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Regtech Market Drivers and Opportunities [2021-2031]

Regtech Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Solutions and Services), Deployment Type (On-Premises and Cloud), Enterprise Size (SMEs and Large Enterprises), Application (Risk and Compliance Management, AML and Fraud Management, and Identity Management), and Industry Vertical (Banks, Insurance, and Others), and Geography (North America, Europe, Asia Pacific, Middle East & Africa, South & Central America)

  • Report Code : TIPRE00006258
  • Category : Technology, Media and Telecommunications
  • No. of Pages : 202
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The regtech market size was valued at US$ 7.55 billion in 2023 and is expected to reach US$ 42.73 billion by 2031. The market is estimated to record a CAGR of 24.2% from 2023 to 2031. The expansion of AI, machine learning, and blockchain applications is likely to remain a key trend in the market in the coming years.

Regtech Market Analysis

The regtech market has witnessed significant growth in recent years. A rise in fraudulent activities such as money laundering and phishing has created a need for robust regulatory technology solutions across the globe, which contribute to the growth of this market. Regtech solutions help organizations detect and prevent fraudulent activities, ensuring compliance with regulations. Moreover, the rapid adoption of advanced technologies, such as big data, artificial intelligence (AI), machine learning (ML), natural language processing (NLP), and cloud computing, plays a major role in driving the regtech market.

Regtech Market Overview

Regulatory technology (Regtech) is an emerging platform that incorporates technology in various operations determining regulatory compliance in businesses from various industries, including banking, finance, communication, and energy. Regtech solutions facilitate in-process monitoring and address aspects that can potentially lead to deviations from regulatory frameworks. As a result, regtech helps companies generate cost-effective and real-time solutions from their risk and compliance units. Compliance with regulations is mandatory, and noncompliance can result in high costs for companies. Failure to comply with regulations can lead to hefty penalties, reputation damage, and even criminal charges. Regtech companies have become essential for businesses in the financial industry, where compliance is of utmost importance. These companies specialize in providing technology-based solutions that can monitor compliance in real time, reduce operational risks, and streamline compliance processes. The regtech market is driven by the need for efficient and less expensive ways to comply with regulations, leveraging advancements in technologies such as big data, machine learning, artificial intelligence, and blockchain to enhance regulatory processes. Nonetheless, the rise of digital products has propelled the occurrence of data breaches, cyber hacking, money laundering, and other fraudulent activities, further driving the need for regtech solutions.

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Regtech Market: Strategic Insights

Market Size Value inUS$ 7.55 Billion in 2023
Market Size Value byUS$ 42.73 Billion by 2031
Growth rateCAGR of 24.2% from 2023 to 2031
Forecast Period2024-2031
Historic Period2021-2022
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Regtech Market Drivers and Opportunities

Consequences of Fraudulent Activities in Financial Operations Favor Market

Large organizations usually deal with significant financial transactions and handle crucial data, rendering them susceptible to cybercrimes. According to a study by "eftsure" on payment fraud investigations, nearly one in every five organizations (~20%) said that the most disruptive incidence they faced incurred the cost of more than US$ 50 million to their businesses. Regtech solutions come with advanced technologies and tools to detect and prevent financial crimes. These solutions leverage technologies such as Big Data analytics, machine learning, and artificial intelligence to enhance compliance processes and improve the effectiveness of anti-money laundering (AML) and know-your-customer (KYC) operations.

Regtech tools can identify suspicious transactions, detect patterns of fraudulent behavior, and provide timely alerts to financial institutions. Tools such as advanced transaction monitoring systems help financial institutions identify money laundering attempts by analyzing transaction data and detecting irregularities or patterns that may indicate fraudulent behavior. Further, the integration of technologies such as machine learning and artificial intelligence enables regtech solutions to process large volumes of data and identify suspicious activities in real time.

