Enterprise Governance, Risk & Compliance Market Size, Share & Trends Analysis Report By Component, By Software, By Services, By Organization Size, By Vertical, And Segment Forecasts, 2022 - 2030

Report Overview

The global enterprise governance, risk & compliances market size was valued at USD 40.84 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 14.0% from 2022 to 2030. Governance Risk management regulates how an organization can achieve its targets by formulating preventive measures against the financial menace. The implication of compliance helps an organization follow the laid laws, guidance, rules, and procedures. It even refers to the ability that the internal employees of an organization need to follow the policies and procedures.

GRC and EGRC benefit an organization by implicating policies and procedures to mitigate risk and adopt a healthy workflow. Enterprise Governance Risk Compliances regulate an organization by monitoring risk management, controlling risk, and identifying risk hazards that might occur in the critical business environment. EGRC ensures that the company adheres to the strict norms and maintains the standards for complete growth and prosperity.

Enterprise governance risk & compliances (EGRC) plays a crucial role for all the industry verticals; however, the strict rules imposed by the government authorities are increasing now and then. The compliances are formulated to ensure that the industries work with accountability and take necessary measures to overcome risk. The future of any organization depends upon how actively they understand the external and internal factors to make time to time decisions with the help of EGRC guidelines. The rise of data breaches in various industries has paved the way for escalating information security. The evolvement of industries around the globe that involves complex transactions has given a vast scope for Governance Risk Compliance which is essential for market growth.

The global economic crisis of 2008 led to the 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 COVID-19 pandemic forced organizations and industries to adopt work from home and remote location arrangements, which led them to face challenges like data confidentiality and data breaching. During the phase of the pandemic, EGRC has played a vital role in data protection and safety. Moreover, the lack of understanding of EGRC in medium and small businesses has stunted the market growth. Risk management is not all about data breaching or cyber risks but about the people in the organization, working culture system, and surroundings.

Component Insights

The risk management segment captured the largest share exceeding 20% in 2021. The enterprises can tackle the risk related to organizational development and maintain the residual risk with the help of real-time data validation. Risk vendor management helps the vendors and suppliers govern risk through risk assessments and follow-up services. The COVID-19 pandemic has left any organization untouched; they had to undergo unthoughtful changes, workforce serving the organization day and night, trying to meet the customer needs to reach their expectations and other unforeseen challenges. However, the evolution of risk management software has become a helping hand for businesses to ensure day-to-day compliances and maintain the standards from the bottom to the top of the hierarchical pyramid.

Audit management will be the second-largest market segment in 2021. These services help organizations manage the audits with the help of compliances. The evolution of technology has upgraded the audit management software combined with AI. Machine Learning has become a support system for all types of audits, i.e., internal, external, financial, operational, etc. Furthermore, the adoption of software by Small and Medium Enterprises (SMEs) provides an edge of an opportunity to audit management software. The increased adoption of Audit management software is anticipated to create an opportunity for market growth and expansion.

Software Insights

Risk management emerged as the largest software category and accounted for over 20.0% of the overall revenue in 2018. 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 3.91 billion in 2018. Audit management solutions facilitate organizations’ compliance and auditing responsibilities by providing a centralized platform for accessing information about earlier assessments and managing due or ongoing ones. It also helps in supporting company-wide conformity initiatives to reinforce better working practices and greater accountability within the individual business units.

Services Insights

Consulting services emerged as the largest segment and accounted for over 30.0% of the total market revenue in 2021. The pandemic allowed consulting firms to diversify their services and build new work strategies. It is anticipated that the post-Covid scenario will give rise to globalization which will help organizations deliver more projects by achieving customer satisfaction. The need for an effective work environment is anticipated to drive GRC demand. Big data is also paving the world of enterprise governance risk compliances; it allows organizations to get clear access to more sensitive information by considering safety policies and procedures

In today’s generation, integration services have gained particular importance in the EGRC sphere; GRC solutions are becoming critical in the future. In addition, the implementation of integration services is enabling organizations to make better decisions by providing a high-quality service market. Data integration tools have become widespread; usually, they provide a single interface for consolidated governance and risk compliance. These integration services provide automation of internal operations, so the GRC service providers transfer the view of integration features encapsulated in the design, so basically, integration is a part of GRC.

