The global enterprise governance, risk and compliance market size was valued at USD 31.27 billion in 2019 and is projected to expand at a CAGR of 14.0% during the forecast period. Increasing adoption of compliance and risk management solutions by various enterprises to overcome monetary and reputational risk of non-compliance is anticipated to be the key growth driver. Moreover, rising complexity of compliance, regulatory, and risk management environment in businesses has paved the way to implement governance, risk and compliance (GRC) solutions across various industries.
Rapid globalization and commercialization led to the intervention of the government by making policies for fair trade practice. The enterprise governance, risk and compliance (EGRC) was introduced to address the complexity of complying with the stringent regulatory policies resulting in a higher demand for the EGRC solution. The slow down or growth in the economy of countries such as India, U.S., China, Germany, U.K., and France will lead to updates in regulations or introduction of the new policy which will further bolster the demand for EGRC management solutions. Also, the business organizations may seek unprecedented requirements for governance, risk and compliance management at an enterprise level due to changing business scenario, security need, and external reporting obligation over the forecast period. The increasing volumes of digital data, the subsequent need for continuous monitoring and analysis to ensure adequate data security and privacy protection, and the regulations being laid down by different regulatory agencies are further driving the demand for EGRC.
The advent of technology initiated the burgeoning growth of various industries by contributing to the diverse business function from manufacturing to marketing. Hence, the implementation of the EGRC solution is substantial in overcoming the challenges of hyper-connected business model. Also, the introduction of big data will contribute to the growing market of EGRC by assisting in the analysis of legislations, form processes, and regulations to support professionals and make an informed business decision. The fast growth of the EGRC market is further attributed to the changing landscape of business and government policies across BFSI, construction and engineering, energy and utilities, manufacturing, retail, and other industries.
The trade war, introduction of General Data Protection Regulation (GDPR), and banking slowdown in few countries led to sweeping new regulations across the industry 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 over the web, thus posing challenges.
The software segment accounted for a revenue share of over 64% in 2019 and is anticipated to continue its dominance over the forecast period. Decreasing the 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 the market growth. Moreover, increasing the need for assessment of third-party and supplier risk and audits are likely to propel the market at a significant rate.
The emergence of the Internet of Things (IoT) and other digital frameworks has led to significant upgrades in the business process, backed by notable innovations in GRC processes. Internal audit professionals and Chief Audit Executives (CAE) are increasingly leveraging analytics in their audit methods and continuous monitoring and auditing activities. The technology is used in managing an internal audit, which helps identify, safeguard risks and compliance and risk assessment tools within an enterprise. The low costs of internet connectivity and the increasing use of Wi-Fi by an organization are reducing the costs of technology. This is expected to fuel the growth of the enterprise governance, risk and compliance market.
Risk management emerged as the largest software category and accounted for over 25% of the overall revenue share of the EGRC market in 2019. It helps avert breaches against these requirements and subsequent penalties. Organizations need an active form of risk management to fulfill various conformities.
Audit management emerged as the second-largest software segment, valued at USD 4.42 billion in 2019. 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 support company-wide conformity initiatives to reinforce better working practices and greater accountability within individual business unit.
The global demand for GRC has seen a paradigm shift owing to emergence of IoT and other digital frameworks within the GRC process. Consulting services emerged as the largest segment and accounted for over 39% market share in terms of revenue in 2019. 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.
The large enterprises segment held the leading market share and was valued over USD 21.00 billion, in 2019. Given 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 large organizations are the major revenue contributor, hence EGRC vendors focus on addressing the IT, financial, and other challenges of large businesses to increase their client base.
The Small and Medium Enterprise (SME) segment is anticipated to exhibit a CAGR of 14.9% 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.
BFSI emerged as the largest segment and was valued at USD 6.41 billion in 2019. Enterprise governance, risk and compliance helps effective risk management by identifying risk to customer and third-party, covering every line of a business and its operations in the BFSI sector. However, banks and financial institutions are now making use of analytics to detect any entity-level linkages, as well as to monitor the suspicious activities of different linked accounts used for a laundering activity. Hence, increased spending was diverted towards implementing advanced, technology based EGRC solutions. Thus, a higher budget for safeguarding BFSI organization is contributing to the market growth.
