The regulatory compliance management software and solutions help companies, and business organizations understand what rules, acts, policies, and obligations they should comply with and what laws apply to them. The business activities are governed by laws at the local, state, regional, or national level. The regulatory compliance software solutions and software eliminate all the compliance deviations, manage the risks, and help companies earn the right name while preventing financial losses, fines, and lawsuits. The market segment is increasing to provide exceptional revenues to the regulatory software providers by 2024 and beyond.
Continued Growth in Market Size of Regulatory and Compliance Management Software
Governments and business organisations worldwide are being more aware of the security and safety measures lately, and many political, economic, social, and other causes are responsible for this increased awareness. Consequently, the market size of the governance and compliance management solutions and software has been growing steadily. The market size of compliance management solutions neared approximately US$ 31.27 billion in the year 2019. It is expected to grow and expand until the year 2024 at a rate of 14%. Companies are adopting the software solutions and services widely to overcome the reputational, monetary, and other risks that non-compliance to laws and regulations cause.
Further, governments across the globe have put in new safety and security measures in realms, including environment, operation, hazard, supply chain/cargo/containers, and others. International and global trade also requires a higher number of security and safety measures. In the aftermath of these developments, the complexity of regulations, compliance-related factors, and risk management procedures have increased manifold. The automated regulatory compliance software solutions for managing risks are, therefore, proving to be quite helpful for the organisations and provide a simplistic yet detailed view of the entire picture.
The software segment alone had a 64% share of the revenue worldwide. Further, technologies provide integration and automation in many different realms, while the affordability of the software and related services has also increased due to the combinations and integrations. The increasing importance of technology ensures that the software business will be strengthened by the year 2024 and beyond. For instance, the new software can tackle many different regulations, including those related to compliance in quality control, supply chains, and OSHA (Occupational Safety and Health Administration). Customers and partners across the world are emphasising reliability and safety as well. In these circumstances, businesses have no choice but to indulge in audits and adopt the control measures that can reduce risks for suppliers and third-parties.
Risk management and regulatory and compliance software alone accounted for around 25% of the software market’s total market share. The software help companies prevent breaches of law and contracts and avoid the penalties. It is a more proactive way of dealing with compliance and regulations and helps businesses worldwide improve their offerings while enhancing their reputation. The audit management software market closely follows and is the second-largest revenue generator with a value close to the US $ 4.42 billion in the year 2019. The software also reinforces the complaint and regulatory practices and ensures better accountability and transparency within all business units and departments.
Integration of the Newest Technologies
Business processes and activities have been significantly improved lately by the digital framework, including the Internet of Things (IoT) and other technologies. While the data generated is increasing at an abysmal pace, its use should follow the regulatory guidelines. Audit professionals rely more and more on analytics to increase the effectiveness and accuracy of their audit methods, and they can now also better monitor and audit the activities continually. The new compliance and regulatory management software possess the advanced technologies that can provide for the management of the internal audits. The compliance management solutions provider for the identification of risks and for preparing the proper contingency plans for their containment as well. The software ensures that the companies can rely more on their internal capabilities towards ensuring compliance. The increased use of Wi-Fi and the low cost of internet connectivity also boost the use of new technologies based on the internet and cloud.
The Greatest Contributors and the Fastest Growing Segments
North America is still the major contributor to the revenues of the compliance and regulatory software market and is growing at a CAGR of 12.5%. However, the fastest growth rate over the forecast period until the year 2024 and beyond is the Asia-Pacific region. The fastest growing IT industries in India, as well as the Chinese manufacturing sector, are to be made. However, countries, including Vietnam, Taiwan, South Korea, Japan, and Indonesia, are also adopting the governance and regulatory compliance software and solutions increasingly.
Safety, security, hazard containment, and health standards will only improve in the coming times. An increase in the adoption of technologies by businesses would require even more complex regulations to be in place in the future. The regulatory and compliance management software and solutions will continue to serve the interest of businesses worldwide and ensure the safety of business practices, products, and services. They will also ensure that companies from all segments remain compliant with laws, and can trade beyond borders with complete peace of mind.