Risk Analytics Market size was over USD 54.29 billion in 2024 and is poised to exceed USD 259.86 billion by the end of 2037, growing at over 12.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of risk analytics is estimated at USD 59.85 billion.
The reason behind the growth is impelled by the rising generation of data. Large volumes of organized and unstructured data are being used more often which has necessitated the use of risk analytics to gain valuable insights, analyze, generate actionable findings, and develop appropriate tactics. According to estimates, every day, the world generates over 2 quintillion bytes of data.
The growing prevalence of black swan events are believed to fuel the market growth. Black swan events are unpredictable owing to their rarity and can result in huge setbacks and consequences therefore, risk managers recognize the need for more rigorous methods such as risk analytics to assist in contingency planning.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
12.8% |
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Base Year Market Size (2024) |
USD 54.29 billion |
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Forecast Year Market Size (2037) |
USD 259.86 billion |
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Regional Scope |
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End-user (BFSI, Manufacturing, Retail & Consumer Goods, IT & Telecom, Transport & Logistics, Health & Life Sciences, Government & Defense, Energy & Utilities)
The BFSI segment is estimated to hold 25% share of the global risk analytics market during the forecast year owing 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.
Moreover, risk analytics enables banks to establish policies in a variety of areas and assists banks in comprehending the possible influence of market and external forces. 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.
Risk Type (Operational, Financial, Third Party, Strategic)
Risk analytics market from the operational risk segment is set to garner a notable share shortly. 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 market includes the following segments:
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Component |
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Risk Type |
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Deployment |
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End-User |
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North American Market Forecast
Risk analytics market in North America is predicted to account for the largest share of 35% by 2037 impelled by the growing cases of cyber-attacks. For instance, in 2021, over 30,000 US businesses were hit by a widespread attack on Microsoft Exchange email servers, one of the worlds 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. This may increase the demand for risk analytics in the region as this method helps in identifying, analyzing, evaluating, and concentrating on the resources that are likely to create loss.
APAC Market Statistics
The APAC risk analytics market is estimated to be the second largest, during the forecast timeframe led by 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 the country, while national statistics show that up to 5 million medical errors occur each year. Therefore, there is an urgent need to improve risk minimization and medication error prevention in the region which may create a huge demand for risk analytics.
Author Credits: Abhishek Verma
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