Enterprise Governance, Risk and Compliance Market size boosting at a CAGR 13.2%

Introduction

Enterprise governance, risk, and compliance (EGRC) frameworks emphasize the importance of internal controls. These controls are policies, procedures, and processes to safeguard assets, ensure accurate financial reporting, and promote operational efficiency. They provide a systematic approach to managing risks and maintaining organizational compliance. By implementing internal controls, organizations can establish checks and balances, detect and prevent fraud, and ensure the integrity of their operations. Ethics and integrity are fundamental aspects of EGRC frameworks. Organizations are encouraged to define ethical standards and provide guidelines for ethical decision-making. This promotes a culture of ethical behavior and integrity throughout the organization. By upholding ethical practices, organizations build trust among stakeholders, enhance their reputation, and mitigate the risk of ethical misconduct.

Market Dynamics

Stringent Regulation and Policies to Monitor Business Activities Drive the Global Market

One of the key drivers of the global enterprise governance risk and compliance market is the presence of stringent regulations and policies that govern business activities. Governments and regulatory bodies worldwide implement and enforce regulations to ensure transparency, accountability, and ethical conduct in business operations. These regulations cover various areas such as data protection, financial reporting, anti-money laundering, anti-corruption, and industry-specific compliance requirements. The enforcement of such regulations creates a need for organizations to establish robust governance, risk management, and compliance frameworks. EGRC solutions help organizations monitor, track, and manage compliance with these regulations and policies. By implementing EGRC systems, organizations can ensure that their business activities align with the required legal and regulatory standards.

Need for Continuous Software Upgrades in Line with Changing Regulations Creates Tremendous Opportunities

A significant opportunity in the global enterprise governance risk and compliance (EGRC) market lies in the need for continuous software upgrades in line with changing regulations. As regulations and compliance requirements evolve, organizations must adapt their governance and risk management processes accordingly. This demands EGRC software solutions to accommodate these changes and ensure ongoing compliance. Regulatory frameworks are dynamic and subject to frequent updates, driven by changing industry standards, geopolitical developments, and emerging risks. Organizations need EGRC software to maintain compliance and keep pace with these regulatory changes. This presents an opportunity for software providers to develop and offer solutions that provide flexibility and scalability, allowing organizations to update their governance and risk management practices in line with the latest regulations.

Regional Analysis

North America is the most significant global enterprise governance risk and compliance market shareholder and is estimated to expand at a CAGR of 11.7% over the forecast period. North America's dominance in the global enterprise governance risk and compliance (EGRC) market can be further attributed to additional factors. Firstly, the region has well-established regulatory frameworks and a culture of strict regulatory enforcement. This regulatory environment creates a strong impetus for organizations to invest in EGRC solutions to ensure compliance and minimize regulatory risks. Secondly, North American organizations are more aware of and understand the importance of effective governance, risk management, and compliance practices. They recognize that implementing robust EGRC solutions can help them achieve operational excellence, strengthen stakeholder trust, and enhance their overall performance. This heightened awareness drives the demand for EGRC solutions in the region.

Europe is anticipated to reveal a CAGR of 12.5% over the forecast period. Europe has a strong corporate social responsibility (CSR) culture and ethical business practices. Organizations are increasingly expected to demonstrate transparency, accountability, and ethical conduct. EGRC solutions help organizations align with these expectations by providing frameworks for ethical decision-making, internal controls, and compliance monitoring. Integrating CSR and ethical considerations into EGRC practices can contribute to organizations' sustainability and long-term success in the European market.

Key Highlights

• The global enterprise governance risk and compliance market size was valued at USD 45.37 billion in 2022. It is estimated to reach USD 138.47 billion by 2031, growing at a CAGR of 13.2% during the forecast period (2023–2031).
• Based on components, the global enterprise governance risk and compliance market is bifurcated into software and services. The software segment dominates the global market and is projected to exhibit a CAGR of 13.9% over the forecast period.
• Based on software, the global enterprise governance risk and compliance market is bifurcated into audit management, compliance management, risk management, policy management, incident management, and others. The audit management segment dominates the global market and is projected to reveal a CAGR of 13.7% over the forecast period.
• Based on services, the global enterprise governance risk and compliance market is bifurcated into integration, consulting, and support. The integration segment dominates the global market and is projected to exhibit a CAGR of 12.8% over the forecast period.
• Based on the enterprise, the global enterprise governance risk and compliance market is bifurcated into small and medium enterprises (SMEs) and large enterprises. The small and medium enterprises segment dominates the global market and is projected to reveal a CAGR of 13.1% over the forecast period.
• Based on the vertical, the global enterprise governance risk and compliance market is bifurcated into BFSI, construction and engineering, energy and utilities, government, healthcare, manufacturing, retail and consumer goods, telecom and IT, transportation and logistics, and others. The BFSI segment dominates the global market and is projected to exhibit a CAGR of 12.5% over the forecast period.
• North America is the most significant global enterprise governance risk and compliance market shareholder and is estimated to grow at a CAGR of 11.7% over the forecast period.

Competitive Players

Competitive Players

The key players in the global enterprise governance risk and compliance market are SAI Global Pty Limited, RSA Security LLC, FIS, IBM, Maclearglobal.com, MetricStream, Microsoft, Oracle, SAP SE, SAS Institute Inc., Software AG, Thomson Reuters, Wolters Kluwer N.V, NAVEX Global, Inc.

Recent Developments

Market News

• In March 2023, IBM announced the acquisition of Resilient Systems, a provider of eGRC software. The acquisition will help IBM to expand its eGRC offerings and provide customers with a more comprehensive solution.
• In January 2023, MetricStream announced the release of its new eGRC solution. The solution is designed to help businesses improve their compliance with various regulations, including GDPR, CCPA, and PCI DSS.

Segmentation

Global Enterprise Governance Risk and Compliance Market: Segmentation

By Component

• Software
• Services

By Software

• Audit management
• Compliance Management
• Risk Management
• Policy Management
• Incident Management
• Others

By Services

• Integration
• Consulting
• Support

By Enterprise

• Small and medium Enterprises (SMEs)
• Large Enterprises

By Vertical

• BFSI
• Construction and Engineering
• Energy and Utilities
• Government
• Healthcare
• Manufacturing
• Retail and Consumer Goods
• Telecom and IT
• Transportation and Logistics
• Others

By Region

• North America
• Europe
• Asia Pacific
• South America
• The Middle East and Africa