III. Industry Analysis
3.1 Market Size
The Global RegTech market size was valued at $15.68 billion in 2020 and is projected to reach $87.17 billion by 2028, growing at a CAGR of 23.92% from 2021 to 2028.1 The increased number of fraudulent activities in the financial sector, such as money laundering, is likely to drive the expansion of the RegTech market over the forecast period. The expanding trend of regulatory sandboxing has enabled RegTech companies to create new and improved regulatory solutions for the financial industries, which will boost the global RegTech market's growth in the next years.
RegTech has really started to grow up over the past year or so, with a significant expansion in the application of technology, including a range of sandboxes and the Financial Conduct Authority’s (FCA) TechSprints to solve regulatory problems.2
The positive outlook for the RegTech market is being driven by several factors, one of which is the significant growth in the banking, financial services, and insurance (BFSI) industry worldwide. Moreover, the increasing occurrence of fraudulent activities across the internet leading to financial losses is providing a thrust to the market growth.3
3.2 Industry Profile
Businesses must embrace their platforms due to the growing user base and shifting consumer preferences. The trend of using blockchain is increasing day by day. The use of blockchain technology solutions for numerous commercial applications, including payments, exchanges, smart contracts, documentation, and digital identification, has increased in popularity. To build a decentralized network of IoT devices, which would do away with the requirement for a central site to handle device communication, several innovators are applying blockchain technologies.
Moreover, RegTech is benefiting from emerging technologies such as cloud computing, machine learning, biometrics, big data, and blockchain. These technologies facilitate the development of enterprise-wide data governance and reporting, allowing for the automation of human modeling and reporting operations.
2.https://www.financierworldwide.com/the-future-of-regtech-a-skyrocketing-industry#.YrVS5nZBzIU
3.https://www.globenewswire.com/en/news-release/2022/04/12/2420962/28124/en/Worldwide-RegTech-Industry-to-2027-Featuring-Acuant-Broadridge-Financial-Solutions-and-Jumio-Among-Others.html
