The Crisis Management Software Market size was worth USD 8288.1 million in 2022. It is anticipated to reach an expected value of USD 14095.7 million by 2031 at a CAGR of 6.2% during the forecast period (2023-2031).
Crisis management software offers a single solution for business continuity, disaster recovery, and emergency communications. Crisis management software enables real-time interaction with the team, stakeholders, and customers during a crisis. Whether it's a natural disaster, man-made catastrophe, cyber-attack, or any other type of emergency, it can help organizations respond faster and more efficiently, reducing the impact on your business and reputation. Crisis management software can be tailored to your organization’s specific needs. Crisis management software has been making great progress in building resilience for business organizations across the globe. It also helps organizations consistently manage the data, resources, expenditures, communications, and tasks used for response, recovery, and restoration activities during and after a crisis.
Crisis management solutions are also used to analyse the changing conditions during a crisis to ensure situational awareness as well as to ensure crisis management procedures comply with government emergency management standards. The growth of the crisis management software market is expected to be driven by the rising incidents of disasters, climate risks, terrorist attacks, and geo-political conflicts resulting in advanced warfare which will increase the adoption of crisis management software by business enterprises.
The rising events of calamities worldwide drive the demand for crisis management software. In recent years, the world has witnessed an alarming increase in the occurrences of disasters, including various catastrophic events. Catastrophes caused by climate change, such as intense hurricanes, prolonged droughts, and catastrophic wildfires, have increased in frequency and intensity, resulting in massive devastation of lives, infrastructure, and ecosystems. In addition, geological calamities such as earthquakes and volcanic eruptions have shown increased activity, posing significant threats to vulnerable communities. The increase in industrial catastrophes, such as chemical spills and nuclear incidents, has also contributed to the rising death toll from natural disasters. In order to mitigate the devastating effects of these escalating disasters, there is an urgent need for global efforts to address climate change, improve disaster preparedness and response, and nurture resilient and sustainable communities, which is likely to drive demand for market growth.
However, Installing and maintaining software for crisis management can be pricey, especially for less substantial businesses or financially constrained organizations. It is possible for licenses, training, customization, and continuing maintenance to cost a large amount of money, which might be a barrier for some businesses. In addition, crisis management software implementation costs make it difficult for businesses to improve their emergency response skills. The cost issue related to the installation of crisis management software is complex and has several causes.
The cloud segment holds the highest CAGR and is foreseen to continue the same trend during the forecast period on account of the growing adoption rate of digital technology across all industrial sectors for effective business operations. Furthermore, the rising cyber-attacks have prompted industrial verticals to adopt crisis management solutions. For instance, in May 2023, the US pharmaceutical behemoth PharMerica, which oversees 2,500 separate sites throughout the US, disclosed that an unknown adversary gained access to its networks in March and took 5.8 million people's personal information. In a similar incident, Micro-Star International (MSI) has been the victim of a data breach and ransomware attack. According to the organization, they were able to steal 1.5 terabytes of data from the computers of the Taiwanese firm. The growth of cyber-attacks has driven the demand for the crisis management software market.
The COVID-19 outbreak has exerted an adverse effect on lives, families, communities, and business operations across the world. However, the companies offering crisis management software witnessed growth in their services as they continued working with companies, governments, regulators, NGOs, and international organizations to help them prepare for and respond to the COVID-19 outbreak. For instance, in 2020, Everbridge launched COVID-19 Shield Software-as-a-Service (SaaS) and rapid Deployment templates to protect people and maintain operations amid pandemic. It is designed to protect the safety of employees and customers, maintain business operations, safeguard supply chains, and reduce costs and liabilities affecting the impact of the global coronavirus pandemic. The Norwegian government collaborated with Everbridge to strengthen its countrywide preparedness for COVID-19. The Everbridge public warning solutions help the government to send critical messages to the public through mobile phones before, during, and after an emergency.
The North American market is driven due to rising natural disasters (such as storms and wildfires), public health crises (such as the COVID-19 epidemic. Due to the increasing frequency and severity of catastrophic situations, effective crisis management tactics and technologies are essential. The market is highly competitive, with established players and young start-ups offering solutions that can be customized to meet the requirements of various organizational settings and industry verticals. It is anticipated that the market for crisis management software will maintain its demand In North America.
The Asia-Pacific region has emerged as the fast-growing market for crisis management software owing to the increased allocation of government funds towards crisis management initiatives to protect citizens from calamities. The COVID-19 pandemic has had a severe impact on emerging economies. To address the emergency, governments allocated funds for crisis management. For instance, the Indian government, in a commendable move, invested millions of dollars toward mitigating the impact of the coronavirus pandemic. The funds are intended to bolster financial resources and provide much-needed relief to the impoverished and migrant workers. The allocation of funding is poised to pave the way for growth in the crisis management software market.
Furthermore, countries like Japan, Australia, and China have been at the forefront of adopting and implementing software solutions for crisis management to reduce risks and improve their emergency response capabilities. These countries understand the significance of using the real-time data monitoring, communication, and cooperation tools made available by this software to manage crises effectively. These crises can range from natural catastrophes such as earthquakes and typhoons to public health emergencies.
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