The global enterprise governance, risk and compliance market size is expected to reach USD 64.61 billion by
2025, according to a new report by Grand View Research, Inc., exhibiting a
12.8% CAGR during the forecast period. Implementation of stringent regulations
by governments across several verticals such as BFSI, telecom/IT, retail, and
consumer goods has necessitated organizations to adopt enterprise governance,
risk and compliance (GRC) solutions that fulfill the need for compliance
management, audit management, and risk management, among others.
For instance, in recent years,
banks have spent aggressively to ensure compliance to enforcement of stringent
laws. Some of the laws and regulations are the Dodd-Frank Act, BASEL III,
Sarbanes–Oxley Act, Payment Card Industry Data Security Standard (PCI DSS), and
Gramm–Leach–Bliley Act (GLBA). Moreover, in this challenging ecosystem, an
integrated approach to GRC translates into bottom-line financial benefits for
enterprises, which is anticipated to be a major factor driving market growth.
Enterprise governance,
risk and compliance is vital for all industry verticals. However, many
organizations in BFSI, telecom, and manufacturing services industries are
confronting significant losses as they have deployed systems that lack a
holistic view of enterprise risks. They have, however, eventually started to
realize that their financial processes are inefficient and the enterprise risk
management initiatives they have undertaken are incompetent in view of the
growing mandates for regulatory compliance. At the same time, the regulatory and
corporate governance scenario is evolving continuously, thereby prompting such
services and institutions to roll out a culture that emphasizes standard
business practices and balanced risk-taking.
In recent years, need
for compliance management software has grown at a significant rate, which can
be credited to the advent of myriad regulations by government bodies across
various industries. Enterprises that deliver GRC software are collaborating
with various public as well as private organizations for developing and
implementing software that can minimize damage caused by various risks within
the business.
The BFSI sector
accounted for a significant market share of over 20.0% in the enterprise GRC
market in 2017. The financial sector has become more strategic and cautious,
realizing the significance of identifying and mitigating the risks of doing
business with corrupt and criminal entities. As a result, large organizations
as well as small and medium enterprises are increasingly looking to invest in
compliance solutions.
Enterprise GRC software accounted for the largest revenue
share based on component in 2017 and is anticipated to maintain its dominance
over the forecast period. Implementation of eGRC software helps organizations
improve performance, gain visibility, and reduce compliance and risks costs.
The services segment is expected to witness a healthy CAGR over the forecast
period. This can be attributed to the development of advisory, integration, and
software-as-service solutions, which have paved the way for improved
performance and implementation.
Further key findings from the report suggest:
· The global enterprise governance, risk and
compliance market was valued at USD 24.76 billion in 2017 and is expected to
develop at a CAGR of 12.8% from 2018 to 2025
· Risk management emerged as the largest
software segment in 2017 and is estimated to exhibit steady growth through 2025
· Demand for enterprise governance, risk and
compliance solutions in policy management is anticipated to witness significant
growth over the next few years
· The large enterprise segment in U.S. has
been generating significant revenue in the global market and will continue to
do so throughout the course of the forecast period
· The Asia Pacific market is projected to
witness substantial growth over the next decade owing to various developments
across major economies, especially in the Internet of Things (IoT) and big data
· Key players include SAP SE; Thomson
Reuters; Wolters Kluwer; MetricStream Inc.; and Bwise.
Grand View Research has
segmented the global enterprise governance, risk and compliance market on the
basis of component, software, service, enterprise type, vertical type, and
region:
Enterprise Governance, Risk and Compliance Component
Outlook (Revenue, USD Million, 2015 - 2025)
·
Software
·
Service
Enterprise Governance, Risk and Compliance Software
Outlook (Revenue, USD Million, 2015 - 2025)
·
Audit Management
·
Compliance Management
·
Risk Management
·
Policy Management
·
Incident Management
·
Others
Enterprise Governance, Risk and Compliance Service
Outlook (Revenue, USD Million, 2015 - 2025)
·
Integration
·
Consulting
·
Support
Enterprise Governance, Risk and Compliance Enterprise
Type Outlook (Revenue, USD Million, 2015 - 2025)
·
Small & Medium Enterprise (SME)
·
Large Enterprise
Enterprise Governance, Risk and Compliance Vertical
Outlook (Revenue, USD Million, 2015 - 2025)
·
BFSI
·
Construction & Engineering
·
Energy & Utilities
·
Government
·
Healthcare
·
Manufacturing
·
Retail & Consumer Goods
·
Telecom & IT
·
Transportation & Logistics
·
Others
Enterprise Governance, Risk and Compliance Regional
Outlook (Revenue, USD Million, 2015 - 2025)
·
North America
o
U.S.
o
Canada
·
Europe
o
U.K.
o
Germany
·
Asia Pacific
o
China
o
India
o
Japan
·
Latin America
o
Brazil
o
Mexico
·
Middle East & Africa
About Grand View Research
Grand View Research, Inc. is a
U.S. based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides syndicated
research reports, customized research reports, and consulting services. To help
clients make informed business decisions, we offer market intelligence studies
ensuring relevant and fact-based research across a range of industries, from
technology to chemicals, materials and healthcare.
