Third-party Risk Management Market Size

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.