The global operational risk management (ORM) software applications market will grow from $1.5 billion in 2020, at a CAGR of 9%, to $2.6 billion in 2026, according to a study from Verdantix.
Main drivers of the post-COVID-19 ORM software market
The research finds that the post-COVID-19 ORM software market is driven by maturation of the market, rise in remote operations, pandemic driven growth in digitization to support lean operations, real-time risk management enablement, and safe operations rising to the top of executive priority lists.
Vendors positioned to benefit from this growth include ORM software providers such as AdaptIT, CONFORMiT, Enablon, Go-Arc, MODS Management, NiSoft, RiskPoynt, SAP, Sphera, Tenforce and Yokowaga RAP.
“As expected, the COVID-19 pandemic significantly slowed the ORM software market’s nominal growth rate throughout 2020, but it proved fairly resilient,” commented Malavika Tohani, Research Director, Operational Excellence.
“To maximize growth, ORM software providers must broaden their offerings to cover process safety management (PSM), have an open architecture to support greater integrations with industrial systems and incorporate digital twins to visually communicate risk.”
Spend by industry and region
Oil and gas industries accounted for 34% of ORM software spend in 2020, followed by manufacturing (25%) and power distribution and generation (18%). The ORM software market is forecast to experience the highest growth in spend from South Asia and China growing at a double-digit CAGR from 2020 to 2026 and will witness increased uptake amongst all industries, with the fastest growth in chemicals.
“The market is set for strong growth between 2021 and 2026,” commented Hugo Fuller, Verdantix Analyst. “To exploit the attractive market opportunity, ORM software suppliers need to expand their offerings to provide an integrated solution for PSM, incorporate digital twins to collate risks into a single source and communicate them visually, and have an open architecture to support easy integration with external systems.”