Governance Risk And Compliance (GRC) Platform Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, UK, China, Germany, India - Size and Forecast 2024-2028

Governance Risk And Compliance Platform Market Size 2024-2028 

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 is experiencing significant growth due to the escalating demand for regulatory compliance solutions and enterprise GRC (Governance, Risk, and Compliance) offerings. With the exponential expansion of corporate data, organizations are increasingly relying on robust GRC platforms to effectively manage risks. AI technologies are further enhancing these platforms by providing advanced analytics and predictive capabilities. Additionally, real-time monitoring features enable businesses to swiftly adapt to evolving regulatory landscapes and maintain compliance more effectively. The market benefits from the rapid and seamless deployment of GRC policies, ensuring that organizations can respond quickly to regulatory changes and emerging risks. This trend signifies a broader industry shift towards proactive risk management and strict compliance adherence.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

The  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.

• Deployment Outlook 
  • On-premise
  • Cloud-based

• Component Outlook 
  • Software
  • Services

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Deployment

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. The SaaS-based model 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.

By Component

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.

Regional Overview

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North America is estimated to contribute 39% to the growth of the global 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 analytics software, 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.

Market Customer Landscape

The Governance Risk and Compliance 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 Governance Risk and Compliance 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

Market Companies

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.

• Check Point Software Technologies Ltd: The company offers Governance Risk and Compliance Platform through audit ready reports, quick onboarding, security infrastructure and monitoring gateways, blades, policies, and other configuration.

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.

Market Dynamics 

Businesses, especially those in regulated industries, require a comprehensive solution to manage and mitigate risks, ensure regulatory compliance, and maintain good governance practices. The market for GRC platforms is growing rapidly, with an increasing number of organizations recognizing the benefits of integrating these solutions into their operations. Costs, Procurement, Socialize, Managers, Cybersecurity, Regulatory, Environment, Compliance, Requirements, Technology, Intelligence, and Implementation are all crucial aspects of a GRC platform. Costs are a significant consideration when selecting a GRC platform. Information technology (IT) investments can significantly impact business processes, with potential legal and financial repercussions requiring careful consideration and strategic planning. The enterprise governance risk and compliance landscape is evolving rapidly, with the market witnessing substantial growth.

Key Market Driver

Quick and easy deployment of GRC policies is notably driving the governance risk and compliance (GRC) 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 Compliance (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.

Significant Market Trends

The emergence of social media governance is the primary trend in the enterprise governance 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.  Such 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 eGRC 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.

Major Market Restraint

System integration issues for cloud-based and on-premises GRC solutions is the major challenge impeding governance risk and compliance 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 towards digitization has resulted in an unprecedented surge 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 the market during the forecast period.

Market Analyst Overview

In today's business landscape, the importance of a robust governance risk platform cannot be overstated. Businesses across industries are increasingly adopting GRC solutions to manage complex regulatory environments, mitigate risks, and ensure compliance. The market is growing rapidly, with key players such as SAP, IBM, and Oracle leading the charge. These solutions provide a centralized platform for managing policies, risks, and compliance across the organization. The market is a significant sector in the technology industry, focusing on managing and mitigating various risks while ensuring adherence to regulatory requirements. This market encompasses solutions and services that help organizations manage and monitor risks related to IT, finance, operations, and compliance. Key components of GRC platforms include policy management, risk assessment, compliance monitoring, and reporting. These platforms enable organizations to streamline their risk management processes, improve operational efficiency, and ensure regulatory compliance.

Moreover, they offer features like real-time risk analysis, automated workflows, and integrated reporting, enabling organizations to respond effectively to regulatory changes and mitigate risks in a proactive manner. Additionally, GRC platforms help organizations adhere to industry-specific regulations and standards, such as HIPAA, SOX, and GDPR. The future of GRC platforms lies in their ability to provide advanced analytics and machine learning capabilities, enabling organizations to gain deeper insights into their risk profiles and make data-driven decisions. The market for GRC platforms is driven by several factors, including increasing regulatory requirements, the growing complexity of business operations, and the need for organizations to protect their reputation and mitigate potential risks. Additionally, the adoption of cloud-based GRC solutions and the integration of artificial intelligence and machine learning technologies are expected to further propel the growth of this market. Organizations across various industries, including finance, healthcare, and retail, are investing in GRC platforms to manage their risks effectively and ensure regulatory compliance. The market for GRC platforms is expected to continue growing, driven by the increasing demand for robust risk management solutions and the need for organizations to stay ahead of regulatory requirements.

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What are the Key Data Covered in this Governance Risk And Compliance Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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