Regulatory Compliance Market Size, Share, Industry, Forecast and outlook (2024-2031)

Market Overview

Regulatory Compliance Market is estimated to reach at a high CAGR during the forecast period (2024-2031). 165 pages report analyses the Regulatory Compliance market shares, recent trends, competitive intelligence and future market outlook. Competitive rivalry intensifies with Deloitte, Protiviti Inc., Ernst and Young, MetricStream, Complinity and others operating in the market.

Regulatory compliance entails adhering to relevant laws, regulations, policies, processes, standards, and other directives established by governmental and regulatory entities such as FINRA, SEC, FDA, NERC, and the Financial Conduct Authority (FCA). Regulations differ greatly based on the sector and jurisdiction. Large enterprises with a global presence must adhere to relevant rules and regulations in all countries of operation and origin.

Market Summary

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Market Dynamics

• Financial institutions encountered an increase in compliance requirements due to the crisis and ensuing regulatory reforms. Conventional compliance protocols, dependent on manual processes, were unable to satisfy the requirements of the emerging regulatory landscape. RegTech compliance software utilizes advanced technologies such as artificial intelligence, machine learning, and blockchain to improve compliance and risk management operations, hence increasing efficiency and effectiveness.
• Regulatory compliance operations have historically depended on manual procedures that entail labor-intensive tasks such as document checks and data entry. Due to the advent of technologies such as artificial intelligence (AI), machine learning (ML), and blockchain, enterprises are transitioning to automated compliance systems. These technologies provide real-time surveillance and analysis of extensive databases, enabling firms to identify anomalies and potential hazards. Automating repetitive procedures and utilizing predictive analytics enhances the efficiency and effectiveness of compliance efforts.
• An increasing number of enterprises are allocating resources towards data integration and analytical tools, as well as algorithm development training, to reduce risks and uncover fraud through data analysis, pattern recognition, and transaction security.
• Industry stakeholders are investing in the use of advanced technology to enhance operational efficiency and facilitate global corporate expansion. To operate in many countries, firms must adhere to diverse country-specific legislation. Consequently, solution suppliers are investing in the development of novel and efficient applications of integration technologies.
• Blockchain technology is becoming favored in the sector because to its transparent and secure record-keeping functionalities. Likewise, artificial intelligence is delivering many applications that assist market participants in giving condition-specific solutions.
• For example, In May 2023, regulatory solution vendor Comply Advantage introduced an anti-fraud technology by incorporating artificial intelligence into their regulatory solution. The novel solution identifies dubious activities and fraud patterns to guarantee secure transactions.

COVID-19 Impact Analysis On Market

The epidemic caused by the SARS-CoV-2 virus resulted in a global lockdown and moderately affected regulatory compliance. Governments have been under extreme time pressure to devise policy solutions to the COVID-19 pandemic and have relied on streamlined administrative procedures and new types of coordinating committees to approve plenty of emergency rules. Moreover, several countries have reprioritized staffing resources to develop the immediate crisis response and away from regulatory management tools and practice, including regulatory oversight functions. Some countries have shifted personnel priorities away from regulatory management tools and practices, including regulatory oversight functions, and toward creating immediate crisis response capabilities. However, the situation is expected to improve gradually in the forecast period.

Market Segment Analysis 

Service segment is expected to hold the largest market share in regulatory compliance market

The service segment accounted for the largest market share in 2020.  Intensified government scrutiny and the demand for greater transparency continues to raise this bar, further increasing the risk of noncompliance. Nearly 70 percent of organizations are subject to five or more regulatory requirements. Regulatory guidelines are in place for almost all industries, and it’s critical for an organization’s success. Moreover, Companies are challenged to comply with laws and regulations while increasing shareholder value and protecting their brand. These challenges are acute in highly regulated industries such as financial services, health care, and life sciences, where the compliance plan has evolved beyond mere compliance to include strategic issues. For instance, PricewaterhouseCoopers is a network that predicts the impact of emerging regulations on strategic direction, business model and compliance/risk management processes and systems, determining the right compliance roles and accountabilities between legal, compliance, audit and business functions, driving compliance culture change across diverse geographies, functions and teams. Additionally, developing integrated compliance capabilities to anticipate global trends better, increase efficiency, and participate in the evolution of the company’s core strategies. Therefore, the market is expected to boost in the forecast period from the above statements.

Market Geographical Share

North America region holds the largest market share in the global regulatory compliance market.

In 2020, North America accounted for the highest revenue share. The region's growth is attributed to the healthcare infrastructure that is well-developed, modern, and controlled, early penetration of advanced technologies, growing cyber-threats, stringent government regulatory norms, presence of large multinational pharmaceuticals, biotechnology, and medical device companies are some of the factors due to which the market is expected to boost in the forecast period. For instance, according to a report released by the World Trade Organization (WTO) in April 2020, the United States was the world's top importer of medical items from 2017 to 2019, accounting for 19% of total global medical imports. It means that a more significant number of pharmaceutical and medical device companies worldwide are entering the US market, necessitating faster regulatory approval from the US Food and Drug Administration (USFDA) to obtain a competitive advantage. Therefore, the North American region is expected to hold the largest market share in the forecast period.

Competitive Landscape

Major key players in the regulatory compliance market are Deloitte, Protiviti Inc., Ernst and Young, MetricStream, Complinity, Baker Tilly International, Grant Thornton International, Norton Rose Fulbright, PricewaterhouseCoopers and Enablon.

Deloitte:

Overview:

Deloitte Touche Tohmatsu Limited, commonly referred to as Deloitte, was founded in London in 1845 and expanded into the United States in 1890. It is a global professional services network with over 150 locations in over 150 countries and territories. Deloitte is one of the Big Four accounting firms and the world's largest professional services network regarding revenue and personnel.

Product Portfolio:

Regulatory and Compliance Program Services provided by Deloitte member firms assist organizations in adapting to a changing regulatory environment. It has many potential benefits to clients, especially in the following areas: Understanding the implications and requirements of new regulations, Implementing appropriate processes, policies, and procedures, and designing and assessing policies and procedure.