Vendor Risk Management Market 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 Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
14.8% |
|
Base Year Market Size (2025) |
USD 10.18 billion |
|
Forecast Year Market Size (2035) |
USD 40.47 billion |
|
Regional Scope |
|
Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of vendor risk management is estimated at USD 11.54 billion.
The global vendor risk management market size was more than USD 10.18 billion in 2025 and is anticipated to grow at a CAGR of more than 14.8%, reaching USD 40.47 billion revenue by 2035.
The North America vendor risk management market is projected to capture a 32% share by 2035, driven by increasing security breaches and need for supplier performance monitoring.
Key players in the market include BitSight Technologies, Inc., Genpact, SAI Global, IBM Corporation, Rapid Ratings International Inc., ProcessUnity, Inc., LogicManager, Inc., Aravo Solutions, Inc., ACL Services Ltd.
