RegTech Market – Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, Segmented By Component (Solutions and Services (Professional Services and Managed Services)), By Deployment Mode (On-premises, Cloud), By Organization Size (SMEs, Large Enterprise), By Application (Risk and Compliance Management, Identity Management, Regulatory Reporting, Fraud Management, Regulatory Intelligence), By Technology (Cloud Computing, Blockchain, Biometrics, Artificial Intelligence (AI), NLP & Machine Learning, and Others), By End-User (Healthcare, BFSI, Retail, IT & Telecommunications, Government & Public Sector, Transportation & Logistics, Food & Beverage, Manufacturing, and Others), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 17.77 Billion
CAGR (2026-2031)	24.64%
Fastest Growing Segment	Cloud
Largest Market	North America
Market Size (2031)	USD 66.62 Billion

Market Overview

The Global RegTech Market will grow from USD 17.77 Billion in 2025 to USD 66.62 Billion by 2031 at a 24.64% CAGR. Regulatory Technology, or RegTech, is defined as the utilization of information technology to enhance regulatory processes, including monitoring, reporting, and compliance, within the financial services industry. The primary drivers propelling market growth include the escalating cost of compliance operations and the urgent need to mitigate financial crime through automated surveillance. According to UK Finance, in 2024, the finance industry prevented over £710 million of unauthorised fraud in the first six months alone, underscoring the critical reliance on these technologies. These drivers represent structural shifts in how institutions manage risk, distinct from temporary technological trends.

However, the market faces a significant challenge regarding the integration of these tools with entrenched legacy systems. The complexity of embedding modern compliance software into outdated banking infrastructure often results in prolonged implementation timelines and high operational risks. This technical friction hampers the ability of financial institutions to rapidly scale these solutions, acting as a substantial impediment to broader market expansion despite the operational efficiencies offered by the technology.

Key Market Drivers

The surging prevalence of financial crimes, cyber fraud, and money laundering is fundamentally reshaping the Global RegTech Market, compelling financial institutions to abandon reactive measures in favor of advanced, automated surveillance. As criminal networks increasingly utilize sophisticated digital channels to obfuscate illicit flows, regulators have responded with rigorous enforcement actions and punitive measures to ensure compliance. This intensified scrutiny is driving market demand for robust regulatory technology capable of real-time detection and reporting. According to Fenergo, January 2025, in the 'AML Fines Report for 2024', global regulators issued a total of $4.6 billion in enforcement actions against financial institutions in 2024, highlighting the severe financial consequences of inadequate compliance frameworks.

Concurrently, the accelerated integration of Artificial Intelligence, Machine Learning, and Blockchain is revolutionizing how these institutions manage their regulatory obligations. Market participants are rapidly deploying AI-driven solutions to process vast datasets, reduce false positives in transaction monitoring, and enhance decision-making accuracy. This technological shift is moving the industry beyond legacy rule-based systems toward predictive analytics and intelligent automation. According to SteelEye, June 2025, in the '2025 Annual Compliance Health Check Report', 68% of firms reported live AI deployments in surveillance and alert-triage workflows, marking a significant transition from pilot programs to production. Reflecting the sector's long-term trajectory, according to Thomson Reuters, August 2025, in the 'Future of Professionals Report', 80% of professionals predict AI will have a high or transformational impact on their work within the next five years.

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Key Market Challenges

The integration of modern regulatory tools with entrenched legacy systems acts as a formidable barrier to the expansion of the Global RegTech Market. Financial institutions often operate on core infrastructures designed decades ago, lacking the flexibility required to interface seamlessly with contemporary compliance software. When banks attempt to overlay automated surveillance or reporting solutions onto these rigid architectures, they encounter severe technical incompatibility. This friction necessitates extensive customization and prolonged testing phases, significantly increasing the total cost of ownership while delaying time-to-value. Consequently, institutions often postpone large-scale RegTech deployments, fearing that the operational disruption caused by complex integration projects will outweigh the immediate efficiency gains.

This structural rigidity effectively bottlenecks the adoption rate of new regulatory technologies. The reliance on outdated platforms creates a dependency that stalls the modernization efforts essential for real-time compliance monitoring. According to the American Bankers Association, in 2024, survey data indicated that 35% of banks were explicitly dissatisfied with their core technology providers, identifying these legacy relationships as their primary non-policy concern. This significant level of dissatisfaction underscores the infrastructure deficit; as long as institutions struggle with the limitations of their foundational systems, the scalable implementation of advanced RegTech solutions will remain constrained, directly tempering overall market growth.

Key Market Trends

Automated ESG Compliance Reporting is rapidly emerging as a critical structural trend, driven by the transition from voluntary sustainability disclosures to rigorous mandatory frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD). Financial institutions are increasingly abandoning manual data collection methods in favor of specialized software solutions capable of aggregating disparate environmental and social metrics for audit-ready validation. This shift is necessitated by the sheer volume of granular data required by new standards, which renders legacy spreadsheet-based management obsolete. According to Thomson Reuters, November 2024, in the '2024 State of Corporate ESG' report, 97% of organizations currently utilize third-party solutions for ESG management, reflecting the widespread industry pivot toward technology-driven sustainability governance to ensure accuracy and mitigate greenwashing risks.

