RegTech Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global RegTech market stood at a value of around USD 15.24 Billion in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 22.00% to reach USD 111.32 Billion by 2034.

Increasing Demand in Large Enterprises to Augment the Global RegTech Industry

Based on enterprise size, the large enterprises segment is anticipated to account for a significant share in the global RegTech industry. This is due to the fact that most publicly traded companies are compelled to adopt regulatory programmes. Additionally, keeping a check on all the processes manually is not feasible, as rules and regulations across different industries and regions keep altering. This, in turn, is enhancing the demand for RegTech solutions and services, especially in large enterprises.

Key Trends and Developments

The RegTech market is seeing growth, driven by automation and AI integration, blockchain for enhanced transparency and security, cloud-based solutions, and regulatory technology for anti-money laundering (AML).

November 2024

The RegTech Association released its annual Industry Perspectives Report, highlighting strong growth in the sector, driven by customer expectations and regulatory pressures. The report revealed expanding adoption across sectors like healthcare and telecommunications. It also noted that Generative AI is set to significantly impact regulatory compliance and AML within 1-2 years.

October 2023

Sid Yenamandra launched RegVerse, introducing Avery, an AI-powered regulatory technology designed for investment advisory firms, hedge funds, and insurance agencies. Avery helps users navigate complex regulations, offering personalised compliance support. RegVerse’s goal is to reduce the time spent tracking regulations for firms and consultants.

July 2022

EquiLend launched its RegTech Solutions division to help clients meet global regulatory requirements in the securities finance industry. Kevin McNulty was appointed Head of RegTech Solutions. The division provides support for various regulations, including SFTR, CSDR, and ESG requirements, offering integrated services to clients worldwide.

January 2022

Fidelity Investments launched Saifr, a RegTech business offering AI-powered tools to help financial institutions manage regulatory compliance for public communications. Saifr’s products, SaifrReview and SaifrScan, use Natural Language Processing to streamline the compliance review process, reducing risk and enhancing collaboration between marketing and compliance teams.

Automation and AI Integration is Influencing the RegTech Market Dynamics and Trends

The integration of automation and artificial intelligence (AI) is significantly shaping the market by automating compliance tasks such as data analysis, monitoring, and reporting. This boosts operational efficiency, reduces human errors, and enhances decision-making, helping businesses adapt quickly to regulatory changes. In April 2022, RGTech predicted strong growth, driven by digitalisation across the retail and industrial sectors. The company aimed to expand by acquiring new customers, supporting client growth, and progressing with further digitalisation. Additionally, RGTech completed acquisitions and a joint venture to diversify its offerings.

Blockchain for Transparency and Security is Boosting Opportunities in the RegTech Market

Blockchain technology is gaining significant ground in the RegTech market, due to its ability to provide secure, transparent, and tamper-proof records. It ensures data integrity in financial transactions and regulatory reporting, helping prevent fraud and enhancing security. As a result, blockchain has become a crucial tool for regulatory compliance across various industries. In October 2024, RGTech secured a RM25 million contract for a three-year hardware refresh project with a utilities company. This deal is expected to positively impact RGTech’s earnings and assets, despite a decline in its Q2 2024 profit and revenue.

Cloud-Based Solution is Emerging as a Key Trend in the RegTech Market

Cloud-based solutions are rapidly emerging as a key trend within the RegTech market due to their scalability, flexibility, and cost-effectiveness. These platforms allow businesses to access real-time regulatory updates and manage compliance more easily. By enabling seamless collaboration and efficient data sharing, cloud-based tools help companies stay aligned with changing regulations. In April 2022, CGS-CIMB Research forecasted RGTech’s growth, driven by increased demand for digitalisation in the retail and industrial sectors. The company’s expansion was expected to stem from new customer acquisitions and further digitalisation, prioritising operational efficiency.

Regulatory Technology for Anti-Money Laundering (AML) is Boosting RegTech Market Growth

Anti-money laundering (AML) compliance continues to be a central focus in the RegTech market. Companies are increasingly adopting RegTech solutions to automate AML processes, such as transaction monitoring, identity verification, and reporting, improving accuracy and efficiency. This helps businesses swiftly detect suspicious activities and comply with international regulations, reducing financial crime risks. In September 2024, RGTech acquired an 80% stake in Rymnet Solutions for RM52.5 million, aiming to enhance its IT offerings. This acquisition integrated HR management systems, expanding RGTech’s market reach, especially in Singapore, through a combination of cash payment and share issuance.

