RegTech Market by End-user and Geography - Forecast and Analysis 2022-2026

The RegTech market share is expected to increase by USD 11.68 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 20.42%.

The market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers RegTech market segmentation by:

• End-user - Large enterprises and Small and medium enterprises
• Geography - North America, Europe, APAC, Middle East and Africa, and South America

This market report also offers information on several market vendors, including ACTICO GmbH, Acuant Inc., Ascent Technologies Inc., Ayasdi AI LLC, Compliance Solutions Strategies, ComplyAdvantage, Deloitte Touche Tohmatsu Ltd., Hummingbird RegTech Inc., International Business Machines Corp., Mitratech Holdings Inc., NICE Ltd., RIMES Technologies Corp., SAS Institute Inc., Thomson Reuters Corp., Trulioo Information Services Inc., and VERMEG Ltd Legal among others.

What will the RegTech Market Size be During the Forecast Period?

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RegTech Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The need for identifying financial crime is notably driving the market growth, although factors such as lack of skilled workforce may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the RegTech industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key RegTech Market Driver

One of the key factors driving growth in the global market is the growing demand for identifying financial crimes within financial organizations, owing to increasing fraud, electronic crimes, money laundering, terrorist financing, bribery and corruption, and insider dealing. Since financial organizations deal with a huge volume of data on a daily basis, manually analyzing the data to detect a potential fraud will be very time-consuming. To overcome these challenges, RegTech is increasingly used for real-time fraud detection and prevention capabilities. It enables financial organizations to identify financial crimes in an automated and cost-effective manner. RegTech uses analytics and cognitive capabilities to analyze financial transactions and provides timely alerts for any potential fraud or illegal transaction. Furthermore, RegTech provides end-users with intelligent process automation to increase the speed of routine tasks and minimize human intervention to reduce possible errors, which creates a fast, safe, and vigilant financial value chain without the risk of financial crimes. 

Key RegTech Market Trend

The integration of AI with RegTech is a RegTech market trend that is expected to have a positive impact in the coming years. The adoption of AI across various industries and verticals has enhanced the identification of patterns and similarities even in unrelated sets of data, which is crucial for delivering a new level of insight from these disparate data sets. In addition, AI can process multiple data sets, which include behavior patterns within heterogeneous data sources such as data gathered from social media and stock market prices. This can increasingly deliver new insight from correlations between data, which were previously unrecognizable. The combination of AI with RegTech is expected to help end-users with complex pattern matching across data sets and detection of data anomalies such as point to potential incidents of fraud. RegTech integrated with AI is expected to provide enhanced fraud identification as well as prediction, which is expected to be a key pointer for the increased demand for the combination of AI and RegTech. Therefore, AI is increasingly finding its application in RegTech to provide better RegTech solutions to its end-users, which will be a key trend in the market during the forecast period. 

Key RegTech Market Challenge

The lack of a skilled workforce that has the appropriate financial and technical knowledge to work on advanced technological platforms in the BFSI sector will be a major challenge for the market during the forecats period. Integrating RegTech in financial organizations requires a workforce that has a combined knowledge of both the IT and financial sectors. In the BFSI sector, it is difficult to train the workforce on advanced technology domains such as blockchain or cybersecurity as it can be very expensive and time-consuming. In addition, banks and other financial institutions are always competing with technology companies to hire the best IT workforce and then train them on financial regulations and compliance standards. Therefore, even though upgrading to the latest and automated technologies, such as RegTech, has been the priority for the BFSI sector, talent management has been the main hindrance for the sector. 

This RegTech market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global RegTech market as a part of the global application software market within the global IT software market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.

Who are the Major RegTech Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• ACTICO GmbH
• Acuant Inc.
• Ascent Technologies Inc.
• Ayasdi AI LLC
• Compliance Solutions Strategies
• ComplyAdvantage
• Deloitte Touche Tohmatsu Ltd.
• Hummingbird RegTech Inc.
• International Business Machines Corp.
• Mitratech Holdings Inc.
• NICE Ltd.
• RIMES Technologies Corp.
• SAS Institute Inc.
• Thomson Reuters Corp.
• Trulioo Information Services Inc.
• VERMEG Ltd Legal

This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as focusing on the frequent introduction of new products and services to compete in the market.

Product Insights and News

• ACTICO GmbH - ACTICO GmbH is a privately held company headquartered in Germany. It is a global company generating $0.26 million in revenues and has around 3 employees. Its revenue from the market contributes to its overall revenues along with its other offerings, but it is not a key revenue stream for the company. 
• ACTICO GmbH - The company offers RegTech solutions such as credit risk management and compliance and financial fraud management. 

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

RegTech Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for RegTech Market?

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32% of the market's growth will originate from North America during the forecast period. The US is the key market for RegTech in North America. Market growth in this region will be faster than the growth of the market in the European, APAC, and South American regions.

The extensive presence of some of the large financial institutions will facilitate the market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2022, the pandemic-induced need for digital transformation along with regulators' demand for transparency and accountability continues to push for increasing RegTech adoption in the BFSI sector. The pressure for digital transformation has caused BFSI firms to adapt to virtual regulatory clarification services, electronic customer onboarding, and digital identity initiatives. This, along with the growing risk of fraudsters taking advantage of the digital integration of financial systems, led to increased investments into RegTech companies.

What are the Revenue-generating End-user Segments in the RegTech Market?

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The market share growth by the large enterprises segment will be significant during the forecast period. The increasing demand for complex regulatory reporting and risk management, identity management and control, compliance management, and transaction monitoring requirements are the major factors that drive the adoption of RegTech solutions in large enterprises. Implementation of RegTech has proven to be more profitable and efficient than manual management of complex regulatory and compliance processes of large organizations, which is attracting them to adopt RegTech solutions. 

This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this RegTech Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive RegTech market growth during the next five years
• Precise estimation of the RegTech market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the RegTech industry across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of RegTech market vendors

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