Global Regulatory Technology (RegTech) Market: Drivers, Restraints, Opportunities, Trends, and Forecast up to 2023
  • ID: 1259
  • July 31, 2018
  • 86 pages
  • Infoholic Research

Global Regulatory Technology (RegTech) Market: Drivers, Restraints, Opportunities, Trends, and Forecast up to 2023
Overview:
The banks and financial institutions operate in a highly regulated environment and continuously face new regulations to prevent money laundering and restrict terrorist funding. Banks spend hefty amount due to fines and penalties for non-compliance with regulations. The annual spending of the financial institutions for non-compliance issues is more than $100 billion. The FinTech industry, over the last couple of years, has realized the need and opportunity of RegTech software. The RegTech vendors offer software to simplify the implementation of regulations for financial institutions.
Market Revenue and Segmentation Analysis:
The global RegTech market revenue is estimated to be $2,321.5 million in 2018 and is expected to reach $7,207.6 million by 2023, growing at a CAGR of 25.4% during the forecast period 2018–2023. The solutions include compliance management, reporting, identity management, and risk management. The compliance management solution segment is expected to grow at the highest CAGR during the forecast period. The solutions help organizations in key compliance areas and risk aversion for AML, KYC, MiFID II, Basel III, PSD 2, Solvency II, and AIFMD. The traditional compliance tools are not found to be effective to respond to regulatory changes in recent times. With the major focus of governments across regions with GDPR guidelines, RegTech is expected to majorly impact the financial service organizations. With an increased focus on data protection rules, organizations need to strictly adhere to compliances and monitor transparency in money transactions as laid down by the regulatory bodies to avoid huge penalties. Many RegTech vendors have partnered with GRC vendors to enhance their reach to the market and clients.
The adoption of RegTech is the highest in Europe owing to strict and mandatory rules and directives for financial transactions and data protection. The cloud deployment mode offers enterprises to opt for SaaS on a subscription basis as per usage rather than incurring costs on hardware and infrastructure. The Asia Pacific region holds a huge potential for the vendors and is expected to grow at the highest CAGR during the forecast period 2018–2023. The Asia Pacific region is expected to witness growth in RegTech due to the presence of a few emerging countries and financial hubs in Hong Kong, Singapore, and India.
The organization size includes large enterprises and SMEs. The large enterprises are estimated to hold the significant market share in 2018, however, SMEs are expected to grow at higher CAGR. The cloud migration of SMEs is comparatively easier than large enterprises, which is driving the growth of SaaS adoption. The organizations are deploying RegTech solutions because of the increasing focus to expedite regulatory operations and manually reduce the complexities for risk assessment.
Regions Analysis:
The regions covered in the report are North America, Europe, Asia Pacific, Middle East Africa, and Latin America. The countries covered are the US, Canada, Germany, the UK, France, Netherlands, Switzerland, China, India, Australia, Japan, Singapore, Israel, United Arab Emirates (UAE), Brazil, and Mexico.
Benefits and Vendors
The report contains an in-depth analysis of vendor profiles, which include overview and offerings; and competitive landscape. The emergence of technologies, such as AI, ML, and automation, is impacting the market growth and organizations are adopting RegTech solutions for accurate document verifications, quick data insights, and to reduce risk vulnerability. The companies profiled in the report are Algoreg, Clarus, Reportix, NEX Regulatory Reporting, Lombard Risk, Ayasdi, Featurespace, Abside Smart Financial Technologies, Fintellix Solutions, Promapp, NetGuardians, AML Partners, EastNets, OpusDatum, and AXIOMSL.
The study offers a comprehensive analysis of the “global RegTech market”. Bringing out the complete key insights of the industry, the report aims to provide an opportunity for companies to understand the latest trends, current market scenario, government initiatives, and technologies related to the market. In addition, it helps the venture capitalists in understanding the companies better and take informed decisions.

