RegTech Market Expected to Reach $83.8 Billion by 2033

According to a new report published by Allied Market Research, titled, “RegTech Market Size, by Component (Solution, Service), by Deployment Mode (On-premise, Cloud), by Enterprise Size (Large Enterprises, Small and Medium-sized Enterprises), by Application (Anti-money laundering and Fraud Management, Regulatory Intelligence, Risk and Compliance Management, Regulatory Reporting, Identity Management), by End User (Banks, Insurance Companies, FinTech Firms, IT and Telecom, Public Sector, Energy and Utilities, Others): Global Opportunity Analysis and Industry Forecast, 2024-2033". The regtech market was valued at $11.7 billion in 2023, and is estimated to reach $83.8 billion by 2033, growing at a CAGR of 21.6% from 2024 to 2033.

RegTech helps in managing in-house compliance processes, risk workflows, and audit by replacing them wholly through new technologies that update in real-time. In addition, RegTech market uses advanced technologies such as artificial intelligence, machine learning, cloud, and open data models to enhance regulatory processes and meet ongoing requirements of compliance. Risk management protocols, checks against daily regulatory alerts, controls to actively mitigate risk, and Know Your Customer (KYC), and Anti Money Laundering (AML) compliance with customized solutions are some of the major solutions provided under RegTech market. Furthermore, factors such as improved focus on financial regulations, increase in adoption of advance technologies and rapid growth in collaboration between national regulators & financial institutions are major factors that drive growth of the RegTech market. In addition, General Data Protection Regulation (GDPR) concerns across various regions and untapped potential of emerging economies are expected to provide lucrative opportunities for the RegTech solution providers in the coming years.

There is a rising need for intelligent banking systems that may enhance the flow of payment systems due to the expansion of urbanization. Overall, the demand for sophisticated and automated payment systems that can process and analyze massive volumes of data in real time is the factor that propels the regtech market growth, allowing BFSI organizations to take alternatives and plan actions by data-driven insights.

On the basis of application, the risk and compliance management segment attained the highest growth in 2023. This is due to risk and compliance management for RegTech market analysis provide automation, data analytics, AI-driven insights, and real-time monitoring capabilities to accelerate procedures, improve reporting accuracy, and proactively uncover potential breaches or hazards. This increased emphasis on risk mitigation and insurance regulatory conformity has resulted in significant demand for RegTech solutions in the risk and compliance management segment, making it a dominating and crucial element of the RegTech market opportunity. Meanwhile, the identity management segment is predicted to be the fastest-growing segment during the forecast period. This is attributed due to the increasing importance of fraud detection and protecting personal data and preventing identity theft, especially with the rise of online.

On the basis of region, North America attained the highest growth in 2023, driven by advancements in technology, increased investments in various industries, and a rise in demand for innovative solutions across sectors. The region's robust infrastructure, coupled with favorable government initiatives and the presence of key market players, contributed to this significant growth. However, Asia-Pacific is projected to attain the highest CAGR during the forecast period. This growth is attributed to several factors, including a rapid rise in the population of gamers, rise in internet penetration, and the growing popularity of online tools and regtech industry events in countries like China, South Korea, and Japan.

Cloud adoption in the regtech market has been a transformative force, revolutionizing how the data is been stored. With rise in demand for seamless experiences and real-time interaction, cloud technology allows regtech companies to leverage scalable resources. For instance, in February 2021, Plenitude launched RegSight, a cloud-based Financial Crime Compliance (FCC) obligations management solution developed with global financial institutions. It provides a technology platform to identify and manage FCC obligations, improve operational efficiency and ultimately drive more effective financial crime risk management. Such instances are further expected to propel the growth of the global market.

Key Findings of The Study

• By component, the solution segment accounted for the largest regtech market share in 2023.

• By deployment mode, the on-premise segment accounted for the largest market share in 2023.

• By enterprise size, the large enterprises segment accounted for the largest market share in 2023.

• By application, the anti-money laundering and fraud management segment accounted for the largest market share in 2023.

• By end user, the banks segment accounted for the largest market share in 2023.

• Region-wise, North America generated the highest revenue in 2023.

The market players operating in the regtech market trends are ACTICO GmbH, Acuant, Inc. (IDology), Ascent Technolofies Inc., Broadridge Financial Solutions, Inc., Complyadvantage, Metricstream inc., Nice LTD., Thomson Reuters Corporation, Wolters Kluwer N.V, and IBM Corporation. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the regtech market globally.