A brace of new reports on the global market for regulatory technology (RegTech) predicts stellar growth for the sector, but the analysts disagree on their forecasts.

According to Custom Market Insights, global RegTech was valued at $6.8 billion in revenues in 2021, with estimates of $8.1 billion for the current year, growing to roughly $44 billion by 2030.

The report quotes a compound annual growth (CAGR) rate of 15 percent, though Transform Finance estimates it at 23.5 percent, based on the analysts’ 2022 figures.

Software was the biggest market segment in 2021, with cloud projected to experience significant growth over the next eight years. North America was the biggest market.

By contrast, a new report from IMARC Group, RegTech Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027, valued the sector at $8.7 billion in 2021.

The firm expects the market to hit $29.2 Billion by 2027, which the report states is a CAGR of 22.7 percent (TransformFinance calculates it at 27.4 percent for the forecast period).

In recent years, RegTech has gained traction as it minimises compliance failure risks, improves efficiency, reduces costs and speeds up business processes, explains the report.

“The global RegTech market is primarily driven by the expanding banking, financial services and insurance (BFSI) industry and the increasing number of fraudulent activities.

“Additionally, the growing need for risk and compliance management and the escalating demand for faster online transactions have accelerated product adoption.”

The integration of artificial intelligence (AI) and the Internet of Things (IoT) with connected devices to automate fraud prevention, employee surveillance, and compliance data management has spurred product demand, adds the report.