Risk Management Software Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, Japan, UK, Germany - Size and Forecast 2023-2027

Risk Management Software Market Forecast 2023-2027

The global risk management software market size is forecast to increase by USD 7.372 billion at a CAGR of 15.32% between 2022 and 2027. The growth of the market depends on several factors, including an increase in data and security breaches among enterprises, an increase in stringent government regulatory compliances, and a rise in the adoption of risk management among financial institutions. The software offers risk identification and assessment, quantitative analysis and modeling, scenario planning, risk prioritization and reporting, and risk mitigation planning. The goal is to provide a more comprehensive and efficient approach to risk management, improving decision-making and reducing the likelihood and impact of negative events.

What will be the Size of the Risk Management Software Market During the Forecast Period?

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The market is witnessing exponential growth driven by factors such as rapid digitalization, security risks, and financial uncertainty. As businesses, especially Small and Medium-Sized Enterprises (SMEs), embrace digitization, the need for efficient risk assessment and mitigation becomes paramount. Cloud-based applications offer real-time solutions for document storage and administrative tasks, catering to organizations across various industries, including the banking and financial services sector. These platforms enable proactive pre-loss prevention strategies and streamline post-loss management activities. With the proliferation of smartphones and increasing online transactions, robust risk decision-making tools are essential to navigate the complexities of modern business landscapes.

Market Segmentation

The market research and growth report extensively covers market segmentation by Component (Software and Service), Deployment (On-Premises and Cloud), and Geography (North America, Europe, Asia, and Rest of World (ROW)).  Furthermore, the market growth analysis report includes historic market data from 2017 to 2021. Futhermore, the market is propelled by various factors, such as the surge in cybercrimes and security breaches, the increasing demand for secure technology solutions, and the rise of work-from-home culture amidst the COVID-19 outbreak. Organizations are increasingly adopting integrated risk management platforms to address data-related risks, cybersecurity issues, and financial uncertainties. With the advent of innovative solutions leveraging predictive analytics, machine learning, and natural language processing, the market offers growth prospects, especially in the banking and financial services industry. However, challenges like economic uncertainties and the high cost of implementation persist, necessitating strategic decisions and effective risk mitigation activities for organizations across various sectors. 

By Component

The market share growth by the software segment will be significant during the forecast period. There is an increasing demand for software that can mitigate risks and improve overall organizational performance, which is one of the key significant drivers of the market.

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The software segment was valued at USD 2.34 billion in 2017 and continued to grow until 2021. Factors such as advancements in technology, increasing data volumes, and the need for effective risk analysis and management. For instance, one of the most popular examples is quantitative risk assessment software, which leverages statistical tools and algorithms to quantify risks and establish effective mitigation strategies. Some of the wide applications of this software are across industries such as finance, healthcare, and insurance, where risk analysis is a critical aspect of their operations. The main advantage of advantages is the automation of complex and time-consuming processes. Hence such factors are expected to drive the growth of this segment which in turn will drive the growth market during the forecast period.

By Deployment

The increasing adoption of on-premise segments across organizations due to its benefits is expected to drive market growth during the forecast period. One of the key advantages of this on-premise segment is that it offers the organization complete control over data, ensuring that it adheres to organizational policies and security standards. Another main advantage of the on-premises segment is the ability to customize the system according to the organization's specific needs, making it a more tailored solution. Hence, such benefits are expected to drive the growth of this segment which in turn will drive the growth of the market during the forecast period.

Market Dynamic

The market is witnessing substantial growth, driven by factors like rapid digitalization and increasing adoption of cloud-based applications. Organizations across various sectors, including banking and financial services, are deploying these solutions to address legal liabilities, financial uncertainties, and security risks. With the rise in data security concerns, risk management software plays a crucial role in mitigating risks and facilitating effective decision-making. It caters to end-users ranging from small and medium-sized businesses to large enterprises, offering pre-loss prevention and post-loss management activities. As the demand for real-time risk assessment grows, the market is poised for further expansion, particularly amidst the evolving landscape of risks and uncertainties.

Market Driver

One of the key factors driving the market growth is an increase in data and security breaches among enterprises. There has been an increase in cyber attacks as more companies rely on big data analytics and cloud computing to gain a competitive edge. As a result, many organizations invest in tools designed to recognize and mitigate potential vulnerabilities in their IT infrastructure.

Hence, in order to address these issues, many companies are focusing on tools that provide compliance automation features, enabling them to monitor and enforce compliance more efficiently. For example, insurance companies are particularly prone to security breaches because of their reliance on sensitive personal and financial data. Thus, most of these companies are currently using advanced threat intelligence platforms to monitor their networks and detect potential threats in real time. Hence such factors are expected to drive the market growth during the forecast period.

