Geographically, North America dominated the anti-money laundering market in 2020, as per the observations of the market research company, P&S Intelligence. This is ascribed to the high internet penetration in Canada and the U.S., which augments the requirement for AML services and solutions and the adoption of advanced technologies such as machine learning (ML) and artificial intelligence (AI) in AML solutions.

In addition, the existence of several industry players and the growing incidence of money laundering also contributed toward the expansion of the regional market in the past years. Depending on end-user, the anti-money laundering market is divided into insurance providers, gaming & gambling sector, and banks and other financial institutions. Out of these, the banks and other financial institutions category dominated the market in 2020.

This was because of the huge requirement for AML solutions among banks and other financial institutions, owing to the increasing prevalence of illegal activities such as frauds, money laundering, and phishing around the world. The market is also bifurcated, based on deployment mode, into on-premises and cloud. Between these, the on-premises category led the market in 2020.

This category is also expected to record huge expansion in the coming years, on account of the higher preference of end-users for deploying AML solutions and software on in-house systems over adopting these solutions via cloud. This is credited to the fact that the on-premises deployment mode provides better control over other systems, platforms, and applications.

Thus, the increasing incidence of money laundering and the growing enactment of stringent AML policies by several governments will push up the demand for AML solutions across the world in the coming years.