How Is The Global Regulatory Compliance Market Defined?
Regulatory compliance refers to an organization’s adherence to laws, regulations, guidelines, and specifications relevant to its business processes. Regulatory compliance is useful in ensuring that organizations operate within legal boundaries, mitigate risks associated with non-compliance, and uphold ethical standards in their business practices.
Regulatory Compliance Global Market Report 2024 provides data on the global regulatory compliance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Regulatory Compliance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Market Size And Growth Rate Of The Global Regulatory Compliance Market Projected?
The regulatory compliance market size has grown strongly in recent years. It will grow from $19.44 billion in 2023 to $21.16 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to the increased regulatory scrutiny, enhanced reporting standards, expanded legal frameworks, emergence of industry standards, and heightened public awareness. The regulatory compliance market size is expected to see strong growth in the next few years. It will grow to $30.17 billion in 2028 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to expanding scope of compliance standards, rising regulatory enforcement actions, growing adoption of regtech solutions, globalization and cross-border compliance challenges, and demand for transparent corporate governance. Major trends in the forecast period include increased regulatory complexity, continuous monitoring and real-time reporting, collaboration and transparency, focus on ethical and corporate governance, and AI-powered compliance monitoring.
What Are The Primary Growth Drivers In The Regulatory Compliance Market?
The increasing number of fraudulent activities is expected to propel the growth of the regulatory compliance market going forward. Fraudulent activities refer to deliberate deceptive actions taken with the intent to secure unfair or unlawful gain or to deprive a victim of a legal right. Fraudulent activities are growing due to increased reliance on digital technologies, evolving criminal tactics, and gaps in regulatory enforcement. Regulatory compliance is essential for preventing fraudulent activities because it establishes standards, guidelines, and oversight mechanisms that help identify and deter illicit behavior, ensuring accountability and transparency in financial transactions. For instance, in January 2024, according to a report published by the Identity Theft Resource Center (ITRC), a US-based non-profit organization, there were 3,205 data compromises publicly reported in 2023, affecting an estimated 353,027,892 individuals. This represents a 72% increase compared to the previous highest recorded level and a 78% rise over the incidents reported in 2022. Therefore, the increasing number of fraudulent activities is driving the growth of the regulatory compliance market, with market sizes reaching $G billion in 2023, $H billion in 2024, and $I billion in 2028.
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What Is The Segmentation Of The Global Regulatory Compliance Market?
The regulatory compliance market covered in this report is segmented –
1) By Type: Service, Software
2) By Application: Large Enterprises, Small And Medium Enterprises (SMEs)
3) By End Users: Information and Communication Technology (ICT), Construction And Engineering, Mining, Retail, Healthcare, Transportation And Logistics, General Manufacturing, Banking, Financial Services, and Insurance (BFSI), Other End Users
What Emerging Trends Are Shaping The Regulatory Compliance Market Landscape?
Leading firms in the regulatory compliance market are increasingly developing advanced regulatory compliance solutions, such as supply chain software, to assist clients in meeting regulatory requirements and enhancing supply chain assurance. Supply Chain Management Software (SCMS) is a specialized application designed to manage and optimize supply chain processes while ensuring adherence to regulations and industry standards. For example, in April 2024, E2open Parent Holdings Inc., a US-based software provider, introduced the Supply Network Discovery application. This tool helps brand owners proactively identify potential risks in their multi-tier supply networks, improve compliance, and reinforce supply assurance. It offers features like multi-tier supply relationship mapping, traceability, structured due diligence engagement, and partner impact assessment, providing a comprehensive view of global supply networks and fostering compliance and risk mitigation.
Which Region Has The Fastest Expansion In The Regulatory Compliance Market?
North America the largest region in the regulatory compliance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the regulatory compliance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
