Operational Risk Management Consulting Services In Manufacturing Market Research, 2031
The global operational risk management consulting services in manufacturing market was valued at $17.3 billion in 2021, and is projected to reach $55.6 billion by 2031, growing at a CAGR of 12.7% from 2022 to 2031.
Operational risk management consulting services are essential for any manufacturing organization that seeks to prevent loss from operational risks. It provides assistance to businesses and financial institutions with regard to operational risk identification, evaluation, modeling/measurement, monitoring, and management. The operational risk management experts provide customers in many sectors with guidance to develop strong operational risk management frameworks that satiate regulatory requirements, aid in improved decision-making, and improve performance.
The increasing focus of manufacturing industry on safety and risk management is boosting the demand for operational risk management consulting services in manufacturing market. In addition, growing need for operational efficiency in manufacturing industries owing to sustainable operations is rising the demand for consulting services. Thus, these factors notably contribute toward the operational risk management consulting services in manufacturing market growth.
However, higher interest rates and limited availability of skilled consultants acts as the major factor hindering the growth of the market. On the contrary, there is a surge in usage of advanced technologies such as industry 4.0 and machine learning. This factor is anticipated to boost the growth of operational risk management consulting services in manufacturing market in upcoming years. Furthermore, the upsurge in reliance on digital operations in manufacturing industry is expected to provide lucrative opportunities for the market to grow in upcoming years.
The report focuses on growth prospects, restraints, and trends of the operational risk management consulting services in manufacturing market outlook. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the operational risk management consulting services in manufacturing market forecast.
The operational risk management consulting services in manufacturing market is segmented into Type, Organization Size and Manufacturing Type.
Segment Review
The operational risk management consulting services in manufacturing market is segmented on the basis of type, organization size, manufacturing type, and region. By type, it is categorized into people risk/internal fraud, systems risk/technological failure, external risk, legal & regulatory risk, process risk, and others. By organization size, it is bifurcated into large enterprises and small & medium-sized enterprises. By manufacturing type, it is classified into process manufacturing and discrete manufacturing. The process manufacturing segment is further segregated into chemical, refining, pharma, energy & power, food & beverage, pulp & paper, and others. The discrete manufacturing segment is further categorized into automotive, aerospace & defense, semiconductors & electronics, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By manufacturing type, the process manufacturing segment attained the highest operational risk management consulting services in manufacturing market share in 2021. The process manufacturing segment is being driven by regulatory compliance, cost savings, and the need to maintain a competitive advantage. Regulatory compliance is a major driver for risk management in the process manufacturing industry. Companies are required to comply with various regulations related to worker safety, environmental protection, and product quality.
By region, North America attained the highest operational risk management consulting services in manufacturing market size in 2021. This is attributed to increase in awareness and government mandates toward use of operational risk management consulting services in manufacturing for protection of the end users. Furthermore, factors such as technological advancements and emergence of new business models are some of key contributors that are expected to boost the growth of the operational risk management consulting services in manufacturing market in the region.
The report analyzes the profiles of key players operating in the operational risk management consulting services in manufacturing market such as Accenture, Bain & Company, Inc., Boston Consulting Group, Deloitte, Gartner, Inc., KPMG International, McKinsey & Company, Oliver Wyman, LLC, PwC, and Roland Berger GmbH. These players have adopted various strategies to increase their market penetration and strengthen their position in the operational risk management consulting services in manufacturing market.
Market Landscape and Trends
There is a growing trend toward proactive risk management, where manufacturers are taking a more proactive approach to identifying and managing risks. This has led to a growing demand for risk management consulting services that can help manufacturers develop and implement proactive risk management strategies. Further, with the advancement of technology, there is an increasing adoption of digital technologies in manufacturing processes, such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML). This has created new opportunities for risk management consulting services to help manufacturers identify and manage operational risks associated with these technologies.
Furthermore, the key players in the market are increasingly expanding their consulting services to own a major market share and enhance the offerings. For instance, in January 2023, Accenture has acquired SKS Group, a consulting firm that helps companies across Germany, Austria and Switzerland to modernize their technology infrastructure and address regulatory requirements using SAP solutions. The acquisition is expected to expand Accenture’s technology, consulting, and regulatory services capabilities, while enhancing its ability to serve manufacturing industry.
The pandemic had a moderate impact on operational risk management consulting services in manufacturing industry owing the increased demand for consulting services and reduced budgets. As more manufacturers shifted to remote work and communication, there was an increased demand for remote consulting services. However, some risk management consulting firms had to adjust their service offerings to meet the changing needs of their clients owing to social distancing requirements and travel restrictions. Thus, the pandemic had a moderate impact on operational risk management consulting services in manufacturing industry.
Top Impacting Factors
Increasing Focus on Safety and Risk Management
With rise in safety regulations and the growth in awareness of the importance of risk management in the manufacturing industry, companies increasingly sought the services of operational risk management consulting firms to help them implement effective risk management strategies. In addition, manufacturing companies are increasingly relying on operational risk management consulting services to comply with a range of regulatory requirements related to safety and the environment.
Furthermore, the key players in the market have introduced various innovative products to hold a significant market share. For instance, in April 2021, MetricStream, the market leader in governance, risk, & compliance (GRC) and integrated risk management products & solutions, launched its Arno software release, which includes numerous features and innovations added to its platform and products. It provides maximum visibility with aggregated risk analytics to assist firms in analyzing and preventing negative risk occurrences and minimizing compliance breaches.
