Anti-Money Laundering Software Market (By Component: Software, Service; By Product: Transaction Monitoring, Currency Transaction Reporting, Customer Identity Management, Compliance Management, Others; By Deployment Type: Cloud, On-premise; By End-Use Industry: IT and Telecommunications, Healthcare, BFSI, Transportation and Logistics, Manufacturing, Defense and Government, Retail, Energy and Utilities, Others) – Global Industry Analysis, Market Size, Opportunities and Forecast, 2020 - 2027

The market for anti-money laundering software is projected to grow at a CAGR of around 15.5% from 2020 to 2027 and expected to reach the market value of around US$ 3,324.9 Mn by 2027. 

Anti-money laundering (AML) software is a type of computer program used to analyze customer data and to detect suspicious transactions. The anti-laundering systems basically filter customer data and assort it according to the level of suspicion and inspect it for abnormalities. The considered abnormalities under the system include the sudden and substantial increase in funds or a large withdrawal. Moreover, the small transactions can also be flagged as suspicious because person those who like to avoid detection try to deposit large amounts as multiple smaller sums within a short period of time.

The mentioned practice is termed structuring. Once the data get mined by the software and generates a report with flagged suspect transactions. These are used by compliance professionals to comply with regulations such as the Bank Secrecy Act and with corporate policies regarding financial fraud. Accountants and managers from across every industry department also get benefitted from evaluating new customers and suppliers. Additionally, anti-money laundering software is used by banks and financial institutions to detect suspicious and fraudulent activities.

Market Dynamics

The increased anti-money laundering (AML) regulatory requirements, along with the rising money laundering cases are driving the market growth. The growth in IT spending, especially in banks coupled with the rising cases of identity theft-based money laundering cases is additionally accelerating the demand and usage of the anti-money laundering software market. Furthermore, emerging artificial intelligence (AI) technology in AML Deployment Type as well as increasing adoption of cloud-based Deployment Type is expected to provide potential opportunities over the forecast period from 2020 to 2027. 

On the other hand, less number of AML professionals and high price associated with the anti-money laundering software is likely to hinder the growth over the estimated period.

Segment Instance of Global Anti-money Laundering Software Market 

On-premise accounted for the maximum revenue share in the global anti-money laundering software market

In 2019, the on-premise segment is leading the market with maximum revenue share (%) as large organizations mostly prefer on-premise deployment because this deployment type provides all authority to the organization itself. Moreover, cloud deployment type is anticipated to exhibit the fastest growth over the forecast period from 2020 to 2027 due to increasing preference over on-premise by the small and medium scale enterprises (SMEs). The advantages associated with cloud deployment like for private organizations cloud deployment of software can be organization-specific with a high degree of security and level of control along with the ability to choose resources like specialized hardware. For public organizations, advantages associated with cloud deployment include scalability, flexibility, bursting, cost-effectiveness, and ease of use.

North America accounted for the maximum revenue share in the global Anti-money Laundering Software Market

In 2019, North America held the major share in terms of revenue, and the region is also projected to maintain its dominance over the forecast period from 2020 to 2027. The US is the major revenue contributor in the regional market due to its advanced infrastructure across the industry verticals as well as owing to the presence of major manufacturers. Moreover, Asia Pacific is anticipated to exhibit the fastest growth with a major CAGR (%) over the forecast period. The rapidly developing economies of the region including China and India are the major revenue contributors. The increasing adoption of IT infrastructure in the region across the end-use industry is bolstering the regional market value. 

Key Players Profiled

The players profiled in the report include 3i Infotech Ltd., Accuity Birst Inc., Fiserv Inc., IBM, Infosys, NICE Actimize Inc., Norkom Technologies Ltd, Oracle Corporation, SAS Institute Inc., and TCS. 

Market Segmentation

Market By Component

Software
Service

Market By Product

Transaction Monitoring
Currency Transaction Reporting
Customer Identity Management
Compliance Management
Others (Sanction Screening Software and Case Management Software)

Market By Deployment Type

Cloud
On-premise

Market By End-Use Industry

IT and Telecommunications
Healthcare
BFSI
Transportation and Logistics
Manufacturing
Defense and Government
Retail
Energy and Utilities
Others

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa