Anti-Money Laundering Software

Anti-money laundering software Global Market Outlook:

• The AML software industry market size is estimated to reach USD 2.8 billion in 2022 and is expected to reach USD 5.9 billion by 2027

• The global AML software industry was dominated by North America and accounted for over 33.02% share of the global revenue

• Europe is expected to witness a robust revenue growth rate over the forecast period (2021-2030) owing to early adoption to early adoption of new technologies  and increasing regulations for deploying AML solution

• Increased need for automated transaction monitoring systems and compliance with regulatory norms have been major demand drivers globally

• Despite regulatory frameworks, the US Treasury Department estimates 2.7 percent of GDP or $1.6 Trillion to be involved in money laundering and other fraudulent activities

Anti-money Laundering Software Market: Regional Analysis

• Asia-pacific segment is expected to have the highest growth rate of 17.96% between 2021 and 2026, due to the untapped potential of developing economies, like China and India.

• Europe will continue to account for growth in the coming years, due to well-established end-user industries and early adoption of new technologies

• North America has the highest market share, in terms of revenue (33% in 2021), is technologically advanced and has a presence of major players

COVID-19 Impact on Anti-money Laundering Software Market 

• COVID-19 has brought huge financial risk with increase in fraudulent activities  such as online scams involving medical supplies, personal protective equipment, essential items, and illegal activities in terms of COVID-19 donations thus increasing the need for AML solution creating a huge opportunity for the industry. However, more scrutiny of transactions will be required from the Bank’s end, since the ultimate responsibility for this risk lies with the bank.

Anti-money Laundering Software Market

Procurement Centric Five Forces Analysis on Anti-money laundering software

Supplier Power

• Market is quite fragmented with a number of regional and global players

• Larger financial institutions prefer solution providers that offer customized solutions to cater to their requirements

• Increase in the compliance requirements also increase the bargaining power of suppliers

Barriers to New Entrants

• Industry is marked with number of new entrants, due to increasing demand and low cost needed to develop software

• Technology innovations are paving way for new entrants, who position themselves as low-cost alternatives to traditional players

• Increasing compliance requirements and a complex regulatory environment mean that the need for established industry experience and trust is a significant barrier for new entrants vying for the market share

Intensity of Rivalry

• Significant amount of service differentiation among players has led to intense competition among global leaders

• Competition results in better quality, cheaper, and increased consumer credit coverage in database

Threat of Substitutes

• New entrants, such as commercial workflow and advanced analytics vendors, pose a threat, to traditional players, such as packaged solution vendors

• The industry continues to evolve strongly with changing regulations, and new players are unlikely to challenge incumbents in their core area of case management

Buyer Power

• Buyers have limited choice, and corporates face a steep increase in prices for memberships

• Buyers have limited negotiation power at local and global levels, due to less fragmented supply market, high reliance on credit information, and regulatory pressure/compliance needs

Why You Should Buy This Report

• Accurate projection of the anti-money laundering software market size and its contribution to the parent industry.

• Detailed insights into factors that will favor the growth of the global anti-money laundering software market over the coming five years.

• Precise estimations on upcoming changes and trends in consumer patterns to help market players strategize and utilize all the potential growth prospects.

• Industry footprint of the anti-money laundering software across Europe, North America, APAC, Latin America, and MEA.

• Deeper dive into the factors that will pose challenges for the market vendors.

• A comprehensive assessment of the market’s competitive scenario and in-depth information on anti-money laundering software vendors to help customers enhance their competitiveness.

FAQs

• What are the factors driving the anti-money laundering software market?
  Factors such as the increasing demand for know-your-customer (KYC) analytics, the integration of anti-money laundering software into visualization solutions, and the fusion of anti-fraud and AML solutions are favoring the market growth. Furthermore, significant investments in the information technology (IT) sector across the globe will create several growth opportunities for vendors.

• How big is the anti-money laundering software market?
  The global market value of anti-money laundering software reached around $1 Bn in 2020. As per the industry analysis report, the market revenue is projected to grow at a CAGR of 13.6% during 2020-2025.

• How competitive is the anti-money laundering software market?
  The anti-money laundering software market is highly fragmented with the presence of various established players and new entrants. Tech innovations and large-scale service differentiation is resulting in high market competitiveness.

• Which region will offer lucrative business opportunities over the forecast period?
  North America and Europe continue to hold a significant revenue share of the global anti-money laundering software market, given the strong presence of established players and continuous changes in the regulatory norms controlling the BFSI industry.