North America to Dominate the Global RegTech Industry

Region-wise, North America is expected to account for the largest market share during the forecast period. This can be attributed to the early adoption of RegTech solutions by the leading financial institutions in North America to reduce compliance costs by leveraging advanced technologies, including blockchain and cloud computing. The increased demand for RegTech solutions in developed economies such as the US and Canada, which are significantly advanced in terms of technology and its deployment, is supporting the market growth in the region. There is an increased focus to digitally reinvent the business by deploying scalable RegTech solutions. Furthermore, the stringent government regulations in the region, coupled with the need to comply with the same, are expected to further propel the industry forward in the forecast period.

RegTech Market Segmentation

RegTech, a combination of the words ‘regulatory’ and ‘technology’, is designed to manage regulatory processes within the financial industry by utilising advanced technologies. It helps businesses comply with regulations efficiently and less expensively by making use of technologies such as machine learning, cloud computing, biometrics, blockchain, and others. It is widely used to accomplish tasks like regulatory monitoring, risk management, data analytics, reporting, and fraud detection.

By component, the industry is segmented into:

• Solution
• Services

The market can be broadly categorised on the basis of deployment type into:

• Cloud
• On-Premises

By enterprise size, the industry is segmented into:

• Large Enterprises
• Small and Medium Enterprises (SMEs)

The market can be broadly categorised on the basis of its application into:

• Anti-Money Laundering (AML) and Fraud Management
• Regulatory Intelligence
• Risk and Compliance Management
• Regulatory Reporting
• Identity Management

On the basis of end use, the industry is segmented into:

• Banks
• Insurance Companies
• Fintech Firms
• IT and Telecom
• Public Sectors
• Energy and Utilities
• Others

The report looks into the regional markets of the product like:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Rapid Technological Advancements and the Increasing Focus on Cost Reduction and Compliance to Bolster the Growth of the Global RegTech Industry

The rapid technological advancements such as the increased adoption of technologies like artificial intelligence, robotics process automation, and others in various industries to keep pace with rapid regulatory changes are driving the growth of the market. Furthermore, the need to improve products and services, customer experiences, and processes while limiting the cost of compliance and managing regulatory pressure is significantly enhancing the demand for RegTech solutions. In addition, the need to improve identity management strategies, such as KYC for identity verification, KYC for onboarding, and KYC for AML checks, among others, to keep up-to-date with ever-changing global KYC regulations is aiding the market. Furthermore, emerging nations, such as China and India, offer significant opportunities to RegTech solution providers to expand and develop their offerings in the regions due to the growing trend of digitalisation. In addition, increasing penalties for non-compliance with regulations and the need to control financial frauds are expected to provide lucrative opportunities for the market expansion over the forecast period.

Key Industry Players in the Global RegTech Market

The RegTech market key players specialise in digital transformation, aiming to streamline operations and improve decision-making processes for financial institutions using advanced data analytics and artificial intelligence (AI). Their flagship products include tools for risk management, fraud detection, and customer experience optimisation. These technologies enable banks, insurers, and other financial entities to digitise and automate their operations, reducing operational costs and enhancing overall efficiency.

Abside Smart Financial Technologies

Abside Smart Financial Technologies is a technology company that provides smart solutions for financial services, focusing on digitalisation and data analytics. Established in 2013, the company’s headquarters is in Munich, Germany. Abside leverages cutting-edge technologies to streamline operations and offer innovative products to financial institutions globally.

ACTICO GmbH

ACTICO GmbH, founded in 1999, is a leading provider of software solutions for business rule management and artificial intelligence. Headquartered in Immenstaad, Germany, ACTICO helps businesses automate decision-making processes, improve operational efficiency, and optimise risk management through its innovative solutions in the financial services and insurance industries.

Acuant, Inc.

Acuant, Inc. is a global leader in identity verification and compliance solutions, offering secure, AI-powered tools for businesses. Established in 1999, the company is headquartered in Los Angeles, United States. Acuant’s services are widely used in various industries including finance, healthcare, and government for identity authentication and document verification.

Ascent Technologies, Inc.

Ascent Technologies, Inc., founded in 2017 and headquartered in Chicago, United States, provides AI-powered solutions for regulatory compliance. The company offers a comprehensive platform that automates compliance processes and helps businesses navigate complex regulatory environments. Ascent’s technology is designed to streamline compliance workflows and reduce operational risks for enterprises globally.

Another key player in the RegTech market report is IBM Corp. among others.