Navigating Compliance: The Evolution of Regulatory Technology in 2024
The regulatory technology (RegTech) market has seen significant growth in recent years, with expectations of continued expansion. From $6.71 billion in 2023, the market is projected to grow to $8.16 billion in 2024, reflecting a compound annual growth rate (CAGR) of 21.5%. This growth stems from several factors, including the rise of fintech startups, regulatory changes after financial crises, and the shift from manual to automated compliance processes.
Exponential Growth Driven by Sustainability and ESG Compliance
The RegTech market is expected to escalate notably, reaching $17.93 billion by 2028 with a CAGR of 21.8%. The primary drivers include an increasing focus on sustainability and ESG (Environmental, Social, and Governance) compliance, the automation of regulatory reporting, real-time transaction monitoring, and the establishment of robust compliance audit trails.
Major Players and Technological Innovations
Industry giants like International Business Machines Corporation and Deloitte Touche Tohmatsu Limited are pioneering advanced RegTech solutions. For example, Fidelity Investments' Saifr, an AI-powered platform, is transforming compliance by integrating AI and machine learning to streamline regulatory processes and enhance risk management.
Key Trends Shaping the Future
Innovative trends such as regulatory change management platforms, real-time transaction monitoring, and regulatory compliance-as-a-service are poised to define the future of RegTech. These advancements are reshaping financial services and expanding into non-financial industries, leveraging blockchain and distributed ledger technology for enhanced security and transparency.
Market Segments
- Component: Solutions, Services
- Deployment: Cloud, On-Premises
- Enterprise Size: Small and Medium Enterprise, Large Enterprise
- Application: Regulatory Intelligence, Identity Management, Compliance and Risk Management, Fraud Management, Regulatory Reporting
Geographical Insights: North America Leads, Asia-Pacific to Witness Rapid Growth
North America dominated the regulatory technology market in 2023, driven by stringent regulatory frameworks. Meanwhile, Asia-Pacific is expected to emerge as the fastest-growing region, spurred by increasing regulatory complexities and digital transformation initiatives.
Regulatory Technology Global Market Report 2024 from TBRC Covers:
- Market size data for the forecast period: Historical and Future
- Market analysis by region: Asia-Pacific, China, Western Europe, Eastern Europe, North America, USA, South America, Middle East, and Africa
- Market analysis by countries: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA
