Third party risk management is the process of identifying, assessing, and mitigating potential risks associated with external parties that a business collaborates with, aiming to safeguard its operations and protect sensitive information. Organizations are increasing their dependence on third parties for improved profitability, faster time to market, competitive advantage, and decreased costs. However, third-party relationships come with multiple risks that include strategic risks, operational risks, reputational risks, financial risks, transaction risks, compliance risks and information security risks among others.
TPRM is the process of identifying, assessing and controlling these and other risks presented throughout the lifecycle of your relationships with third-parties. The third party risk management lifecycle refers to series of steps that outlines a typical relationship with a third party. It can be broken down.
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Data Bridge Market Research analyzes that the Global Third Party Risk Management Market is expected to reach USD 25.82 billion by 2031 from USD 6.68 billion in 2023, growing with a CAGR of 18.5% in the forecast period of 2024 to 2031.
Key Findings of the Study
Increasing Dependence of Various Organizations on Third Party Vendors
Third parties refer to vendors, suppliers, contractors, and others, enabling organizations to outsource certain raw materials, equipment, or services. Businesses are increasingly dependent on third parties to provide mission-critical services. This may include services related to information technology, finance and accounting, customer service support, and human resources administration, among others. Outsourcing has gone from being a value-protecting measure to becoming a value-creating measure.
Thus, with increasing dependence on third parties, there is a growing demand for third-party risk management solutions and services to manage the risk posed by compliance, data, and access privileges, driving market growth.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Year
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2021 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in Billion
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Segments Covered
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Component (Solutions and Services), Deployment Model (On-Premise and Cloud), Organization Size (Large Enterprises, Small and Medium-Sized Enterprises), End user (Government, Aerospace, and Defense, Banking, Financial Services, and Insurance, Manufacturing, IT and Telecom, Energy and Utilities, Retail and Consumer Goods, Healthcare and Life Sciences, and Others)
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Countries Covered
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U.S., Canada and Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America
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Market Players Covered
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RSA Security LLC(U.S.), MetricStream (U.S.), KPMG International (U.K.), Deloitte(U.K.), BitSight Technologies (U.S.), ProcessUnity, Inc.(U.S.), Genpact (U.S.), Venminder, Inc. (U.S.), Resolver, Inc.(Canand), NAVEX Global, Inc. (U.S.), SAI360 Inc. (U.S.), Rapid Ratings International Inc.(U.S.), Optiv Security Inc. (U.S.), PwC(U.K.), Aravo Soutions, Inc. (U.S.), OneTrust, LLC (U.S.), Prevalent, Inc. (U.S.), MITRATECH (U.S.), Ernst & Young Global Limited (U.K.), and IBM Corporation (U.S.) among others
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Data Points Covered in the Report
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In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand
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Segment Analysis
The global third party risk management market is segmented into four notable segments which are based on component, deployment model, organization size, and end user.
- On the basis of component, the market is segmented into solutions and services
In 2024, the solutions segment is expected to dominate the Global Third Party Risk Management Market
In 2024, the solutions segment is expected to dominate the market as it offers effective tools for businesses to identify, assess, and mitigate risks, ensuring stronger security and regulatory compliance with 66.72% market share.
- On the basis of deployment model, the market is segmented into computer on-premise and cloud
In 2024, the on-premise segment is expected to dominate the Global Third Party Risk Management Market
In 2024, the on-premise segment is expected to dominate the market due to control, security, and compliance advantages, giving businesses direct oversight and protection of sensitive data locally with 59.47% market share.
- On the basis of organization size, the market is segmented into small and medium-sized enterprises and large enterprises. In 2024, large enterprises segment is expected to dominate the market with 67.24% market share
- On the basis of end user, the market is segmented government, aerospace, and defense, banking, financial services, and insurance, manufacturing, IT and telecom, energy and utilities, retail and consumer goods, healthcare and life sciences and others. In 2024, government, aerospace, and defense segment is expected to dominate the market with 29.44% market share
Major Players
Data Bridge Market Research analyzes KPMG International (U.K.), Deloitte (U.K.), Genpact (U.S.), OneTrust, LLC (U.S.), Ernst & Young Global Limited (U.K.), as the major global third party risk management market.
Market Developments
- In December 2023, KPMG in India and Lineaje collaborated on enhancing Software Supply Chain Security (SSCS) through a comprehensive Third-Party Risk Management (TPRM) approach. The joint solution, leveraging Lineaje's capabilities and KPMG's expertise, enabled organizations to swiftly address third-party software risks, ensuring a secure and confidential process for obtaining crucial software component information. This initiative aimed to guide clients toward a safer digital future by fortifying their SSCS throughout the software supply chain lifecycle
- In November 2023, Ernst & Young Global Limited unveiled a strategic partnership with cyber defense firm BlueVoyant. The EY–BlueVoyant Alliance enabled shared clients to enhance services utilizing Microsoft 365 E5 advanced security tools. The collaboration addressed the growing need for robust cybersecurity programs as enterprises faced increasing connectivity and the evolving landscape of disruptive threats. This benefited the company to exchange technology with each other and meet the customer demand, resulting in increased revenue
- In September 2023, Genpact successfully integrated riskCanvas with Amazon Bedrock, revolutionizing financial crime management through advanced generative AI capabilities. The collaboration leveraged AWS's generative AI expertise and Genpact's digital proficiency. The integration, benefiting clients such as Apex Fintech Solution, empowered analysts to effortlessly generate Suspicious Activity Report narratives and case summaries using millions of data points. This development benefited the company by extending its relationship with AWS, promising a redefined operational landscape, unlocking untapped value, and creating substantial growth opportunities for clients
- In September 2021, OneTrust, LLC announced the acquisition of Tugboat Logic, a technology platform that simplifies and automates information security assurance and audit readiness for dozens of security frameworks. The company plans to accelerate Tugboat Logic’s growth globally and into adjacent OneTrust offerings, including privacy, ethics and compliance, ESG, third-party risk, and data governance
- In August 2021, Deloitte Touche Tohmatsu Limited announced the acquisition of cyber-solutions, the industrial cybersecurity business of Applied Engineering Solutions. This helped the company to enhance its experience in industrial cybersecurity and IoT-related cybersecurity. With the acquisition, the company expanded its capabilities and offerings in cyber threat risk management
Regional Analysis
Geographically, the market is segmented into U.S., Canada and Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, rest of Europe China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, rest of Middle East and Africa, Brazil, Argentina, and rest of South America.
As per Data Bridge Market Research Analysis:
North America is expected to be the dominant region in Global Third Party Risk Management Market
North America region is expected to dominate the market due to its advanced regulatory frameworks, mature risk management practices, and a well-established ecosystem of technology and consulting firms specializing in this field.
Asia-Pacific is estimated to be the fastest growing region in Global Third Party Risk Management Market
Asia-Pacific is the fastest growing region in the market due to its rapidly growing economies, increased outsourcing activities, and proactive approach to regulatory compliance.
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