The globally integrated risk management (IRM) software market size was valued at USD 69.4 billion, growing at a CAGR of 15.19% during the forecast period.
Integrated Risk Management software is a set of practices and processes backed by risk ware culture and technologies, enabling organizations to manage both emerging and current risk across strategic, geopolitical, cybersecurity, third party, and compliance areas. It offers a broad range of attributes that include; monitoring, assessment, communication and reporting, and implementation of the strategic framework, among others. Moreover, it also enables organizations to gain comprehensive visibility into both risk exposure and relationships.
Increasing cybercrime across all industry verticals, growing government regulations to mitigate risks, and increasing capital investment by the IT and Telecom industry in new technologies are the factors fueling the market growth. However, the high initial cost of deployment hinders market growth
| Report Metric | Details |
|---|---|
| Base Year | 2022 |
| Study Period | 2017-2029 |
| Forecast Period | 2023-2031 |
| CAGR | 15.19% |
| Market Size | 69.4 |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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Over the past few years, there has been substantial growth in cybercrime attacks across all industry verticals globally. The growth is attributed to the increasing adoption of digitization for various applications across multiple verticals such as; retail, manufacturing, energy and utilities, government, and BFSI. For instance, according to industry experts, 27% of banks have witnessed a surge in cyber attacks on digitization. This enables increasing demand for integrated risk management software to detect and eliminate the risks of fraud. Moreover, increasing government regulations to reduce the nation's cyber attack crime also paves the way for integrated risk management software. For instance, Government regulations such as the Payment Service Directive (PSD2), administered by the European legislation, necessitate the banks to adopt security measures for risk monitoring, detect & prevent risks linked to payments, and others.
North America holds the largest market share and is anticipated to witness growth during the forecast period. The growth is attributed to increasing digitization in the healthcare industry. The increasing use of electronic medical records, which creates the scope for cybersecurity risk, theft of patients, and extortion by encrypting data and data breaches, led to increasing demand for integrated risk management.
Moreover, integrated risk management software also offers solutions to the healthcare industry, such as; incident management, patient feedback, and reporting and workflow management. Furthermore, increasing expenditure by developed countries such as; Canada and the U.S. on healthcare infrastructure also paves the way for market growth. For instance, Canada's healthcare expenditure was approximately USD 4.4% in 2018 and is anticipated to reach approximately 7.5% by 2020, according to the International Trade Association.
In October 2019, Children's Hospital of Orange County (CHOC Children's) applied big data technology with on-premise resources to mitigate risks as they move towards adopting electronic health records.
Asia-Pacific is the fastest-growing region in integrated risk management over the forecast period. The growth is attributed to increasing investment from developing economies such as China, Japan, and India in healthcare, Telecom, and the manufacturing industry. Furthermore, the increasing penetration rate of social media platforms and internet connectivity in the region also paves the way for adopting integrated risk management.
Moreover, increasing adoption of emerging technology such as the 5G network in the region, which is considered costly resolution and the potential risk of sensitive data, is also one factor fueling the market growth. The widespread of virtual communication, mainly amid the COVID-19 scenario, has paved the way for security threats related to organizations' internal network, compliance, and cyber risks, which created the demand for integrated risk management software.
The global Integrated Risk Management Software market has been segmented into deployment mode and application.
The global integrated risk management software market has been segmented into the cloud and on-premises based on the deployment model.
The cloud segment holds a larger market share and is expected to witness growth during the forecast period. The growth is attributed to increasing adoption among SMEs to eliminate the necessity of infrastructure costs. For instance, according to IDC, approximately 73% of enterprises across the globe are SMEs. This enables increasing demand for the cloud segment among the SMEs. Furthermore, the cloud segment's broad offering includes; 24/7 services, remote working, and high security and storage services, which are also factors fueling the market growth.
The On-Premise segment holds moderate growth and is anticipated to continue with the same pace over the forecast period based on its unique offering such as; complete control over data and high security, among others. Also, as they are typically custom-built to serve the business's specific purposes, usually priced under a one-time perpetual license fee, large enterprises are mostly preferred.
Based on application, the global Integrated Risk Management market has been segmented into BFSI, Government, IT and Telecom, Healthcare, Manufacturing, and Others.
The government holds a higher CAGR than other segments and is expected to witness gain during the forecast period. The growth is attributed to increasing dependency on technology. This technological dependency has led to increasing cyber-attack, which increases the demand for integrated risk management software to prevent sensitive data.
Moreover, the governments' increasing initiatives to promote digitization across all industry verticals also pave the demand for integrated risk management. For instance, India's Government has launched several initiatives such as Digital India and smart city projects initiatives, which increases the necessity of integrated risk management. This integrated risk management software helps federal agencies combat risks by offering solutions that help identify or detect threats, respond, protect, and recover, thereby encouraging agencies to improvise their risk management and threat response approach.
The impact of COVID-19 has a devastating effect on all industry verticals globally. The market of integrated risk management software has witnessed a slight surge amid pandemic COVID-19. The growth is attributed to increasing cyber-attack activities during pandemic COVID-19. According to a McAfee report, cyber attacks surge to approximately 605% amid pandemic COVID-19. This enables increasing demand for integrated risk management to protect, detect, and improve sensitive data risk.
Moreover, integrated risk management software helps enterprises in critical decision making and has an in-depth analysis of crisis management. Furthermore, key players have launched integrated risk management to offer a risk management platform to several enterprises to deal with crisis management amid pandemic COVID-19. For instance, in October 2020, MetricStream has launched the M7 integrated risk platform that helps enterprises adopt intelligent, agile, and simple approaches to deal with changing workforce, cybersecurity, and risk during pandemic COVID-19.
The key players in global integrated risk management software market have adopted inorganic growth strategies that include partnerships and collaborations, mergers and acquisitions to expand its geographical reach. For instance, in October 2019, Focal Point Data Risk LLC and Riskonnect Inc., partnered to enhance integrated risk management software for the customers. Some of the prominent key players are;
