Vendor Risk Management Market Size & Share, by Type (Solutions, Services); Deployment Mode (Cloud, On-premises); Organization Type (Small & Medium Sized Enterprises, Large Enterprises); End-user (BFSI, Telecom, Manufacturing) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4901
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

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.


Vendor Risk Management Market Overview
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Vendor Risk Management Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Demand for Efficient Management of Vendor Ecosystem — vendor risk management tools are useful when a company relies on several different suppliers because they help pinpoint the major problems present while buying goods and services. from outside snooker. A vendor risk management system makes it easier for the enterprise to evaluate risks and helps in improving productivity and reducing costs. In 2020, over 40% of businesses had cutting down their budget as their major agenda across the globe.
  • Increasing Need to Streamline Vendor Risk Assessment Processing — To determine your business and its level of risk and exposure, one must understand the tools, methods, and procedures that a vendor employs, this is done through a special sort of vendor review called a vendor risk assessment. With supply chains becoming more complex, these third-party risks are expanding, hence the need to optimize and monitor vendor risk assessment processing, Globally, a high-impact third-party risk incident was reported by 17% of firms, up from 11% in the 2020 study.
  • Leading Demand for VRM Solutions by SMBs – According to the latest annual data breach report, data breaches cost USD 3 million in India. SMBs are focusing on managing data security vendor risk by expanding the number of vendors and companies. This boom is projected to continue during the forecast period.
  • Increased investment in vendor risk management solutions – According to data, 90% of investment institutions in the US, Canada, and the UK are considering investing in vendor risk management and security to free up internal staff and improve productivity. 

Challenges

  • Wide Dependence of Organization on Manual Processes – Many organizations still rely on manual processes to evaluate any risks associated with vendors and dependencies. The reluctance in accepting vendor risk management solution software is one of the major factors estimated to hamper the market expansion in the upcoming times.
  • Lack of Outsourcing of VRM Solutions in Highly Strict Industries
  • Unaware of the Significance of Vendor Risk  

Vendor Risk Management Market: Key Insights

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

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Vendor Risk Management Segmentation

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

  • Solutions
  • Services

           Deployment Mode

  • Cloud
  • On-premises

 

           Organization Type

  • Small & Medium-Sized Enterprises
  • Large Enterprises

           End User

  • BFSI
  • Telecom
  • Manufacturing

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Vendor Risk Management Industry - Regional Synopsis

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.

Research Nester
Vendor Risk Management Market Size
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Companies Dominating the Vendor Risk Management Landscape

top-features-companies
    • BitSight Technologies, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Genpact
    • SAI Global
    • IBM Corporation
    • Rapid Ratings International Inc.
    • ProcessUnity, Inc.
    • LogicManager, Inc.
    • Aravo Solutions, Inc.
    • ACL Services Ltd.

In-the-news

In The News

  • IBM Corporation recently signed an agreement with Siam Commercial Bank, a Thailand-based financial services provider, to improve the security of countless digital transactions on its platform and to provide better service to its customers. This collaboration aims to capitalize on IBM’s key expertise in providing a secure, resilient enterprise platform for mission-critical apps and data on hybrid multi-cloud to mitigate risks and reduce fraudulent activity in financial transactions.
  • ProcessUnity, Inc. a U.S.-based software company released a statement announcing that Forrester has poisoned it as a leader in the Forrester Wave Third-Party Risk Management Platforms.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 4901
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing need for efficient management of vendor ecosystems, increasing third-party providers in organizations, and demand for streamlined risk management processing are some of the major factors anticipated to drive the growth of the vendor risk management market.

The market is anticipated to attain a CAGR of 15% over the forecast period, i.e., 2023-2035.

The major players in the market are Genpact, MetricStream, SAI Global, IBM Corporation, Rapid Ratings International Inc., ProcessUnity, Inc., LogicManager, Inc., Aravo Solutions, Inc., and others.

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

The market in North America is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Vendor Risk Management Market Report Scope
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