The reliance on external parties exposes organizations to potential vulnerabilities, emphasizing the critical importance of third-party risk management (TPRM). TPRM involves systematically assessing and mitigating the risks associated with third-party partnerships, ensuring that these dependencies don't compromise operational integrity, data security, or overall performance. Effective TPRM strategies involve thorough due diligence, continuous monitoring, and establishing clear contractual obligations to safeguard against potential threats. Proactively managing third-party risks, organizations can safeguard their reputation, maintain regulatory compliance, and fortify their resilience in the face of evolving external challenges. Prioritizing TPRM is integral to fostering a secure and resilient business ecosystem amidst increasing interconnectedness and dependence on external entities.
According to Data Bridge Market Research analyses, the Global Third Party Risk Management Market, which was USD 4,652.35 million in 2022, is expected to reach USD 14,290.43 million by 2030 and is expected to undergo a CAGR of 16.41% during the forecast period 2023-2030.
"Rise in cyber-attacks and frauds boosts the market growth"
The escalating occurrence of cyber-attacks and frauds have become pivotal catalysts propelling the growth of the third-party risk management (TPRM) market. Data security concerns loom large in the current landscape as businesses increasingly rely on data-centric models. Safeguarding sensitive information has become paramount, given that cyber threats and fraudulent activities frequently target valuable data. Third-party vendors often have access to such critical information, making TPRM a crucial tool for organizations. By implementing TPRM practices, businesses can systematically assess and monitor how third parties handle and secure sensitive data, ensuring robust protection throughout the supply chain.
What restraints the growth of the global third party risk management market?
“Competition associated with the market hampers its growth”
The intensification of competition in the third-party risk management (TPRM) market is a significant restraint, posing challenges for new entrants and established players. As the demand for TPRM solutions grows, numerous companies enter the market, leading to increased rivalry. This heightened competition can result in price wars, reduced profit margins, and a struggle for market share. It may lead to a saturation of similar offerings, making it harder for companies to differentiate themselves.
Segmentation: Global Third Party Risk Management Market
The global third party risk management market is segmented on the basis of component, deployment model, organization size, and end-user.
- On the basis of component, the global third party risk management market is segmented into solutions, and services
- On the basis of deployment model, the global third party risk management market is segmented into on-premise, and cloud
- On the basis of organization size, the global third party risk management market is segmented into small and medium-sized enterprise, and large enterprise
- On the basis of end-user, the global third party risk management market is segmented into banking, financial services, and insurance, IT and telecom, healthcare and life sciences, government, aerospace and defense, retail and consumer goods, manufacturing, energy and utilities, and others
Regional Insights: North America is expected to dominate the Global Third Party Risk Management Market
North America is expected to dominate the third-party risk management market, primarily attributed to its robust automotive infrastructure and the substantial presence of key industry players. The region boasts a strong foundation of automotive facilities, creating a fertile ground for integrating third-party risk management solutions. With major market players strategically headquartered in North America, the region is at the forefront of adopting advanced risk management practices, thereby reinforcing its dominance in steering the trajectory of the global third-party risk management market.
The Asia-Pacific region is expected to experience substantial growth from 2023 to 2030, fueled by increased government initiatives promoting awareness, a surge in automotive facilities, and growing research activities. The region's appeal is further enhanced by vast untapped markets and a sizable population pool.
To know more about the study, visit: https://www.databridgemarketresearch.com/reports/global-third-party-risk-management-market
Recent Developments in the Global Third Party Risk Management Market
- In October 2019, Genpact strategically partnered with Tradeshift to integrate its digital business platform, Genpact Cora, with cutting-edge business-to-business (B2B) network technology. For clients seeking to align their procurement activities with a worldwide network of buyers and sellers, leveraging the synergies of this collaboration presents a compelling solution
The Prominent Key Players Operating in the Global Third Party Risk Management Market Include:
- RSA Security LLC (U.S.)
- Genpact (U.S.)
- MetricStream (U.S.)
- Deloitte (U.S.)
- KPMG (Netherlands)
- BitSight Technologies, Inc. (U.S.)
- Ernst & Young LLP (U.K.)
- PwC (U.K.)
- ProcessUnity, Inc. (U.S.)
- Venminder, Inc. (U.S.)
- Resolver Inc. (Canada)
- NAVEX Global, Inc. (U.S.)
- Riskpro (India)
- SAI Global Pty Limited (U.S.)
- Rapid Ratings International Inc. (U.S.)
- Optiv Security Inc. (U.S.)
- Aravo Solutions, Inc. (U.S.)
- OneTrust, LLC. (U.S.)
- Prevalent, Inc. (U.S.)
Above are the key players covered in the report, to know about more and exhaustive list of global third party risk management market companies contact, https://www.databridgemarketresearch.com/contact
Research Methodology: Global Third Party Risk Management Market
Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, global vs Regional and Vendor Share Analysis. Please request analyst call in case of further inquiry.