Digitization of Business Operations to Create Opportunities in Market

Efficient and automated regulatory compliance solutions are becoming crucial for businesses with the increasing reliance on digital platforms and processes. Regtech solutions help them streamline compliance processes and ensure adherence to regulatory requirements. According to The Insight Partner’s analysis, more than 90% of organizations are engaged in making efforts to embrace digitalization; 85% of executives in top companies state that digitization is a key priority of their businesses. Additionally, more than 88% of all businesses have plans to implement a digital-first company strategy. Regtech solutions enable businesses to reduce manual efforts and minimize human errors. Moreover, the adoption of regtech solutions provides improved traceability, along with bringing improvements in the auditing of compliance activities. Their robust documentation and reporting capabilities make it easier for businesses to demonstrate compliance with regulatory authorities. Thus, the ongoing digitization of business operations propels the growth of the regtech market.

Regtech Market Report Segmentation Analysis

Key segments that contributed to the derivation of the regtech market analysis are component, deployment type, enterprise size, application, and industry vertical.

  • Based on component, the market is bifurcated into solutions and services. The solutions segment dominated the market in 2023.
  • Based on deployment type, the regtech market is segmented into on-premises and cloud. The cloud segment dominated the market in 2023.
  • Based on the enterprise size, the regtech market is bifurcated into SMEs and large enterprises. The large enterprises segment dominated the market in 2023.
  • By application, the market is segmented into risk and compliance management, AML and fraud management, and identity management. The risk and compliance management segment dominated the market in 2023.
  • Based on industry vertical, the market is segmented into banks, insurance, and others. The banks segment dominated the regtech market in 2023.

Regtech Market Share Analysis by Geography

The geographic scope of the regtech market report is mainly divided into five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. North America dominated the market in 2023. The North American regtech market size is derived on the basis of the market performances in the US, Canada, and Mexico. The complex and stringent regulatory environment across various industries in the US, including finance and healthcare, creates a strong demand for regtech solutions that can help organizations navigate and comply with these regulations effectively. The ever-evolving regulatory landscape in the country poses significant compliance challenges for businesses. Regtech solutions employ advanced technologies, such as AI, ML, and automation, to keep track of regulatory updates and ensure adherence to the latest requirements.

Regtech Market Report Scope

Regtech Market News and Recent Developments

The regtech market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the regtech market are listed below:

  • MetricStream—a global market leader in integrated risk management (IRM) and governance, risk, and compliance (GRC)—has announced a partnership with Kinetix, a financial technology company specializing in AI-powered technology solutions for banking and capital markets. The new partner would focus on helping compliance teams with automated, AI-powered identification, extraction, and review of regulatory obligations specifically applying to their organizations. They would also enable businesses to accelerate alignment with relevant regulatory requirements and ensure timely and accurate compliance. (Source: MetricStream, Press Release, March 2023)
  • PricewaterhouseCoopers Aarata LLC (PwC Aarata) has launched a compliance advisory service using regtech in partnership with CUBE. This was the third partnership between CUBE and the PwC global network, following collaborations with PwC UK and PwC Switzerland. (Source: PricewaterhouseCoopers Aarata LLC, Press Release, April 2022)

Regtech Market Report Coverage and Deliverables

The “Regtech Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

  • Regtech market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Regtech market trends as well as market dynamics such as drivers, restraints, and key opportunities
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Regtech market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
  • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the regtech market
  • Detailed company profiles
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered

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to segments covered.

Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope

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to country scope.

Frequently Asked Questions


What are the driving factors impacting the regtech market?

A rise in fraudulent activities such as money laundering and phishing is a main factor contributing to the growth of the market.

What are the future trends of the regtech market?

The expansion of AI, machine learning, and blockchain applications is emerging as a key trend in the market.

Which are the leading players operating in the regtech market?

IBM Corporation, Deloitte, Thomson Reuters Corporation, PwC, and Broadridge Financial Solutions, Inc are among the leading players in the regtech market.

What is the expected CAGR of the regtech market?

The market is expected to grow at a CAGR of 24.2% during the forecast period.

Which region dominated the regtech market in 2023?

North America dominated the market in 2023.

What would be the estimated value of the regtech market by 2031?

The estimated value of the regtech market is expected to reach US$ 42.73 billion by 2031.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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