Further, the latest release makes it easier to prioritize the expenditures needed to reduce cyber risks, stop third-party risk occurrences, and maintain operational resilience. It also helps quantify IT and cyber risk exposure in monetary terms. Moreover, the manufacturing industry is constantly evolving, with new technologies and processes emerging. This has led to an increased need for consulting services that can help companies stay ahead of the curve and manage risks associated with these changes. Thus, the increase in focus on safety and risk management has fueled the growth of the market.
Need for Operational Efficiency in Manufacturing Industries
Manufacturing companies are often under pressure to improve their operational efficiency and reduce costs. Operational risk management consulting services helps companies achieve this by identifying and mitigating risks that could impact production efficiency. Furthermore, it identifies and mitigate risks that could impact the operational efficiency of a manufacturing company. This can include risks related to equipment failure, supply chain disruptions, or process inefficiencies. In addition, operational risk management consulting services can provide guidance on implementing lean manufacturing principles, which can help companies improve their efficiency and reduce the risk of errors or delays.
Moreover, consulting services help companies implement process changes that can improve efficiency and reduce the risk of errors or delays by analyzing manufacturing processes and identifying areas for improvement. Thus, the need for operational efficiency in manufacturing industries propels the growth of the market.
Rise in Adoption of Industry 4.0 Technologies in Manufacturing Industries
The adoption of Industry 4.0 technologies, such as automation and the Internet of Things (IoT), has led to an increased demand for consulting services that can help companies manage the risks associated with these technologies. Further, industry 4.0 technologies such as the artificial intelligence (AI), and machine learning can generate large amounts of data that can be analyzed to identify and mitigate new risks that were previously unknown or difficult to detect. In addition, there is a growing risk of cybersecurity threats. Operational risk management consulting services can help companies identify and mitigate these risks, which can help protect their critical data and systems.
Furthermore, consulting firms can help companies gain better visibility into their supply chains, which can help identify and mitigate risks such as supplier failure or disruptions in the supply chain. It can also provide guidance on implementing these strategies and identifying and mitigating associated risks. Thus, increased adoption of industry 4.0 technologies in manufacturing industries is boosting the growth of the market.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the operational risk management consulting services in manufacturing market analysis from 2022 to 2031 to identify the prevailing operational risk management consulting services in manufacturing market opportunity.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the operational risk management consulting services in manufacturing market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global operational risk management consulting services in manufacturing market trends, key players, market segments, application areas, and market growth strategies.
Operational Risk Management Consulting Services in Manufacturing Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 55.6 billion |
 Growth Rate | CAGR of 12.7% |
 Forecast period | 2021 - 2031 |
 Report Pages | 350 |
 By Type |
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 By Organization Size |
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 By Manufacturing Type |
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 By Region |
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 Key Market Players | Gartner, Inc. , Oliver Wyman, LLC, Roland Berger GmbH, PwC, Boston Consulting Group, McKinsey and Company, Bain and Company, Inc., Deloitte, Accenture, KPMG International |
Analyst Review
The operational risk management consulting services in manufacturing industry plays a major role in economic growth by providing operational efficiency to manufacturing businesses in various events such as identifying issues, providing solutions, and preparing business proposals & presentations. Hence, operational risk management consulting services in manufacturing have become a massive contributor toward the development of a country. Furthermore, development of SMEs in developing nations such as China and India is expected to provide lucrative opportunities for the market growth.
Furthermore, the surge in partnerships among the key players has fueled the growth of the market. For instance, in August 2022, ORX, a global association of operational risk professionals with McKinsey and Company launched the world’s first industry-wide Controls Library for operational risk. The Control Library is designed to help organizations better understand and benchmark their own controls against industry practice to enable shared learning to provide insight into the efficiency of their control environment.
The COVID-19 outbreak had a moderate impact on the operational risk management consulting services in the manufacturing market owing to a drop in demand due to highly unpredictable market conditions. However, digital transformation in operational risk management consulting services in the manufacturing market has helped the market demand to grow during the pandemic. This, as a result, promoted the demand for operational risk management consulting services in manufacturing, thereby accelerating the revenue growth.
The operational risk management consulting services in manufacturing market has been studied with the presence of regional vendors such as Accenture, Bain & Company, Inc., Boston Consulting Group, Deloitte, Gartner, Inc., KPMG International, McKinsey & Company, Oliver Wyman, LLC, PwC, and Roland Berger GmbH. Major players operating in this market have witnessed significant adoption of strategies that include business expansion and partnership to reduce supply and demand gap. With the increase in awareness & demand for operational risk management consulting services in manufacturing across the globe, major players are collaborating to provide differentiated and innovative products.
The operational risk management consulting services in manufacturing is estimated to grow at a CAGR of 12.7% from 2022 to 2031.
The operational risk management consulting services in manufacturing is projected to reach $55.59 billion by 2031.
Increasing focus on safety and risk management, need for operational efficiency in manufacturing industries and increased adoption of industry 4.0 technologies in manufacturing industries majorly contribute toward the growth of the market.
The key players profiled in the report include reinsurance market analysis includes top companies operating in the market such as Accenture, Bain & Company, Inc., Boston Consulting Group, Deloitte, Gartner, Inc., KPMG International, McKinsey & Company, Oliver Wyman, LLC, PwC, and Roland Berger GmbH.
The key growth strategies of operational risk management consulting services in manufacturing players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
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