Market Trends

A key factor shaping the market growth is the rising adoption of cloud-based. There has been a rise in the adoption of cloud-based management solutions as several organizations are aware of the numerous benefits they offer over traditional on-premises solutions.

Moreover, the main benefit of cloud-based solutions is that employees can access management tools and information from anywhere, at any time, if they have an internet connection. Furthermore, cloud-based solutions enable greater collaboration between teams and departments. Hence, such benefits are expected to drive market market trends and analysis.

Market Restrain

High cost and complexity in the installation and configuration of the software are one of the key challenges hindering market growth. There is a growing popularity of High cost and complexity in the installation and configuration of management software among enterprises as it helps to identify and mitigate potential risks and threats. 

However, one of the main challenges is that such installation and configuration process of software often comes at a high cost and complexity. The need for customization of this software for each business is increasing the cost and complexity of this software. Hence, such factors can pose a significant threat to the market growth during the forecast period. 

Regional Overview

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North America is estimated to contribute 31% 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. Factors such as the presence of many organizations from the banking, financial services and insurance (BFSI), IT, healthcare, and other industries are significantly contributing to the growth of the market in the region. In the US, most organizations have significant challenges while procuring software from third-party vendors. 

Moreover, this region has prominent banking and financial institutions such as Wells Fargo & Co. (Wells Fargo), The PNC Financial Services Group Inc. (The PNC Financial), Bank of America, JPMorgan Chase & Co. (JPMorgan), and Citigroup Inc. (Citi), which process multiple transactions yearly. To carry out such a huge number of transactions easily and optimize the process from the back office to the front office, the bank needs advanced solutions that can automate their payment operations and give a centralized view. Thus, banking firms are adopting the software. Therefore, the increase in the adoption by various industries, such as banks, finance, and other industries, is expected to propel the growth of the region during the forecast period.

Key Player in the Market

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.

• Aravo Solutions Inc.
• Cura Global GRC Solutions PTE LTD.
• Dell Technologies Inc.
• Diligent Corp.
• Fusion Risk Management Inc.
• Ideagen
• International Business Machines Corp (IBM)
• Intertek Group Plc
• Kroll LLC
• LogicGate Inc.
• LogicManager Inc.
• MetricStream Inc.
• NAVEX Global Inc.
• ProcessUnity Inc.
• Riskonnect Inc.
• RSM International Ltd.
• SAP SE
• Stiftelsen Det Norske Veritas
• Thomson Reuters Corp.
• Wolters Kluwer NV

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 Analyst Overview

The market is segmented as Services such as managed service or professional service, depending on their operational requirements and administrative tasks. The choice of deployment methods, whether on-premises or cloud-based, adds flexibility to risk management strategies. The end-user industries, ranging from banking, insurance, and asset management to retail, life Sciences, and more, benefit from specialized risk management solutions. Various Types of Software address specific risk categories, including Enterprise Risk Management, Financial Risk Management, and Information Technology Risk Management, enhancing overall risk resilience. The ongoing online digitization trend, especially in Small and Medium-sized Businesses, is driving the adoption of the software, streamlining administrative, and financial tasks, document storage, sharing, and financial reporting. The proliferation of smartphones further accelerates accessibility and usage. In the banking sector, the integration of risk management software, such as integrated banking solutions, fortifies institutions against diverse risks, contributing to a robust framework.

However, there are restraints such as financial uncertainty and natural disasters that pose challenges to market expansion. To counter cyber-attacks and identity theft, companies are increasingly adopting cloud-based security solutions and leveraging technological expertise to enhance protection. Additionally, the market is fueled by technological innovations and the adoption of risk management software across various industries, including the IT industry and the insurance sector. Despite financial constraints, the market continues to grow, driven by the primary driver of increased awareness and demand for cybersecurity solutions. With various deployment types and mobile solutions available, organizations are better equipped to tackle emerging risks and ensure risk decision making is effective in the face of evolving threats.

Segment Overview

The 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. 

• Component Outlook
  • Software
  • Services
• Deployment Outlook
  • On-premises
  • Cloud
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Risk Management Software Market Scope
Report Coverage	Details
Page number	156
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.32%
Market growth 2023-2027	USD 7.37 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	15.0
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 31%
Key countries	US, Canada, Japan, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Aravo Solutions Inc., Cura Global GRC Solutions PTE LTD., Dell Technologies Inc., Diligent Corp., Fusion Risk Management Inc., Ideagen, International Business Machines Corp., Intertek Group Plc, Kroll LLC, LogicGate Inc., LogicManager Inc., MetricStream Inc., NAVEX Global Inc., ProcessUnity Inc., Riskonnect Inc., RSM International Ltd., SAP SE, Stiftelsen Det Norske Veritas, Thomson Reuters Corp., and Wolters Kluwer NV
Market dynamics	Parent market analysis,Market forecasting, 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 market growth analysis 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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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting  between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior.
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of market vendors

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