The Risk Analytics Market size was US$ 35.45 billion in 2021 and is anticipated to reach the valuation of US$ 60.95 billion by 2027 and is anticipated to register a CAGR of 14% during 2022-2027.
Risk analytics is a sort of software that firms use to efficiently and effectively manage various types of risks. This software is notable for a number of characteristics, including the ability to recognize and manage various types of risk, as well as take proactive efforts to avoid potential crises. The rise in various cyber-attacks, fraudulent assaults, and data theft on various businesses as a result of the ongoing digitalization trend are the primary drivers driving the global market's growth.
Some of the primary market trends projected to fuel the growth of the risk analytics market include an increase in data security breaches in companies and an increase in government regulatory compliances. Furthermore, the adoption of risk analytics in financial institutions is increasing, as is the IoT environment. Furthermore, the market's growth is fueled by an increase in the use of risk analytics in financial institutions and the expansion of the IoT environment. In addition, during the forecast period, the rise in demand from developing economies and the incorporation of artificial intelligence in risk analytics are projected to present significant potential prospects for the risk analytics market. Additionally, the growing demand for risk analytics in the banking, financial services, and insurance (BFSI) industry is being fueled by the increased use of mobile banking services and the growing volume of data. Risk analytics can be used to bring together disparate data sources into a single, unified picture, collect useful data, and provide actionable insights. Apart from that, risk analytics is used by logistics organizations all over the world to successfully respond to business disruptions and supply chain issues affected by the global spread of the coronavirus disease (COVID-19). Product and material regulatory research, data management, decision support, and compliance actions are all aided by risk analytics.
Regulatory compliance varies greatly over the world. As a result, businesses are struggling to manage compliance risk and comply with a plethora of regulatory standards that differ by region and industry. As there is no clear standard that must be followed, this is regarded one of the restricting factors for the growth of the risk analytics market. These issues also make it tough for risk analytics solution providers to cater to a diverse set of end-users. Organizations focus on implementing in-house regulatory standards and policies in some places where there is no regulatory structure and standard set by governing bodies.
The market's growth is hampered by the high cost of risk analytics and the difficulty of software installation and deployment. Risk analytics is made up of many modules that are used for various objectives in recognizing risk. This module allows for various customization techniques for different organizations, ensuring that it meets the organization's particular needs. The cost of implementing the program rises as a result of this modification. In addition, the program requires annual maintenance and bug-fixing costs, as well as fees for continuing to utilize the product. Furthermore, the market's growth is hampered by the software's complexity and the difficulty of installing and configuring it.
Market Size Available
2021 - 2027
2022 - 2027
By Component, Deployment Mode, Organization Size, Risk Type, Industry, and Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, APAC, Latin America, Middle East & Africa
Market Leaders Profiled
Accenture plc, BRIDGEi2i Analytics, Capgemini, Fidelity National Information Services, Inc. (FIS), IBM, Moody’s Analytics Inc., Oracle Corporation, Risk Edge Solutions, SAP SE, SAS Institute Inc., and Others
Risk Analytics Market - By Component:
The software segment is expected to capture the greatest proportion of the risk analytics market in 2021, based on component. The drivers driving the market growth are expanding digitalization and business process automation, developing data silos across businesses, and escalating security and data breaches. Because of the benefits that software provides, some suppliers are considering investing in R&D to make it better and more affordable for small and medium-sized businesses. Consistent increase in the software segment, on the other hand, is likely to drive expansion in the services industry, which includes advice, installation, and support.
Risk Analytics Market - By Deployment Mode:
The cloud-based category is predicted to expand at the fastest CAGR throughout the projection period, based on deployment mode. Cloud computing and storage technologies are becoming increasingly popular among small and medium-sized businesses. Several companies are migrating to cloud infrastructure, and this trend is projected to continue in the future years. The advantages of cloud infrastructure, such as ease of acceptance, low in-house infrastructure requirements, scalability, and simple security solution installation, encourage the segment's rapid expansion.
Risk Analytics Market - By Organization Size:
The large enterprises dominates because effective risk management practises help large companies to identify hazards associated with ongoing projects, allowing them to handle the issue before it becomes a major problem. Large organisations can use risk management systems to increase risk control, monitoring, and evaluation. Structured reports that track organisational risks can help managers and executives focus by collecting data that helps them make better risk-reduction decisions.
Risk Analytics Market - By Risks:
The Financial risk segment contributed to the largest market share due to the constant evolution of threats in the BFSI industry. Financial hazards include the danger of suffering losses as a result of failing to accomplish financial objectives. Uncertainties in international currency rates, interest rates, asset costs, stock prices, credit quality, liquidity, and company access to finance are all threats to enterprises. Advanced risk analytics tools assist banks and financial institutions in predicting consumer behaviour and preferences as well as improving evaluation.
Risk Analytics Market - By Industry:
The BFSI category is expected to occupy the greatest proportion of the risk analytics market in 2021, based on end user. The growing demand for a single view of risk across businesses, as well as the growing need to reduce risk associated with governance and compliance requirements, are driving the BFSI segment's growth. However, over the projected period, the healthcare segment is expected to develop at the fastest rate.
Risk Analytics Market – By Region:
The biggest market share is expected to be held by North America. The region's dominance can be ascribed to industry' rising acceptance of risk-management solutions. Organizations in the region are more inclined to reshape their current risk strategies in order to remove risks and redundancy. In the wake of multiple cyber-attacks, for example, banks and financial institutions in the region are focusing more on controlling cybersecurity risks.
