LONDON – Blockchain technology is gaining popularity among the RegTech market trends. A blockchain is a distributed ledger that is shared among the nodes of a computer network. It stores information electronically in digital format. Players in the RegTech market are focusing on the launch of blockchain-based platforms to use as a regulatory solution. For instance, in February 2022, Sekuritance, an Ireland-based regulation technology platform launched Mainnet to enable governments, businesses and individuals to use blockchain as a regulatory solution. The Sekuritance Portal is the blockchain-based compliance platform to identify, verify and transact safely online for individuals, SMEs and businesses.
The global regtech market size is expected to grow from $7.9 billion in 2021 to $9.88 billion in 2022 at a compound annual growth rate (CAGR) of 25.1%. The global regtech market growth is then expected to grow to $23.76 billion in 2026 at a CAGR of 24.5%.
The Rising Trend Of Digitization Is A Major Driver For The Market
As per the regtech market overview, the rising trend of digitization is driving the growth of the market. Digitization in business has proven to be almost essential for business success nowadays. It happens when a business starts using digital technologies to change its business model and provide new value-producing opportunities. Global spending on the digital transformation of business practices, products, and organizations has reached USD 1.8 trillion in 2022, an increase of 17.6% over 2021.
IBM Held The Largest Share Of The RegTech Market
International Business Machines Corporation was the largest company in the RegTech global market with a 4.33% share of the market in 2021.The company is headquartered in Armonk, New York, the USA. IBM’s growth strategy focuses on using innovative technologies to solve the growing challenges through collaborations and partnerships. For instance, in July 2020, IBM partnered with Ascent for integrating their RegTech solutions to help banks and other financial institutions in managing their ever-changing and growing regulatory requirements. The integrated solution helps the regulated businesses in keeping a better pace with the rapidly changing regulatory environment and reduces the risk for potential fines and other supervisory actions.
RegTech Market Segmentation
The global RegTech market is segmented –
1) By Component: Solutions, Services
2) By Deployment Type: Cloud, On-Premises
3) By Organization Size: Large Enterprises, Small and Medium-Sized Enterprises (SMEs)
4) By Application: Risk and Compliance Management, Identity Management, Regulatory Reporting, Anti-Money laundering (AML) and Fraud Management, Regulatory Intelligence
5) By End-User: Banks, Insurance Companies, FinTech Firms, IT and Telecom, Public Sector, Energy and Utilities, Others
Source: The Business Research Company
