Vendor Risk Management Market Trends

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	2024
Forecast Year	2025-2037
CAGR	15.1%
Base Year Market Size (2024)	USD 10.59 billion
Forecast Year Market Size (2037)	USD 65.9 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)

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of vendor risk management is evaluated at USD 11.87 billion.

The vendor risk management market size was over USD 10.59 billion in 2024 and is poised to exceed USD 65.9 billion by 2037, witnessing over 15.1% CAGR during the forecast period i.e., between 2025-2037. The growing need for efficient management of vendor ecosystems, increasing third-party providers in organizations, and demand for streamlined risk management processing will fuel the market growth.

North America industry is anticipated to dominate majority revenue share of 32% by 2037, attributed to increasing number of security breaches caused by the increased number of independent suppliers within smaller or larger organizations.

The major players in the market are BitSight Technologies, Inc., Genpact, SAI Global, IBM Corporation, Rapid Ratings International Inc., ProcessUnity, Inc., LogicManager, Inc., Aravo Solutions, Inc., ACL Services Ltd.

Vendor Risk Management Market Trends