Dublin, Feb. 12, 2025 (GLOBE NEWSWIRE) — The “Third-Party Risk Management – Global Strategic Business Report” report has been added to ResearchAndMarkets.com’s offering.
The global market for Third-Party Risk Management was valued at US$8.3 Billion in 2024 and is projected to reach US$18.7 Billion by 2030, growing at a CAGR of 14.5% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.
Third-Party Risk Management (TPRM) has emerged as a critical component of business strategy and operations as organizations increasingly rely on external vendors, suppliers, contractors, and service providers to drive growth and innovation.
The increasing incidence of data breaches, regulatory violations, and supply chain disruptions is driving the adoption of TPRM solutions across industries. High-profile incidents such as data breaches originating from third-party service providers or compliance failures leading to hefty fines have highlighted the need for businesses to have comprehensive visibility into their third-party relationships.
Regulatory authorities around the world, including the General Data Protection Regulation (GDPR) in the EU, the Health Insurance Portability and Accountability Act (HIPAA) in the US, and the Financial Conduct Authority (FCA) regulations in the UK, are imposing stricter requirements on businesses to monitor and manage third-party risks effectively.
Organizations that fail to demonstrate adequate oversight of their third parties may face severe financial penalties and reputational damage. As regulatory scrutiny intensifies and the risk landscape evolves, implementing effective TPRM programs is no longer optional but a strategic imperative for organizations seeking to safeguard their assets and comply with legal obligations.
What Are the Key Growth Drivers Fueling the Expansion of the Third-Party Risk Management Market?
The growth in the global third-party risk management market is driven by several key factors, including the increasing focus on cybersecurity and data privacy, the growing complexity of supply chains, and the rising adoption of digital risk management solutions. One of the primary growth drivers is the heightened focus on cybersecurity and data privacy, which is making third-party risk management a top priority for organizations across industries.
With the rise of cyber threats such as data breaches, ransomware attacks, and supply chain vulnerabilities, organizations are increasingly aware of the risks associated with their third-party vendors and service providers. Many high-profile data breaches have been traced back to security weaknesses in third parties, highlighting the need for rigorous third-party security assessments and continuous monitoring. TPRM solutions are helping organizations identify and mitigate cybersecurity risks by providing tools for conducting security audits, evaluating third-party security practices, and monitoring for signs of compromise.
Another significant growth driver is the growing complexity of supply chains and the increasing reliance on third parties for critical business functions. Globalization, outsourcing, and the trend toward lean supply chains have made organizations more dependent on external partners for sourcing, manufacturing, logistics, and IT services. This interdependence introduces new risks, such as disruptions due to geopolitical instability, natural disasters, or pandemics, which can have cascading effects across the supply chain.
TPRM solutions are providing organizations with the visibility and tools needed to manage these risks, including risk assessments, contingency planning, and real-time monitoring of third-party performance. The ability to assess the financial stability, operational resilience, and compliance status of suppliers and contractors is enabling organizations to build more resilient and agile supply chains.
The adoption of digital risk management solutions is also fueling the growth of the third-party risk management market. Digital TPRM platforms offer automated workflows, advanced analytics, and real-time monitoring capabilities that enable organizations to manage third-party risks more efficiently and effectively. The integration of TPRM solutions with broader governance, risk, and compliance (GRC) frameworks is supporting a more comprehensive approach to risk management, where third-party risks are managed in conjunction with other organizational risks such as operational, strategic, and reputational risks.
The use of cloud-based TPRM platforms is making these solutions more accessible and scalable, supporting their adoption across organizations of all sizes. The development of TPRM solutions that incorporate environmental, social, and governance (ESG) risk assessments is also driving market growth, as organizations seek to evaluate the ESG performance of their suppliers and partners in response to increasing regulatory and stakeholder expectations.
Lastly, the increasing focus on regulatory compliance and the need to demonstrate due diligence in third-party relationships are contributing to the growth of the TPRM market. Regulatory agencies across various industries are requiring organizations to implement robust third-party risk management programs to ensure compliance with data protection, anti-bribery, anti-corruption, and financial reporting standards. The rising number of regulatory requirements and the increasing complexity of compliance obligations are making it challenging for organizations to manage third-party risks manually. TPRM solutions are providing automated compliance management tools that help organizations track regulatory changes, assess third-party compliance, and generate audit-ready reports.