Table of Contents
1 Industry Outlook 9
1.1 Industry Overview 9
1.2 Industry Trends 9
1.3 PEST Analysis 10
2 Report Outline 11
2.1 Report Scope 11
2.2 Report Summary 11
2.3 Research Methodology 13
2.4 Report Assumptions 13
3 Market Snapshot 15
3.1 Total Addressable Market 15
3.2 Segmented Addressable Market 15
3.3 Related Markets 16
4 Market Outlook 17
4.1 Overview 17
4.2 Porter 5 (Five) Forces 18
5 Market Characteristics 19
5.1 Evolution 19
5.2 Market Segmentation 20
5.3 Market Dynamics 21
5.3.1 Drivers 22
5.3.1.1 Enhanced focus on financial regulations 22
5.3.1.2 Europe region to adopt regulatory software at fast rate 22
5.3.1.3 To enhance transparency and monitor banking transactions 22
5.3.2 Restraints 22
5.3.2.1 The RegTech software vendors are operating in a new evolving market 22
5.3.2.2 Organizations are looking for solutions with proven use cases 22
5.3.3 Opportunities 23
5.3.3.1 Application of AI and machine learning in better identifying the potential of financial threats and risks 23
5.3.3.2 Growing GDPR concerns across regions to compel financial institutions to adopt regulatory software to ease out processes 23
5.3.4 DRO – Impact Analysis 24
6 Solutions: Market Size & Analysis 25
6.1 Overview 25
6.2 Solutions 25
6.2.1 Compliance Management 27
6.2.2 Reporting 28
6.2.3 Identity Management 30
6.2.4 Risk Management 31
7 Deployment Mode: Market Size & Analysis 34
7.1 Overview 34
7.2 On-premises 35
7.3 Cloud 37
8 Organization Size: Market Size & Analysis 39
8.1 Large Enterprises 40
8.2 SMEs 41
9 Region: Market Size & Analysis 44
9.1 Overview 44
9.1.1 Market Size and Analysis 44
9.2 North America 45
9.2.1 US 48
9.2.2 Canada 49
9.3 Europe 49
9.3.1 Germany 52
9.3.2 UK 52
9.3.3 France 53
9.3.4 Netherlands 54
9.3.5 Switzerland 54
9.3.6 Rest of Europe 55
9.4 Asia Pacific 55
9.4.1 China 58
9.4.2 India 58
9.4.3 Australia 59
9.4.4 Japan 59
9.4.5 Singapore 60
9.4.6 Rest of Asia Pacific 61
9.5 Middle East & Africa 61
9.5.1 Israel 63
9.5.2 United Arab Emirates (UAE) 64
9.5.3 REST of MEA 65
9.6 Latin America 65
9.6.1 Brazil 67
9.6.2 Mexico 68
9.6.3 Rest of Latin America 68
10 Companies to Watch for 70
10.1 Algoreg 70
10.1.1 Overview 70
10.1.2 Offerings 70
10.2 Clarus 71
10.2.1 Overview 71
10.2.2 Offerings 71
10.3 Reportix 71
10.3.1 Overview 71
10.3.2 Offerings 72
10.4 NEX Regulatory Reporting 72
10.4.1 Overview 72
10.4.2 Offerings 72
10.5 Lombard Risk 73
10.5.1 Overview 73
10.5.2 Offerings 73
10.6 Ayasdi, Inc. 73
10.6.1 Overview 73
10.6.2 Offerings 74
10.7 Featurespace Limited 74
10.7.1 Overview 74
10.7.2 Offerings 75
10.8 Abside Smart Financial Technologies 75
10.8.1 Overview 75
10.8.2 Offerings 75
10.9 Fintellix Solutions 76
10.9.1 Overview 76
10.9.2 Offerings 76
10.10 Promapp 76
10.10.1 Overview 76
10.10.2 Offerings 77
10.11 NetGuardians, Inc. 77
10.11.1 Overview 77
10.11.2 Offerings 77
10.12 AML Partners 78
10.12.1 Overview 78
10.12.2 Offerings 78
10.13 EastNets 78
10.13.1 Overview 78
10.13.2 Offerings 79
10.14 OpusDatum Ltd 79
10.14.1 Overview 79
10.14.2 Offerings 79
10.15 AXIOMSL, Inc. 80
10.15.1 Overview 80
10.15.2 Offerings 80
11 Competitive Landscape 81
11.1 Competitive Comparison Analysis 81
Annexure 83
Abbreviations 83


