Third-Party Risk Management Market: Current Analysis and Forecast (2024-2032)
Emphasis on Component (Solutions and Services); Organization (SMEs and Large Enterprises); Deployment Mode (Cloud and On-Premises); End-User (IT & Telecom, BFSI, Healthcare, Retail, Manufacturing, Energy & Utility); and Region/Country
Global Third-Party Risk Management Market Size & Forecast
The global third-party risk management market was valued at ~USD 6 billion in 2023 and is expected to grow at a strong CAGR of around ~15% during the forecast period (2024-2032) owing to heavy fines and penalties for non-compliance driving organizations to adopt effective risk management solutions.
Global Third-Party Risk Management Market Analysis
The third-party risk management market includes products, applications, and services that help organizations evaluate and manage risks linked with third-party stakeholders such as vendors, suppliers, and partners. The market is fueled by factors such as globalization and the growing acquisition and outsourcing, growing incidence of cyber-crimes, expansive regulatory compliances, and evolving understanding of third-party threats. Large and mid-sized companies are investing in robust third-party risk management programs as a solution for improving the organization’s risk management posture as well as to meet the regulatory requirements and have a sound image for operations. In the present where companies experience an escalating need for third-party vendors, and representatives of companies’ extended supply chain, the market for third-party risk management tools will also continue to grow.
Global Third-Party Risk Management Market Trends
This section discusses the key market trends that are influencing the various segments of the global third-party risk management market, as identified by our team of research experts.
On-Premises Segment Transforming Industry
The On-Premises category drives the third-party risk management market by providing organizations with greater control over their data and security protocols. This approach allows businesses to manage and mitigate risks associated with third-party vendors within their infrastructure, ensuring compliance with regulatory requirements and enhancing data privacy. On-premises solutions offer customizable risk management frameworks tailored to specific organizational needs, leading to increased adoption in industries with stringent data protection mandates, such as finance and healthcare.
Asia-Pacific is Expected to Grow at the fastest CAGR During Forecast Period.
The TPRM market has been breaking through as a promising branch of the greater risk management market in the Asia-Pacific region due to the region’s growing trend of outsourcing and third-party collaborations. TPRM is the process of evaluating, managing, and controlling risks linked to third parties to prevent or minimize their non-compliance, threats, and volatility to business. In this market, drivers for growth consist of an increasing rate of cyber threats, compliance needs, and an increasing chain of supplies. Also, the adoption of digital transformation strategies in various sectors and the necessity for comprehensive risk assessment protocols drive the market forward. As for industry trends, advanced TPRM solutions are arousing more attention among companies in the Asia-Pacific region concerning their risk management to protect their business.
Global Third-Party Risk Management Industry Overview
The global third-party risk management market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are PwC; KPMG International; ServiceNow; Deloitte; Genpact; BitSight Technologies, Inc.; NAVEX Global, Inc.; EY; IBM; RSA Security LLC
Global Third-Party Risk Management Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report briefly reviews overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, type portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The global third-party risk management market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Global Third-Party Risk Management Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global third-party risk management market were the three major steps undertaken to create and analyze the adoption of global third-party risk management in major regions. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were considered. Moreover, exhaustive primary interviews were conducted with industry experts across the value chain of the global third-party risk management market. For the assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the global Third-Party Risk Management market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the global third-party risk management market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as component, organization, deployment mode, end-user, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the global third-party risk management market. Further, we conducted factor analysis using dependent and independent variables such as component, organization, deployment mode, end-user, and global third-party risk management market regions. A thorough analysis of demand and supply-side scenarios was conducted considering top partnerships, mergers and acquisitions, business expansion, and product launches in the global third-party risk management market.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global third-party risk management market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to several factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the global third-party risk management market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global third-party risk management market in terms of types offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Third-Party Risk Management market. Data was split into several segments and sub-segments after studying various parameters and trends in the global Third-Party Risk Management market’s component, organization, deployment mode, end-user, and regions.
The Main Objective of the Global Third-Party Risk Management Market Study
The current & future market trends of the global third-party risk management market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the market’s overall attractiveness at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the global third-party risk management market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas of the component, organization, deployment mode, end-user, and regions.
- Define and analyze the regulatory framework for the industry.
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the global third-party risk management market for the major regions.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
- Company profiles of the global third-party risk management market and the growth strategies the players adopt to sustain in the fast-growing market.
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What are the global Third-Party Risk Management market’s current market size and growth potential?
Q2: What are the driving factors for the growth of the global third-party risk management market?
Q3: Which segment has the largest share of the global third-party risk management market by component category?
Q4: What are the emerging technologies and trends in the global third-party risk management market?
Q5: Which region will dominate the global Third-Party Risk Management market?
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