Industry Overview
The global risk analytics market size is expected to grow at a significant rate from USD 31.2 billion in 2023 to USD 66.7 billion by 2030, at a CAGR of 14.9% during the forecast period 2025-2030.
The growth of the global risk analytics market is mainly attributed to the growing risk in the prevailing market conditions, the latest developments in the technologies for risk analysis, greater competition among the regulatory firms, greater investment opportunities, rise in digitalization and BPA and increase in the number of business organizations.
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The use of risk analytics and risk intelligence software allows businesses to understand, define, clarify, and manage risk exposure and tolerance. It also helps them to be aware of the challenges and understand different types of risks involved in eCommerce, compliance, finance, operations, credit, and supply chain, and manage them more efficiently.
Market Segmentation
Insight by Component
According to the components, the global risk analytics market is divided into two major categories namely, services and software. The services segment is further divided into professional and managed services. In comparison, the software segment is further divided into ETL tools, risk calculation engines, scorecard and visualization tools, GRC software, dashboard analytics and risk reporting tools, and more.
Among the two major categories, the services market is expected to grow at a higher rate during the forecast period due to the outsourcing of risk analysis and management tasks by several organizations to different third-party service providers.
The software segment however dominates the global risk analytics market due to an increase in data silos across the business, digitalization, business process automation, and data & security breaches.
Insight by Deployment Type
The global risk analytics market can be divided into on-premise and on-demand categories based on their deployment types, where the former has a higher growth potential during the forecast period than the latter due to the higher security offered by different hardware and software solutions.
Insight by Vertical
According to the industry vertical, the global risk analytics market is divided into transportation, logistics, BFSI, retail, manufacturing, IT, telecom, healthcare and life science, consumer goods, energy and utilities, government and defense, and others.
Out of these, the BFSI industry will grow significantly during the forecast period because it needs to mitigate risks related to compliance and governance. Furthermore, this particular sector also needs to have a unified view of risk across organizations. Therefore, this sector needs to use risk analytics software and services extensively. This helps them to identify and avert data theft and cyber threats.
Global Risk Analytics Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. 31.2 Billion
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Revenue Forecast in 2030
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U.S.D. 66.7 Billion
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Growth Rate
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14.9%
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Segments Covered in the Report
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By Component, By Deployment Type, and By Vertical
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia-Pacific, Middle East, and Rest of the World
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Industry Dynamics
Growth Drivers
The main causative factor for the growth of the global risk analytics market is the growing demand for risk analysis and management across a wide range of industries, especially those businesses that deal with a large amount of data and information.
The rise in awareness of risk management and its importance has also contributed to the significant growth of the global risk analytics market in the past couple of years. In addition, an increase in the adoption of data-driven decision-making, and rising regulatory compliance requirements have also contributed to its growth and will continue contributing in the analysis period.
There is also a notable rise in the demand for risk analytics solutions among businesses due to the growing complexities in operation, changing regulations, variety, and volume of data. Several organizations in diverse sectors such as insurance, finance, healthcare, energy, and manufacturing can make informed decisions using risk analytics solutions and improve their operational efficiency. It also helps in minimizing potential losses.
Opportunity
The risk analytics tools and solutions help businesses to know about the inherent risks and manage them accordingly. This offers growth opportunities for risk analytics solutions vendors.
Moreover, businesses are investing more and more in risk analytics software to combat the growing risks and transform their management abilities with the help of different tools to maximize their returns.
Using risk analytics solutions is a lucrative option for businesses as it helps them in the centralized clearing of OTC derivatives.
All these will create a lot of growth opportunities for the global risk analytics market as a whole.
Challenge
The complexities involved, high initial cost, lower security, software configuration, and lack of analytical expertise may hinder the growth of the global risk analytics market to some extent, but continual efforts are being made to mitigate them and propel its growth.
Geographic Overview
North America dominates the global risk analytics market due to its robust infrastructure, a conglomerate of large companies and major players, and technological advancements such as AI, ML, and IoT. The demand for such solutions in this region is ever-growing.
The Asia-Pacific region, on the other hand, is also expected to grow at a faster rate. This is mainly because this region is experiencing an increase in market opportunities and lucrative opportunities. Moreover, several countries in this region observe fluctuations in the exchange rate, which will increase even more during the forecast period. This will, in turn, increase the demand for risk analysis solutions and tools, thereby pushing the global risk analytics market upward.
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 launches, product upgrades, 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, analyze, and consume a wide range of relevant data.
• IBM Security will launch a new risk-based solution that will assist firms in applying analytics to cyber security spending priorities, as well as regular business decisions. It will assist clients in identifying, prioritizing, 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.
The Risk Analytics Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Component
- By Deployment
- By Vertical
- BFSI
- Transportation and Logistics
- Manufacturing
- IT and Telecom
- Retail & Consumer Goods
- Healthcare & Life Sciences
- Energy & Utilities
- Government & Defence
- Others
Region Covered in the Report
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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Source: VynZ Research
