The global market for regulatory technology (RegTech) will be worth $4.06 billion by 2024, up from $1.4 billion this year, according to a report published by analyst firm theresearchinsights.com.
That represents a compound annual growth rate (CAGR) of 24 percent in revenues over the next five years.
RegTech is attracting significant investor interest worldwide, due to its ability to provide both new digital solutions and deep regulatory insights in monitoring, reporting, and compliance – especially via Software as a Service (SaaS) platforms.
North America is the fastest growing RegTech Market.
Among the key players identified in the report are: Bearingpoint; MetricStream; NICE Actimize; Broadridge; Traiana; Finastra; Targens GmbH; Acin; Fenergo; Accuity; Lombard Risk; Agreement Express; Exiger (DDIQ); EastNets; Amlpartners; Sysnet Global Solutions; MindBridge Ai; IdentityMind Global; Regbot; and Arachnys.
Meanwhile a report from rival market analysis firm eSherpa says that a strong trend towards research and development (R&D) investments in the services industry is one of the major drivers of growth in the RegTech market. Others include the need to cut costs and achieve sustainable growth.
Recent data protection regulations such as the EU’s GDPR and the California Consumer Protection Act (CCPA) in the US are also driving uptake of RegTech solutions, as organisations attempt to stave off severe financial penalties.
This is particularly true for Europe, where fines can be as high as four percent of turnover for breaches.
In the US, other states, such as Washington, are beginning to follow California’s lead by beginning to see data protection and governance as restoring necessary trust in the digital economy.