Europe Regtech Market Research Report: Forecast (2026-2032)

Europe Regtech Market Report Key Takeaways:

• Market size was valued at around USD 14.32 billion in 2025 and is projected to reach USD 19.27 billion by 2032. The estimated CAGR from 2026 to 2032 is around 4.33%, indicating strong growth.
• By Country, the United Kingdom is dominating this market with a 25% market share in 2025.
• By Component, the solutions segment represented a significant share of about 64% in the Europe Regtech Market in 2025.
• By End-User, the BFSI segment captured a significant share of about 46% in the Europe Regtech Market in 2025.
• Leading Regtech companies in Europe are ComplyAdvantage, Fenergo, Corlytics, ACTICO GmbH, RegTechFlow, DataMind AI RegTech Group, CleverSoft, ElectronicID, Flagright, Alyne, Regpit GmbH, EQS Group, Regnology, Blinking, ID-Pal, and Others.

Market Insights & Analysis: Europe Regtech Market (2026-32):

The Europe Regtech Market size was valued at around USD 14.32 billion in 2025 and is projected to reach USD 19.27 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 4.33% during the forecast period, i.e., 2026-32.

The outlook for the European RegTech industry remains strong as regulatory oversight becomes broader, more data-intensive, and increasingly technology-dependent. European supervisors are moving toward preventive and continuous supervision, which significantly raises compliance expectations for regulated entities. For instance, the European Central Bank (ECB) has repeatedly stated that weaknesses in data aggregation, risk reporting, and ICT governance remain among the top supervisory findings for large European banks in recent supervisory reviews, reinforcing demand for automated compliance tools.

At the same time, enforcement intensity is increasing. According to public disclosures by European regulators, banks across the EU have faced multi-billion-euro cumulative penalties over recent years for AML, sanctions, and governance failures, underscoring the cost of ineffective compliance frameworks. This enforcement pressure incentivises firms to replace manual controls with technology-enabled monitoring and reporting systems.

Another important driver shaping the outlook is the digitisation of supervision itself. European authorities are expanding SupTech capabilities, using structured data submissions and automated analytics to supervise institutions more frequently and consistently. This shift forces regulated entities to produce high-quality, machine-readable compliance data, directly benefiting RegTech adoption.

Additionally, operational resilience has become a strategic priority following repeated high-profile IT outages at major European banks reported by national supervisors and the financial press. These incidents highlight the risks of fragmented controls and legacy systems, accelerating investment in RegTech platforms that provide integrated risk, compliance, and incident management.

Overall, Europe’s RegTech market outlook is defined by tighter supervision, higher enforcement costs, supervisory digitisation, and operational resilience priorities, creating sustained long-term demand for scalable, technology-driven compliance solutions across the region.

Europe Regtech Market Recent Developments:

• 2025: Fenergo, Emphasised alignment with evolving EU AML and DORA regulations; published regulatory trend reports and enhanced its AI-enabled client lifecycle and AML solutions to help European banks automate KYC/transaction monitoring.
• 2025: Announced new European partnerships with Detected (KYB) and Greenlite AI to enhance AI-driven AML, sanctions screening, and risk insights for European financial institutions, expanding compliance automation and threat detection.

Europe Regtech Market Scope:

Europe Regtech Market Driver:

Increasing Regulatory Complexities Driving Market Demand

Increasing regulatory complexity is a central driver of RegTech adoption in Europe because financial and non-financial firms must now comply with multiple, overlapping EU regulations at the same time. Over the past few years, the European Union has shifted from directive-based rules to directly applicable regulations, which significantly expand both the scope and depth of compliance obligations.

A key example is the Digital Operational Resilience Act (DORA), which applies from 17 January 2025 and introduces uniform requirements for ICT risk management, incident reporting, digital resilience testing, and third-party oversight across all EU member states. This single regulation affects banks, insurers, investment firms, payment institutions, and critical ICT providers, sharply increasing compliance coordination needs.

At the same time, regulatory complexity is expanding beyond financial risk. The Corporate Sustainability Reporting Directive (CSRD) requires detailed ESG disclosures from around 50,000 European companies, compared with about 11,000 previously, dramatically increasing reporting volume and data granularity. In parallel, the EU’s new Anti-Money Laundering framework centralizes supervision and expands monitoring obligations across borders, while the EU Artificial Intelligence Act (2024) introduces legally binding risk, transparency, and governance requirements for AI-based systems used in compliance.

Because these rules interact and evolve continuously, manual compliance becomes impractical. Consequently, organizations increasingly rely on RegTech solutions to automate rule interpretation, monitor regulatory changes, and manage complex reporting obligations in a connected, scalable manner.

Europe Regtech Market Trend:

Integration of Advanced Technologies Changing Market Landscape

Real-time, machine-readable compliance powered by artificial intelligence is becoming a defining trend in the European RegTech market as regulators shift expectations from retrospective reporting to continuous risk oversight. This transition is directly connected to the digitization of Europe’s financial infrastructure and the increasing speed of financial transactions.

This real-time approach is reinforced by regulation. The Digital Operational Resilience Act (DORA), applicable from January 2025 , obliges financial institutions to maintain continuous ICT risk monitoring, automated incident detection, and machine-readable audit trails, directly accelerating demand for API-based RegTech architectures. Similarly, the EU Artificial Intelligence Act (2024) provides a legal framework for deploying AI in high-risk systems , including compliance tools, encouraging explainable and governed AI rather than manual rule-based checks.

