At 21.4% CAGR, South & Central America Regtech Market is Projected to be Worth US$ 2,441.07 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the South & Central America regtech market was valued at US$ 516.50 million in 2023 and is expected to reach US$ 2,441.07 million by 2031, registering a CAGR of 21.4% from 2023 to 2031. Low entry barriers for SaaS-based solutions and digitization of business operations are among the critical factors attributed to drive the South & Central America regtech market growth.

Regtech firms employ cloud technology and software-as-a-service (SaaS) capability to assist businesses in complying with laws more efficiently and affordably. Regtech solutions enable businesses to maintain a more consistent approach to data quality from the onboarding stage through continuous customer monitoring. Streamlining know-your-customer (KYC) checks and eliminating the manual processes of customer record verification can help improve compliance with anti-money laundering rules. The popularity of the SaaS model in Regtech and other industries can be attributed to its accessibility and low human intervention needs. SaaS solutions can be easily accessible with an internet connection and a browser. Moreover, vendors themselves can manage all technical issues, resulting in less dependency on in-house IT teams. Additionally, with easier access to Regtech tools, companies can explore and adopt cutting-edge technologies such as artificial intelligence, machine learning, and blockchain. These technologies offer new opportunities for regtech companies to develop advanced solutions that address evolving regulatory challenges. Thus, the low entry barriers for SaaS-based Regtech solutions offer potential opportunities for the growth of the market.

On the contrary, high development and deployment costs hamper the growth of South & Central America regtech market.

By component, the South & Central America regtech market is bifurcated into solutions and services. The solutions held 67.3% share of South & Central America regtech market share in 2023, amassing US$ 347.73 million. It is projected to garner US$ 1,758.4 million by 2031 to register 22.5% CAGR during 2023-2031.

In terms of deployment type, the South & Central America regtech market is segmented into on-premise and cloud. The cloud segment held 67.6% share of South & Central America regtech market share in 2023, amassing US$ 349.22 million. It is projected to garner US$ 1,705.46 million by 2031 to register 21.9% CAGR during 2023-2031.

Based on enterprise size, the South & Central America regtech market is bifurcated into SMEs and large enterprises. The large enterprises segment held 66.3% share of South & Central America regtech market share in 2023, amassing US$ 342.52 million. It is projected to garner US$ 1,491.59 million by 2031 to register 20.2% CAGR during 2023-2031.

By application, the South & Central America regtech market is segmented into risk and compliance management, AML and fraud management, and identity management. The risk and compliance management segment held 41.1% share of South & Central America regtech market share in 2023, amassing US$ 212.51 million. It is projected to garner US$ 1,046.93 million by 2031 to register 22.1% CAGR during 2023-2031.

By industry vertical, the South & Central America regtech market is segmented into banks, insurance, and others. The banks segment held 39.2% share of South & Central America regtech market share in 2023, amassing US$ 202.59 million. It is projected to garner US$ 1,007.40 million by 2031 to register 22.2% CAGR during 2023-2031.

Based on country, the South & Central America regtech market is categorized into Brazil, Argentina, and the Rest of South & Central America. Our regional analysis states that Brazil captured 46.1% share of South & Central America regtech market in 2023. It was assessed at US$ 238.21 million in 2023 and is likely to hit US$ 1,194.27 million by 2031, registering a CAGR of 22.3% during 2023-2031.

Key players operating in the South & Central America regtech market are Deloitte Touche Tohmatsu Ltd; International Business Machines Corp; MetricStream, Inc.; PricewaterhouseCoopers International Ltd; and Thomson Reuters Corp, among others.

• In 2024: AI-powered regtech Cube acquired global regulatory intelligence enterprises from Thomson Reuters.

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