What Does the Historical and Current Risk Analytics Market Size Trend Indicate?
The risk analytics market has seen considerable growth due to a variety of factors.
• The size of the risk analytics market has been expanding swiftly in the previous years. The market size is projected to increase from $37.12 billion in 2024 to $41.67 billion in 2025, yielding a compound annual growth rate (CAGR) of 12.3%.
Factors such as business continuity planning, operational efficiency and cost reduction, supply chain risks, volatility in the financial market, and operational risk management contributed to the growth during the historical period.
How Will the Risk Analytics Market Size Evolve over the Forecast Period?
The risk analytics market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for risk analytics is predicted to witness a swift expansion in the upcoming years, with expectations of it reaching $73 billion by 2029, reflecting a Compound Annual Growth Rate (CAGR) of 15.0%.
The growth anticipated in the forecast period can be credited to factors such as the rising demand for real-time analytics, the dovetailing of business intelligence, specific risk management needs across different industries, emphasis on operational robustness, and concerns related to cybersecurity. Key trends projected for the forecast period encompass the integration of cutting-edge technologies, heightened attention on cybersecurity analytics, the employment of predictive analytics for risk mitigation, a shift towards cloud-based solutions, and the management of supply chain risk.
What Factors Are Driving Growth In The Risk Analytics Market?
The growth of the risk analytics market is spearheaded by the escalating utilization of extensive volumes of structured and unstructured data. Structured data, normally saved in a relational database and easily graphed into designated fields, is distinct from unstructured data that lacks organization in terms of a specified data model or schema and therefore, cannot be stored in a standard relational database. Unstructured data makes up 80 to 90% of the data that businesses generate and collect, experiencing faster volume growth than structured databases. Companies are recognizing the value of examining this extensive data for predictive and risk analyses, forecasting, amongst other uses. This demand for risk analytics is fueled by the fact that large amounts of structured/unstructured data can be harnessed to predict risk with high accuracy. For example, a study by Seagate Technology PLC, an American data storage firm, predicts a 61% global data increase to 175 zettabytes(ZB) by 2025 from 33 ZB in 2018, with 90 ZB of data projected to be created on IoT devices by 2025. The prediction also suggests that nearly 30% of the data created will be processed in real-time by 2025. This clearly shows the pressing need to store, manage, and analyze this vast data resource. Consequently, the expanding use of copious amounts of structured and unstructured data is predicted to spur the growth of the risk analytics market.
What Are The Main Segments Of The Global Risk Analytics Market?
The risk analytics market covered in this report is segmented –
1) By Risk Type Application: Financial Risks, Operational Risks, Compliance Risks, Strategic Risks, Other Risk Type Applications
2) By Component: Solution, Services
3) By Organization Size: Large Enterprises, Small And Medium-Sized Enterprises (SMES)
4) By Deployment Mode: On-Premises, Cloud
5) By Vertical: BFSI, Manufacturing, Transportation, Retail, IT And Telecommunication, Healthcare, Government
Subsegments:
1) By Financial Risks: Credit Risk, market Risk, Liquidity Risk, Interest Rate Risk
2) By Operational Risks: Process Risks, System Risks, Fraud Risks, External Events
3) By Compliance Risks: Regulatory Risks, Legal Risks, Reporting Risks
4) By Strategic Risks: Competitive Risks, market Entry Risks, Technology Risks
5) By Other Risk Type Applications: Reputational Risks, Environmental Risks, Geopolitical Risks
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What Emerging Trends Are Influencing The Growth Of The Risk Analytics Market?
The increasing prevalence of advanced technology is a primary trend observed within the risk analytics market. Risk analytics leverages artificial intelligence (AI) and machine learning (ML) to handle vast volumes of data, minimize errors, reduce prejudice and suggest where risk managers should pay particular attention. Firms are employing AI to enhance their understanding of risk portfolios and yield optimum results. AI-driven risk analytics software is user-friendly and delivers accurate outcomes. For instance, in March 2022, NICE Actimize, a software company based in the U.S., launched its state-of-the-art, novel solution, the X-Sight Entity Risk SaaS solution. This tool generates a singular risk score, assisting financial institutions in gaining a more comprehensive understanding of their client base across the enterprise. Powered by artificial intelligence, entity resolution, machine learning, and network analytics, X-Sight Entity Risk augments the efficiency of advanced anti-money laundering, enterprise fraud prevention, and other financial services applications.
Who Are the Key Players in the Risk Analytics Market?
Major companies operating in the risk analytics market include:
• International Business Machines Corporation
• Oracle Corporation
• SAS Institute Inc.
• SAP SE
• FIS Inc.
• Accenture PLC.
• ACI Worldwide Inc.
• Adyen N. V.
• Aon plc
• Authorize. Net
• AxiomSL Ltd.
• BlueSnap
• Braintree
• Capgemini SE
• Eastnets
• Experian Health
• First Data Corporation
• Fiserv Inc.
• Ingenico Group
• Interkassa
• Marsh & McLennan Companies Inc.
• Moody’s Analytics Inc.
• OneSpan Inc.
• PayPal Holdings Inc.
• RSA Security LLC
• Square Inc.
• Stripe Inc.
• VeriFone Inc.
• Verisk Analytics Inc.
• Worldpay Inc.
What Is The Most Dominant Region In The Risk Analytics Market?
North America was the largest region in the risk analytics market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the risk analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
