Status : Published Published On : Mar, 2024 Report Code : VRICT5160 Industry : ICT & Media Available Format : Page : 300

Global RegTech Market – Analysis and Forecast (2025-2030)

Industry Insight by Component (Solutions and Services (Professional Services and Managed Services), by Deployment Type (Cloud and On-Premises), by Organization Size (Large Enterprises and SMEs), by Application (Risk & Compliance Management, Identity Management, Regulatory Reporting, Regulatory Intelligence, AML, and Fraud Management), by End-Use Vertical (Banks, Insurance Companies, Fintech Firms, IT and Telecom, Public Sector, Energy and Utilities, and Others) and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The global RegTech Market is anticipated to grow from USD 7.5 billion in 2023 to USD 19.8 billion by 2030, registering a CAGR of 20.9% during the forecast period.

RegTech, short for Regulatory Technology, refers to the technique of keeping track of the in-house regulatory requirements of a company along with audits, and risk workflows. It is a new technology that updates things in real time and standardizes and streamlines process using novel technologies like machine learning, cloud computing, and blockchain. The process also helps in detecting issues and anomalies in digital payment platforms.

RegTech Market Highlights

Typically, this technology is used for varied purposes, including KYC, transaction monitoring, customer AML screening, credit scoring, trade data tracking, compliance risk analysis, and fraud prevention in specific service sectors such as banking and finance. It is also used for risk management, identity management reporting, and real-time transaction tracking.

It can be deployed on-premises or in the cloud to digitize compliance processes and manual reporting. It offers flexibility and makes an organization more agile, fast, and organized with better integration and analytical capabilities. 

Over the past few years, the RegTech providers `are gaining traction due to their Software-as-a-Service platforms. As a result, RegTech business is growing significantly to deal with the global health crisis.

Market Segmentation

Insight by Component

According to the component, the global RegTech market is divided into solutions and services. The latter is further divided into professional and managed services.

The solutions segment is expected to grow at a higher rate during the forecast period due to the benefits it offers to the BFSI sector, particularly in terms of risk management, fraud prevention and management, compliance management, and more. This helps in enhancing customer experience.

Insight by Deployment Type

According to the development type, the global RegTech market is divided into cloud and on-premises segments. 

Out of these, the cloud segments contribute to the largest share of the market due to higher adoption through Software-as-a-Service (SaaS). It also helps businesses in complying with regulatory norms which will facilitate its further growth during the forecast period. 

Insight by Organization Size

According to the organization size, the global RegTech market is divided into SMEs and large enterprises. 

Out of these two segments, the large enterprises segment contributes to the largest share since they have to comply with larger regulatory requirements than SMEs. Due to diverse restrictions imposed by governments, publicly traded companies particularly need to develop regulatory systems to comply with national and international regulatory standards related to data protection, identity management, and others. RegTech solutions help themin this regard.

Insight by Application

According to the application, the global RegTech market is divided into risk & compliance management, identity management, regulatory reporting, regulatory intelligence, AML, and fraud management segments.

Out of these categories, the regulatory intelligence segment is expected to grow at a higher CAGR during the forecast period. This is due to the higher adoption of this technology in the BFSI sector to monitor, collect, and analyze regulatory data and track development in the fast-growing environment.  Moreover, it allows flexible research analysis and also reduces the risk of non-compliance.

Insight by End-Use Vertical

Based on the end-use vertical, the global RegTech market is divided into banks, insurance companies, fintech firms, IT and telecom, the public sector, energy and utilities, and others. 

Out of them, the insurance segment is expected to grow at a higher CAGR during the forecast period since companies will adopt these solutions in automating reporting, monitoring regulatory compliance, managing risks, and enhancing data management capabilities. It will also help the insurance sector a great deal in digital transformation and solve issues related to investments, solvency regulations, distribution channels, claim settlements, and data clarity.

Global RegTech Market Report Coverage

Report Metric


Historical Period

2018 - 2023

Base Year Considered


Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  7.5 Billion

Revenue Forecast in 2030

U.S.D.  19.8 Billion

Growth Rate


Segments Covered in the Report

By Component, By Deployment Type, By Organization Size, By Application, and By End-User Vertical

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and Rest of the World

Industry Dynamics

Industry Trends

The most notable trend in the industry is the rapid technological development that results in the integration of connected devices and IoT and AI solutions. This technology is also adopted extensively by companies to automate employee surveillance, comply with data management requirements, enhance transparency, and prevent AML and fraud activities.

The solutions also help companies curb cost and time while maintaining automated compliance processes. This saves resources necessary to meet regulatory requirements. 

There is also a trend to leverage data-driven insights using RegTech solutions with the use of data analytics and AI. This helps in dealing with compliance risks and issues and enables compliance monitoring and proactive risk management.

Moreover, widespread digital transformation is also noticed in maintaining digital records and preparing reports for regulatory compliance.

Growth Drivers

The growth of the global RegTech market is typically attributed to the growing number of fraudulent activities over the internet. The BFSI sector in particular needs such effective solutions to minimize risks and financial losses and offer a positive framework for the market. This will propel the growth of the global RegTech market.

The high cost of compliance and the need to allow faster transactions will also fuel the growth of the global RegTech market with the accurate and before-time detection of illicit activities. This will minimize losses that may have occurred due to human intervention. 

Moreover, there is a rising demand for regulatory intelligence and increasing penalties for non-compliance will also foster market growth. With the use of novel technologies of RegTech such as big data, machine learning, biometrics, cloud computing, and blockchain, there is a higher adoption of this technology to integrate it with the regulatory segment.


