The global Regtech market was valued at $2.45 billion in 2017 and is projected to reach an estimated $12.43 billion by 2026, at a compounded annual growth rate (CAGR) of 22.51%.
Regtech refers to set of tools developed to enhance the efficiency and effectiveness of implementing and monitoring regulatory guidelines. Regtech includes any technology or software developed to address challenges involving regulations.
Regtech helps companies and organizations understand regulatory requirements and remain compliant. The global market for regulations technology is growing steadily due to the increased costs associated with compliance procedures and lower entry barriers for software-as-a-service (SaaS)-based offerings.
Artificial intelligence, machine learning, and blockchain technology are being applied to improve the efficiency and effectiveness of compliance platforms. The application of these new technologies is expected to lead to substantial market growth for Regtech. However, the high cost of regulations tech platforms and the lack of expertise in using the software could limit the growth of the Regtech market.
Cybersecurity-related problems, privacy issues, and the lack of data standardization may challenge the ongoing development of the global Regtech industry. The risk and compliance management application is expected to have the largest Regtech market share.
Risk management plays a key role in business management procedures. Enterprises that have not implemented proper risk management programs may have to pay large amounts in drawbacks for not adhering to relevant regulatory guidelines.
The large enterprise segment is projected to hold the majority of the market share, as most publicly traded firms are forced to implement regulatory procedures. Rules and regulations vary depending on the industry and jurisdiction, which makes it challenging and unfeasible to manually check all the regulatory guidelines.
North America is expected to hold the largest Regtech market share in the coming years, due to the relatively early adoption of regulatory tech solutions by the North American financial services providers.
North America is home to some of the world’s largest economies including the US, Canada, and Mexico. These nations are significantly advanced in terms of technology adoption and its application.
Some of the main players in the global Regtech industry are Abside Smart Financial Technologies, Accuity, Actico, Alto Advisory, Broadridge, Compendor, Compliance Solutions Strategies (CSS), Deloitte, Eastnets, Fenergo, IBM, Infrasoft Technologies, Jumio, Lombard Risk, London Stock Exchange Group (LSEG), Metricstream, Nasdaq Bwise, Nice Actimize, PWC, Rimes Technologies, Sai Global, Sysnet Global Solutions, Thomson Reuters, Trulioo, and Wolters Kluwer.