Third Party Risk Management Market Size & Share, By Component (Solution, Services), Application (Supply Chain Management, IT & Cybersecurity, Financial Services, BPO), Industry, Growth Prospects, Regional Outlook, Regional Forecast, Industry Players, Growth Statistics Report 2024-2032

Market Outlook:

Third Party Risk Management Market exceeded USD 6.18 Billion in 2023 and is predicted to cross USD 22.66 Billion by end of the year 2032, witnessing more than 15.5% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 6.18 Billion
• CAGR (2024-2032): 15.5%
• Forecast Year Value (2032): USD 22.66 Billion
• Historical Data Period: 2019-2023
• Largest Region: North America
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

One major growth driver for the Third Party Risk Management Market is the increasing complexity and interconnectedness of global supply chains. As companies increasingly rely on third-party vendors and suppliers to streamline operations and reduce costs, they are also increasing their exposure to potential risks. This has led to a growing demand for third-party risk management solutions that can help organizations identify, assess, and mitigate risks across their entire supply chain.

Another key growth driver for the Third Party Risk Management Market is the rise in regulatory compliance requirements. With the introduction of stringent data protection regulations such as GDPR and the California Consumer Privacy Act (CCPA), organizations are under increasing pressure to ensure that their third-party vendors are also compliant with these regulations. This has created a need for robust third-party risk management solutions that can help organizations monitor and audit their vendors to ensure compliance with regulatory requirements.

Report Scope

Report Coverage	Details
Segments Covered	Component, Application, Industry
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	BitSight Technologies, Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited, Genpact, KPMG International Limited, Lockpath, LogicGate, MetricStream, MetricStream, NAVEX Global, Inc, OneTrust, LLC, ProcessUnity, PwC, Quantivate, LLC, Resolver, RSA Security LLC, RSAM, SAP SE, Venminder,

Industry Restraints:

One major restraint for the Third Party Risk Management Market is the lack of standardized practices and frameworks for assessing and managing third-party risks. While organizations recognize the importance of third-party risk management, they often struggle to implement consistent processes and practices across their supply chain. This can lead to inconsistencies in risk assessment and mitigation efforts, leaving organizations vulnerable to potential risks.

Another significant restraint for the Third Party Risk Management Market is the lack of awareness and understanding of the importance of third-party risk management within organizations. Many companies still view third-party risk management as a secondary concern, leading to insufficient investment in appropriate tools and resources. Without adequate awareness and prioritization of third-party risk management, organizations may fail to effectively mitigate risks and protect their assets from potential threats.

Regional Forecast:

North America:

The Third Party Risk Management Market is expected to witness significant growth in North America, particularly in the United States and Canada. This can be attributed to the increasing adoption of third-party risk management solutions by organizations in order to mitigate the potential risks associated with outsourcing various business functions to third-party vendors.

The United States is expected to dominate the market in North America, owing to the presence of a large number of organizations that rely on third-party vendors for various business processes. Additionally, the increasing regulations pertaining to data privacy and security are also driving the adoption of third-party risk management solutions in the region.

Canada is also expected to witness substantial growth in the third-party risk management market, fueled by the growing awareness among organizations about the importance of managing risks associated with third-party vendors. The increasing incidents of data breaches and cyber-attacks are further encouraging organizations in Canada to invest in robust third-party risk management solutions.

Asia Pacific:

In Asia Pacific, countries such as China, Japan, and South Korea are expected to drive the growth of the Third Party Risk Management Market. This can be attributed to the increasing digital transformation efforts by organizations in the region, which are leading to a higher reliance on third-party vendors for various services.

China is expected to witness significant growth in the third-party risk management market, fueled by the increasing focus on data security and compliance by organizations in the country. The growing adoption of cloud-based services by Chinese companies is also driving the demand for third-party risk management solutions in the region.

Japan and South Korea are also expected to be key markets for third-party risk management solutions in Asia Pacific, driven by the stringent regulations pertaining to data protection and privacy in these countries. Organizations in Japan and South Korea are increasingly recognizing the importance of managing risks associated with third-party vendors, leading to a higher adoption of third-party risk management solutions.

Europe:

In Europe, countries such as the United Kingdom, Germany, and France are expected to witness significant growth in the third-party risk management market. This can be attributed to the increasing focus on regulatory compliance and data protection in these countries, which is driving organizations to invest in robust third-party risk management solutions.

The United Kingdom is expected to dominate the third-party risk management market in Europe, owing to the stringent data protection regulations such as the GDPR. Organizations in the UK are increasingly focusing on managing risks associated with third-party vendors in order to comply with these regulations and protect sensitive data.

Germany and France are also expected to be key markets for third-party risk management solutions in Europe, driven by the growing awareness among organizations about the risks associated with outsourcing various business functions. The increasing incidents of cyber-attacks and data breaches are further fueling the demand for third-party risk management solutions in these countries.

Segmentation Analysis:

In terms of segmentation, the global third party risk management market is analyzed on the basis of Component, Application, Industry

Third Party Risk Management Market Size & Share:

The Third Party Risk Management Market is segmented based on components into solutions and services. Solutions segment includes software tools that help organizations identify, assess, and mitigate risks associated with third-party relationships. The services segment includes consulting, implementation, and support services provided by third-party risk management vendors. The solution segment holds the majority share in the market, as organizations are increasingly investing in robust risk management tools to safeguard their operations.

Application:

The Third Party Risk Management Market is further segmented based on applications into supply chain management, IT & cybersecurity, financial services, and BPO. Supply chain management is expected to witness significant growth in the market, as organizations are increasingly relying on third-party suppliers for various products and services. IT & cybersecurity is another key application segment, as organizations are facing increasing cyber threats and need to ensure the security of their data and systems.

Industry:

The Third Party Risk Management Market is segmented based on industries into various sectors such as healthcare, banking, financial services, and insurance (BFSI), retail, manufacturing, and others. The BFSI sector is expected to dominate the market, as regulatory requirements and data security concerns drive the adoption of third-party risk management solutions. Other industries such as healthcare and manufacturing are also investing in third-party risk management to protect their sensitive information and maintain compliance with industry standards.

Growth Prospects:

The Third Party Risk Management Market is experiencing robust growth, fueled by increasing cyber threats, regulatory requirements, and the need for organizations to safeguard their operations. The market is expected to witness significant expansion in the coming years, driven by the adoption of advanced risk management solutions and services. Growing awareness about the importance of third-party risk management is also contributing to market growth, as organizations seek to protect their data, reputation, and financial assets from potential risks associated with third-party relationships.

Competitive Landscape:

The competitive landscape in the Third Party Risk Management Market is highly dynamic and competitive, with a growing number of companies offering solutions to help businesses manage their relationships with third-party vendors and reduce risks. Companies in this market are competing on factors such as innovation, product functionality, pricing, and customer service. Some key players in the market are focusing on developing advanced technology solutions such as artificial intelligence, machine learning, and predictive analytics to help organizations more effectively monitor and manage third-party risks. The market is also witnessing strategic partnerships, collaborations, and acquisitions as companies aim to strengthen their market presence and expand their reach.

Top Market Players:

1. RSA Security LLC

2. BitSight Technologies

3. MetricStream Inc.

4. Genpact

5. RiskRecon

6. LogicManager

7. OneTrust

8. ProcessUnity

9. Rsam

10. SecurityScorecard