Vendor Risk Management Market size is predicted to surpass USD 120 billion by the end of 2035, growing at a CAGR of 15% during the forecast period i.e., 2023-2035. In the year 2022, the industry size of vendor risk management was USD 8 billion. The expansion of this sector can be ascribed to the escalating number of third-party vendors in numerous enterprises, as they have found that their systems and processes relating to the VRM are not adequate from purely a business perspective. Therefore, it may lead to significant damage owing to an improper vendor risk management framework.
Furthermore, factors behind the growth of vendor risk management market for vendor risk management market consist of a surge in government initiatives and enforcement by agencies such as the Comptroller of the Currency (OCC), the Health Insurance Portability and Accountability Act (HIPAA), the Consumer Financial Protection Bureau (CFPB) to set up better vendor risk management framework.
Growth Drivers
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023 - 2035 |
|
CAGR |
~15% |
|
Base Year Market Size (2022) |
~USD 8 billion |
|
Forecast Year Market Size (2035) |
~USD 120 billion |
|
Regional Scope |
|
Deployment Mode (Cloud, On-premises)
The cloud segment in deployment mode segmentation is expected to capture the largest revenue share 64% in the vendor risk management market during the estimated period. Flexible, inexpensive, scalable, cloud-based VRM solution availability has helped the field flourish more. The outsourcing of information technology to the cloud has proliferated in both the private and public cloud, increasing the importance of VRM. Some companies outsource most of their work processes. This means businesses can no longer control the process and must rely on contractors to do the job right.
The effectiveness of cooperation decreased with IT sustainability through upgrades, quality control related to system management and maintenance are also important benefits of cloud computing. Many companies have recently started offering cloud-based VRM solutions, which are projected to drive the growth of the vendor risk management market in the coming years.
End User (BFSI, Telecom, Manufacturing)
The BFSI segment is projected to grow significantly by the end of 2035. The BFSI industry is a highly connected sector due to the rapidly increasing number of third-party integrations, connected devices, internet banking, and demand for high-speed transactions. Increased connectivity raises further questions about cybersecurity. Vendor risk management and potential cybersecurity are in high demand in this industry as connected businesses are almost always connected with new entities. The Financial Services Information Sharing and Analysis Center predicts that cyberattacks targeting financial institutions will increase in 2022. The agency predicts that third-party risks, zero-day vulnerabilities, and ransomware will continue to be the top cyber threats facing financial institutions in 2022.
Our in-depth analysis of the global market includes the following segments:
|
Type |
|
|
Deployment Mode |
|
|
Organization Type |
|
|
End User |
|
North American Market Forecast
Vendor risk management is expected to have the greatest market share in North America, with around 32% share by the end of 2035. The market's expansion can be attributed mostly to the increasing number of security breaches caused by the increased number of independent suppliers within smaller or larger organizations. For instance, research shows that at the largest banks in the U.S., approximately 1.5 million customers in June 2022 were affected by a major data breach. However, the revenue growth of the market in this region is expected to be supported by the increasing need to monitor and analyze the performance of the suppliers.
Europe Market Forecast
The Europe vendor risk management market is set to grow significantly during the time period between 2023 - 2035. There is an increased government regulatory framework adoption in multiple sectors in the region. For instance, on June 2022, Marsh, a global services firm introduced its Cyber Incident Management service, which will assist clients based in the UK and Europe in responding and recovering from cyberattacks, as well as increasing their cyber resilience.
Author Credits: Abhishek Verma, Hetal Singh
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?