Enterprise Type Insights

Large-scale companies' demand exceeded a demand of USD 20.00 billion in 2021 due to increasing healthy demand for robotics and AI technology. B firms are dealing with challenging competitors who are disruptive to society and disturbing the market volatility. In addition, cybercrime attacks and financial crimes call for EGRC solutions. Organizations are struggling to capture the big data as they need to study its risk comprehensively. In the traditional form, the firms used to add more staff to GRC teams, but with the help of EGRC solutions, the threat has been capsulated. However, the next generation of GRC solutions offers the performance of internal controls, which could aid the decision-making in a business environment. The AI-enabled EGRC solutions pave the way for new machine learning technology solutions to guide large-scale firms with day-to-day activities.

SMEs are anticipated to capture over USD 40,000 million of the overall market by 2030. The demand for AI, Internet of Things, and Machine Learning (MI) in small-scale industries to regulate and build a compliance-based roadmap ahead is expected to drive demand. SMEs are highly focused on implementing cost-effective services with advanced cloud-based risk compliance policies. Post pandemic, growing government guidelines have induced government risk compliances for SMEs to maintain safety about the client’s information which would boost investments in services & software.

Vertical Insights

BFSI emerged as the largest segment in 2021 and was valued at over USD 8.0 billion in 2021. The BFSI sector has changed drastically over the years; the digital medium has kicked into another phase post-pandemic. The sector has witnessed significant growth in Big Data, AI, Machine Learning, and IoT, adopting fintech as a development model. A massive amount of data generated from the fintech and financial service industries has accelerated the growth of digital transformation; subsequently, the risk of data theft & fraudulent activities has increased tenfold. To safeguard the stakeholder’s interests, the need to adopt robust EGRC solutions has become a priority. BFSI sector is aggressively implementing analytics and mechanical interface to monitor flexible and time-saving transactions, so the increased focus on data safety and compliance management is a crucial driver for the EGRC market.

IT & Telecom emerged as the fastest-growing segment with demand for GRC expected to exceed a CAGR of 15% over the forecast period. The telecom industry has always been on top regarding innovation and adopting emerging technology. Post-COVID, the increased use of bandwidth services has continued to spike, so the companies had to take care of risk and compliance management as the complex digital transformation was never-ending. Cyber-attacks on the telecommunication industry are persistent as the data carry detailed customer information. So to ensure full compliance Telecom Service Providers(TPS) are comprehensively re-evaluating their services with EGRC solutions.

Regional Insights

North America EGRC market is expected to capture approximately 30.0% of the overall share in 2021; however, it will lose the regional market share is anticipated to dip slightly over the forecast period. Enterprise risk governance plays a vital role in all industry verticals. EGRC is evolving to a great extent in the North American market; the suppliers in this region are diving deep into the roots of creating innovative commodities. One of the main reasons the region is in a leading position is the adoption of innovative business models by the U.S. and Canada. Furthermore, these countries are also advancing cloud-based EGRC services, and these solutions have captured the market amid the COVID-19 pandemic.

The Asia Pacific market is expected to evolve as the fastest growing regional market over the forecast period. AI and machine learning are the key components that India and China are inculcating subsequently driving regional demand. India is expected to dominate the Asia Pacific region by transforming the efforts to transform the country into an IT hub. In contrast, China is already into investments rising from public and private authorities by developing EGRC cloud-based services.

Key Companies & Market Share Insights

The global market is highly competitive and fairly concentrated, with the top five companies accounting for the maximum share in 2021. Leading 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 during the period 2014 to 2016 to make some remarkable expansions in its business. Some of the prominent players in the global enterprise governance, risk & compliance market include:

• SAP SE

• Bwise

• MetricStream Inc.

• Thomson Reuters

• Wolters Kluwer

Enterprise Governance, Risk & Compliance Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global enterprise governance, risk and compliance market report based on component, software, services, organization size, vertical, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Software

  • Services

• Software Outlook (Revenue, USD Million, 2018 - 2030)

  • Audit Management

  • Compliance Management

  • Risk Management

  • Policy Management

  • Incident Management

  • Others

• Services Outlook (Revenue, USD Million, 2018 - 2030)

  • Integration

  • Consulting

  • Support

• Enterprise Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Small and Medium Enterprise (SME)

  • Large Enterprise

• Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • BFSI

  • Construction & Engineering

  • Energy & Utilities

  • Government

  • Healthcare

  • Manufacturing

  • Retail & Consumer Goods

  • Telecom & IT

  • Transportation & Logistics

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)