Third-party Risk Management Market size was valued at USD 7.08 billion in 2024 and is projected to reach USD 43.07 billion by the end of 2037, registering around 14.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of third-party risk management is assessed at USD 7.92 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.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
14.9% |
Base Year Market Size (2024) |
USD 7.08 billion |
Forecast Year Market Size (2037) |
USD 43.07 billion |
Regional Scope |
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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 2037 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 |
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Deployment Model |
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Organization Size |
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End-User |
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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.
Author Credits: Abhishek Verma
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