The global Enterprise Governance, Risk and Compliance (EGRC) market size was valued at USD 27.80 billion in 2018. It is projected to expand at CAGR of 12.9% during the forecast period. Increasing adoption of compliance and risk management solutions by various enterprises is anticipated to be the key growth driver. Moreover, rising complex compliance, regulatory, and risk management environment in businesses has paved the way to implement GRC solutions among various 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 are visible throughout the enterprise. For instance, 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 impede 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 the organizations. Threats in all aspects of business as well as ad hoc management of those crises leave them susceptible to impact their revenues and reputation.
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 63.0% in 2018 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.
The emergence of Internet of Things (IoT) and other digital frameworks has led to significant upgrades in 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 internal audit, which helps identify, safeguard risks and compliance and risk assessment tools within an enterprise. The low costs of internet connectivity and increasing use of Wi-Fi by an organization are reducing the costs of technology. This is expected to fuel the adoption of the governance, risk and compliance management market.
Risk management emerged as the largest software category and accounted for over 25.0% of the overall revenue share of the Enterprise Governance, Risk and Compliance (EGRC) market in 2018. It helps avert 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 3.91 billion in 2018. 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 39.0% market share in terms of revenue in 2018. 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 led the EGRC market and was valued at USD 19.33 billion in 2018. 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 13.7% 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 in the enterprise governance, risk and compliance market and was valued at USD 5.74 billion in 2018. 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 14.1% from 2018 to 2025. The sector faces an increasingly challenging and complex business environment with rising pressure to persist while 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.
North America is projected to continue its dominance, accounting for over 30% of the overall market share in terms of revenue in 2025. Rise in cyber-attacks within the region in the last few years has increased the need for EGRC management solutions significantly. Moreover, emergence of technologies such as big data, IoT, and cloud software is anticipated to propel growth of GRC software over the forecast period.
Asia Pacific is projected to witness a substantial CAGR of 15.8% over the forecast period owing to a high 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. Also, growing 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 2018. Key market participants include SAP SE; Bwise; MetricStream Inc.; Thomson Reuters; and Wolters Kluwer. Most companies have been using strategies such as collaboration, acquisition, and new product development and launch to strengthen their position.
Application development and customized software are expected to be the key parameters for staying competitive, with frequent mergers and acquisitions being undertaken as an attempt to diversify product portfolio and to gain market share. For instance, Thomson Reuters, a GRC solution provider acquired 16 companies worth USD 316 million from 2014 to 2016 to make a remarkable expansions in its business.
Base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2025
Revenue in USD Million and CAGR from 2019 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 of the 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 (EGRC) market report on the basis of component, software, services, enterprise type, 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 enterprise
Vertical Outlook (Revenue, USD Million, 2015 - 2025)
Construction & Engineering
Energy & Utilities
Retail & consumer goods
Telecom & IT
Transportation & Logistics
Regional Outlook (Revenue, USD Million, 2015 - 2025)
Middle East & Africa
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