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Anti-Money Laundering (AML) Market Growth 2025 | Industry Report

Anti-Money Laundering Market Analysis Report By Component, By Product Type, By Deployment, By End Use And Segment Forecasts From 2019 To 2025

Report ID: MN17620096  |  Published: September 2020  |  No of Pages: 130
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The global anti-money laundering market size was accounted for USD 857.2 million in 2018 and expected to grow with a CAGR of 13.6% over the forecast period, from 2019 to 2025. Rising incidence of money laundering is becoming a challenge for financial and other sectors over the past few years. Cybercriminals or hackers study the organization scale to find out possible vulnerabilities for committing frauds and do ransomware attacks by demanding currencies like Ripple, Bitcoin and Ether. These virtual currencies are targeted by cybercriminals, as they are not maintained or issued by the central organization. In 2018, it is observed that around USD 950 million are stolen by hackers from a crypto currency exchange. Therefore, a growing number of cyber-attacks in the financial sector have raised the issue of substantial losses across various industries.

U.S. anti-money laundering market

Governments across the globe are striving to tackle the money laundering activity to ensure security. In addition, governments are also focusing to implement stringent regulation to mitigate law enforcement risk. For example, in 2018, the EU’s 5th Anti-Money Laundering Directive (AMLD5) is modified the previous Anti-Money Laundering Directive which was proposed in 2016 to find terrorism funding through money laundering. AMLD 5 aims to form a public and centralized register of companies and its benefits to the owners, thereby aim to eliminate shell companies which present on paper only to transfer the crimes profit into apparently authorized assets.

Key regulators are concentrating on recording and tracking digital currency in order to eliminate anonymity in transactions and cross-border money transactions. For example, the government in Australia has started to monitor the Digital Currency Exchange to avoid money laundering in digital space. Additionally, advancement in regulatory technology (RegTech) and financial technology (FinTech) is also expected to offer new solutions to avoid money laundering through digital transactions.

FinTech solutions like Machine Learning (ML) are expected to curb the money laundering in various industries, as ML solution analyses the information and makes decisions to gain knowledge from those decisions. In the next few years, ML solutions can improve the code and expected to enable users to take more superior decisions. This solution also helps the banking sector to analyze the large amount of data generated through digital transactions; thereby, allowing regulators to avoid false alerts and to concentrate on high-risk cases. 

Increasing incidence of money laundering has created awareness among several organizations. Banks have started to give training regarding money laundering to identify and report suspicious activities. Moreover, international corporations, governments and organizations are focusing on collaboration to tackle money laundering complications across the globe. The above-mentioned initiative is projected to open new avenues for market growth during the forecast period.

Component Insights

On the basis of components, the anti-money laundering (AML) market is segmented into software and services. In 2018, the software segment led the global market and accounted for more than 62.0% of the total market share. This high revenue market share is attributed to the rising installation of anti-money laundering software in order to decrease compliance cost, respond to market changes and to attain reliable regulatory coverage. The increasing requirement of Customer Due Diligence (CDD) and Know Your Customer (KYC) in legal & financial organizations has created the demand for these solutions. Anti-money laundering software along with advanced technology like machine learning, AI and intelligent automation to avoid money laundering is expected to boost the segment growth in the next few years.

The services segment is projected to grow with the fastest CAGR of over 14.0% from 2019 to 2025. Enterprises are looking for new services to enable strong compliance across several industries. For example, data privacy compliance forms personal information safety guidelines and curbs organizations and companies to share sensitive data such as credit card numbers, driver's license numbers, and social security number of their customers with other business entities.

The implementation of compliance deployments helps organizations to reduce the chances of money laundering and fraud activities. The adoption of compliance services is increasing in organizations thathave internalIT infrastructure and lack of capability to comply with government regulations regarding data security. They also help to ensure better experiences and solutions to find requirements for anti-money laundering. Thus, several benefits associated with compliance services are projected to drive the segment growth over the forecast period.

Product Type Insights

In 2018, the customer identity management product type has dominated the anti money laundering market with more than 32% market share. The emergence of new technologies that can easily accessusers’ information including big data, mobile apps, and their profile has resulted in an increase in the incidence of money laundering as well as fraud. To reduce the risk of manipulation and misuse of customer’s sensitive data, several governments have taken some initiatives across the globe in order to implement strict regulation for data privacy. For example, the General Data Protection Regulation (GDPR) has levied a higher standard of data protection on European enterprises, thereby, expected to create high demand for compliance solutions.

The transaction monitoring solution is projected to have the highest growth during the forecast period. This solution enables banks and financial institutions to monitor customer transactions regularly in real-time to avoid the risk of data threats. It also helps to monitor and access current or historical transactions and information, thereby, supports inretrieving deep information on customer activities. These factors are expected to drive the segment growth over the forecast period, from 2019 to 2025.

Deployment Insights

By deployments, the market is segmented into cloud and on-premise. In 2018, the on-premise segment has dominated the global market due to the increasing adoption of on-premise to ensure data security. This type of deployment supports the organizations both in transit and at rest. In addition, this deployment helps to make customers aware of the risk of the business. Users can hire consultants with related industry experience and help organizations to be safe against malicious threats like phishing and malware.