Telecom and IT emerged as the fastest growing sector for GRC and is projected to exhibit a CAGR of 15.2% from 2020 to 2027. Telecom companies are highly regulated owing to the nature of the data they collect, store, and process. The GDPR, HIPPA, Sarbanes-Oxley Act (SOX), Federal Information Security Management Act (FISMA), and PCI-DSS are some of the regulations the IT companies comply with and use the customer data in the prescribed manner.A coherent EGRC platform is capable of sensing and interpreting risks, adopting new data formats, and using technology to produce meaningful and actionable insights, thus supporting the market growth.
North America is expected to remain the dominant region in terms of revenue contribution, while exhibiting a significant CAGR of 12.5% over the forecast period. The region is headquartering many large enterprises that are constantly at the risk of cyberattacks and government scrutiny. Hence, organizations in the region are opting for agile and advanced software solutions that entail fewer resources due to veritable staffing drought and cyber threats. GRC solutions help to manage the general activities of organizations. Various organizations have adopted different compliance and risk management programs by 2019 to avoid monetary loses. Moreover, higher adoption of big data, IoT, and cloud software technologies in North America is anticipated to propel growth of EGRC software over the forecast period.
Asia Pacific is expected to register the fastest CAGR over the forecast period, attributed to the growing IT industry in India and the manufacturing sector in China. Other prominent countries contributing to the rising adoption of EGRC solution include Japan, South Korea, Taiwan, Vietnam, and Indonesia. Vietnam is catching up with 5G service in telecom as Viettel, Vietnamobile, MobiFone, Vietnam Posts, and Telecommunications Group have collaborated to launch the service by 2020. Furthermore, rapidly developing IT infrastructure and need to tackle cyber security risk is also driving the market.
SAP SE; MetricStream Inc.; Thomson Reuters; Wolters Kluwer; IBM; Microsoft; Oracle; SAS Institute; Thomson Reuters; Wolters Kluwer; Dell EMC; FIS; MetricStream, Software AG; BWise; SAI Global; ProcessGene; LogicManager; NAVEX Global; Ideagen; Alyne; and MEGA International are some of the leading vendors operating in the market. The vendors focus on launching an upgraded solution and partnership to provide solutions suite relevant to new governance policies. For instance, September 2019, OneTrust, LLC unveiled its GRC solution for integrated risk management platform which, streamlines audits, implements dynamic business controls, and connects departments for managing risk. Also, in January 2019, XebiaLabs launched security and compliance risk assessment tracking for software to assist in application release status information and asses security and compliance risks related to failing in product releases, production security vulnerabilities, and IT governance violations.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Revenue in USD Million and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, U.K., Germany, China, India, Japan, Brazil, Mexico
Revenue forecast, competitive ranking, 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 of the latest industry trends in each of the sub-segments from 2016 to 2027. 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, services, enterprise type, vertical, and region:
Component Outlook (Revenue, USD Million, 2016 - 2027)
Software Outlook (Revenue, USD Million, 2016 - 2027)
Services Outlook (Revenue, USD Million, 2016 - 2027)
Enterprise Type Outlook (Revenue, USD Million, 2016 - 2027)
Small and Medium Enterprise (SME)
Vertical Outlook (Revenue, USD Million, 2016 - 2027)
Construction & Engineering
Energy & Utilities
Retail & consumer goods
Telecom & IT
Transportation & Logistics
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Middle East & Africa (MEA)
b. The global enterprise governance risk and compliance market size was estimated at USD 31.3 billion in 2019 and is expected to reach USD 35.3 billion in 2020.
b. The global enterprise governance risk and compliance market is expected to grow at a compound annual growth rate of 14.0% from 2020 to 2027 to reach USD 88.5 billion by 2027.
b. The risk management software segment dominated the enterprise governance risk and compliance market with a share of 25.2% in 2019. This is attributable to the software capability in averting breaches, subsequent penalties, and managing possible threats to the business.
b. Some key players operating in the enterprise governance risk and compliance market include SAP SE; MetricStream Inc.; Thomson Reuters; Wolters Kluwer; IBM; Microsoft; Oracle; SAS Institute; Dell EMC; and NAVEX Global.
b. Key factors that are driving the market growth include increasing need to avoid the reputational risk of non-compliance, curbing the rising complexity of compliance, regulatory, and risk management environment in businesses.
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.