Third-party Risk Management Market Research Report - Global Forecast till 2027

Global Third-party Risk Management Market Research Report: by Component (Solution (Finance Management, Compliance Management, Audit Management, Operational Risk Management), Services (Professional, Managed)), By Deployment (On-premise, On-cloud), By Organization Size (SMEs, Large Enterprises), By Vertical (BFSI, Healthcare, Government, IT and Telecommunication, Retail, Manufacturing), by Region (North America, Europe, Asia-Pacific, Middle East, and Africa, South America) - Forecast till 2027

ID: MRFR/ICT/7248-HCR | February 2021 | Region: Global | 110 pages

Market Synopsis


The Global Third-Party Risk Management Market was valued at USD 2.85 Billion in 2018 and is expected to reach USD 8.18 Billion by 2025 growing at a CAGR of 16.87% during the forecast period 2019–2025. Increasing focus on mitigating risks associated with third parties by organizations, increasing cyber-attacks, increasing outsourcing of operations by organizations, and technological advancements are some of the prime factors driving the market growth of third-party risk management. Whereas, lack of skilled expertise is one of the major factors which is expected to restrain market growth. However, stringent regulations and compliance by legal authorities are expected to create fruitful opportunities for the third-part risk management solution providers in the coming years.


Key Players


The Prominent Players active in the Global Market of Third-Party Risk Management are RSA Security LLC (US), Genpact (US), Cisco Systems (US), Deloitte (US), KPMG (The Netherlands), BitSight (US), Alyne GmbH (Germany), Prevalent Inc. (US), OneTrust (US), Aravo Solutions, Inc. (US), Venminder (US), Riskpro (India), and ProcessUnity, Inc (US).


Recent Developments



  • May 2019: RMS introduced an open platform named “risk intelligence (RI)” targeting the reinsurance industry. This platform combines customer, industry, and third-party data into a single unified model. The platform offers several benefits such as advanced risk model execution services, risk data lake repository, and analytics tools to the user.



  • December 2018: OneTrust, in collaboration with Cloud Security Alliance (CSA), introduced a free vendor risk management tool compliant with the GDPR, CCPA, and other security regulations. This tool automates the lifecycle of vendor management of the CSA group which includes onboarding & offboarding vendors.


Global Third-party risk management Market, 2018–2025 (USD Billion)  Third-party risk management Market


Source: Company websites, Annual Reports, Secondary research, Press Releases, Paid Database, Expert interviews, White papers, Journals, Case Studies, MRFR Analysis


Market Introduction


Third-party risk management is the process of analyzing the risks associated with outsourcing business operations to any third-party vendor or service provider. These risks could be associated with resilience, solvency, security, regulatory compliance, intellectual property, and integrity aspects of businesses.


Some of the use cases of third-party risk management include vendor risk management automation, compliance monitoring, threat intelligence, and cyber-security.


Segmentation


The Global Third-Party Risk Management Market has been segmented on the basis of Component, Deployment, Organization Size, Vertical, and Region.


By Component, the market has been segmented into solution and service. By solution, the market has been sub-segmented into finance management, contract management, compliance management, operational risk management, and audit management. By service, the market has been sub-segmented into professional and managed services.


By Deployment, the market has been segmented into on-premise and on-cloud.


By Organization Size, the market has been segmented into small- and medium-sized enterprises and large enterprises.


By Vertical, the market has been categorized into BFSI, IT and telecommunication, healthcare, government, retail, and manufacturing among others.


By Region, the market has been segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.


Regional Analysis


Market Research Future (MRFR) study has covered the following countries in the regional analysis of the third-party risk management market: the US, Canada, and Mexico in North America. Germany, the UK, France, Spain, Norway, Benelux, and Italy in Europe. China, Japan, India, South Korea, Australia, Malaysia, Indonesia, and the Philippines in Asia-Pacific. Saudi Arabia, Israel, Turkey, and South Africa in the Middle East & Africa. Brazil, Peru, Chile, and Argentina in South America.


The global third-party risk management market is currently dominated by North America due to the presence of key players such as RSA, Cisco, and OneTrust, and the requirement of key expertise in the organization to track the risks associated with third-party vendors. The US, among all the countries, accounts for the largest market share owing to factors such as increasing demand for solutions to protect critical information from cyber-attacks.


Europe is following North America in terms of market share in the global third-party risk management market. Increasing adoption of cloud-based solutions and increasing digitalization are some of the factors driving the market growth.


Asia-Pacific is projected to be the fastest-growing region during the forecast period. Government initiatives supporting the adoption of cloud platforms and the growing trend of industrialization and modernization is expected to elevate the demand for third-party risk management solutions in the region.


Intended Audience



  • Investors and consultants

  • Research/Consultancy firms

  • Technology solution providers

  • Government agencies

  • Independent Software Vendors (ISVs)

  • IT Agencies

  • Cloud service providers

  • Managed Security Service Providers



Report Scope:
Report Attribute/Metric Details
  Market Size

  • USD 2.85 Billion (2018)
  • USD 8.18 Billion (2025)
  •   CAGR   16.87% (2019-2025)
      Base Year   2019
      Forecast Period   2020-2027
      Historical Data   2018
      Forecast Units   Value (USD Billion)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   by Component, By Deployment
      Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   RSA Security LLC (US), Genpact (US), Cisco Systems (US), Deloitte (US), KPMG (The Netherlands), BitSight (US), Alyne GmbH (Germany), Prevalent Inc. (US), OneTrust (US), Aravo Solutions, Inc. (US), Venminder (US), Riskpro (India), and ProcessUnity, Inc (US).
      Key Market Opportunities   Stringent regulations and compliance by legal authorities are expected to create fruitful opportunities for the third-part risk management solution providers in the coming years.
      Key Market Drivers   Increasing adoption of cloud-based solutions and increasing digitalization are some of the factors driving the market growth.


    Frequently Asked Questions (FAQ) :


    The third-party risk management market is poised to expand at 16.87% CAGR.

    By 2025, the third-party risk management market is expected to be valued at USD 8.18 Bn.

    The major players of the third-party risk management market are RSA Security LLC (US), Cisco Systems (US), Genpact (US), Deloitte (US), BitSight (US), KPMG (The Netherlands), Alyne GmbH (Germany), OneTrust (US), Prevalent Inc. (US), Aravo Solutions, Inc. (US), Riskpro (India), Venminder (US), and ProcessUnity, Inc (US).

    North America is expected to exercise its dominance over the third-party risk management market.

    On-cloud and on premise are studied on the basis of deployment.