The cloud deployment is projected to grow with the highest CAGR from 2019 to 2025. The rising trend of digital transformation in the enterprise sector is projected to adopt a SaaS-based AML solution. Advancement in cloud computing like the introduction of IaaS and PaaS is expected to enable a cost-effective solution for implementing anti-money laundering. Furthermore, the introduction of machine learning and Artificial Intelligence (AI) has necessitated businesses to implement high-tech threat preventive solutions to support IT infrastructure in the enterprise. The adoption of cloud-based AML helps organizations to improve business operations; thereby, expected to drive the AML market growth.

End-Use Insights

In 2018, the BFSI held more than 34.0% market share and projected to retain its position from 2019 to 2025. The necessity for anti-money laundering in the banking sector is increasing significantly, especially in North America and Europe since 2008 due to the application of rules & regulations by the government. For example, Goldman Sachs has announced to hire new people in order to achieve compliance requirements for smooth running organization operations, in 2018. Thus, to manage deadlines and compliance with new systems, the need for more staff for constructing new projects and systems is expected to increase within the enterprise.  The solution will support coordinating, track and organize compliance-related history, schedule, and activities, thereby, enabling them to report the risk of non-compliance and regulatory control within the BFSI sector.

It & telecom sector is projected to grow at the fastest CAGR during the forecast period. This growth is attributed to the rising need for anti-money laundering compliance assessment in the IT and telecom sector. This scenario has encouraged clients to hire more employees and influence the business to implement anti-money laundering technology.

Global anti money laundering marketThe rising incidence of fraud in the telecommunication industry has raised concerns in various nations and compelling the companies to investigate money laundering activities. For example, in 2019, the U.S. Department of Justice imposed money laundering, stealing trade secrets and fraud sanctions charges on a telecom company in China. Many governments in Asia Pacific and Europe are concentrating on anti-money laundering solutions campaigns to penalize and investigate the companies in the telecom industry for illegal transactions.

Regional Insights

In 2018, North America dominated the market and accounted for the largest market share. Rising illegal activities enable the use of cash for drugs, corruption and human smuggling in the U.S. This has generated the need for strict compliance. The incorporation of laws including the Bank Secrecy Act (BSA) and the USA PATRIOT Act has enforced financial institutions to follow anti-money laundering compliance. The existence of players such as Cognizant, ACI Worldwide, Inc., SAS Institute Inc., and NICE Actimize is expected to strengthen the growth of the regional market over the forecast period.

Asia Pacific is projected to grow with the highest CAGR of over 16.0% from 2019 to 2025. Money laundering activities and frauds in developing countries are rising. In addition, increasing the incidence of procurement of illegal substances and drug trafficking through exports in China has led the government to ban its citizens for cross-border exchanges which have accounted for more than 50,000 Yuan per year. These above-mentioned factors are expected to increase the adoption of anti-money laundering solutions in the region.

Impact of COVID-19

COVID-19 outbreak has positively affected the market growth. As most of the criminals are trying to take advantage of pandemic fear, they are exploiting this situation through cybercrime, medical scams and fundraising for fake charities. Therefore, governments across the globe have warned strict regulations against money laundering and criminal scams. Thus, to curb these crimes, key regulators are supporting their financial institutions in anti-money laundering to opt its services. This initiative is expected to further augment the market growth during COVID-19 crisis.

Anti Money Laundering Market Share Insights

The financial institutions and banks are working under the scrutiny of the financial conduct authorities, which mandate them to implement preventive measures to reduce money laundering activities. Therefore, financial service providers and banks are taking cautions to support anti-money laundering activities. In addition, the implementation of strict laws by governments across several countries along with increasing money laundering activities has influenced the market growth.

The prominent players operating in this industry are investing in product development to sustain in the competitive market. Key market players include ACI Worldwide, Inc., Accenture, NICE Actimize, Trulioo, Cognizant, Tata Consultancy Services Limited, Fiserv, Inc., SAS Institute Inc., Open Text Corporation, BAE Systems; Oracle, Experian Information Solutions, Inc.

Report Scope



The market size value in 2020

USD 1,028.3 million

The revenue forecast in 2025

USD 1,988.3 million

Growth Rate

CAGR of 13.6% from 2019 to 2025

The base year for estimation


Historical data

2015 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD million and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, product type, deployment, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan, Brazil; Mexico

Key companies profiled

Accenture; ACI Worldwide, Inc.; NICE Actimize; Tata Consultancy Services Limited; Trulioo; Cognizant; SAS Institute Inc.; Fiserv, Inc.; Oracle; Open Text Corporation; Experian Information Solutions, Inc.; BAE Systems

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. 

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global anti-money laundering market report on the basis of component, product type, deployment, end use, and region:

• Component Outlook (Revenue, USD Million, 2015 - 2025)
    • Software
    • Services

• Product Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Compliance Management
    • Currency Transaction Reporting
    • Customer Identity Management
    • Transaction Monitoring

• Deployment Outlook (Revenue, USD Million, 2015 - 2025)
    • Cloud
    • On-Premise

• End-Use Outlook (Revenue, USD Million, 2015 - 2025)
    • BFSI
    • Government
    • Healthcare
    • IT & Telecom
    • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa (MEA)

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