Global Regulatory Technology Market – Industry Trends and Forecast to 2030

Regulatory Technology Market Analysis and Size

Regulatory technology is a community of tech companies solving challenges from a technology-driven economy by automation. The increase in digital products has augmented data breaches, money laundering, cyber hacks, and other fraudulent activities which ultimately increase the demand of regulatory technology for compliance and risk management.  Regulatory technology involves the usage of tools to minimize the compliance risks associated with the business and improve the stringency of regulations. As per the analysis of the World Bank, a healthy regulatory framework can help increase GDP growth by more than 2 percent annually.

Data Bridge Market Research analyses that the regulatory technology market was valued at USD 18.02 billion in 2022 and is expected to reach the value of USD 710.56 billion by 2030, at a CAGR of 58.30% during the forecast period. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Regulatory Technology Market Scope and Segmentation

Market Definition

Regulatory technology is the management of regulatory procedures in the financial industry through technology. The main functions of regulatory technology include regulatory reporting, monitoring and compliance. Regulatory technology, or RegTech, contains a group of companies that use cloud computing technology by software-as-a-service (SaaS) to support businesses that comply with less expensively and regulations efficiently.

Global Regulatory Technology Market

Drivers

• Growing need for compliance and risk management solutions

The major driver for the market's growth is the increasing need for compliance and risk management solutions in the financial institutions. As the cases of fraudulent activities are growing, the need for the adoption of effective solution and better compliance is increased. The usage of the regulatory technology also lessen compliance costs and enhance the work efficiency, thus, the regulatory technology is the best solution in financial institutions. Hence, this driver will lead to significant growth of the market.

• Surging demand of regulatory technology in fintech sector

Regulatory technology is gaining healthy pace in the fintech sector in the last few years owing to the growth of digital transfer platforms and an increase in cross-border transactions. Electronic payments are growing the intricacy and volume of data on financial transactions. Another major unintended effect of the increase in electronic transfers due to the emergence of more sophisticated digital financial crimes, with swift e-Commerce transactions.

Opportunities

• Technological advancement in most of regulatory technology solutions

Artificial Intelligence (AI), machine learning (ML) and automation technologies are used in most of the regulatory technology solutions. Artificial intelligence is one of the major technologies which is highliy influencing the market growth. It has allowed developments in regulatory technology solutions for better identification of frauds. It can be used for numerous data sets in various data sources such as social media to offer rapid consequences for detecting fraudulent activities. Innovations that include the deployment of artificial intelligence (AI) are anticipated to continue decreasing compliance costs. Furthermore, artificial intelligence is anticipated to help regulatory technology companies improve compliance and transparency in financial institutions, aid tomprove compliance and transparency in financial institutions, and provide security against fraudulent activities.

• Growing need of regulatory technology in BFSI sector

The growing need for Identity Management and Control mainly in the BFSI sector is anticipated to create immense opportunities for the market growth to limit the risk of money laundering. This process can take only twice as long for danger categories of clients who require even more thorough screening. Banks using regulatory technology which can completely do away with the human process. Identity management and control make know Your Customer (KYC) procedures simpler. In addition to this, they also learn in-depth information such as after scanning phone calls.

Restraints

• Issues  associated with regulatory technology

Lack of data standardization coupled with increasing concern regarding cybersecurity and data privacy will likely act as major market restraints factor for the market's growth in the above mentioned projected time period. Regulatory divergence along with implementation issues will become the foremost and biggest challenge for the market growth.

 This regulatory technology market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the regulatory technology market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In April 2021, IBM has announced an agreement to acquire Turbonomic, a Network Performance Management (NPM) and Application Resource Management (ARM) software provider based in Boston, MA. This acquisition will give enterprises complete stack application management and observability. This will also allowing them to ensure cut costs and performance by utilizing AI to optimize resources including servers, storage, networks, containers, virtual machines and databases.
• March 2020: MetricStream recognized its presence to aid the company grow faster in New Zealand and Australia. This business development delivers MetricStream with access to the swiftly growing Asian market. With its Governance, Risk, and Compliance (GRC) solutions and products, the company could serve Asian clientele.

Global Regulatory Technology Market Scope

The regulatory technology market is segmented on the basis of component, enterprise size, deployment, application and industry. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Solutions
• Services

 Enterprise Size

• Small and Medium Enterprise
• Large Enterprise

 Deployment

• Cloud
• On-Premises

Application

• Compliance Management
• Risk Management
• Identity Management and Control
• Reporting and Data Analytics
• Information and Asset Management

 Industry

• Banking
• Insurance
• Healthcare
• Transportation and Logistics
• Industrial and Manufacturing
• IT and Telecom
• Professional Services
• Government and Defence
• Others

Regulatory Technology Market Regional Analysis/Insights

The regulatory technology market is analyzed and market size insights and trends are provided by country, component, enterprise size, deployment, application and industry as referenced above.

The countries covered in the regulatory technology market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates the regulatory technology market in terms of revenue and market share due to augmented investment transactions in this region. The U.S. will dominate the North America regulatory technology market due to the growing number of stringent regulations and increasing compliance issues in this region.

Asia-Pacific will continue to project the highest compound annual growth rate during the forecast period of 2023-2030 owing to the presence of a few financial hubs and developing countries in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Regulatory technology Market Share Analysis

The regulatory technology market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to regulatory technology market.

Some of the major players operating in the regulatory technology market are:

• LSEG. (U.K.)
• SAI Global Compliance, Inc. (Netherlands)
• Deloitte Touche Tohmatsu Limited (U.K.)
• NetGuardians Inc. (Switzerland)
• IBM Corporation (U.S.)
• Infrasoft Technologies Ltd. (India)
• Alto Advisory (Luxembourg)
• NICE (Israel)
• Thomson Reuters (U.K.)
• Fintellix Solutions (India)
• PWC (U.K.)
• Compliance Solutions Strategies (U.S.)
• LexisNexis Risk Solutions Group (U.S.)
• ACTICO GmbH (Germany)
•  Broadridge Financial Solutions, Inc. (U.S.)
•  Jumio (U.S.)
•  MetricStream Inc (U.S.)
• Pole Star Space Applications (U.K.)
• Tessian Limited (U.K.)

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