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The governance risk and compliance platform market size is forecast to increase by USD 37.63 billion, at a CAGR of 13.64% between 2023 and 2028. The market for regulatory compliance solutions and eGRC (electronic Governance, Risk, and Compliance) solutions is experiencing substantial growth due to the increasing demand from organizations for effective risk management. As corporate data expands exponentially, businesses are turning to advanced GRC platforms to manage risks more efficiently. Artificial Intelligence (AI) technologies are enhancing these platforms by providing sophisticated analytics and predictive capabilities. Real-time monitoring features enable companies to swiftly adapt to changing regulatory landscapes and maintain compliance more effectively. The market's growth is driven by the seamless and rapid deployment of GRC policies, allowing organizations to respond promptly to regulatory changes and emerging risks. This trend reflects a broader industry shift towards proactive third-party risk management and stringent compliance adherence.
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The governance risk and compliance platform market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth of the Cloud-based segment will be significant during the forecast period.Cloud-based GRC solutions are the fastest-growing segment of the market. SaaS eliminates the need to install any additional software on computing and mobile devices. It is an affordable, easy-to-install, and on-demand solution that provides different GRC options according to end-users requirements.
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The cloud-based segment was valued at USD 13.17 billion in 2018. Data is usually stored in the cloud on servers located in remote locations, which reduces the maintenance costs pertaining to hardware and other software installations. Third parties provide hosted services on the physical servers at different locations, which can be accessed through the third-party suppliers' network. For instance, Microsoft hosts exchange applications in the Azure public cloud or outsources them to third-party providers.
The growing focus on software segment will increase the market. Business processes in various industries, including construction and engineering, transportation and logistics, IT & Telecom, and financial institutions, require effective governance, risk, and compliance management. Managers utilize platforms, also known as enterprise risk management (ERM) systems, to address financial, strategic, operational, and hazard risks. These platforms incorporate technologies like artificial intelligence (AI), machine learning (ML), and predictive analytics for real-time monitoring and risk assessment. The market caters to social media governance, cyberthreats, intellectual property protection, and adapting to the changing regulatory environment. Such launches are expected to drive the growth of the software segment of the global platforms during the forecast period.
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North America is estimated to contribute 39% to the growth of the global governance risk and compliance platform market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The global governance, risk, and compliance platform market is significantly driven by North America, with the US being a major adopter of solutions. Following the 2008 financial crisis, risk management became a priority in the US financial sector. Businesses are implementing integrated data platforms, utilizing tools like composite software and social media analytics, to streamline data sources and gain valuable customer insights.
Moreover, the changing regulatory environment and compliance requirements have led to the deployment of various solutions. These include audit management, risk management, policy management, and compliance management systems. Industries such as construction and engineering, transportation and logistics, IT & telecom, and financial institutions are major consumers. Advancements in technology, like artificial intelligence (AI), machine learning (ML), predictive analytics, and real-time monitoring, are integral to these solutions. Hence, such factors are driving governance risk and compliance market growth in North America during the forecast period.
In today's complex business landscape, organizations, especially those in regulated industries, require robust solutions to manage risks, ensure compliance with regulations, and maintain strong governance practices. The market for Governance, Risk, and Compliance (GRC) platforms is experiencing significant growth as more businesses recognize the benefits of integrating these systems into their operations. The cost of IT investments is a crucial consideration when selecting a GRC platform, as they can have a substantial impact on business processes and potentially expose organizations to legal and financial risks. Careful planning and strategic decision-making are essential. The GRC landscape is continually evolving, making it imperative for companies to assess various solutions to identify the one that aligns best with their unique needs and budget. A well-implemented GRC platform can lead to streamlined operations, reduced risks, and enhanced overall organizational performance. The importance of these platforms in today's business environment cannot be overstated.
Quick and easy deployment of GRC policies is notably driving governance risk and compliance platform enterprise governance market growth. In today's business landscape, adhering to regulatory requirements is crucial for managing corporate data effectively. The US government enforces acts such as SOX and HIPAA, which provide guidelines for handling financial information and protected health information, respectively. Compliance with regulations like FINRA, Gramm-Leach-Bliley, Fair Credit Reporting Acts, and PCI is essential for the BFSI sector and other industries. Advancements in technology, including AI and machine learning, have led to the development of GRC platforms in the cloud.
Moreover, these platforms help organizations navigate complex regulatory landscapes, such as the Sarbanes-Oxley Act, GDPR, COBIT, and HIPAA. In developing nations, the adoption of IoT and digital transformation necessitates robust GRC solutions to ensure data security and privacy. Wolters Kluwer, a leading regulatory and compliance solutions provider, offers a range of resources to help businesses stay compliant with various regulations. During the forecast period, these factors are anticipated to fuel the worldwide market's expansion. Hence, such factors are driving governance risk and compliance market growth during the forecast period.
The emergence of social media governance is the primary trend in the governance risk and compliance platform market. Cloud-based GRC solutions, such as those offered by Wolters Kluwer, enable organizations to manage and enforce policies across various applications and systems, including databases, desktops, email systems, cloud computing, and cloud-based applications.
