Third-party risk Management Market Size & Share, by Component (Solutions, Services); Deployment Model (On-Premise, Cloud); Organization Size (Small & Medium-Sized Enterprise, Large Enterprise); End-User (Banking, Financial Services & Insurance, IT & Telecom, Healthcare & Life Sciences, Government, Aerospace & Defense, Retail & Consumer Goods, Manufacturing, Energy & Utilities) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5758
  • Published Date: Feb 29, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Third-party Risk Management Market size is expected to reach USD 20 Billion by the end of 2036, growing at a CAGR of 17% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of third-party risk management crossed around USD 5 Billion. The primary reason behind the growth of the third-party risk management is the intensely shifting market competitiveness across the world. Recently, supply chain risks imbued businesses in each industry. From a cosmetics organization utilizing palm oil connected to deforestation to a fashion retailer sourcing clothes made by strained labor, or an electronics organization being linked to child labor in valuable metals mining, as supply chains increase larger and more ranked, it becomes more difficult to recognize and limit risks. Organizations’ popularity is on the line. In this digital, connected world, bad news goes lightning-fast, making organizations susceptible.

Another reason that will propel the third-party risk management market by the end of 2036 is the rising cyber-attacks and data threats across the world. Cybercrime, which comprises everything from theft or defalcation to data hacking and devastation, has increased by 500% as an outcome of the COVID-19 epidemic. Approximately every industry has had to encompass the latest solutions and it strained organizations to adjust, immediately. Cyber-attacks have been rated the fifth top-rated risk in 2020 and become the latest standard for public and private sectors. This dangerous industry goes on to rise in 2024 as IoT cyber-attacks alone are projected to two-fold by 2025. Additionally, the World Economic Forum’s 2020 Global Risk Report expresses that the rate of spotting (or prosecution) is as down as 0.05 percent in the U.S. If you are one of the many who run an increasing initiation, you know the landscape is constantly changing and 2020 brought on multiple changes, to say the least. The epidemic influenced all kinds of businesses - big and small.


Third-party Risk Management Market
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Third-party Risk Management Market: Growth Drivers and Challenges

Growth Drivers

  • Quick Increasing Trend of Business Digitalization- Digital conversions allow organizations to raise profits while limiting costs. A McKinsey report noticed that B2B organizations observed 10 to 15 percent profit expansion and 10 to 20 percent cost limitations after digitally transforming their customer experience techniques, while another report demonstrated that start-ups noticed a 34 percent profit rise after accepting digital-first planning. When positioned hand in hand, organization suspects with lower digital maturity reported 15 percent profit expansion, while higher digital maturity organizations reported 45 percent. The commencement of the COVID-19 epidemic quickly increased most businesses’ shifts to be partly or fully digital. The confirming compulsory social distancing procedures delivered to reported rises in customers' requirement for online buying capacities and services. While digitized businesses were competent in working so, non-digitized businesses strived to match these requirements and safeguard their profits. To counter the financial fallout, these businesses started to spend more on digitally converting their existing infrastructure.
  • Increase in the Utilization of Vendors - From suppliers to software and resourcing requirements, businesses more and more don’t go it alone. Certainly, they have noticed the increase of the expanded enterprise – organizations depending on a network of third-party vendors to give them with administrative value and competitive benefits. Of the 170 companies examined by Deloitte in the Global Survey on Third-party Governance and Risk Management, 87% have encountered a happening with a third-party that interrupted their operations, and 11% have encountered a total failure in their vendor relationship. These figures demonstrate there is an increasing requirement to limit risk revelation before it’s too late.
  • Effective Management of Vendor Ecosystems - Internal effectiveness is critical for business success. They may have the best materials, skilled personnel, and a network of loyal clients, but if the business works inadequately, it will stumble. Businesses require agility, pliability, and resilience to prosper despite economic regression, competitive talent countryside, and transforming clientele prospects. In the last ten years, organizations adopted digital conversion quickly to keep increasing and taking part in the advanced business world. This was a smart and essential move. Managed security service is really important for any company.

Challenges

  • High Cost Related to Utilization - The type of costs is for continual management, to secure an efficient organizational risk management capacity. It is essential to keep the risk technique unique and updated. Without continuous growth of the risk technique, there is a hazard of losing efficiency. Risk management is a growing discipline, and fresh processes and gadgets appear daily. Even the theoretical basis goes on to increase as fresh thoughts become admitted into the mainstream. Efficient risk management needs refresher training to manage and grow staff abilities, along with revitalizing the technique to comprise current growths and fresh techniques. On average a company should focus on refreshing its risk technique every 2-3 years to remain updated.
  • Unattainability of Talent
  • Rigorous Government Policies

Third-party Risk Management Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

∼17%

Base Year Market Size (2023)

~USD 5 Billion

Forecast Year Market Size (2036)

~USD 20 Billion

Regional Scope

  • North America (North America, Canada, Mexico)
  • Asia Pacific (Japan, China, India, Australia, Others)
  • Europe (Germany, Spain, UK, France, Italy, Russia, Others)
  • Middle East and Africa (South Africa, UAE, Others)
  • Latin America (Brazil, Argentina, Others)
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Third-party Risk Management Segmentation