TABLE 1 GLOBAL REGTECH MARKET REVENUE BY SOLUTIONS, 2016–2023 ($MILLION) 24
TABLE 2 GLOBAL REGTECH MARKET GROWTH BY SOLUTIONS, 2017–2023, (Y-O-Y, %) 25
TABLE 3 COMPLIANCE MANAGEMENT MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 26
TABLE 4 REPORTING MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 28
TABLE 5 IDENTITY MANAGEMENT MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 29
TABLE 6 RISK MANAGEMENT MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 31
TABLE 7 CLOUD DEPLOYMENT MODE MARKET REVENUE BY DEPLOYMENT MODE, 2016–2023 ($MILLION) 33
TABLE 8 CLOUD DEPLOYMENT MODE MARKET GROWTH BY DEPLOYMENT MODE, 2017–2023 (Y-O-Y, %) 34
TABLE 9 ON-PREMISES MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 35
TABLE 10 CLOUD MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 36
TABLE 11 GLOBAL REGTECH MARKET REVENUE BY ORGANIZATION SIZE, 2016–2023 ($MILLION) 38
TABLE 12 GLOBAL REGTECH MARKET GROWTH BY ORGANIZATION SIZE, 2017–2023 (Y-O-Y, %) 39
TABLE 13 LARGE ENTERPRISES MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 40
TABLE 14 SMES MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 41
TABLE 15 GLOBAL REGTECH MARKET REVENUE BY REGION, 2016–2023 ($MILLION) 43
TABLE 16 GLOBAL REGTECH MARKET GROWTH BY REGION, 2017–2023 (Y-O-Y, %) 44
TABLE 17 NORTH AMERICA REGTECH MARKET REVENUE BY COUNTRY, 2016–2023 ($MILLION) 45
TABLE 18 NORTH AMERICA REGTECH MARKET REVENUE BY SOLUTIONS, 2016–2023 ($MILLION) 46
TABLE 19 NORTH AMERICA REGTECH MARKET REVENUE BY DEPLOYMENT MODE, 2016–2023 ($MILLION) 46
TABLE 20 NORTH AMERICA REGTECH MARKET REVENUE BY ORGANIZATION SIZE, 2016–2023 ($MILLION) 47
TABLE 21 EUROPE REGTECH MARKET REVENUE BY COUNTRY, 2016–2023 ($MILLION) 49
TABLE 22 EUROPE REGTECH MARKET REVENUE BY SOLUTION, 2016–2023 ($MILLION) 50
TABLE 23 EUROPE REGTECH MARKET REVENUE BY DEPLOYMENT MODE, 2016–2023 ($MILLION) 50
TABLE 24 EUROPE REGTECH MARKET REVENUE BY ORGANIZATION SIZE, 2016–2023 ($MILLION) 50
TABLE 25 ASIA PACIFIC REGTECH MARKET REVENUE BY COUNTRY, 2016–2023 ($MILLION) 56
TABLE 26 ASIA PACIFIC REGTECH MARKET REVENUE BY SOLUTION, 2016–2023 ($MILLION) 56
TABLE 27 ASIA PACIFIC REGTECH MARKET REVENUE BY DEPLOYMENT MODE, 2016–2023 ($MILLION) 57
TABLE 28 ASIA PACIFIC REGTECH MARKET REVENUE BY ORGANIZATION SIZE, 2016–2023 ($MILLION) 57
TABLE 29 MIDDLE EAST & AFRICA REGTECH MARKET REVENUE BY COUNTRY, 2016–2023 ($MILLION) 61
TABLE 30 MIDDLE EAST & AFRICA REGTECH MARKET REVENUE BY SOLUTION, 2016–2023 ($MILLION) 62
TABLE 31 MIDDLE EAST & AFRICA REGTECH MARKET REVENUE BY DEPLOYMENT MODE, 2016–2023 ($MILLION) 62
TABLE 32 MIDDLE EAST & AFRICA REGTECH MARKET REVENUE BY ORGANIZATION SIZE, 2016–2023 ($MILLION) 63
TABLE 33 LATIN AMERICA REGTECH MARKET REVENUE BY COUNTRY, 2016–2023 ($MILLION) 65
TABLE 34 LATIN AMERICA REGTECH MARKET REVENUE BY SOLUTION, 2016–2023 ($MILLION) 65
TABLE 35 LATIN AMERICA REGTECH MARKET REVENUE BY DEPLOYMENT MODE, 2016–2023 ($MILLION) 66
TABLE 36 LATIN AMERICA REGTECH MARKET REVENUE BY ORGANIZATION SIZE, 2016–2023 ($MILLION) 66

