What Is The Definition Of The Global Regulatory Technology Market?
Regulatory technology, commonly known as RegTech, refers to the use of applications and technologies to facilitate compliance with regulatory requirements and standards within various industries. RegTech aims to help organizations streamline regulatory processes, enhance regulatory compliance, and mitigate associated risks efficiently and cost-effectively.
Regulatory Technology Global Market Report 2024 provides data on the global regulatory technology market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Regulatory Technology market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Regulatory Technology Market Size Expected To Change, And What Are The Growth Rate Projections?
The regulatory technology market size has grown exponentially in recent years. It will grow from $6.71 billion in 2023 to $8.16 billion in 2024 at a compound annual growth rate (CAGR) of 21.5%. The growth in the historic period can be attributed to the emergence of fintech startups, financial crisis regulatory overhaul, manual and labor-intensive compliance processes, the democratization of financial services, and the emergence of regulators as innovators. The regulatory technology market size is expected to see exponential growth in the next few years. It will grow to $17.93 billion in 2028 at a compound annual growth rate (CAGR) of 21.8%. The growth in the forecast period can be attributed to the focus on sustainability and ESG (Environmental, social and governance) compliance, regulatory reporting automation, real-time transaction monitoring, regulatory compliance benchmarking, and regulatory compliance audit trails. Major trends in the forecast period include regulatory change management platforms, real-time transaction monitoring, regulatory compliance-as-a-service, RegTech for non-financial industries, and blockchain and distributed ledger technology.
Which Drivers Are Accelerating Growth In The Regulatory Technology Market?
The increasing concern regarding cybersecurity is expected to propel the growth of the regulatory technology market going forward. Cybersecurity refers to the practice of protecting computer systems, networks, programs, and data from unauthorized access, breaches, damage, or theft, as well as from disruption or misdirection of services they provide. Cybersecurity is rising due to the increasing digitization of businesses and society, coupled with the proliferation of cyber threats targeting valuable data and infrastructure, necessitating robust protective measures to safeguard against potential breaches and attacks. Regulatory technology is required to prevent cybersecurity because it enables organizations to implement and adhere to regulatory standards and compliance requirements related to cybersecurity, ensuring that adequate measures are in place to protect sensitive data and mitigate cyber threats effectively. For instance, in May 2024, AAG, a provider of IT support services, reported that 39% of UK companies reported encountering a cyberattack in 2022. Additionally, cybercrime affected 53.35 million individuals in the United States during the first half of the same year, and around 236.1 million ransomware attacks occurred globally in the first half of 2022. Therefore, the increasing concern regarding cybersecurity is driving the growth of the regulatory technology market in 2023, 2024, and projected to continue into 2028.
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What Are The Core Segments Of The Global Regulatory Technology Market?
The regulatory technology market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Deployment: Cloud, On-Premises
3) By Enterprise Size: Small And Medium Enterprise, Large Enterprise
4) By Application: Regulatory Intelligence, Identity Management, Compliance And Risk Management, Fraud Management, Regulatory Reporting
Which Emerging Trends Are Reshaping The Regulatory Technology Market Size?
Major players in the regulatory technology market are concentrating on developing advanced solutions like AI-powered RegTech platforms to assist financial institutions in crafting compliant public communications. An AI-powered RegTech platform uses artificial intelligence (AI) and machine learning (ML) to enhance regulatory compliance, risk management, and reporting processes within organizations. For example, in January 2022, Fidelity Investments, a US-based financial services and investment management provider, launched Saifr, an AI-powered RegTech service. Saifr helps financial institutions create, review, and approve public communications to mitigate brand, reputational, and regulatory risks. It features SaifrReview and SaifrScan, which facilitate collaboration between marketing and compliance teams for quicker, compliant communications. Saifr automates routine compliance tasks, allowing teams to focus on complex compliance details, aiming to improve compliance and manage brand risk.
What Is The Largest Region In The Regulatory Technology Market?
North America was the largest region in the regulatory technology market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the regulatory technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
