The risk analytics market is estimated to grow from USD 16.55 billion in 2016 to USD 30.18 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 12.8%, according to MarketsandMarkets. The major vendors in the Risk Analytics Market include IBM, SAP, SAS Institute, Oracle, FIS Global, and Verisk Analytics, along with others.
Risk analytics solutions are witnessing the rising demand due to increasing competitive pressure on SMEs and global regulatory frameworks and government policies. The substantial growth in the Risk Analytics Market can be credited to the increasing organizational need to minimize the losses incurred due to risks, maximize their return on investment, and enhance their decision making process.
“We’re seeing a rise in regulatory pressure from a cyber perspective with mandates and guidance like the PCI-DSS and NIST Cybersecurity Framework. Adhering to those kinds of requirements and frameworks will factor into companies’ overall risk management mandates. Enterprises are increasingly leveraging risk analytics to effectively gather supporting information from multiple security data sources in order to quantify their cyber risks, automate their security operations, and make intelligence-driven decisions in response to those cyber risks to their business. The overall risk analytics market needs to account for cyber as one of the key parameters and addressable markets driving the new digital transformation in enterprises,” Feris Rifai, CEO at Bay Dynamics, told Help Net Security.
GRC software is expected to show positive trends
The GRC software is expected to dominate the market from 2016 to 2021. This is due to the fact that this software empowers organizations with the ability to identify, manage, monitor, and analyze risk and compliance across the enterprise in a single integrated solution.
Scorecard and visualization tools software is expected to gain traction in the next five years as it enables representation of multi-dimensional data to enhance the quality of analysis and insight by facilitating rapid and accurate observations.
Manufacturing segment to grow at the highest rate
The manufacturing segment is expected to grow at a rapid rate from 2016 to 2021 in the Risk Analytics Market. The high growth rate can be attributed to the rapidly changing customer expectations, fierce market competition, and stringent regulatory constraints faced by the manufacturing industries.
The banking and financial services segment is expected to contribute the largest market share in the Risk Analytics Market in 2016. The market is also projected to witness growth in the healthcare, retail and CPG, and telecommunication and IT segment during the forecast period.
North America is expected to contribute the largest market share
North America is expected to have the largest market share and dominate the Risk Analytics Market from 2016 to 2021, due to increasing adoption of risk analytics software and services by organizations in order to safeguard their businesses from losses and also because of the stern non-compliance measures adopted by the government and various regulatory bodies in this region.
APAC offers potential growth opportunities due to the rise in technology penetration and presence of large number of SMEs which are under tremendous competitive pressure from large enterprises.
“Over the past few decades, our clients have witnessed increasingly pronounced impacts from a broad spectrum of emerging and complex threats ranging from cyber attacks, natural disaster events, and homeland security challenges, among others. Public and private sector leaders appreciate the potential cascading effects that these events can have on businesses from operations to brand. As a result, sophisticated managers are incorporating risk analysis, hazard mitigation assessments, and opportunities for cost-effective and efficient resilient solutions into their strategic planning. We expect the trend of investment in risk analytics to accelerate as the 21st century presents global opportunities and an ever-evolving risk landscape,” said Terrence Brody, Senior Managing Director in Ankura’s Risk, Resilience & Geopolitical practice.