Additionally, the adoption of ISO 20022 payment messaging across Europe enhances data richness and structure, enabling AI models to analyze transactions with greater precision and fewer false positives . Together, faster payments, AI governance regulation, and structured data standards are converging to make real-time, AI-enabled compliance a structural necessity rather than an innovation choice in Europe’s RegTech ecosystem.

Moreover, Europe’s broader experimentation with blockchain in financial infrastructure has increased institutional confidence in the technology. As compliance becomes more real-time, data-intensive, and interconnected, blockchain is increasingly viewed as a foundational layer that can reduce reconciliation effort, strengthen regulatory confidence, and improve audit efficiency across the RegTech ecosystem.

Europe Regtech Market Challenges:

Integration with Legacy Systems

Integration with legacy systems is a critical structural challenge in the European RegTech market, supported by multiple documented regulatory and operational instances. For instance, large European banks still rely on core banking platforms developed in the 1980s–1990s, many written in COBOL, which were not designed for real-time data access or API-based compliance tools. According to the central bank and supervisory commentary, legacy IT estates consume a substantial share of bank technology budgets, reducing capacity for RegTech integration and innovation.

Additionally, a widely cited example is the 2018 TSB core migration failure, which disrupted services for around 1.9 million customers and resulted in compensation and remediation costs exceeding USD500 million , demonstrating how fragile legacy integrations can be.

Moreover, the EU’s Digital Operational Resilience Act (DORA), effective from 2025, requires financial institutions to map and test legacy ICT assets, identify unsupported systems, and ensure interoperability with new digital tools. This regulatory obligation significantly increases integration workloads for RegTech vendors and financial institutions alike.

Europe Regtech Market (2026-32) Segmentation Analysis:

The Europe Regtech Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Component:

• Solutions
• Services

The solutions segment holds the largest market share of about 64% in the European RegTech Industry because regulatory obligations increasingly require continuous, system-embedded compliance, which can only be delivered at scale through software platforms rather than manual or advisory services. European regulators now expect firms to demonstrate compliance through data, systems, and automated controls, directly favoring ready-to-deploy RegTech solutions.

This shift is reinforced by payment and transaction modernization. Across Europe, the growth of instant payments has reduced tolerance for delayed compliance checks, increasing reliance on RegTech platforms that perform real-time screening, fraud detection, and monitoring within transaction flows. Similarly, new consumer-protection rules, such as mandatory reimbursement for APP fraud in the UK from October 2024, force banks to rely on automated monitoring and case-management solutions to control losses and meet regulatory deadlines.

At the same time, European supervisors are digitalizing their own oversight processes, requiring structured, machine-readable submissions. This strengthens demand for standardized RegTech solutions that integrate directly with supervisory systems.

Based on the End-User:

• BFSI
• FinTech
• Telecom & IT
• Energy & Utilities
• Healthcare
• Government

The Banking, Financial Services, and Insurance (BFSI) sector dominates the European RegTech Industry with a market share of around 46% because regulation, supervision, and enforcement pressures converge most intensely on financial institutions. Banks and insurers sit at the core of the European financial system and are therefore subject to continuous supervision by bodies such as the European Central Bank and national authorities. This supervisory model requires frequent, data-heavy reporting on capital, liquidity, conduct, and operational risk, making technology-driven compliance essential rather than optional.

Connectivity between regulation and RegTech adoption is especially strong in anti-money laundering. According to the European Commission, financial institutions account for the vast majority of suspicious transaction reporting across the EU, generating millions of reports each year. Managing such volumes with manual controls is not feasible, which directly links AML obligations to automated transaction monitoring and analytics platforms.

Enforcement further reinforces BFSI dominance. European supervisors have imposed large cumulative penalties on banks for AML, sanctions, and governance failures, increasing board-level focus on demonstrable, auditable compliance systems. At the same time, financial institutions are classified as critical infrastructure, meaning regulators require strong operational resilience, incident reporting, and third-party risk controls.

Europe Regtech Market (2026-32): Regional Projection

The UK holds around 25% share of the regional RegTech Industry. The United Kingdom remains one of Europe’s most influential RegTech markets because regulatory expectations continue to intensify while supervision becomes more data-driven. UK authorities increasingly require firms to demonstrate ongoing compliance rather than periodic checks, directly supporting RegTech adoption.

For instance, the National Crime Agency reported over 872,000 Suspicious Activity Reports (SARs) filed in 2022–23 , reflecting the scale of AML monitoring required across the financial system. Processing such volumes manually is impractical, driving demand for automated screening and analytics platforms.

Connectivity between regulation and technology is further reinforced by new consumer-focused rules. The Financial Conduct Authority implemented the Consumer Duty in July 2023, obliging firms to evidence fair outcomes using measurable data . This requirement increases reliance on RegTech tools that track conduct risk, complaints, and customer outcomes in real time.

Additionally, payment-related compliance obligations have tightened. In October 2024, UK regulators mandated reimbursement for victims of authorized push payment (APP) fraud , significantly increasing banks’ exposure to fraud losses and reinforcing the need for real-time transaction monitoring. This policy shift links consumer protection directly to technology-enabled controls.

Gain a Competitive Edge with Our Europe Regtech Market Report:

• Europe Regtech Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Europe Regtech Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.