Transaction Monitoring Market

Transaction Monitoring Market Size Survey Report – In a Glance

As per the survey report on global Transaction Monitoring market, the market is projected to foresee a CAGR of CAGR value 9.6% between 2024-2033, and further generate a market size of USD 42.2 billion revenue by the end of 2033. In the year 2024, the market size was valued at USD 17.7 billion revenue.

• The global Transaction Monitoring market is projected to grow on account of the wide-scale use of automation.
• In Japan, the Transaction Monitoring market growth can be attributed to the expanding awareness of transaction monitoring.
• KDMI analyst’s growth analysis foresees connectivity challenges and concerns to challenge the market growth.
• North America, having the highest market share in the Transaction Monitoring market, is projected to dominate the global market.

Transaction Monitoring Market Analysis

Transaction monitoring refers to the act of observing and assessing financial transactions in real-time or afterward to identify questionable activities, unlawful money movement, fraudulent actions, rule violations, or other financial crimes. Automation refers to using technology to carry out tasks with minimal manual input, thereby, increasing accuracy, cutting down errors, and simplifying procedures. Nowadays, banks and financial firms depend on automation for services like AI-driven customer support, fraud detection, compliance monitoring and managing back-office operations. According to the IFR, robot installations will reach 601,600 units by 2027, driving the demand for robot-based automation. Therefore, wide-scale automation adoption strengthens financial monitoring by improving accuracy and assessing risks in real-time. Oracle (U.S.), FICO (U.S.), BAE Systems (U.K.), are some of the significant parties in the global market for Transaction Monitoring.

Analyst’s Observation on Japan Transaction Monitoring Market Survey

Transaction monitoring serves as a primary defense against unlawful financial crime. In simple words, it tracks money flowing into a business. Hence, improving financial monitoring is a strategic move. Following the 2021 review of Japan’s financial crime prevention measures, the country has implemented multiple measures to bolster its framework. However, the market growth for Transaction Monitoring within the country can be attributed to the expanding awareness of transaction monitoring. Hence, greater awareness of transaction tracking fuels market growth by strengthening fraud controls and encouraging technological integration.

Transaction Monitoring Market Growth Drivers and Challenges

Growth Drivers

Growing cases of cyber crimes:

As hackers are always seeking new strategies to breach data, it is extremely essential to remain updated on emerging digital threats. With the advancement in technology and the rising reliance on digital systems, cyber crimes have escalated in the current era. According to findings, the estimated global expenditure of data breaches stood at USD 4.45 million in 2023. Increased online activity, work-from-home trends, and automation have further contributed to this upward trend. Businesses and banks are adopting advanced tracking solutions to trace suspicious behaviors, prevent illicit financial activities, and strengthen security, thereby, increasing reliance on automated surveillance systems. Therefore, the growing cases of cyber crimes are propelling the transaction monitoring market by amplifying the need for scam detection, regulatory standards, and risk mitigation.

Expanding use of modern technologies:

Technologies are becoming increasingly advanced and interconnected. Transportation, medical tools, financial transactions, and power grids now rely heavily on software, leading to increased complexity and connectivity. Digital payment methods have gained increasing prominence in recent years as smartphone adoption and internet usage have escalated. This has boosted the widespread use of mobile wallets, UPI, and card-based transactions. In comparison to the early 2000s, the number of smartphones outnumbered the world’s population, exceeding 8 billion. Governments globally are progressing towards a cashless society. Moreover, the growing adoption of smartphones and internet services is making digital payments more widely available. This initiative will drive further digital growth, reducing cash reliance. Therefore, this expanding use of modern technologies is contributing to a more secure and streamlined financial framework, eventually driving the transaction monitoring market worldwide.

Restraints

Connectivity challenges and concerns:

Transaction monitoring systems that are cloud-based models face risks such as information leaks, system failures, service interruptions, and other cyber security threats. In certain locations, inconsistent network connectivity can degrade the user experience, limiting the accessibility of cloud-driven and hybrid services in those regions. These connectivity challenges and concerns hinder the transaction monitoring market by limiting real-time surveillance, accuracy, and flexibility.

Insufficient technical proficiency:

The transaction monitoring market faces obstacles due to insufficient specialized expertise and limited awareness in underdeveloped or emerging regions. Payment monitoring solutions offer significant advantages but these systems require well-trained professionals with analytical, logical, and financial skills. Unfortunately, the availability of experts like statisticians, data analysts, and ethical hackers is currently limited.

Transaction Monitoring Market Segmentation

Our experts at KD Market Insights have segmented the global Transaction Monitoring market research report as:

Transaction Monitoring Market Regional Synopsis

The rising demand for security services highlights the heightened concerns about personal safety and protection in North America. As crime rate surges, people and businesses are turning to adopt proactive measures to secure their assets, properties, and well-being. However, the North American transaction monitoring market is majorly driven by various sectors such as surging rate of online and mobile transactions, the existence of progressive banking and fintech companies, well-developed industrial infrastructure, the government's amplified focus on maintaining and repairing civil framework, increasing demand for security, established healthcare sector and governmental growth, resulting in the surged demand for transaction monitoring in the region. Furthermore, in the U.S. and Canada, the increased adoption of modern technologies in power, energy, infrastructure and production sectors is further stimulating the market. In the United States, the market is growing due to the higher rate of technological innovation, increasing cyber crimes, and greater consumer demands. According to the FBI, cybercrime in the United States led to losses surpassing $4 billion, in 2020 alone.

