Global RegTech Market (2021-2026) by Component, Application, Deployment, Organization Size, Vertical, Geography, Competitive Analysis and the Impact of COVID-19 with Ansoff Analysis

The Global RegTech Market is estimated to be USD 7 Bn in 2021 and is expected to reach USD 15.8 Bn by 2026, growing at a CAGR of 17.5%.

Key factors promoting the growth of the market are the rising number of fraudulent activities such as money laundering taking place in the financial sector. This has required a need for risk and compliance management system, especially for large scale organizations. Besides, the adoption of Regulatory Technology (Reg Tech) software can also be effective in reducing compliance costs by speeding up the business processes and increasing the organization's overall efficiency.

The high cost of the software and the regulatory discrepancies across different regions are likely to hamper the growth of the market.

Market Dynamics

Drivers

• The Rising Number of Fraudulent Activities
• The Increasing Need for Risk and Compliance Management
• The Growing Cost of Compliance
• Need for Faster Transactions

Restraints

• The High Cost of Software
• Regulatory Divergence
• Lack of Technical Knowledge about the Software Deliverable

Opportunities

• Adoption of New Technologies to Achieve Compliance Efficiency
• Government Initiatives for the Adoption of Reg Tech
• Mandatory Application of the General Data Protection Regulation (GDPR) Guidelines
• Application of Reg Tech for Non-Finance Industries

Challenges

• Privacy of Consumer Data
• Implementation Challenges due to Incompatible Systems

Segments Covered

By Component, the Solutions segment holds the largest market share. The demand for the Reg Tech solutions is increasing with the growing incidences of money laundering followed by non-compliance in the wake of changing regulatory scenario. These solutions can help businesses to run effectively through their Software-as-a-Service (SaaS) offerings and use of the latest technologies like cloud computing or AI, etc. These solutions also have intelligent process automation systems that can speed up routine activities while minimizing human errors.

By Application, Regulatory Intelligence holds the largest market share. Regulatory intelligence gathers publicly available regulatory information that can be used for monitoring the regulatory environment. This has helped the financial institutions manage according to the changing regulatory environment and minimize the risks related to non-compliance. Further, the application of analytics in financial institutions can help make informed decisions on regulatory grounds adding to the segmental growth.

By Deployment, the market is classified as On-premises and Cloud-based. The Cloud-based segment holds the largest market share during the forecast period. Especially, in today's data-driven world, the implementation of Reg Tech solutions is highly improved with cloud-based solutions by utilizing analytics and data surveillance. Cloud-based solutions are scalable, easy to use across users, and are cost-effective.

By Organization Size, the market can be classified as large enterprises and Small and Medium-sized Enterprises (SMEs). Amongst the two, the Large Enterprises hold the highest market share. These large enterprises, also characterized by publicly traded companies, have to abide by the changing regulatory scenario. Due to their organization size and operations, manual implementation of these procedures is not quite feasible. Thus, these organizations are assisted by various consulting vendors to provide Reg Tech services for ensuring adherence to regulatory guidelines.

By Vertical, the Banking and Capital Markets holds the largest market share as these institutions are known to operate in a regulated environment. Thus, they are highly exposed to the adoption of an ever-changing regulatory scenario. In many cases, they also face hefty fines for non-compliance measures. With the rise in strict compliance guidelines across many regions, these institutions are adopting Reg Tech software to simplify the process and reduce compliance-related costs.

By Geography, North America leads the market during the forecast period. With a robust technological infrastructure in place, the region has been an early adopter of Artificial Intelligence (AI), Machine Learning (ML), and Blockchain. Thus, they have also seen faster deployments of these technologies for reducing compliance costs. Moreover, the rising necessity for adherence to regulatory compliance has been an influential factor for the industry and market growth in this region.

The Global RegTech Market is further segmented based on the Component, Application, Deployment, Organization Size, Vertical, and Geography.

Global RegTech Market, By Component

• Introduction
• Solutions
• Services
• Professional Services
• Consulting
• Implementation
• Support and Maintenance
• Managed Services

Global RegTech Market, By Application

• Introduction
• Risk and Compliance Management
• Identity Management
• Regulatory Reporting
• Anti-money laundering (AML) and Fraud Management
• Regulatory Intelligence

Global RegTech Market, By Deployment

• Introduction
• On-premises
• Cloud-based

Global RegTech Market, By Organization Size

• Introduction
• Large Enterprises
• Small and Medium-Size Enterprises

Global RegTech Market, By Vertical

• Introduction
• Banking And Capital Markets
• Insurance
• Non - Finance

Global RegTech Market, By Geography

• Introduction
• North America
• South America
• Europe
• Asia Pacific
• Rest of the World

Company Profiles

Some of the companies covered in this report are NICE Actimize, PwC, IBM, London Stock Exchange Group plc, BWise, Broadridge Financial Solutions Inc., Accuity, Rimes Technologies Corporation, Wolters Kluwer N.V, Compendor, Infrasoft Technologies Ltd., and Deloitte Touche Tohmatsu Limited, etc.

Competitive Quadrant

The report includes a Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Lions: Represents companies with a strong foothold in the market, with the highest market share, large investments in technologies, new products.
Bulls: Companies that are medium in size competing with their USPs, growing companies with proven market share.
Rabbits: Small companies but growing rapidly, constantly improving their offerings in the market.
Tortoise: Companies that are slow in growth, having a long legacy, and stable or negative in performance.

Why buy this report?

• The report offers a comprehensive evaluation of the Global RegTech Market.
• The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes in-depth market analysis using Porter’s 5 force model and the Ansoff Matrix. The impact of Covid-19 on the market is also featured in the report.
• The report also contains the competitive analysis using the Competitive Quadrant, the analyst's Proprietary competitive positioning tool.

Report Highlights:

• A complete analysis of the market including parent industry
• Important market dynamics and trends
• Market segmentation
• Historical, current, and projected size of the market based on value and volume
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market

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