Global Third Party Risk Management Market Overview
The key drivers impacting the third-party risk management market are the growing Instances of Cyberattacks. For Instance, According to the ISACA organization report, Cyber attacks are considered one of the fastest escalating crimes across the US, causing a devastating business interruption. Globally, Cybercrime damages are predicted to reach the U.S. $6 trillion by 2021. Also, the massive adoption of virtual applications is expected to positively impact market growth in the coming years. Moreover, the lack of in-house competencies in the organization across several verticals contributes to third-party risk management market demand in the later years.
According to Value Market Research, the global third-party risk management market size was valued at about USD 6.67 billion in 2023 and is estimated to grow at a CAGR of around 16.9% during the forecast period 2024 to 2032.
The increased strict compliance mandates to deal with third-party risks and growing requirements for economic management will likely augment the need for third-party risk management in the forecast period. However, the high dependence on manual and non-formal business processes hampers the market in the long run. In addition, the lack of skilled professionals impedes the market growth. Nevertheless, the market trends, such as an increase in strict regulations and compliance requirements, and rising demand for hybrid environments, might provide considerable opportunities to the market's leading players.
The third party risk management market is widespread, with many local and international players. The market leaders follow diverse strategies to strengthen their market, such as amalgamation, extending product portfolio, acquisitions, contracts, product upgrades to raise their market share globally. The key players in the report are Genpact, RSA, MetricStream, KPMG, Deloitte, Ernst & Young, BitSight Technologies, PwC, Resolver, Venminder, ProcessUnity, NAVEX, RapidRatings, Riskpro, SAI Global, Optiv, Aravo, Galvanize, OneTrust, and Prevalent.
In this research report, the third party risk management market is segmented by component, solution, verticals, and region.
Analysis by Component:
By component, the report is segmented into solutions and services. The solution segment dominates with the highest market share of 72% in 2020. It is because organizations are implementing TPRM solutions to automate, enhance, and manage the entire risk assessment process for improving transparency and measuring uncertainties. Moreover, TPRM solutions help organizations identify and reduce the risks that arise while outsourcing a few activities or operations, leading to the increased adoption of TPRM solutions in the forecast period.
Analysis by Solution:
By solution, the report is segmented into financial control management, contract management, operational risk management, audit management, compliance management, and others (includes quality assurance management, information management, and relationship management). The compliance management segment dominates with the highest market share in 2020. There is a rising demand for compliance management solutions due to the mounting need to comply with regulatory and reporting requirements. Moreover, the growing focus of organizations on deploying a system that helps them manage compliance requirements and ensure completion of compliance-related tasks are thereby contributing to the demand for compliance management solutions segment in the forecast period.
Analysis by End-user Industry:
By End-user industry, the report is divided into BFSI, IT & Telecom, retail, healthcare, manufacturing, education, government & defense, and others. The BFSI segment dominates the end-user industry segment with the highest market share in 2020. It is due to the massive adoption of TPRM solutions by the BFSI sector to keep up with the varying regulatory environment and penalties linked with non-compliance to minimize and manage risk. Moreover, rapidly changing ways of the BFSI vertical operating, growing digitalization, and implementation of advanced technologies show this industry to dissimilar types of threats, thus contributing to the high market demand from the BFSI sector.
Analysis by Region:
In the regional outlook of the global third party risk management market, the North America region dominates with the largest market share in 2020. It is due to the rising adoption of IoT and cloud-based applications. Also, geographical presence, strategic investments, partnerships, and significant R&D activities add to regional growth. Moreover, the existence of several leading market players providing advanced solutions to the industry verticals contributes to the tremendous market growth across North America.
Market Segmentation covered in the Report:
By Component
By Solution
- Financial Control Management
- Contract Management
- Operational Risk Management
- Audit Management
- Compliance Management
- Others (Includes Quality Assurance Management, Information Management, and Relationship Management)
By End-user Industry
- BFSI
- IT and Telecom
- Healthcare and Life Sciences
- Government, Defense, and Aerospace
- Retail and Consumer Goods
- Manufacturing
- Energy and Utilities
- Others (Includes Education; Travel and Hospitality; Transportation and Logistics; and Media and Entertainment)
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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