Enterprise Governance, Risk and Compliance Market Report

Enterprise Governance, Risk and Compliance Market Analysis By Solution (Audit Management, Compliance Management, Risk Management, Policy Management, Incident Management), By Service, By Enterprise Type, By Vertical, And Segment Forecasts, 2014 - 2025

Published: September 2017  |  152 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-670-7

Industry Insights

The global enterprise governance, risk and compliance market size was estimated at USD 22.11 billion in 2016. Increasing adoption of compliance and risk management solutions by various enterprises is anticipated to be the key growth factor over the forecast period. Moreover, rising complex compliance, regulatory, and risk management environment in the businesses have paved the way to implement GRC solutions among the industries globally. 

EGRC is an innovative and multifaceted approach which encompasses people, technologies, and processes that improves performance, gains visibility, and reduces compliance and risk costs. The major factor responsible for the advent of EGRC within enterprises is growing demand for corporate governance, and compliance. Also, proper governance ensures economic growth and success of an enterprise.

U.S. enterprise governance, risk and compliance market by solution, 2014 - 2025 (USD Million)

U.S. enterprise governance, risk and compliance market

Governance, risk management and compliance comprises of solutions wherein data, policies, and controls are strategically achieved and visible throughout the enterprise. An EGRC strategy, buoyed by a common technology platform, creates transparency and consistency, fosters operational efficiency, enables collaboration, and ensures success and continuity of the enterprise. Instead of treating each compliances and risk issue as an individual problem, enterprises are now seeking for a common approach across the hyper-extended enterprise. 

Enterprises that do not implement such integrated EGRC solutions are paying substantial cost in terms of increased complexity, wasted resources, decreased flexibility, and greater exposure to threats that impends business growth and performance.

Solution Insights 

Risk management emerged as the largest solution category and accounted for over 26% of the overall revenue in 2016. It helps in averting breaches against these requirements and subsequent penalties. Organizations need an active form of risk management so as to fulfill various compliances.

Audit management emerged as the second largest GRC solution segment accounting for USD 4,948.5 million of the overall revenue in 2016. Audit management solutions facilitate organizations’ compliance and auditing responsibilities by providing centralized platform for accessing information about earlier assessments and manage which are due or ongoing. It also helps in supporting enterprise-wide compliance initiatives reinforce better working practices and greater accountability within individual business units.

Service Insights

The global demand for enterprise governance, risk and compliance has seen a paradigm shift owing to the emergence of Internet of Things (IoT) and other digital frameworks within the GRC processes.

Consulting services emerged as the largest service segment and accounted for over 39% of the total market revenue in 2016. Enterprise governance and compliance management is quickly evolving in response to advancements and changes in technology, hiring, and personnel requirements, business practices, and consumer demands and concerns. Big data will become a larger part of EGRC and will assist in maintaining compliance with regulations and legislations, form processes, and support professionals to make risk-informed choices on digital business. 

Major companies including SAP SE, Thomson Reuters, Bwise, MetricStream Inc., Wolters Kluwer, and others facilitate expertise solutions with their range of consultancy portfolio that helps businesses to assess trends and current practices as well as achieve value-added results into their operations. Also, various companies facilitate market intelligence solutions in incident management, risk management, ethics management, policy management, and industry benchmarking to provide a holistic view of expenses for future spend-management.

Vertical Type Insights 

BFSI emerged as the largest segment and was valued at USD 4,604.6 million in 2016. Banks and financial institutions are swamped by regulations introduced in the repercussion of the 2008 financial crisis. The devastating impact of the crisis on the global economy poised to regulators imposing stricter regulatory norms and ensuring accountability, transparency, and risk management. Main regulators driving IT spending for governing compliance are BASEL III, Dodd Frank Act, EMIR, SEPA, and MIFID II.

Telecom and IT sector emerged as the fastest growing sector for enterprise governance, risk and compliance market with a staggering CAGR of 13.7% from 2017 to 2025. The sector faces an increasingly challenging and complex business environment with rising pressure to persist competitive whilst ensuring long-term sustainability. Thus, it is dealing with several compliance requirements across multiple geographies including ongoing license rights. Organizations in this sector are also implementing effective ways of managing and prioritizing risk along with complying with cross border and local legislation, mandates and standards.

Enterprise governance, risk and compliance market, by end user, 2016 (%)

 enterprise governance, risk and compliance market

Regional Insights

North America was the leading market and accounted for around 33% of the overall market revenue in 2016. The increase in cyber-attacks within the region in the last few years has increased the need of enterprise governance, risk and compliance management solutions significantly. Moreover, emergence of technologies such as big data, Internet of Things, and cloud software has propelled the growth of GRC solutions.

Asia Pacific is projected to grow with a substantial CAGR of 14.2% over the forecast period owing to a high adoption growth in internet and mobile technology in last few years. Emerging economies such as India, China, and Japan have been experiencing strong economic growth. Also, growing technology user base and rapidly developing infrastructure are responsible for driving the market.

Competitive Insights

The global enterprise governance, risk and compliance market is highly competitive and fairly concentrated, with top five companies accounting for maximum share of the global share in 2016. Key market participants include SAP SE, Bwise, MetricStream Inc., Thomson Reuters, Wolters Kluwer and others. The market players are using strategies such as collaboration, acquisition, and new product development and launches to strengthen their position in the market. 

Application development and customized software are expected to be key parameter for being competitive in this market, with frequent mergers and acquisitions being undertaken as an attempt to diversify product portfolio and gain market share. Thomson Reuters, a GRC solution provider acquired 16 companies worth USD 316 million between 2014 to 2016 with a view to make a remarkable expansion in its business.

Report Scope 

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                                

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Canada, Germany, UK, China, India, Japan, Brazil, Mexico.

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global enterprise governance, risk and compliance market on the basis of product and region: 

  • Solution Outlook (Revenue, USD Million, 2014 - 2025)

    • Audit Management

    • Compliance Management

    • Risk Management

    • Policy Management

    • Incident Management

    • Others

  • Service Outlook (Revenue, USD Million, 2014 - 2025)

    • Integration

    • Consulting

    • Support

  • Enterprise Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Small & medium enterprise

    • Large enterprise

  • Vertical Type Outlook (Revenue, USD Million, 2014 - 2025)

    • BFSI

    • Construction & Engineering

    • Energy & Utilities

    • Government

    • Healthcare

    • Manufacturing

    • Retail & consumer goods

    • Telecom & IT

    • Transportation & Logistics

    • Others

  • Regional Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa
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