The global enterprise governance, risk and compliance market size was estimated at USD 24.76 billion in 2017. Increasing adoption of these solutions by various firms is anticipated to be the key growth factor over the forecast period. Moreover, an increasingly complex business environment has paved the way for implementation of enterprise governance, risk and compliance (GRC) solutions among industries.
GRC is an innovative and multifaceted approach that encompasses people, technologies, and processes to help improve performance, gain visibility, and reduce compliance costs. The major factor responsible for the advent of GRC within companies is growing demand for corporate governance and conformity. Moreover, proper governance ensures economic growth and success of an organization.
EGRC comprises software wherein data, policies, and controls are strategically achieved and visible throughout the enterprise. Such as strategy, buoyed by a common technology platform, creates transparency and consistency, fosters operational efficiency, enables collaboration, and ensures success and continuity of the organization.
Instead of treating each conformity and risk issue as an individual problem, firms are now seeking for a common approach. Companies that do not implement such integrated solutions are paying substantially in terms of increased complexity, wasted resources, decreased flexibility, and greater exposure to threats, which eventually impedes business growth and performance.
In the last few years, notable corporate crises, such as Lululemon Athletica and Sony, have created the need to understand, assess, and manage likely challenges across firms. Threats in all aspects of business as well as ad hoc management of those crises leave them susceptible to impact on their revenues and reputations.
The global economic crisis of 2008 led to sweeping of new regulations for the banking, financial services, and insurance (BFSI) sector, necessitating a look at external and internal processes and consequences. Moreover, consumer privacy regulations and laws in Europe and other regions have created unique challenges for different multi-national entities that carry their businesses on the web.
The software segment accounted for a revenue share of over 62.0% in 2017 and is anticipated to continue its dominance over the forecast period. Decreasing total cost of ownership of software with integrated solutions to tackle myriad regulations, such as compliance to supply chain, quality control, and OSHA, is anticipated to be a key factor driving market growth. Moreover, increasing need for assessment of third-party and supplier risk and audits are likely to propel the market at a significant rate.
Risk management emerged as the largest software category and accounted for over 25.0% of the overall revenue in 2017. It helps in averting breaches against these requirements and subsequent penalties. Organizations need an active form of risk management so as to fulfill various conformities.
Audit management emerged as the second-largest software segment, amounting to USD 3.48 billion in 2017. Audit management solutions facilitate organizations’ compliance and auditing responsibilities by providing a centralized platform for accessing information about earlier assessments and manage due or ongoing ones. It also helps in supporting company-wide conformity initiatives to reinforce better working practices and greater accountability within individual business units.
The global demand for GRC has seen a paradigm shift owing to emergence of Internet of Things (IoT) and other digital frameworks within the GRC process.
Consulting services emerged as the largest segment and accounted for over 33.0% of the total market revenue in 2017. Enterprise governance and compliance management is quickly evolving in response to advancements and changes in technology, hiring, personnel requirements, business practices, and consumer demands and concerns. Big data will become a larger part of GRC and will assist in adhering to regulations, legislations, and form processes, and support professionals to make threat-informed choices on digital business.
Major companies including SAP SE; Thomson Reuters; Bwise; MetricStream Inc.; and Wolters Kluwer facilitate expertise solutions with their consultancy portfolio, which helps businesses assess trends and current practices as well as achieve value-added results through their operations. Various companies also facilitate market intelligence solutions in incident management, ethics management, policy management, and industry benchmarking to provide a holistic view of expenses for future spend-management.
BFSI emerged as the largest segment in the enterprise governance, risk and compliance market and was valued at USD 5.14 billion in 2017. Banks and financial institutions are swamped by regulations introduced as a repercussion of the 2008 financial crisis. The devastating impact of the crisis on the global economy resulted in regulators imposing stricter 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 emerged as the fastest growing sector for GRC, projected to exhibit a CAGR of 13.8% from 2018 to 2025. The sector faces an increasingly challenging and complex business environment with rising pressure to persist whilst ensuring long-term sustainability. Thus, it is dealing with several conformity requirements across multiple geographies, including ongoing license rights. Organizations in this sector are also implementing effective ways of managing and prioritizing impending challenges along with complying with cross-border and local legislation, mandates, and standards.
The large enterprises segment dominated the market and was valued at USD 17.2 billion in 2017. In view of changing regulatory scenarios, management in large organizations is increasingly focused on building transparency to mitigate threats associated with the bottom line of the balance sheet. This, as a result, has led to the emergence of GRC solutions and services in large organizations.
The small and medium enterprise (SME) segment is anticipated to exhibit a CAGR of 13.2% over the forecast period. Regardless of the size of the balance sheet in the current scenario, it is mandatory for several companies operating in the BFSI, manufacturing, telecom, and retail sectors, among others, to adhere to strict regulations and manage risks associated with the industry. Thus, increasing government regulation across several verticals to protect consumers is anticipated to boost spending on GRC solutions and services in SMEs.
North America is projected to continue to dominate the market, accounting for over 32.0% of the overall revenue in 2025. Increase in cyber-attacks within the region over the last few years has significantly increased the need for enterprise governance, risk and compliance management solutions. Moreover, emergence of technologies such as big data, Internet of Things (IoT), and cloud software is anticipated to propel the growth of GRC software over the forecast period.
Asia Pacific is projected to exhibit a strong CAGR of 14.3% over the forecast period owing to high growth as well as adoption of Internet and mobile technology in the last few years. Emerging economies such as India, China, and Japan have been experiencing strong economic growth. Moreover, an expanding technology user base and rapidly developing infrastructure are responsible for driving the market.
The global market is highly competitive and fairly concentrated, with the top five companies accounting for the maximum share in 2016. Key market participants include SAP SE; Bwise; MetricStream Inc.; Thomson Reuters; and Wolters Kluwer. Players have been using strategies such as collaboration, acquisition, and new product development and launch to strengthen their position in the market.
Application development and customized software are expected to be key parameters to staying 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 to make remarkable expansions in its business.
Base year for estimation
Actual estimates/Historical data
2015 - 2016
2018 - 2025
Revenue in USD Million and CAGR from 2018 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, Germany, U.K., China, India, Japan, Brazil, Mexico
Revenue forecast, company share, competitive landscape, growth factors and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global enterprise governance, risk and compliance market report on the basis of component, software, service, enterprise, vertical, and region:
Component Outlook (Revenue, USD Million, 2015 - 2025)
Software Outlook (Revenue, USD Million, 2015 - 2025)
Services Outlook (Revenue, USD Million, 2015 - 2025)
Enterprise Type Outlook (Revenue, USD Million, 2015 - 2025)
Small & medium
Vertical Type Outlook (Revenue, USD Million, 2015 - 2025)
Construction & Engineering
Energy & Utilities
Retail & consumer goods
Telecom & IT
Transportation & Logistics
Regional Outlook (Volume, Tons; Revenue, USD Million, 2015 - 2025)
Middle East & Africa
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