As demand from key sectors such as finance, healthcare, manufacturing, and technology continues to rise, and as solution providers innovate to meet evolving risk management needs, the global third-party risk management market is expected to witness sustained growth, driven by advancements in technology, expanding applications, and the increasing emphasis on risk mitigation and compliance management.
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of major players such as Aravo Solutions, Inc., BitSight Technologies, Inc., Clifford Chance LLP, Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Third-Party Risk Management Solutions segment, which is expected to reach US$10.8 Billion by 2030 with a CAGR of a 14.0%. The Third-Party Risk Management Services segment is also set to grow at 15.4% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $3.1 Billion in 2024, and China, forecasted to grow at an impressive 18.0% CAGR to reach $1.3 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Segments:
- Component (Solutions, Services)
- Deployment (Cloud Deployment, On-Premise Deployment)
- End-Use (BFSI End-Use; IT & Telecom End-Use; Healthcare & Life Sciences End-Use; Government, Defense & Aerospace End-Use; Retail & Consumer Goods End-Use; Manufacturing End-Use; Energy & Utilities End-Use; Other End-Uses)
Key Attributes:
Report Attribute | Details |
No. of Pages | 723 |
Forecast Period | 2024 – 2030 |
Estimated Market Value (USD) in 2024 | $8.3 Billion |
Forecasted Market Value (USD) by 2030 | $18.7 Billion |
Compound Annual Growth Rate | 14.5% |
Regions Covered | Global |
Key Topics Covered:
MARKET OVERVIEW
- A Growing Interconnected World Throws the Spotlight on “Third-Party Risk”
- With Modern Enterprise Shrouded by All Pervasive Risks & Their Devastating Outcomes, the Focus on Third Party Risk Management is No Longer a Matter of Choice: Average Cost of Third-Party Failures for Companies (In US$ Million) for Years 2015, 2020 and 2024
- Economic Frontiers: Trends, Trials & Transformations
- Competition
- Third-Party Risk Management – Global Key Competitors Percentage Market Share in 2024 (E)
- Competitive Market Presence – Strong/Active/Niche/Trivial for Players Worldwide in 2024 (E)
- Influencer/Product/Technology Insights
- Recent Market Activity
- Innovations
MARKET TRENDS & DRIVERS
- Growing Complexity of Supply Chains Throws the Focus Squarely on Supply Chain Risk Management (SCRM)
- Third-Party Cyber Risk Management (TPCRM) Can No Longer Be Ignored. Here’s Why
- Microsoft 2024 Outages Highlights Critical Lessons in Third-Party Risk Management for Cybersecurity Software
- Vendor Risk Management (VRM) Steals the Spotlight for all the Right Reasons!
- In an Era Where Corporate Social Responsibility Can Make or Break a Company, It is Important to Assess & Reduce ESG Risks from Vendors and Suppliers. Here’s the Story
- AI Emerges to Improve, Even Revolutionize the Third-Party Risk Management (TPRM) Processes
- Blockchain Shows Strong Potential to Support Third-Party Risk Management
- Growth in Demand for TPRM in High-Risk Sectors like Pharmaceuticals Fuels Market Expansion
- Concerns Over Legal Implications of Unmanaged Third-Party Risk Drives Adoption of TPRM
FOCUS ON SELECT PLAYERS:Some of the 200 major companies featured in this report
- Aravo Solutions, Inc.
- BitSight Technologies, Inc.
- Clifford Chance LLP
- Deloitte Touche Tohmatsu Limited
- Ernst & Young Global Limited
- Genpact
- KPMG
- MetricStream
- NAVEX Global, Inc.
- OneTrust, LLC
- Optiv Security, Inc.
- PwC
- Rapid Ratings International, Inc.
- Resolver Inc.
- Riskpro India Ventures Private Limited
For more information about this report visit https://www.researchandmarkets.com/r/ydqogp
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- Third-Party Risk Management Market