PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1349772
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1349772
The global AML market size is projected to grow from USD 3.1 billion in 2023 to USD 6.8 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 17.0% during the forecast period. The AML market is propelled by key factors shaping its growth trajectory. These include the necessity to create an infrastructure with a 360-degree view of data in the financial landscape. Furthermore, a lack of awareness about government regulations and AML solutions deployment may hinder market growth.
"By end user, banks and financial institutes segment holds the largest market size."
Within banking and financial institutions, a diverse range of sectors is incorporated, spanning retail banking, digital banking, commercial banking, investments involving hedge funds and pension funds, wealth management, virtual currencies and exchanges, cross-border payment systems, and money services businesses. Predominantly, banks stand as the principal and most significant consumers of Anti-Money Laundering (AML) solutions worldwide, holding a pivotal role as key customers for prominent global players. Moreover, the increasing number of millions of fines received by banks is expected to increase the adoption of advanced AML solutions. AML integrated with AI or ML would help banks improve the security measures required to track money laundering activities
"By deployment mode, the on-premises segment holds the largest market size."
In Anti-Money Laundering (AML) deployment, the on-premises mode refers to the setup and utilization of AML solutions within an organization's physical infrastructure. In contrast to cloud-based deployment, which involves hosting applications on remote servers accessed via the Internet, on-premises deployment entails operating AML software and systems on the organization's internal hardware within its premises. The strategy is favored by larger enterprises and institutions seeking elevated control over their data, security measures, and customization options.
Through on-premises AML deployment, organizations maintain direct oversight of their data, safeguarding sensitive information within their internal network. It becomes especially relevant in industries or sectors subject to rigorous data privacy regulations or security considerations. On-premises solutions facilitate highly tailored configurations to match specific security requirements and compliance mandates. Nevertheless, the approach entails higher initial expenditures due to necessities like dedicated hardware, software licenses, and skilled IT personnel for maintenance and updates. Despite these factors, on-premises AML deployment offers a sense of ownership and command that holds significance for organizations emphasizing data security and customization within their AML strategies.
"By region, North America holds the largest market size."
North America is estimated to be the largest contributor in terms of the market size in the AML market. It is one of the most affected regions in the world by money laundering and terrorist financing crime activities; as a result, it has the highest number of AML solution providers. Money laundering is a significant issue in the United States. Due to its immense size and economic diversity, the region is an appealing target for money launderers looking to take advantage of vulnerabilities in various businesses and sectors. The sophisticated financial system in North America, along with the anonymity provided by digital transactions and intricate corporate networks, creates an ideal environment for blending criminal funds with the legal economy. Major AML solution vendors such as SAS Institute, FICO, FIS, ACI Worldwide, and Oracle are headquartered in North America.
Breakdown of primaries
Major vendors in the global AML market include LexisNexis (US), Oracle (US), FIS (US), Fiserv (US), Jumio (US), NICE Actimize (US), SAS Institute (US), GB Group (UK), FICO (US), ACI Worldwide (US), Experian (Ireland). The study includes an in-depth competitive analysis of the key players in the AML market, their company profiles, recent developments, and key market strategies.
Research Coverage
The report segments the AML market and forecasts its size by Offering (Solutions and Services), by Solution (KYC/CDD and Sanction Screening, Transaction Monitoring, Case Management, and Reporting), by Service (Professional services, Managed Services), by Deployment Mode (Cloud and On-premise), by Organization Size (SMEs, Large Enterprise), by End-user (Banks and financial institutes, Insurance, Gaming, and Gambling), and region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
The study also includes an in-depth competitive analysis of the market's key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall AML market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.