The RegTech market is driven by several factors that include improved focus on financial regulations which drive the growth of RegTech market across industries, governments and regulatory organizations throughout the world. This increased scrutiny has prompted organizations, particularly those in highly regulated industries such as banking, to seek more complex and technologically advanced compliance solutions. Furthermore, increased collaboration between national regulators & financial institutions is driving the growth of the RegTech market. However, privacy and security concerns hamper the growth of the RegTech market businesses are hesitant to adopt new technology because they are concerned about data breaches, regulatory noncompliance, and the potential exploitation of sensitive information. Moreover, varied and conflicting regulations across different jurisdictions hamper the growth of RegTech market. On the contrary, increased general data protection regulation concern across regions are beneficial for the RegTech market as companies seek technological solutions to easily manage and assure compliance with severe data protection requirements, boosting demand for novel tools and technology.
The RegTech market is segmented on the basis of component, deployment model, enterprise size, application, end users. Based on component, the market is bifurcated into solution and service. On the basis of deployment model, it is divided into on-premise, and cloud. By application, it is classified into anti-money laundering (AML) and fraud management, regulatory intelligence, risk & compliance management, regulatory reporting, and identity management. As per end user, it is segmented into banks, insurance companies, FinTech Firms, IT & Telecom, public sector, energy & utilities, and others. Region wise, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the RegTech market such as ACTICO GmbH, Acuant, Inc., Ascent, Broadridge Financial Solutions, Inc., ComplyAdvantage, International Business Machines (IBM), MetricStream Inc., NICE Ltd., Thomson Reuters, and Wolters Kluwer N.V. These players have adopted various strategies to increase their market penetration and strengthen their position in the RegTech market.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global RegTech market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on the global RegTech market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global RegTech market from 2023 to 2032 is provided to determine the market potential.
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Key Market Segments
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
- IT and Telecom
- Public Sector
- Energy and Utilities
- Others
- Banks
- Insurance Companies
- FinTech Firms
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- ASCENT
- NICE Ltd.
- Wolters Kluwer N.V
- METRICSTREAM INC.
- IBM Corporation
- ACUANT, INC.
- ComplyAdvantage Limited
- ACTICO GMBH
- Thomson Reuters Corporation
- Broadridge Financial Solutions, Inc.
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Table of Contents
Executive Summary
The RegTech market is likely to experience a significant growth rate of 22.6% from 2022-2032 owing to increasing market demand from public sector, energy and Utilities sectorsThe term 'RegTech' stands for Regulatory Technology, which refers to the use of technology to help companies comply with regulations and manage regulatory processes more efficiently. The RegTech market encompasses various solutions and services designed to assist organizations in navigating complex regulatory environments. Some of the major driving factors for the RegTech market include increasing regulatory complexity, as regulations become more intricate and numerous across industries, organizations requiring advanced technology solutions to keep up with compliance requirements. In addition, regTech tools can streamline compliance processes, reducing operational costs associated with manual regulatory tasks and audits.
The RegTech market is driven by several factors which include the rapid increase in adoption of advanced technologies. The compelling need for businesses to address the increased complexity of regulatory requirements has propelled the RegTech market. Traditional manual techniques of compliance management have become unsustainable as regulations get more complex and change more frequently. As a result, companies are turning to cutting-edge technology like artificial intelligence, machine learning, big data analytics, and blockchain to help them streamline their compliance operations. These technologies enable routine task automation, real-time monitoring of transactions and data, predictive analysis of possible threats, and secure identity verification. Furthermore, improved focus on financial regulation are drive the growth of RegTech market. Moreover, the RegTech platforms provide automated reporting capabilities for efficiently producing accurate and complete regulatory reports. This reduce the stress of manual report creation and reduces the possibility of errors. RegTech also guarantees that documents are properly preserved, assisting financial institutions in being audit and inspection ready. Therefore, efficient reporting and documentation on financial regulatory has driven the growth of the RegTech market.
However, Varied and conflicting regulations across different jurisdictions hinder the RegTech market by increasing complexity and inconsistency, making it difficult for organizations to build unified solutions capable of meeting diverse regulatory standards across multiple geographies. Furthermore, privacy and security concern are hamper the growth of RegTech market. Enhancing the protection of clients’ information from loss, data breaches, and other cyber threats and ensuring the secured management & the privacy of consumer data becomes more critical aspects to the RegTech solutions provider in the market. Moreover, as RegTechs heavily depends upon the quality of the data provided and receiving duplicated, inaccurate data from customer may result in output that lacks accuracy and insightful value. Therefore, privacy and security concern are hamper the RegTech market growth.
On the contrary, increase general data protection regulation concerns across regions are lucrative for the RegTech market as companies seek technological solutions to easily manage and assure compliance with severe data protection requirements, boosting demand for novel tools and technology. Furthermore, the GDPR prohibits the transfer of personal data outside the EU to countries that are not regarded to have an appropriate degree of data protection. This has an impact on businesses that operate abroad and move data between jurisdictions. RegTech solutions that provide encryption, secure data storage, and compliance checks can assist organizations in navigating these cross-border data transmission problems. Therefore, with GDPR requirements, the RegTech solution providers have an opportunity to improvise technology implications by taking the GDPR into account, which is expected to boost the market growth in the upcoming years.
The RegTech market is segmented on the basis of component, deployment model, enterprise size, application, end users. Based on component, the market is bifurcated into solution and service. On the basis of deployment model, it is divided into on-premise, and cloud. By application, it is classified into anti-money laundering (AML) and fraud management, regulatory intelligence, risk & compliance management, regulatory reporting, and identity management. As per end user, it is segmented into banks, insurance companies, FinTech Firms, IT & Telecom, public sector, energy & utilities, and others. Region wise, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the RegTech market such as ACTICO GmbH, Acuant, Inc., Ascent, Broadridge Financial Solutions, Inc., ComplyAdvantage, International Business Machines (IBM), MetricStream Inc., NICE Ltd., Thomson Reuters, and Wolters Kluwer N. V. These players have adopted various strategies to increase their market penetration and strengthen their position in the RegTech market.
Key Market Insights
By Component, the solution segment led the RegTech market in terms of revenue in 2022.By deployment, on-premises segment accounted for the highest RegTech market share in 2022.
By enterprise size, the large enterprises segment accounted for the highest RegTech market share in 2022.
By application, the risk and compliance management segment accounted for the highest RegTech market share in 2022.
By end user, banks segment accounted for the highest RegTech market share in 2022.
By region, North America generated the highest revenue in 2022.
Companies Mentioned
- ASCENT
- NICE Ltd.
- Wolters Kluwer N.V
- METRICSTREAM INC.
- IBM Corporation
- ACUANT, INC.
- ComplyAdvantage Limited
- ACTICO GMBH
- Thomson Reuters Corporation
- Broadridge Financial Solutions, Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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