Several obstacles may hinder the growth of the global RegTech market such as persuading regulators and senior executives that the technology can reduce the risk of non-compliance. Most companies will be reluctant to admit and adopt such technologies and remove direct human interventions from the regulatory system.

A few other obstacles to overcome are guaranteeing secure data management, differing rules across different jurisdictions, a shortage of technical knowledge of software deliverables, and privacy issues.


However, during the forecast period, the compulsory application of the General Data Protection Regulation (GDPR) and the growing possibilities to tap the potential of emerging countries will create more opportunities and attractive prospects for RegTech solution providers, which will have a positive impact on the growth of the global RegTech market.

Geographic Overview

North America holds the largest share of the RegTech market due to higher adoption of these solutions by the major financial institutions that help in reducing compliance costs and developing advanced technologies. Additionally, the strict government regulations and greater emphasis on digital renovation in the business environment also fuel the market growth.

The Asia-Pacific region, on the other hand, is expected to grow at a high CAGR during the forecast period due to the extensive use of RegTech solutions by various financial institutions to improve their business efficiency and reduce compliance risk exposure. Moreover, the growing bureaucratic competence of organizations in the region, progress in infrastructure development, rising GDP, and higher investment in digital platforms will also foster the growth of the global RegTech market in this region.

Competitive Insight

The companies are making huge investments in adopting regTech solutions. In the regulatory arena, there are many RegTech startups. Innovative RegTech companies are lowering the cost of compliance by automating complicated compliance processes. They assist financial institutions in meeting regulatory requirements by providing aggregated global credit and Anti-Money Laundering (AML) risk data, onboarding, screening, and monitoring tools for due diligence and Know Your Customer (KYC) processes, and the recording, storage, and analytics of regulated telephone conversations, etc.

IBM RegTech is a solution portfolio that combines extensive risk and compliance experience with sophisticated AI and analytics technology. These technologies are changing the way businesses manage risk and compliance by allowing them to make more informed decisions about everything from regulatory change management to specific compliance activities like anti-money laundering, know your customer, surveillance, and stress testing. The solutions offered include IBM Financial Crime Alerts Insight with Watson, IBM Financial Crimes Due Diligence with Watson, IBM Surveillance Insight for Financial Services, IBM Safer Payments, IBM Financial Crimes Geographic Risk Insight, and IBM Security Trusteer Fraud Protection Suite.Financial market participants can improve compliance efficiency, lower costs, and reduce risks by using ACTICO Regulatory Technology (RegTech). ACTICO technologies provide maximum flexibility and serve as the foundation for their regulatory compliance and risk assessment software solutions. ACTICO compliance solutions assist in achieving corporate-wide compliance, preventing compliance infractions and limiting risks, as well as boosting compliance efficiency and lowering compliance costs.

Some of the key players operating in the global RegTech market include IBM, Deloitte, Acuity Knowledge Partners, ACTICO GmbH, MetricStream, Trulioo, Ascent, Broadridge Financial Solutions, Inc., Ayasdi AI LLC., and Chainalysis Inc.

Recent Devlopments by Key Players

Deloitte and Nexxiot collaborated for Strategic KYX for Logistics. Deloitte has introduced KYC (combining Know Your Client with Know Your Cargo) powered by Nexxiot. This partnership shall provide a robust, scalable infrastructure rooted in a strong commitment to regulatory excellence and trust. It leverages Deloitte’s established KYC (Know Your Client) services and implementation capabilities with Nexxiot’s cutting-edge asset intelligence technology.

Trulioo partnered with EQ Bank for identity document verification, workflow studio and business verification to streamline customer and business onboardingwhich is a critical exercise for a seamless digital banking experience.

The RegTech Market research includes a comprehensive market segmentation analysis as well as projections for the analysis period 2025-2030.

Segments Covered in the Report

  • By Component 
    • Solutions
    • Services
      • Professional Services
      • Managed Services
  • By Deployment Type 
    • Cloud
    • On-Premises
  • By Organization Size 
    • Large Enterprises
    • SMEs
  • By Application 
    • Risk & Compliance Management
    • Identity Management
    • Regulatory Reporting
    • Regulatory Intelligence
    • AML
    • Fraud Management
  • By End-Use Vertical 
    • Banks
    • Insurance Companies
    • Fintech Firms
    • IT and Telecom
    • Public Sector
    • Energy and Utilities
    • Others

Region Covered in the Report

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

RegTech Market Size

Source: VynZ Research

RegTech Market Analysis

Source: VynZ Research

Frequently Asked Questions

The global RegTech market is anticipated to grow from USD 7.5 billion in 2021 to USD 19.8 billion by 2027, registering a CAGR of 20.9% during the forecast period 2021-2027.
Some of the challenges that hinder the market growth of RegTech include guaranteeing secure data management, lack of technical knowledge regarding software deliverables, and privacy, as well as differing rules across jurisdictions.
the high compliance costs, increased demand for risk management, rising need for regulating business processes, and extra cost of managing compliance procedures will contribute to the growth of the RegTech market.
North America is anticipated to grow significantly owing to the rising awareness of RegTech among banks and financial institutions and mounting partnership among RegTech companies with regulatory bodies will fuel the growth in the region.
Some of the major players in the global RegTech market include IBM, Deloitte, Acuity Knowledge Partners, ACTICO GmbH, MetricStream, Trulioo, Ascent, Broadridge Financial Solutions, Inc., Ayasdi AI LLC., and Chainalysis Inc.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle


Key Takeaways