Simultaneously, the Convergence of RegTech and SupTech is fundamentally reshaping the supervisory landscape, creating a symbiotic digital ecosystem between financial authorities and regulated entities. As central banks and regulators digitize their internal monitoring capabilities—termed Supervisory Technology or SupTech—they are establishing new data standards that compel financial institutions to upgrade their reporting infrastructure for interoperability. This trend moves the industry toward a data-pull model where regulators can access compliance data closer to real-time, reducing the lag inherent in traditional periodic reporting. According to FinTech Global, March 2025, in the 'Central banks embrace RegTech and SupTech' article, just over half of surveyed central banks are actively using these technologies, signaling a definitive move toward digitized, data-centric supervision that demands reciprocal technological maturity from the private sector.

Segmental Insights

The Cloud deployment segment represents the fastest-growing category within the Global RegTech Market as financial organizations increasingly prioritize scalable and cost-efficient compliance solutions. This rapid expansion is driven by the necessity to process vast volumes of data for real-time reporting without the significant expense of maintaining physical infrastructure. Furthermore, regulatory bodies such as the Financial Conduct Authority advocate for digital data standardization, which encourages firms to utilize cloud capabilities for agile and accurate regulatory submissions. Consequently, this operational shift allows companies to ensure continuous adherence while adapting efficiently to an evolving legal environment.

Regional Insights

North America maintains a dominant position in the Global RegTech Market driven by the extensive adoption of compliance automation within the financial services sector. The region features a rigorous regulatory environment where institutions such as the Securities and Exchange Commission enforce strict standards for transparency and financial risk management. Consequently, banks and insurance providers invest heavily in technology to manage complex reporting requirements and anti-money laundering protocols. The concentration of key technology providers in the United States further supports the integration of these solutions, ensuring North America remains the central hub for regulatory technology development and implementation.

Recent Developments

• In December 2025, Regnology signed an exclusive agreement to acquire the Regulatory Reporting and Asset-Liability Management (ALM) Solutions business from Moody's. This acquisition was intended to combine Moody's established capabilities in risk quantification and banking regulatory reporting with Regnology's existing reporting and supervisory technology portfolio. The transaction aimed to create a robust, integrated platform for Chief Risk Officers and Chief Financial Officers to manage financial and regulatory data more efficiently. The deal represented a significant expansion for the company, further strengthening its ability to serve banks and financial institutions globally with comprehensive regulatory and risk management solutions.
• In November 2025, FundApps and SteelEye announced a definitive agreement to merge, creating a unified global platform for regulatory compliance. This collaboration combined FundApps' expertise in shareholding disclosure and position limits with SteelEye's capabilities in trade and communications surveillance. The consolidated entity aimed to provide financial institutions with a comprehensive view of regulatory risks across the entire investment lifecycle. Backed by additional equity investment from FTV Capital, the merger was positioned to support over 350 clients worldwide, with the joint operations projected to generate a combined annual recurring revenue of nearly £50 million. The business focused on delivering end-to-end automation to simplify adherence to complex international regulations.
• In June 2024, Fenergo launched its new AI Powered Client Lifecycle Management (CLM) solution to address the financial industry's intensifying regulatory challenges. The release introduced advanced artificial intelligence capabilities, including intelligent document processing and a generative AI assistant, which were engineered to automate labor-intensive compliance tasks. These tools aimed to significantly reduce manual document handling and accelerate client onboarding times for financial institutions. The company stated that the new features would help firms mitigate financial crime risks more effectively while lowering operational costs. This product launch underscored the provider's commitment to leveraging cutting-edge technology to streamline complex Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.
• In May 2024, Corlytics, a leading provider of regulatory risk intelligence, acquired the digital RegTech platform from Deloitte UK. This strategic transaction allowed the company to integrate Deloitte’s regulatory monitoring capabilities directly into its own intelligent data solutions. The acquisition was described as a transformational move, designed to enhance the firm's ability to serve Tier 1 clients by offering a seamless, end-to-end service for managing global compliance obligations. As part of the agreement, a team of experts from Deloitte joined Corlytics to support the expanded platform. The deal further consolidated the company's market position following a significant investment from Verdane earlier that year.

Key Market Players

• ACTICO GmbH
• REGnosys Limited
• Thomson Reuters
• Ascent Technologies Inc.
• Broadridge Financial Solutions Inc.
• Ayasdi AI LLC
• Deloitte Touche Tohmatsu Limited
• International Business Machines Corporation (IBM)
• London Stock Exchange Group (LSEG)
• Wolters Kluwer N.V.

By Component	By Deployment Mode	By Organization Size	By Application	By Technology	By End-User	By Region
Solutions and Services (Professional Services and Managed Services)	On-premises Cloud	SMEs Large Enterprise	Risk and Compliance Management Identity Management Regulatory Reporting Fraud Management Regulatory Intelligence	Cloud Computing Blockchain Biometrics Artificial Intelligence (AI) NLP & Machine Learning Others	Healthcare BFSI Retail IT & Telecommunications Government & Public Sector Transportation & Logistics Food & Beverage Manufacturing Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global RegTech Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• RegTech Market, By Component:

• Solutions and Services (Professional Services and Managed Services)

• RegTech Market, By Deployment Mode:

• On-premises
• Cloud

• RegTech Market, By Organization Size:

• SMEs
• Large Enterprise

• RegTech Market, By Application:

• Risk and Compliance Management
• Identity Management
• Regulatory Reporting
• Fraud Management
• Regulatory Intelligence

• RegTech Market, By Technology:

• Cloud Computing
• Blockchain
• Biometrics
• Artificial Intelligence (AI)
• NLP & Machine Learning
• Others

• RegTech Market, By End-User:

• Healthcare
• BFSI
• Retail
• IT & Telecommunications
• Government & Public Sector
• Transportation & Logistics
• Food & Beverage
• Manufacturing
• Others

• RegTech Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE