Compliance Automation Market, Global, 2024-2029

Rising Regulatory Complexity and Intensified Demands are Driving Transformational Growth

The emergence of compliance automation is primarily in response to the growing burden of managing rapidly changing regulatory requirements. Manual compliance operations can no longer scale and are unsustainable, especially for organizations with a global footprint that face mounting scrutiny from regulators and customers across multiple regions.

As cybersecurity regulations continue to expand, new layers of complexity are emerging through AI-related laws, such as the EU AI Act, broader privacy regulations in the United States, and sector-specific mandates like the FDA's cybersecurity requirements. This growing complexity is prompting more organizations to adopt automation to ease audit preparation, reduce audit fatigue, streamline compliance processes, and maintain ongoing audit readiness.

The evolution of compliance automation is also being shaped by shifting regulatory expectations and strategic risk alignment. As organizations mature in their compliance practices, there is a growing trend of converging compliance automation with broader risk management initiatives. The convergence of risk and compliance practices has become inevitable as cybersecurity regulations, such as those enforced by the SEC, now require organizations to demonstrate how their controls mitigate financial risk rather than merely showing audit compliance. As such, organizations are demanding platforms that could correlate compliance status and risk exposure, allowing them to understand and manage their overall risk exposure through real-time dashboards.

The shift from compliance-focused tools to risk-aligned platforms indicates that organizations are moving beyond simply fulfilling regulatory requirements to driving measurable business outcomes. As organizations mature, they place a greater emphasis on improving security, enhancing audit efficiency, and ensuring transparent risk communication throughout the organization.

The study period is 2023-2029, with 2024 as the base year and 2025-2029 as the forecast period. Regions covered are North America; Europe, the Middle East, and Africa; Asia-Pacific; and Latin America.

Revenue Forecast

The revenue estimate for the base year 2024 is $362 million, with a CAGR of 39.8% for the study period 2024-2029.

Scope of Analysis

• This analysis examines technology vendors that provide stand-alone/dedicated compliance automation solutions or as part of their governance, risk, and compliance (GRC) platform.
• The study offers insights into the global industry landscape, revenue forecasts, and market trends with regional breakouts for North America (NA); Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Latin America (LATAM). The analysis mainly covers more mature regions, such as NA and EMEA, as the compliance automation market is still in its nascent stage in other areas.
• The study derives information and insights from Frost & Sullivan's secondary research, as well as contributions from vendors, channel partners, and other industry stakeholders. However, all revenue estimates and forecasts are attributable to Frost & Sullivan's analysis and modeling.

The Impact of the Top 3 Strategic Imperatives on the Compliance Automation Industry

Customer Value Chain Compression

• Why: Automation tools might pull raw data lacking auditor context and audit-ready evidence, which leads to rejection and increased work during the audit cycle. Audit-friendly platforms are evolving to include built-in audit services or seamless collaboration with auditors, streamlining the review process through direct access and in-platform communication.
• Frost Perspective: More companies will adopt a unified compliance + audit solution to consolidate vendors and streamline the process between compliance and audit. In the next 3 years, compliance automation vendors will continue to expand their partnerships with audit firms as they grow their business. Some vendors will consider offering flexibility to customers, letting them be between in-house and external audit services depending on their preference.

Competitive Intensity

• Why: Amid a rapidly changing compliance landscape, the complex and time-consuming audit process has paved the way for compliance automation vendors to emerge, challenging traditional GRC approaches that often involve significant management overhead and lengthy processes. These vendors not only streamline the audit process but also integrate risk management into their solutions, providing more comprehensive visibility into compliance and risk.
• Frost Perspective: Large enterprises will continue to use traditional GRC tools. Still, those who are more open to changing the status quo have begun to adopt compliance automation solutions alongside GRC tools to perform audits more efficiently. Smaller organizations that need to address compliance needs will look for one-stop compliance solutions that suit their specific requirements.

Transformative Megatrends

• Why: AI is streamlining repetitive compliance tasks, such as handling overlapping regulatory requirements and automating security questionnaires. Meanwhile, GenAI is emerging as a virtual assistant, offering chat-based guidance to support compliance teams, accelerate remediation, and simplify management processes.
• Frost Perspective: In the next 3 years, compliance automation vendors will heavily invest and develop their AI capabilities to advance their platform capabilities. There will be growing interest in AI-driven compliance tools that can help automate workflows and evidence mapping, detect and predict risks, and automate repetitive tasks for more efficient compliance management.

Growth Drivers

• The growing complexity of regulations and heightened audit scrutiny are accelerating demand for scalable, future-ready compliance solutions that can adapt to evolving requirements across jurisdictions.
• AI-driven compliance automation will gain traction as organizations seek to eliminate audit fatigue and maintain real-time compliance assurance.
• Continuous compliance that enables risk-informed decisions will gain traction as organizations seek to proactively manage risk, maintain audit-ready governance, and deliver measurable business value at the board level.
• All-in-one compliance automation platforms will gain traction as organizations prioritize vendor consolidation to streamline operations, reduce costs, and scale compliance efficiently.

Growth Restraints

• Confusion and overlap between compliance automation platforms and traditional GRC tools may limit the market's growth potential.
• In complex environments with legacy systems, integration challenges remain a critical factor when adopting compliance automation.
• Challenges and trust gaps in AI-driven compliance automation may hinder its broader adoption, especially in highly regulated and risk-sensitive sectors.
• Financial pressures stemming from economic and geopolitical factors may slow the adoption of compliance automation tools.

Competitive Environment

• Number of Competitors
  • More than 10
• Competitive Factors
  • Features, streamlined compliance workflow, performance, user experience, cost, branding, flexible and seamless integration, automation, sales support, customer support, reliability, professional services, channel partners, long-term viability of vendor
• Key End-user Industry Verticals
  • Technology; banking, financial services, and insurance (BFSI); media and entertainment (M&E); manufacturing; eCommerce/retail; service provider; education
• Leading Competitors
  • Vanta, Drata, LogicGate, Sprinto, Thoropass
• Revenue Share of Top 5 Competitors (2024)
  • 77.2%
• Other Notable Competitors
  • Scytale, CyberSaint, Strike Graph, Centraleyes
• Distribution Structure
  • Direct, distributors, resellers, system integrators, service providers
• Notable Acquisitions and Mergers
  • Drata acquired Harmonize.io in April 2024, oak9 in May 2024, and SafeBase in February 2025; Vanta acquired Trustpage in January 2023; Scytale acquired AudlTech in June 2025

Key Competitors

• Global
  • Centraleyes
  • CyberSaint
  • Drata
  • Letsbloom
  • LogicGate
  • OneTrust
  • Scrit Automation
  • Scytale
  • Sprinto
  • Strike Graph
  • Thoropass
  • Vanta
• NA
  • Centraleyes
  • CyberSaint
  • Drata
  • Letsbloom
  • LogicGate
  • OneTrust
  • Scrit Automation
  • Scytale
  • Sprinto
  • Strike Graph
  • Thoropass
  • Vanta
• EMEA
  • CyberSaint
  • Drata
  • Letsbloom
  • LogicGate
  • OneTrust
  • Scytale
  • Sprinto
  • Strike Graph
  • Thoropass
  • Vanta
• APAC
  • CyberSaint
  • Drata
  • LetsbloomLATAM
  • CyberSaint
  • Drata
  • Letsbloom
  • LogicGate
  • OneTrust
  • Scytale
  • Sprinto
  • Strike Graph
  • Thoropass
  • Vanta
• LATAM
  • CyberSaint
  • Drata
  • Letsbloom
  • LogicGate
  • OneTrust
  • Scytale
  • Sprinto
  • Strike Graph
  • Thoropass
  • Vanta