Asia-Pacific (APAC) is presumed to experience the fastest growth in the transaction monitoring market during the forecasted timeframe, supported by the rising adoption of online payments, economic growth, urban development and construction progress. China, India, and Japan hold the major revenue proportion in the region, backed by its increasing development in public infrastructure, quick economic development, and accelerating industrial automation across various industries. The region has several leading transaction monitoring markets, resulting in the market progression.

In the European region, the transaction monitoring market is seeing steady growth, surging mainly by the stringent regulations and frameworks regarding safety and regulatory compliance. Moreover, the region’s growing need to tackle KYC compliance with the help of advanced technologies is promoting the growth of the market.

Latin America’s transaction monitoring market is thriving due to increasing financial fraud cases, tighter compliance requirements, growing digital transactions, better cyber security guidelines, and heightened awareness of combating financial crimes.

As per our analysts at KD Market Insights, the following five players lead the North America Transaction Monitoring market growth:

• Caseware International Inc. (Canada)
• Oracle (U.S.)
• FICO (U.S.)
• ACI Worldwide (U.S.)
• Fiserv, Inc. (U.S.)

Transaction Monitoring Market Competitive Landscape

Some of the key players who top the global Transaction Monitoring market share:

• NICE (Israel)
• Oracle (U.S.)
• FICO (U.S.)
• BAE Systems (U.K.)
• Fiserv, Inc. (U.S.)
• SAS Institute Inc. (U.S.)
• Experian Information Solutions, Inc. (Ireland)
• FIS (U.S.)
• ACI Worldwide (U.S.)
• Refinitiv (U.K.)
• Software AG (Germany)
• ComplyAdvantage (U.S.)
• Infrasoft Technologies (India)
• Actico GmbH (Germany)
• ComplianceWise (Netherlands)
• EastNets (UAE)
• Bottomline Technologies, Inc. (U.S.)
• Jumio (U.S.)
• Caseware International Inc. (Canada)

1. Executive Summary
   1. Market Overview
   2. Key Findings
   3. Market Trends
   4. Market Outlook
2. Introduction
   1. Scope of the Report
   2. Research Methodology
   3. Definitions and Assumptions
   4. Acronyms and Abbreviations
3. Market Dynamics
   1. Drivers
   2. Restraints
   3. Opportunities
   4. Challenges
4. Global Transaction Monitoring Market
   1. Market Overview
   2. Market Size and Forecast
   3. Market Segmentation
      1. By Component
      2. By Function
      3. By Deployment model
      4. By Organization site
      5. By Application area
      6. By End-user
      7. By Region
5. Market Segmentation by Component
   1. 1. Solutions
      2. Services
      3. Professional Services
      4. Consulting
      5. Integration
      6. Training and education
      7. Support and maintenance
      8. Managed Services
6. Market Segmentation by Function
   1. 1. Case Management
      2. KYC/Customer On boarding
      3. Dashboard and Reporting
      4. Watch List Screening
7. Market Segmentation by Deployment model
   1. 1. 0n-Premises
      2. Cloud
8. Market Segmentation by Organization site
   1. 1. Small and Medium-Sized Enterprises
      2. Large Enterprises
9. Market Segmentation by Application area
   1. 1. Anti-money Laundering
      2. Customer Identity Management
      3. Fraud Detection and Prevention
      4. Compliance Management
10. Market Segmentation by End-user
    1. 1. Banking, Financial Services, and Insurance
       2. Government and Defense
       3. IT and Telecom
       4. Retail
       5. Healthcare
       6. Energy and Utilities
       7. Manufacturing
       8. Others
11. Regional Analysis
    1. North America
       1. United States
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       2. Canada
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       3. Mexico
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
    2. Europe
       1. United Kingdom
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       2. Germany
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       3. France
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       4. Italy
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       5. Spain
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       6. Rest of Europe
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
    3. Asia Pacific
       1. China
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       2. Japan
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       3. India
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       4. Australia
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
          4. South Korea
          5. Market Size and Forecast
          6. Key Trends and Developments
          7. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       5. Rest of Asia Pacific
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
    4. Latin America
       1. Brazil
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       2. Argentina
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       3. Colombia
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       4. Rest of Latin America
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
    5. Middle East & Africa
       1. South Africa
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       2. Saudi Arabia
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       3. UAE
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
       4. Rest of Middle East & Africa
          1. Market Size and Forecast
          2. Key Trends and Developments
          3. Market Analysis by Component, Function, Deployment model, Organization site, Application area and End-user
12. Competitive Landscape
    1. Market Share Analysis
    2. Company Profiles
    3. Oracle (U.S.)
    4. FICO (U.S.)
    5. BAE Systems (U.K.)
    6. Fiserv, Inc. (U.S.)
    7. SAS Institute Inc. (U.S.)
    8. Experian Information Solutions, Inc. (Ireland)
    9. FIS (U.S.)
    10. ACI Worldwide (U.S.)
    11. Refinitiv (U.K.)
    12. Software AG (Germany)
13. Strategic Recommendations
14. Appendix
    1. List of Tables
    2. List of Figures
15. References