Moreover, this centralization is crucial in today's complex business landscape, where GRC policies must adapt to new business requirements, increasing costs, and regulatory demands. The Internet of Things (IoT) and emerging technologies add another layer of complexity to GRC. These factors are expected to drive the growth of the global enterprise governance market during the forecast period. As the enterprise governance risk and compliance solutions market expands, companies are increasingly investing in governance risk compliance platform technologies. The GRC platform market is driven by the need for integrated governance risk compliance platform systems that streamline regulatory compliance and improve overall governance frameworks. Hence, such factors are driving the market during the forecast period.
System integration issues for cloud-based and on-premises GRC solutions is the major challenge impeding GRC platform market growth. In today's digital landscape, organizations across sectors are undergoing significant transformations, driven by the adoption of advanced technologies such as AI and machine learning. This shift toward digitization has resulted in an unprecedented rise in corporate data, particularly in industries like BFSI, healthcare, and others. Moreover, the exponential growth of data poses unique challenges, including ensuring regulatory compliance and managing risks. Cloud-based governance, risk, and compliance platforms have emerged as a critical solution for organizations seeking to navigate this complex data environment.
However, during the anticipated period, these factors are anticipated to restrain the worldwide platform market's expansion. Hence, such factors are hindering governance risk and compliance market growth during the forecast period. With the GRC market size on the rise, the need for comprehensive compliance platform solutions is becoming more critical. The growth of the GRC software market size reflects the industry's focus on implementing sophisticated GRC platforms to address complex regulatory challenges. Hence, such factors are hindering market growth during the forecast period.
The governance risk and compliance platform market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the GRC platform market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Market Customer Landscape
Companies 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.
Market analysis and report of qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In today's business environment, the importance of Governance, Risk, and Compliance (GRC) platforms is undeniable. Across industries, companies are increasingly adopting GRC solutions to navigate complex regulatory landscapes, minimize risks, and maintain compliance. The market for these platforms is growing rapidly, with major players such as SAP and Oracle leading innovation. These solutions provide a unified platform for managing policies, risks, and compliance organization-wide within the technology sector. This substantial market focuses on managing and mitigating various risks while adhering to regulatory requirements. Encompassing both solutions and services, this market caters to managing and monitoring risks in IT, finance, operations, and compliance sectors. Key features of GRC platforms include policy management, risk assessment, compliance monitoring, and reporting. These platforms streamline risk management processes, enhance operational efficiency, and ensure regulatory adherence. In essence, GRC platforms are essential tools for businesses seeking to mitigate risks, ensure regulatory compliance, and optimize their operations.
In today's globally interconnected business world, the importance of effective GRC platforms cannot be overstated. With the rising trend of technology integration and globalization, businesses face mounting pressure to meet stakeholder and board expectations for cost and operational efficiency. However, implementing enterprise GRC solutions presents challenges. High implementation costs and the intricacy of integration pose significant barriers. Additionally, the scarcity of a skilled workforce to manage these platforms adds to the challenge. Enterprise GRC platforms enable businesses to manage and mitigate risks, adhere to regulations, and maintain transparency. Despite these advantages, the substantial cost and complexity of integration necessitate a careful evaluation of potential return on investment and the availability of skilled resources before implementing a GRC platform.
GRC platforms provide organizations with vital capabilities, including real-time risk assessment, automated workflows, and integrated reporting. These features enable businesses to react promptly to regulatory modifications and take a proactive approach to risk management. Furthermore, GRC platforms assist organizations in adhering to industry-specific regulations and standards, such as HIPAA, SOX, and GDPR. In the future, advanced analytics and machine learning capabilities will be a significant driver for GRC platforms, offering organizations deeper insights into their risk profiles and enabling data-driven decisions. Key market growth factors include the escalating regulatory landscape, the intricacy of business operations, and the importance of organizations safeguarding their reputations and minimizing potential risks. Moreover, cloud-based GRC solutions and the incorporation of artificial intelligence and machine learning technologies are projected to accelerate market expansion. Companies across industries, including finance, healthcare, and retail, are investing in GRC platforms to manage risks effectively and maintain regulatory compliance. The GRC platform market is anticipated to continue expanding, fueled by the increasing demand for strong risk management solutions and the necessity for organizations to stay current with regulatory requirements.
Market Scope |
|
Report Coverage |
Details |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.64% |
Market growth 2024-2028 |
USD 37.63 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.73 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, UK, China, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACL Services Ltd. dba Galvanize, Check Point Software Technologies Ltd., Corporater AS, Fidelity National Information Services Inc., International Business Machines Corp., LogicManager Inc., Mega International SA, MetricStream Inc., Microsoft Corp., Mitratech Holdings Inc., NAVEX Global Inc., OneTrust LLC, Oracle Corp., Robert Half International Inc., SAI 360 Inc, SAP SE, SAS Institute Inc., Software AG, Thomson Reuters Corp., and Wolters Kluwer NV |
Market dynamics |
Parent market analysis, market growth and forecasting , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our governance risk and compliance platform market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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