According to a research report “Third-Party Risk Management Market by Component (Solution (Financial Control, Contract, Operational Risk, Audit, and Compliance) and Service (Professional & Managed)), Deployment Mode, Organization Size, Vertical, and Region — Global Forecast to 2024”, published by MarketsandMarkets, the global Third-Party Risk Management (TPRM) market size is projected to grow from USD 3.2 billion in 2019 to USD 6.8 billion by 2024, at a CAGR of 15.9% during the forecast period. The major factors driving the market include the increasing adoption of virtual applications; technological advancements, including automation, data analytics, and smart contracts; and soaring need to counter fraudulent activities in several verticals.
Based on solutions, the financial control segment is estimated to lead the Third-Party Risk Management Market in 2019
Financial control management can be defined as a system that manages and limits the financial effects of the budget on user operations in such a way that it aligns the user toward the achievement of goals related to finances. Organizations depend on several vendors, which poses operational and credit risks for organizations. Financial control management solutions help reduce an organization’s operational costs while managing and selecting a third-party or any vendor.
Better financial control provides better auditing and detection of fraudulent activities. Financial control management solutions provide managers with a proper view of the cash flow and better cost optimization for various business processes to increase the business output. Financial control management assists users to maintain and assess its debt collection period and the creditors payment period.
Based on verticals, the BFSI vertical is expected to dominate the TPRM market size during the forecast period
BFSI is one of the major adopters of TPRM solutions. It has been a highly regulated and competitive vertical that always focuses on delivering enhanced customer experience. The changing ways of the BFSI vertical are operating, increasing digitalization, and adopting advanced technologies have exposed this industry to different types of risks. The need to keep up with the changing regulatory environment and penalties associated with non-compliance has changed the way how risk is viewed and managed. These factors, coupled with the increasing challenges, such as cyber threats, third-party risks, and regulatory compliances, are expected to fuel the demand for TPRM solutions in the BFSI vertical.
North America is expected to hold the highest Third-Party Risk Management Market share during the forecast period
North America is the largest revenue contributor to the TPRM industry, as the growth in the region is being driven by the rising internet penetration and increasing adoption of cloud-based and IoT applications across verticals. Countries in North America are well-established economies, which enable investments in advanced technologies.
The demand for Third-Party Risk Management services is expected to increase in enterprises, as the adoption of solutions is growing across North America. Various organizations operating in different industrial domains across the US and Canada have been considering the implementation of effective solutions to manage their partner ecosystem for minimizing the risks associated with the management of third-parties.
Market Players
The major vendors covered in the TPRM market include RSA (US), Genpact (US), MetricStream (US), Deloitte (US), KPMG (Netherlands), BitSight Technologies (US), Ernst & Young (UK), PwC (UK), ProcessUnity (US), Venminder (US), Resolver (Canada), NAVEX Global (US), Riskpro (India), SAI Global (US), RapidRatings (US), Optiv (US), Aravo (US), OneTrust (US and UK), Galvanize (Canada), and Prevalent (US).
New product launches and product enhancements, strategic investments, and acquisitions, to expand their presence in the Third-Party Risk Management Market
Most of the companies in the TPRM market are adopting inorganic growth strategies, such as new partnerships and acquisitions, and organic strategies, such as new product launches and product enhancements, for strengthening their innovative product portfolio. Market players are focusing on the orchestration of vendors in the TPRM marketspace to build superior products that will increase their user customer base.
In October 2019, Genpact partnered with Tradeshift to focus on combining the company’s digital business platform called Genpact Cora with Business-to-Business (B2B) network technology. The combined solution is designed for customers that wish to link their procurement operations to a global network of buyers and sellers.In September 2019, BitSight Technologies partnered with ServiceNow, to launch 2 new certified ServiceNow applications, namely, BitSight for Vendor Risk Management and BitSight for Security Incident Response.In July 2019, KPMG was awarded by the US patent for technology to monitor and report third-party vulnerabilities. As a result, its offerings related to third-party intelligence that monitors and identifies threats to third-party networks in real time would gain a better competitive advantage as compared to its competitors in the TPRM space.In March 2019, RSA introduced new enhancements to its integrated risk management platform, RSA Archer. Product enhancements, such as automated risk identification and assessment, a modern platform for analysis and evaluation, and broad integrations for treatment of cyber risks, are collectively used to extend customers’ ability to efficiently and effectively identify, analyze, and treat critical elements of digital risk.About MarketsandMarkets™
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