Risk Analytics Market Size, Share - Forecast Report 2035

Global Risk Analytics Market: Growth Drivers and Challenges

Growth Drivers

Growing Incidences of the Data Thefts – In high-risk sectors, risk analytics utilize data to look for control flaws and irregularities that could be indicators of fraud, lowering the chance of data theft. The biggest amount of exposed data records in the world was found in the fourth quarter of 2020, about 125 million data pieces. Moreover, approximately 15 million data records were exposed globally owing to data breaches in the third quarter of 2022. When compared to the previous quarter, this amount had climbed by around 37%.
Rising Automation Across the Businesses – Analytics is used when these technologies apply mathematical algorithms to improve the accuracy of the automated technologies used to detect and predict threats. Globally more than one-third of companies have five or more automated divisions. Moreover, the automation process involves 45% of business teams. It was expected that humans are going to account for 58% of all work by the end of 2022, with machines handling the remaining 42%.
Increasing Adoption of Machine Learning – Businesses all over the world are already using machine learning to analyze data and uncover trends that might help them make business decisions. In 2021, around 76% of organizations chose AI and machine learning (ML) over other IT investments in the world. Moreover, around six in ten that is nearly 64% of the companies feel AI and ML initiatives have become more important in the last year compared to other IT goals.
Growing Faulty Incidences in Healthcare –Rising occurrence of errors in healthcare is likely to increase the demand for risk analytics. According to the World Health Organization, drug-related errors are a prominent cause of damage and preventable harm in healthcare systems, worldwide, the global cost of drug errors has been estimated at USD 42 billion per year.
Rising Generation of Unstructured Data – Businesses are increasingly turning to unstructured data for predictive analytics and risk assessments. Unstructured data is far more prevalent than structured data. Unstructured data accounts for 80% or more of all enterprise data, and the percentage is increasing.

Challenges

Inaccuracy of Data Extracted from Data Silos- Data quality frequently drops as a result of inconsistencies in data that may overlap across silos. Data silos create hurdles to information sharing and collaboration between departments. Moreover, Siloed data is often stored in a separate system and is frequently incompatible with other data sets. Therefore, when data is segregated from the silos, it is difficult for a company to gain an overall understanding of company data.
It is difficult to comply with the varying regulation policies
Risk is measured are based on probabilities

Global Risk Analytics Market Segmentation

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	Operational Risk Financial Risk Third-Party Risk Strategic Risk
By Component	Software ETL Tools GRC Software Risk Calculation Engines Services Professional Managed
By Deployment	Cloud On-Premises
By End User	BFSI Manufacturing Retail & Consumer Goods IT & Telecom Transport & Logistics Health & Life Sciences Government & Defense Energy & Utilities Others

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Global Risk Analytics Market Regional Synopsis

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.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the risk analytics market?

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.

2) What would be the CAGR of risk analytics market over the forecast period?

Ans: The market size of risk analytics is anticipated to attain a CAGR of ~15.4% over the forecast period, i.e., 2023 â€“ 2035.

3) What are the challenges affecting the risk analytics market growth?

Ans: The BFSI segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

4) Which region will provide more business opportunities for growth of risk analytics market in future?

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.

5) Who are the major players dominating the risk analytics market?

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.

6) How are the company profiles selected?

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.

7) What are the segments in the risk analytics market?

Ans: The market is segmented by risk type, component, deployment, end user, and by region.

8) Which segment captures the largest market size in the end user segment in the risk analytics market?