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The risk analytics market size is estimated to grow at a CAGR of 12.09% between 2022 and 2027. The market size is forecast to increase by USD 30,575.42 million. The growth of the market depends on several factors, including the increase in data and security breaches among enterprises, the stringent government regulation compliance, and the growing complexities across business processes. Risk analytics is a set of techniques that assist individuals or organizations by measuring, quantifying, and predicting risk in their operations or project. These risks may include financial, strategic, operational, legal, and regulatory risks, among others.
This risk analytics market report extensively covers market segmentation by component (solution and service), deployment (on-premises and cloud), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increase in data and security breaches among enterprises is driving growth in the analytics market. As more BFSI, IT companies rely on big data analytics and cloud computing to gain a competitive edge, the threat of cyber-attacks has also increased. Financial firms can suffer not only the loss of a valued client but also their reputation and years' worth of good work as a result of data breaches. Furthermore, there has been an increasing number of compliance and legal challenges faced by companies in addition to data breaches. These challenges are wide-ranging from data protection laws such as General Data Protection RegulationGDPR to industry Specific regulations, e.g. the Health Insurance Portability and Accountability ActHIPAA for healthcare organizations.
In order to deal with these challenges, a growing number of BFSI, healthcare, and others are opting for risk management tools offering compliance automation capabilities that allow them to more closely track and enforce compliance in an effective manner. Many banks use risk management platforms incorporating artificial intelligence and machine learning to detect and flag potentially suspicious transactions in order to comply with these regulations. These tools not only reduce the risk of non-compliance but also help banks avoid costly penalties and reputational damage. Thus, such factors are expected to drive the growth of the global risk analytics market during the forecast period.
Technological innovation in risk analytics platforms is a primary trend in the risk analytics market. Risk analytics solution is used to ensure the efficient management of policies and regulatory compliance and reduce exposure to cybercrime. Over the past years, there has been a surge in data leakage and internet fraud incidents reported in banks and organizations worldwide.
An AI-based analysis can also be used to generate high-quality reports that can analyze more about organizations' risks, financial reporting controls, and operating environment. The adoption of AI in risk analytics solutions is emerging across the world in numerous organizations.
The threat from open-source risk management solutions is a major challenge in an analytics market. The availability of open-source application solutions is one of the major challenges hindering the growth of the global risk analytics market. Open-source application solutions are being developed and offered by IT organizations free of cost. The high cost of risk analytics solutions has led to an increase in the adoption of open-source applications, especially among organizations with low IT budgets. Most start-ups and SMEs, which operate with low budgets for IT and marketing expenditure, do not make investments in permanent software licenses or subscription costs. The market in which we are focusing is characterized by a wide variety of open-source risk management solutions. They're cost-effective but have limited functionality and lack advanced features.
Organizations are moving toward cost-effective open-source risk management solutions, due to growing demand for risk management and the need to keep track of financial institutions' assets. Thus, the availability of open-source risk management solutions is expected to be a major challenge for the growth of the global risk analytics market during the forecast period.
The market share growth by the solution segments is estimated to witness significant growth during the forecast period. The solution segment is a crucial component in the global risk analytics market. With the increasing demand for solutions that can help mitigate risks and improve overall organizational performance, the solution segment is expected to experience significant growth during the forecast period. This growth is fueled by advancements in technology, increasing data volumes, and the need for effective risk analysis and management.
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The solution segments show a gradual increase in the market share of USD 17,585.53 million in 2017 and continue to grow by 2021. The ability to assist in the automation of processes that are not too difficult or complicated, and require a significant amount of time is one of the biggest advantages of using risk analytics solutions. Compliance management solutions, for instance, are considered to be a means of ensuring that an organization complies with applicable legislation. This allows the software to simplify compliance procedures, reduce errors and eliminate the need for costly and time-consuming manual processes.
The on-premises segment in the global risk analytics market refers to a solution that is installed and deployed on the organization's own server and managed by its IT department. In order to ensure that organizational policies and security standards are respected, this arrangement allows any part of a risk management system or data to be controlled by an organization. One of the most significant advantages offered by an on-premises segment is to be able to configure risk management systems in line with company-specific requirements, which allows for a more tailored solution.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America dominated the global risk analytics market in terms of revenue share. This is due to the presence of a large number of organizations belonging to the BFSI, IT, healthcare, and other industries. Organizations belonging to these end-user industries are the major buyers of risk analytics solutions in this region, as it enables cash management, payments, financial instruments, accounting, banking, risk management, and hedge accounting.
In 2020, the risk analytics market in North America witnessed a slowdown owing to the outbreak of COVID-19. Several end-user sectors, such as small- and medium-sized enterprises (SMEs) and large enterprises, partially shut down their operations due to the pandemic. However, In 2020, the growing market for risk analytical solutions was stimulated by organizations' continuous use of Risk Analytics technologies to assess risks and identify possible investments. The regional market is projected to grow over the forecast period as a result of the increasing adoption of cloud-based risk management solutions. In addition, the increasing number of cyber attacks in 2020 and 2021 contributed to an increased need for risk analysis solutions.
The Risk Analytics Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Risk Analytics Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc - The company offers risk analytics such as Cyber risk, Operational risk and resilience, Fraud and Financial Crime, Regulatory and compliance, and financial risk.
Adenza Group Inc. - The company offers risk analytics such as risk management and regulatory compliance platforms under its brand called AIBs.
Fidelity National Information Services Inc. - The company offers risk analytics such as risk analytics with risk services under FIS Risk Management.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The risk analytics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Risk Analytics Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.09% |
Market growth 2023-2027 |
30575.42 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
11.23 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, China, Germany, and the UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Adenza Group Inc., CoreLogic Inc., Fidelity National Information Services Inc., Finastra, Genpact Ltd., GURUCUL, International Business Machines Corp., Moodys Corp., National Instruments Corp., OneSpan Inc., Oracle Corp., Provenir Group, Recorded Future Inc., Risk Edge Solutions, SAP SE, SAS Institute Inc., Tata Consultancy Services Ltd., Verisk Analytics Inc., and Intrado Life and Safety Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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