Risk Analytics Market size is estimated to reach ~USD 224.79 Billion by the end of 2035 by growing at a CAGR of ~15.4% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of risk analytics was ~USD 40.3 Billion. The growth of the market can be attributed to the rising need to reduce the risk of data breaches. This need is driven by the increasing cost of these breaches. When fraud is involved, as is sometimes the case in ransomware attacks, the breach can become more expensive. This is owing to the fact that the corporation must recover from the breach and possibly pay a ransom to the cyber thieves. The typical total expense of a ransomware breach is around USD 5 million, which is somewhat higher than the USD 4 million average costs of a destructive attack.
In addition to these, factors that are believed to fuel the market growth of risk analytics include the rapidly growing automation across the companies. Businesses are highly adopting automation since increases productivity, reduces the cost of the operation, and enhances performance. Around 94% of small and medium-sized businesses (SMBs) in the world carry out time-consuming, repetitive tasks. However, globally, automation has improved the job for around 90% of skilled employees and has boosted productivity by nearly 66%. In addition to this, according to the International Federation of Robotics, globally there are on average 113 robot units deployed for every 10,000 workers in the manufacturing industry. Out of which, European countries have the most automated production.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~15.4% |
Base Year Market Size (2022) |
~ USD 40.3 Billion |
Forecast Year Market Size (2035) |
~ USD 224.79 Billion |
Regional Scope |
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Growth Drivers
Challenges
The market is segmented and analyzed for demand and supply by end users into BFSI, manufacturing, retail & consumer goods, IT & telecom, transport & logistics, health & life sciences, government & defense; energy & utilities, and others. Out of the nine end users of risk analytics, the BFSI (banking, financial services, and insurance) segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the rising amount of compromised data. Global banking networks are extremely complicated, with several moving elements. They connect multiple banks, including regional banks, state banks, and global banks. Networks with cloud and local servers, dedicated terminals at bank and retail locations, consumer and mobile devices, software, ATMs, and other components comprise these interconnected systems. These dispersed networks are more vulnerable to data breaches, compromised cyber security, and other threats. From January 2018 to June 2022, financial breaches accounted for around 153 million exposed records. Moreover, 2021 was the most severe year for financial data violations, with a 12% rise over 2020, jumping from 233 to 260 breaches in the United States.
The global risk analytics market is also segmented and analyzed for demand and supply by risk type into operational risk, financial risk, third-party risk, and strategic risk. Amongst these four segments, the operational risk segment is expected to garner a significant share in the year 2035. Rising problems occur owing to human errors. People's operational risk can be produced by a variety of circumstances, including human error, bad decision-making, or hostile intent. The human mistake was responsible for more than half of all data breaches reported to Australia's Information Commissioner under the new legislation. There are various other reasons the company can face operational risks, such as cyber-attacks, human errors, outsourcing, talent retention, automation implementation, data analytics, and others.
Our in-depth analysis of the global risk analytics market includes the following segments:
By Risk Type |
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By Component |
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By Deployment |
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By End User |
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The market share of risk analytics in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the rising data breaches occurring in healthcare systems. OCR handled 656 complaints of breaches impacting 500 or more people, a 61% increase over the quantity of reports received in the year 2019. A total of 37,641,403 people were affected by the alleged breach in the United States. On the other hand, growing cases of cyber-attacks are likely to boost the market growth in the region. For instance, in 2021, over 30,000 US businesses were hit by a widespread attack on Microsoft Exchange email servers, one of the world's largest email servers and it was one of the largest cyberattacks in US history. The hackers used four separate zero-day vulnerabilities to obtain unauthorized access to emails from small enterprises to municipal governments.
The Asia Pacific risk analytics market is estimated to be the second largest, registering a share of about ~28% by the end of 2035. The growth of the market can be attributed majorly to the growing risk of patient death owing to medication errors. Pharmaceutical errors are responsible for around 7,000 deaths per year. Drug errors and drug-related difficulties in India are primarily caused by inappropriate medication use. Moreover, the rate of adverse medication events was as high as 82 per 1,000 prescriptions in Delhi, while national statistics show that up to 5 million medical errors occur each year. On the other hand, increased instances of cyber-attacks in the BFSI sector are also expected to augment the market growth in the region. Cyberattacks on the BFSI industry have skyrocketed. Out of all recorded cyber incidents in the fiscal year 2021-22, around 10% is attributed to the banking sector. Moreover, India recorded around 283 events in the first six months of 2022, and nearly 469 in 2021.
Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the rising automation in the industry. In 2020, Germany added 25 industrial robot units per 10,000 employees. In 2020, it accounted for 33% of all robot sales in Europe. Most of Germany's robotics sector is driven by international business rather than commerce in Europe or within Germany.
Author Credits: Abhishek Verma, Hetal Singh
Ans: Increasing incidences of data thefts, rising cases of medication errors, and higher adoption of machine learning are the major factors driving the market growth.
Ans: The market size of risk analytics is anticipated to attain a CAGR of ~15.4% over the forecast period, i.e., 2023 – 2035.
Ans: The BFSI segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Accenture PLC, Capgemini Services SAS, Fidelity National Information Services GmbH, IBM Corporation, Moody's Analytics Inc., Oracle Corporation, OneSpan Inc., Provenir, Inc., Risk Edge Solutions, and CoreLogic, Inc.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by risk type, component, deployment, end user, and by region.
Ans: The BFSI segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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