Charts

CHART 1 PEST ANALYSIS OF REGTECH MARKET 10
CHART 2 RESEARCH METHODOLOGY OF GLOBAL REGTECH MARKET 13
CHART 3 GLOBAL FINTECH MARKET, 2016 – 2023 ($BILLION) 14
CHART 4 GLOBAL REGTECH MARKET, 2016 – 2023 ($MILLION) 15
CHART 5 PORTERS 5 FORCES FOR REGTECH MARKET 17
CHART 6 EVOLUTION OF REGTECH MARKET 18
CHART 7 EMERGENCE OF REGTECH MARKET 19
CHART 8 REGTECH SEGMENTATION 19
CHART 9 MARKET DYNAMICS – DRIVERS, RESTRAINTS & OPPORTUNITIES 20
CHART 10 DRO - IMPACT ANALYSIS OF REGTECH MARKET 23
CHART 11 COMPLIANCE MANAGEMENT SEGMENT EXPECTED TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 24
CHART 12 COMPLIANCE MANAGEMENT MARKET REVENUE, 2016–2023 ($MILLION) 26
CHART 13 REPORTING MARKET REVENUE, 2016–2023 ($MILLION) 27
CHART 14 IDENTITY MANAGEMENT MARKET REVENUE, 2016–2023 ($MILLION) 29
CHART 15 RISK MANAGEMENT MARKET REVENUE, 2016–2023 ($MILLION) 30
CHART 16 CLOUD DEPLOYMENT MODE IS EXPECTED TO GROW AT THE HIGHER CAGR DURING THE FORECAST PERIOD 33
CHART 17 ON-PREMISES MARKET REVENUE, 2016–2023 ($MILLION) 35
CHART 18 CLOUD MARKET REVENUE, 2016–2023 ($MILLION) 36
CHART 19 SMES EXPECTED TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 38
CHART 20 LARGE ENTERPRISES MARKET REVENUE, 2016–2023 ($MILLION) 39
CHART 21 SMES MARKET REVENUE, 2016–2023 ($MILLION) 41
CHART 22 ASIA PACIFIC REGION IS EXPECTED TO GROW AT THE HIGHEST CAGR DURING THE FORECAST PERIOD 43
CHART 23 NORTH AMERICA REGTECH MARKET REVENUE, 2016–2023 ($MILLION) 45
CHART 24 US REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 47
CHART 25 CANADA REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 48
CHART 26 EUROPE REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 49
CHART 27 GERMANY REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 51
CHART 28 UK REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 52
CHART 29 FRANCE REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 53
CHART 30 NETHERLANDS REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 53
CHART 31 SWITZERLAND REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 54
CHART 32 REST OF EUROPE REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 55
CHART 33 ASIA PACIFIC REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 55
CHART 34 CHINA REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 58
CHART 35 INDIA REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 58
CHART 36 AUSTRALIA REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 59
CHART 37 JAPAN REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 59
CHART 38 SINGAPORE REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 60
CHART 39 REST OF ASIA PACIFIC REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 60
CHART 40 MIDDLE EAST & AFRICA REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 61
CHART 41 ISRAEL REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 63
CHART 42 UAE REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 64
CHART 43 REST OF MEA REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 64
CHART 44 LATIN AMERICA REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 65
CHART 45 BRAZIL REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 67
CHART 46 MEXICO REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 67
CHART 47 REST OF LATIN AMERICA REGTECH MARKET REVENUE, 2016-2023 ($MILLION) 68
CHART 48 GLOBAL REGTECH MARKET: COMPETITIVE LANDSCAPE 78

None

Algoreg, Clarus, Reportix, NEX Regulatory Reporting, Lombard Risk, Ayasdi, Featurespace, Abside Smart Financial Technologies, Fintellix Solutions, Promapp, NetGuardians, AML Partners, EastNets, OpusDatum, and AXIOMSL

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