Analytics solution providers in the region are embracing advanced technologies such as robotic process automation (RPA), machine learning, and cognitive analysis. Companies are working on altering risk assessment frameworks with these technology integrations.
By automatically testing a great amount of unstructured data and identifying potential dangers and allowing preventive steps, such technologies can assist SMEs and major organizations in the region enhance business efficiency.
With market volatility on the rise, businesses in the region are focusing on risk management strategies that can help them detect the various types of threats that might arise from a variety of international, economic, and technical reasons. Furthermore, risk management solutions enable businesses to protect themselves from disruptions and extreme non-compliance actions performed by the government and other regulatory agencies in the country.
Due to its high internet access and lack of protection, Asia Pacific (APAC) is an excellent setting for cybercriminals to thrive. Companies in the region have used analytics solutions as networking has increased and the pace of digital transformation has accelerated. Cyber vulnerability and data security violations are ingrained in the actions of businesses across the country, making them vulnerable to information threats regardless of their cybersecurity efforts. These attacks can result in significant losses, such as lost customers, business interruptions, or reputational damage.
As a result, businesses in the region are using risk assessment methodologies and solutions to address these issues. The Asia Pacific area has a mature and well-established risk management industry with a growing tendency toward technological advancements, offering a wide range of opportunities for risk management organizations and service providers.
Recent Developments in the Risk Analytics Market:
IBM Security will launch a new risk-based solution in September 2020. It will assist firms in applying analytics to cybersecurity spending priorities, as well as regular business decisions. As customers explore new technology, business investments, and process improvements, it will help them assess, prioritize, and quantify security risk.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Risk Analytics Market, By Component
6.1.3 Market Size Estimations & Forecasts (2022-2027)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 Risk Analytics Market, By Deployment Mode
6.2.3 Market Size Estimations & Forecasts (2022-2027)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
6.3 Risk Analytics Market, By Organization Size
6.3.1 Small and Medium-sized Enterprises (SMEs)
6.3.2 large Enterprises
6.3.3 Market Size Estimations & Forecasts (2022-2027)
6.3.4 Y-o-Y Growth Rate Analysis
6.3.5 Market Attractiveness Index
6.4 Risk Analytics Market, By Risk
6.4.1 Financial Risk
6.4.2 Operational Risk
6.4.3 Compliance Risk
6.4.4 Strategic Risk
6.4.5 Market Size Estimations & Forecasts (2022-2027)
6.4.6 Y-o-Y Growth Rate Analysis
6.4.7 Market Attractiveness Index
6.5 Risk Analytics Market, By Industry
6.5.2 Financial Services
6.5.3 Insurance (BFSI)
6.5.4 IT and Telecom
6.5.7 Energy and Utilities
6.5.9 Government and Defense
6.5.11 Market Size Estimations & Forecasts (2022-2027)
6.5.12 Y-o-Y Growth Rate Analysis
6.5.13 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Risk Analytics Market, by Region
7.2 North America - Market Analysis (2022-2027)
7.2.1 By Country
7.2.2 By Component
7.2.3 By Deployment Mode
7.2.4 By Organization Size
7.2.5 By Risk
7.2.6 By Industry
7.3.1 By Country
220.127.116.11 Rest of Europe
7.3.2 By Component
7.3.3 By Deployment Mode
7.3.4 By Organization Size
7.3.5 By Risk
7.3.6 By Industry
7.4 Asia Pacific
7.4.1 By Country
18.104.22.168 South Korea
22.214.171.124 South East Asia
126.96.36.199 Australia & NZ
188.8.131.52 Rest of Asia-Pacific
7.4.2 By Component
7.4.3 By Deployment Mode
7.4.4 By Organization Size
7.4.5 By Risk
7.4.6 By Industry
7.5 Latin America
7.5.1 By Country
184.108.40.206 Rest of Latin America
7.5.2 By Component
7.5.3 By Deployment Mode
7.5.4 By Organization Size
7.5.5 By Risk
7.5.6 By Industry
7.6 Middle East and Africa
7.6.1 By Country
220.127.116.11 Middle East
7.6.2 By Component
7.6.3 By Deployment Mode
7.6.4 By Organization Size
7.6.5 By Risk
7.6.6 By Industry
8. Key Player Analysis
8.1 Accenture plc
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 BRIDGEi2i Analytics
8.4 Fidelity National Information Services, Inc. (FIS)
8.5 International Business Machines Corporation
8.6 Moody’s Analytics, Inc.
8.7 Oracle Corporation
8.8 Risk Edge Solutions
8.9 SAP SE
8.10 SAS Institute Inc.
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures
The Risk Analytics Market was worth US$ 35.45 billion in 2021 and is anticipated to reach the valuation of US$ 60.95 billion by 2027.
Due to an increase in the number of online transaction risks and recent money laundering cases, the North America region will give the most business prospects during the projected period.
The key market industries adopting Risk Analytics services includes Banking, Financial Services and Insurance (BFSI), IT and Telecom, Retail, Healthcare, Energy and Utilities, Manufacturing, Government and Defense and Others (travel, hospitality, academia & research, media & entertainment).
Japan, China, India, Southeast Asia and the rest of Asia Pacific is considered in the Asia Pacific region for the report.
The Risk Analytics Market is anticipated to register a CAGR of 14% during 2022-2027.
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