The growing need to enhance customer experience are the major factors driving the growth of the third-party risk management market
The global third-party risk management market size is anticipated to reach over USD 8 billion by 2025, growing at a CAGR of over 16% throughout the forecast period 2018-2025. Third-party risk management is necessary to protect organizational data from numerous sources that can occur while dealing with other organizations. The growing dependence of various organizations on third party vendors to meet timely deliveries and enable faster production are putting organizations crucial data at risk. Hence, such factors driving the demand for third party risk management solutions.
The current and future third party risk management market advances are defined to state the attractiveness of the market. Key impacting aspects focus on the third-party risk management market opportunities during the forecast period. Factors such as the growing number of cyber-attacks is also another crucial factor in boosting the global third-party risk management market growth. Also, the rising adoption of virtual applications is the key factor in boosting the global third-party risk management market growth. However, the lack of a skilled workforce is expected to impede market growth. Furthermore, growing data protection regulations and laws are also anticipated to provide growth opportunities for the market in forthcoming years. Also, technological advancements such as smart contracts, data analytics, and automation are some of the key factors expected to be opportunistic for the market in the forthcoming years.
The report also highlights various aspects of the global third-party risk management industry by analyzing the market through value chain analysis. Besides, the third-party risk management market report covers different qualitative aspects of the third-party risk management industry in market drivers, key industry opportunities, and restraints. Furthermore, the report proposes a comprehensive valuation of the market competitiveness along with company profiling of residents as well as global vendors.
The third-party risk management market has solid competition among the early established and new players. Also, to capture a competitive advantage over the other industry players many industry players are aiming potential markets by forming collaboration and partnerships, agreements, mergers & acquisitions, acquiring new startups & other companies, and escalating their business presence.
Based on the management type segment, the market is divided into operational risk management, compliance management, financial control management, compliance management, contract management, others. The compliance management segment gathered the highest CAGR during the forecast period. On the contrary in the year 2019, the financial control management segment accounted for the highest market revenue and it is anticipated to hold the major market share throughout the forecast period. The dominance of this segment is mainly attributed to the increasing need for a better view of cash flow and cost optimization of business processes.
The Asia-Pacific region is projected to experience the highest growth throughout the forecast period. However, the North American region dominated the overall market in 2019 and it is likely to keep its position during the forecast period 2018-2025. The dominance of this region is mainly attributed to the growing adoption of IoT and cloud-based applications. Also, the existence of major industry players is also the key factor driving the market growth in this region.
The major players of the global third-party risk management market are Deloitte, PwC, MetricStream, Genpact, KPMG International, RSA Security, Ernst & Young, BitSight Technologies, IBM, and NAVEX Global. Moreover, the other potential players in the third-party risk management market are LogicManager, RapidRatings, Resolver, Optiv, and ProcessUnity. The recognized companies are coming up with innovative and new third-party risk management services. For instance, in March 2019, RSA, a cyber-security solutions provider announced the upgrades to its risk management platform to help customers in transforming risk management functions.
Segment Overview of Global Third-Party Risk Management Market
Management Type Overview, 2018-2025 (USD Million)
- Operational Risk Management
- Compliance Management
- Financial Control Management
- Compliance Management
- Contract Management
Services Overview, 2018-2025 (USD Million)
- Managed Services
- Professional Services
End Users Overview, 2018-2025 (USD Million)
- IT & Telecom
- Government and Defense
Regional Overview, 2018-2025 (USD Million)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America