Deployment Model (On-Premise, Cloud)

The cloud segment in the third-party risk management market is expected to hold 60% of the revenue share because of its wide utilization in large, medium, and small companies across the world. Luckily, assistance is accessible in the type of different publications, comprising Cloud Security Alliance’s (CSA’s) Cloud Control Matrix version. It is created of 197 control goals splintered into 17 domains. It not only comprises the latest controls to be comprised as a result of the utilization of cloud technology but also demonstrates the division of accountability between the CSP and the cloud client. Utilization and auditing instructions are also accessible. NIST’s Cybersecurity Framework version 1.13 comprises voluntary assistance depending on existing standards, instructions, and practices for companies to better maintain and limit cybersecurity risk. The technique is recognizing, analyzing, and evaluating technology risk should be personalized because of multiple reasons that discriminate cloud utilization from on-premises utilization.

Component (Solutions, Services)

The solutions segment is projected to account for 62% share of the global third-party risk management market by 2036 owing to the simple utilization in companies across the world. 61% of enterprise risk management (ERM) leaders expressed it’s essential to modify their skills to properly recognize the developing risks that could be most detrimental over the coming 12 months. 47% of senior ERM leaders express being better developed for these appearing risks over the next 12 months is critical. Risk shows any type of doubtfulness that can affect an organization's ability to accomplish its business goals. There are plenty of kinds of business risks, comprising ones that include projects, finances, cybersecurity, information protection, regulatory conformity, and ecological factors. Such risks aren't all adverse -- there are also favorable ones that present business scopes. For both, you require a strategized, determined technique to comprehend and then maintain the offset between risk and recompense.

Our in-depth analysis of the global third-party risk management market includes the following segments:

          Component

  • Solutions
  • Services

          Deployment Model

  • On-premise
  • Cloud

          Organization Size

  • Large Enterprises
  • Small & Medium Enterprises

          End-User

  • Banking
  • Financial Services & Insurance
  • IT & Telecom
  • Healthcare & Life Sciences
  • Government
  • Aerospace & Defense
  • Retail & Consumer Goods
  • Manufacturing
  • Energy & Utilities

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Third-party Risk Management Industry - Regional Synopsis

North American Market Statistics

The third-party risk management market in the North America region will have the biggest growth during the forecast period with a revenue share of around 48%. This growth will be noticed owing to the presence of eminent key players in this region. Approximately 90 percent of organizations on the list hail from the U.S. and Canada, against 5 percent from Brazil. Much like in the year 2022, the technology sector – taken by North American organizations – contributes to almost 28 percent of the complete list, trailed by financial services and health. The technology industry encountered quick growth as the coronavirus crisis strengthened and more people began working, shopping, and interacting through digital channels. For some organizations, expansion has now decelerated as the limitations have been elevated.

APAC Market Analysis

The third-party risk management market in the APAC region will also encounter huge growth during the forecast period and will hold the second position owing to the rising integration of cutting-edge technologies. To match these challenges head-on, 600 leaders from around APAC participated in Diligent Connections 2023 events in Manila, Singapore, and Sydney, prepared to study from one another and involved in the newest GRC trends, technology, and thought leadership shared around several panel sessions, fireside chats, and practical workshops.

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Third-party Risk Management Market Size
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Companies Dominating the Third-party Risk Management Market

top-features-companies
    • RSA Security LLC
      • Company Overview
      • Business Planning
      • Main Product Offerings
      • Financial Execution
      • Main Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Genpact
    • MetricStream
    • Deloitte
    • KPMG
    • BitSight Technologies, Inc.
    • Ernst & Young LLP
    • PwC
    • ProcessUnity, Inc.
    • Venminder, Inc.

In-the-news

In The News

  • Genpact, an international professional services firm concentrated on providing results that transform businesses, declared two fresh executive leadership fittings. These fittings show the organization's continued concentration on reinforcing its executive team with life-changing digital leaders to drive the organization into its next chapter of expansion, leveraging information, technology, and AI-first principles.
  • Genpact, an international professional services firm concentrated on providing outcomes that transform businesses, declared a new multi-year involvement with Advantage Solutions, a leading provider of sales and marketing services to clientele goods manufacturers and retailers.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5758
  • Published Date: Feb 29, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The intensely shifting market competitiveness across the world will majorly drive the market growth of the third-party risk management market.

The market size of the third-party risk management market is expected to get a CAGR of approximately 17% over the forecast period, i.e., 2024-2036.

The major players in the market are RSA Security LLC, Genpact, MetricStream, Deloitte, KPMG, BitSight Technologies, Inc., Ernst & Young LLP, PwC, ProcessUnity, Inc., Venminder, Inc., NAGASE Group, Tokyo Electron Ltd., Sompo Risk Management, Atsumi & Sakai.

The solution segment is anticipated to reap the largest market size with almost 62% by the end of 2036 and demonstrate substantial growth scopes.

The market in the North American region is expected to have the largest market share by the end of 2036 and provide more business opportunities in the future.
Third-party Risk Management Market Report Scope
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