What Has Been RegTech Market in Recent Years?
The regtech market has seen considerable growth due to a variety of factors.
• The regtech industry has experienced rapid growth in recent years. The industry, valued at $16.18 billion in 2024, is projected to be worth $18.92 billion in 2025, indicating a compound annual growth rate (CAGR) of 17.0%.
This significant growth during the historic period is a result of the increasing requirement for fast transactions, growing disposable income, and the escalating cost of compliance.
What are the Market Size and Expected Growth Rates for the RegTech Market?
The regtech market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for regtech is predicted to experience significant expansion in the forthcoming years, surging to $33.81 billion by the year 2029, with a compound annual growth rate (CAGR) of 15.6%.
The anticipated augmentation throughout this period can be linked to an increase in fraudulent activities, strategic alliances, collaborations, and the escalating trend of digital transformation. Key trends during this forecast span will involve the utilization of artificial intelligence (AI) technologies, a concentrate on products centered around machine learning and natural language processing, a shift towards cloud-based solutions, a focus on regulatory intelligence platforms, and an emphasis on blockchain-based platforms.
What Are the Critical Driver Fuelling the RegTech Market's Growth?
An escalation in fraudulent undertakings such as money laundering in the financial industry is anticipated to spur the growth of the RegTech market during the projected timeline. There has been a surge in fraudulent acts like money laundering, which necessitates a robust RegTech framework for financial institutions. This will assist risk and compliance teams in successfully handling the flood of growing regulatory compliance and increasingly complex breaches. For instance, in 2022, a report issued by LexisNexis Risk Solutions, a global data and analytics firm based in the US, highlighted that the fraud-related costs for financial services firms in the US and Canada are on the rise. Every $1 lost to fraud now costs US financial services companies $4.23, a 16.2% increase from the previous $3.64. Meanwhile, the costs for Canadian financial services firms rose 19.6%, from $3.16 in 2020 to $3.78 in 2022. Therefore, the surge in fraudulent activities amplifies the demand for the RegTech market.
What Are The Key Segments Within The Global RegTech Market?
The regtech market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Deployment Type: Cloud, On-Premises
3) By Organization Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By Application: Risk And Compliance Management, Identity Management, Regulatory Reporting, Anti-Money Laundering (AML) And Fraud Management, Regulatory Intelligence
5) By End-User: Banking, Insurance, Non-Banking Financial End-Users, Non-Financial And Other End Users
Subsegments:
1) By Solutions: Risk And Compliance Management Solutions, Identity Management And Control Solutions, Regulatory Reporting Solutions, Fraud Detection And Prevention Solutions, Transaction Monitoring Solutions
2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Training And Education Services
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How Are New Trends Impacting The Size Of The RegTech Market?
Leading corporations operating within the RegTech industry are zeroing in on breakthroughs such as artificial intelligence, aimed at improving corporate loan credit risk evaluations. Artificial intelligence (AI) is a computer science area, focusing on fabricating machines and software capable of performing functions that generally require human intelligence. For instance, in April 2022, the Regtech Knowledge Hub was unveiled by the Hong Kong Monetary Authority, a central banking institution based in China, to champion regulatory technology (RegTech) adoption in the financial sector. The Regtech Knowledge Hub offers a digital platform for banks and RegTech suppliers to share their triumph stories and adoption experiences. It showcases use cases like digital ledger technology for FX settlement and alternative credit risk assessments for SMEs, alongside AI-based corporate loan examinations. The Hub also functions as a central storage point for all RegTech-related knowledge, encouraging involved parties to remain informed through email alerts.
Who Are the Key Players in the RegTech Market?
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
• Contraloría privada
• Codebase Technologies
• Azakaw
• Sysnet Global Solutions
• Truata Limited
• FinReg Global Solutions Limited
• RegTech Africa
• Intergreatme
• ThisIsMe
• DocFox
• Entersekt
What are the Regional Insights into the RegTech Market?
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.
