According to a recent report published by Allied Market Research, titled, Risk Management Market by Component, Deployment Model, Enterprise Size, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020–2027,” the global risk management market size was valued at $7.39 billion in 2019, and is projected to reach $28.87 billion by 2027, growing at a CAGR of 18.7% from 2020 to 2027. Risk management software is a type of software used by organizations to efficiently and effectively manage different types of risks. This software is known for its different capabilities such as identifying and managing different types of risks and for taking measures to avoid potential crisis. The primary goal of risk management software is to identify potential risks before they occur so that risk handling activities may be invoked and planned when and where needed across the lifecycle of a product to achieve the objective of an organization.
The key factors that drive the growth of the global risk management market trend include surge in data security breaches in enterprises and increase in stringent government regulatory compliances across the globe are the key factors that drive growth of the global risk management market. In addition, rise in adoption of risk management in FinTech industries and growth in IoT landscape across the globe positively impacts growth of the market. However, high cost and complexity in installation and configuration of the software and less security provided by risk management hamper growth of the market. Furthermore, rise in demand from developing economies and integration of artificial intelligence in risk management are expected to provide major opportunities for growth of the risk management market during the forecast period.
The BFSI segment is expected to garner a significant share during the forecast period, owing to rise in adoption of risk management software by various large banks and FinTech industries to mitigate different types of risk to grow and sustain in the market. However, the manufacturing segment is expected to grow at the highest rate during the forecast period. This is attributed to rise in trend of IoT and automation in the manufacturing sector, which is expected to create ample number of opportunities for the risk management market during the forecast period.
Region wise, the risk management market was dominated by North America in 2019, and is expected to retain its position during the forecast period. This is attributed to number of market players indulged in various developments such as partnership, product launch, and collaboration. For instance, in September 2020, International Business Machines Corporation launched risk analytics service that helps organizations to implement risk analytics to prioritize cybersecurity costs for traditional business decisions. However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to growth in banking and financial industry in developing nations of China and India and surge in digitization across various developing nations.
According to Pramod Borasi, Research Analyst, ICT at Allied Market Research, “The cloud segment is expected to experience significant growth in the coming years, owing to increase in adoption of cloud-based risk management software across several industries such as IT & telecom, transportation, and BFSI to efficiently manage different types of risk and to increase the security of the organization.”
The COVID-19 outbreak has low impact on the growth of the risk management market as the auditors of various industries are adopting risk management software for solving various compliance and other audit related issues of the organization. In addition to this, various companies across the globe have adopted BYOD culture or work from home culture in their organization which have become a major threat to the company, owing to which there is a surge in cyber-attacks and data thefts in companies. Thus, to prevent this attacks companies are adopting risk management software which positively impacts the growth of the market. Furthermore, various banks and fintech have noted that there is a rise in phishing attacks since the mid of February 2020, thus to control this attacks banks and fintech are using risk management software which is providing lucrative opportunity for the market.
The report focuses on the growth prospects, restraints, and trends of global risk management market analysis. 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 global risk management market size.
Key Findings Of The Study
- By component, the software segment accounted for the risk management market share in 2019.
- By region, North America generated the highest revenue in 2019.
- By deployment model, the on-premise segment generated the highest revenue in 2019.
The key players operating in the global risk management market industry include IBM Corporation, Lockpath, Inc., LogicManager, Inc., MetricStream Inc., Qualys, Inc., SAP SE, SAS Institute Inc., ServiceNow, RSA Security LLC, and Thomson Reuters. These players have adopted various strategies to increase their market penetration and strengthen their foothold in the risk management market industry.