The MEA anti-money laundering solution market is expected to grow from US$ 95.54 million in 2019 to US$ 398.34 million by 2027; it is estimated to grow at a CAGR of 17.1 % from 2020 to 2027.
Increasing adoption of cryptocurrency across MEA is escalating the growth of the MEA anti-money laundering solution market. The adoption of cryptocurrency is expected to continue its course. However, this is raising concerns among the firms regarding anti-money laundering compliance. The MEA authorities have combatted with the AML risk, economies across MEA has adopted a considered approach allowed for trade and investment. The changes introduced by the adoption of cryptocurrency are anticipated to provide the AML software developers with an opportunity to diversify their offerings to new applications and end users. Companies across MEA are offering anti-money laundering solutions to address the growing challenges of cryptocurrency businesses. For instance, CipherTrace offers cryptocurrency anti-money laundering solutions that allows exchanges to grow revenue by securely engaging in cryptocurrency transactions, whereas maintaining a low-risk profile. Investors and hedge funds use this solution to verify the source of funds. It mitigates exposure to money laundering risks and identifies nefarious cryptocurrency transactions. Growing use of cryptocurrency increases the demand for anti-money laundering solution owing to its advantages such as more authentication and validation, which is driving the MEA anti-money laundering solution market.
The COVID-19 outbreak is hindering the countries in MEA, especially Iran. The region comprises many growing economies such as the UAE and Saudi Arabia, which are prospective markets for anti-money laundering solution providers owing to the huge presence of a diverse customer base for the BFSI industry. Fintech in the region contributes to the growth of digital payments, with several million raised during 2019. Additionally, Africa is contributing in the development of digital payment transactions during the COVID-19 epidemic. Consumers have shifted to digital banking methods to make payments during the health crisis. Furthermore, the use of contactless payments has increased rapidly in the UAE. The COVID-19 crisis is hindering the industries across MEA, and the MEA economy took the worst hit in 2020, and it is likely to continue in 2021 also. However, the BFSI industry is still booming amid the pandemic due to the rise in digital banking solutions. The impact of COVID-19 outbreak on the MEA anti-money laundering solution market growth in various countries across MEA is moderate.
Based on deployment type, the MEA anti-money laundering solution market for cloud segment would grow faster during the forecast period. The cloud deployment type, is a model where the data is stored in the third-party cloud provider. The clients have no control over the location of the infrastructure; this infers that if a vendor’s data center is breached, the enterprise would have no control over time period of the outage or what data may be conceded. All the clients on clouds share the same infrastructure pool with narrow security protections, configuration, and accessibility variances. Even though there are control limitations, security risks, and policy constraints, there are a few situations where the cloud deployment is more suitable. However, clouds are larger in size than on-premises deployment type due to which companies associated with cloud are benefitted with seamless and on-demand scalability. The cloud deployment is ideal for organizations willing to adopt analytics solutions with low investment. It mainly allows a company to procure the data with all their services, but on an economical expense. Advantages of cloud deployment such as seamless, less cost, and more secured etc. are expected to increase its demand, which would drive the MEA anti-money laundering solution market in coming years.
The overall MEA anti-money laundering solution market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the MEA anti-money laundering solution market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, anti-money laundering solution market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the MEA anti-money laundering solution market. Accenture; ACI WORLDWIDE, INC.; BAE Systems plc; EastNets.com; LexisNexis Risk Solutions Group; Nasdaq Inc.; NICE Ltd.; Oracle Corporation; and SAS Institute Inc. are among the players operating in the market.