk assessments for small and medium-sized enterprises (SMEs), and AI-based corporate loan evaluations. Additionally, the Hub serves as a central repository for RegTech-related information and encourages stakeholders to remain informed through email alerts.
Artificial Intelligence stands out as a significant trend gaining popularity in the RegTech market. Companies within the RegTech market are strategically focusing on introducing AI-powered products to expand their global customer base. In July 2022, Darktrace unveiled Darktrace PREVENT, an interconnected AI product providing proactive cybersecurity capabilities, optimizing organizational security through continuous feedback loops to preempt future cyber-attacks. It analyzes disruptive attacks and utilizes the information to support automation and continuous learning for enhanced system resilience.
In November 2022, Regnology, a Germany-based software provider specializing in regulatory reporting solutions, acquired b.fine for an undisclosed amount. This strategic acquisition enhances the integration of Supervisory Technology (SupTech) and RegTech, offering more automated and standardized procedures to new clients across Europe and beyond. b.fine, a Belgian RegTech company, focuses on assisting financial institutions in improving the reporting process.
Major companies operating in the regtech market include IBM Corporation, NICE Ltd, Thomson Reuters Corporation, Broadridge Financial Solutions Inc, Wolters Kluwer N.V., London Stock Exchange Group plc, MetricStream Inc, GB Group plc, ACTICO GmbH, Ascent Technologies, Inc., Accenture, ACI worldwide, BAE system, Oracle corporation, Centenal, CustomerXPs, IDfy, Merkle Science, Ant Group, Tencent, Lufax, Zhong An, Alibaba, Baidu, Yu'eBao, LiCaiTong, HuaBei, IVXS Limited, Pole Star Space Applications, PricewaterhouseCoopers Private Limited, CLAUSEMATC, REGnosys Limited, Tessian, Coryltics, Alyne, DataGuard, Dathena, ElectronicId, FacePhi, Fenergo, 4STOP, Governance.com, Hawk:AI, IDpal, Privitar, RegBot, Kompany, AQMetrics, ForcePoint, Amazon, Microsoft, Google, Ayasdi AI LLC, Hummingbird RegTech Inc., Jumio Corporation, MindBridge Analytics Inc., Ceptinel RegTech, Contraloria privada, Codebase Technologies, Azakaw, Sysnet Global Solutions, Truata Limited, FinReg Global Solutions Limited, RegTech Africa, Intergreatme, ThisIsMe, DocFox, Entersekt
North America was the largest region in the regtech market in 2024. The regions covered in the regtech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the regtech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The RegTech market includes revenues earned by entities through client identification, monitoring, reporting, data protection, data warehousing and analytics, legal and regulatory analysis, training and general compliance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
RegTech Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on regtech market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for regtech ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The regtech market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.