Status : Published Published On : Jun, 2021 Report Code : VRICT5146 Industry : ICT & Media Available Format : Page : 205

Global Risk Analytics Market – Analysis and Forecast (2021-2027)

Industry Insights by Component (Software (ETL Tools, Scorecard and Visualization Tools, Risk Calculation Engines, Dashboard Analytics and Risk Reporting Tools, GRC Software, Others), Services (Professional Services, Managed Services)), by Risk Type (Strategic Risk, Operation Risk, Financial Risk, Others), by Deployment Model (On-Premise, On-Demand), Risk Type (Strategic Risk, Operation Risk, Financial Risk, Others), by Vertical (BFSI, Transportation and Logistics, Manufacturing, IT and Telecom, Retail and Consumer Goods, Healthcare and Life Sciences, Energy and Utilities, Government and Defense, Others), by Geography (U.S., Canada, Mexico, Germany, U.K., France, Italy, Spain, Netherlands, Japan, China, India, Australia, South Korea, Brazil, U.A.E, South Africa, Saudi Arabia)

Industry Overview

The global risk analytics market size is anticipated to grow at a significant rate i.e., from USD 31.2 billion in 2020 to USD 66.7 billion by 2027, at a CAGR of 14.9% during the forecast period 2020-2027.

This is due to the increased risks emerging in the current business scenarios, increased competition among regulatory firms, the latest technological developments in risk analysis, increase in digitalization and BPA, growth of business organizations, and greater investment opportunities. Risk intelligence or risk analytics software is used in organizations to clarify, define, manage, and understand their tolerance and exposure to risks. Implementing the risk analytics function helps business enterprises to have a clear understanding of the challenges in managing multiple types of risks in areas such as compliance, operations, finance, supply chain, credit, and e-commerce.

Risk Analytics Market Highlights

The COVID-19 pandemic has adversely affected many industries around the globe and the risk analytics industry is no exception. The uncertainty regarding the possible lockdowns and supply chain disruptions has made it a tough task for industry players to find a resurgence in the risk analytics industry. Nevertheless, the demand for digitally-driven intermediaries is proving to be efficient which will be an advantage for the risk analytics market.

Market Segmentation

Insight by Component

Based on component, the risk analytics market is bifurcated software and services. Among both the categories, the services market is expected to witness the higher growth during the forecast period as some companies are outsourcing the risk management and analysis to third party vendors. The software segment is further segmented into ETL tools, scorecard and visualization tools, risk calculation engines, dashboard analytics and risk reporting tools, GRC software, and others; whereas the services segment is segmented into professional services, and managed services.

Software segment dominates the market due to increase in digitalization and business process automation, increase in data silos across the business, and rise in data & security breaches are the factors that drives the growth of the segment in global risk analytics market.

Insight by Deployment Type

The risk analytics market is deployed either on-premise and on-demand. The On-premise deployment type has the largest market growth because the installation or deployment of software or hardware solutions provides relatively higher security.

Insight by Vertical

Based on vertical, the market is divided into BFSI, transportation and logistics, manufacturing, IT and telecom, retail and consumer goods, healthcare and life sciences, energy and utilities, government and defense, and others. The BFSI industry is the largest consumer of risk analytics software and services because financial institutions are more vulnerable to cyber threats and data theft. Moreover, there is an increasing need to have a unified view of risk across organizations, and the rising need to minimize risks related to governance and compliance requirements, are drivers for the growth of the BFSI sector during the forecast period 2020-2027.

Industry Dynamics

Growth Drivers

The main factor contributing to the growth of the global risk analytics market include the increasing demand for risk management in various industries. Business organizations are making massive investments to take advantage of their huge and growing amount of data and information. Companies are putting their existing data to use, which was previously trapped in functional silos and multiple business units. Companies are increasingly studying the new types of data that they observe from a wide range of external sources.

Increased investment in risk analytics software by business enterprises is pivotal to improve risk management and combat growing business needs. There are several risk analytics providers in the market that are helping organizations to transform their risk management with the help of advanced risk analytics tools, which help to further maximize their returns after risk adjustments.

Opportunity

Risk analytics tools help business organizations to make decisions after knowing the specific risks associated with a task. This creates growth opportunities for vendors providing risk analysis solutions. Risk analytics can help to improve the overall operation and performance of their organizations. Additionally, risk analytics software can also help business organizations to improve their return on capital and help reduce overall costs related to regulatory compliance. In order to reduce the huge amount of losses, business organizations are adopting risk analytics tools as it is one of the lucrative options for them. On the other hand, the risk analytics software also helps organizations in the centralized clearing of over-the-counter (OTC) derivatives.

Challenge

High initial set up cost and its complexity, configuration of the software, less security, and lack of analytical expertise are hindering the growth of the market to some extent.

Geographic Overview

Geographically, North America is dominant in risk analytics market. Due to the region's strong infrastructure, technological advancement such as AI, ML, and IoT, and the presence of major players and large companies, the demand for this technology in the region is increasing. The Asia-Pacific region is expected to be the fastest-growing region in the risk analysis market, as the region is experiencing lucrative opportunities and increasing market competitiveness. Some countries in the region are observing exchange rate fluctuations, which are expected to increase the demand for risk analysis tools in the region.

Competitive Insight

Key players in the risk analytics market investing in R&D and are adopting various types of organic and inorganic strategies such as product launch, product upgrade, partnerships and collaborations, business expansions, and mergers and acquisitions to strengthen their products in the market.

•  Moody's Analytics announced the launch of Moody's DataHub, a new cloud-based analytical platform that combines data from across the company, including its affiliates. Moody's DataHub allows financial and risk decision-makers to quickly and easily discover, analyse, and consume a wide range of relevant data.

•  IBM Security will launch a new risk-based solution which will assist firms in applying analytics to cybersecurity spending priorities, as well as regular business decisions. It will assist clients in identifying, prioritising, and quantifying security risk as they consider options for new technology, business investments, and process changes.

Some of the key players operating in the risk analytics industry are Fidelity National Information Services Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, SAS Institute Inc., Moody's Corporation, Verisk Analytics, Inc., Axiomsl, Inc., Gurucul, Provenir, and Risk Edge Solutions.

Risk Analytics Market Size and Market Analysis

Source: VynZ Research

Frequently Asked Questions

However, the high initial set up cost and lack of analytical expertise are hindering the growth of the market to some extent.
The primary factor that is aiding the growth of global risk analytics market includes the rising need for risk management across several industries.
Some of the key players operating in the risk analytics industry include Fidelity National Information Services Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, SAS Institute Inc., Moody's Corporation, Verisk Analytics, Inc., Axiomsl, Inc., Gurucul, Provenir and Risk Edge Solutions.
On the basis of the component, the market is subdivided software and services. Of both the categories, the services market is anticipated to witness the higher growth during the forecast period.
The risk analytics solutions are deployed either on-premise or on-demand. The market growth is higher for the on-premise deployment type as the installation and or deployment of software or hardware solutions provides comparatively higher security.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Risk Analytics Market