How Has the Third-party Risk Management Market Evolved Historically and What is its Current Size
The third-party risk management market has seen considerable growth due to a variety of factors.
• The size of the third-party risk management market has expanded swiftly over the recent years. The market value is set to increase from $5.92 billion in 2024 to $6.85 billion in 2025, experiencing a compound annual growth rate (CAGR) of 15.7%.
Factors such as data breach incidents, globalization of businesses, emergent business models, past risk management inadequacies, the rise in outsourcing practices, and concerns over data privacy have contributed to the growth observed in the historical period.
What Is the Forecasted Market Size and Growth Rate for The Third-party Risk Management Market?
The third-party risk management market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of third-party risk management is predicted to experience substantial growth in the coming years, climbing to a valuation of $13.49 billion by 2029 with a compound annual growth rate (CAGR) of 18.5%.
This surge during the forecast period can be accredited to increasing cyber threats, business globalization, intricate supply chains, hurdles of remote work, the requirement for AI-powered solutions, and changes in customer expectations. Noteworthy trends during the forecast timeline comprise scalable risk solutions, an alignment of culture and ethics, risks associated with remote work and collaboration, focus on business resilience and continuity, and strong emphasis on data privacy.
Which Factors Are Boosting Growth In The Third-party Risk Management Market?
The proliferation of cybercrimes and frauds is anticipated to fuel the expansion of the third-party risk management market. Cyberattacks are illegal attempts made to penetrate a computer system or network to cause harm. The escalating interconnectedness of the internet has significantly raised the incidents of cyberattacks. Third-party risk management (TPRM), a technique that scrutinizes and minimizes potential risks linked with outsourcing information to third-party providers, aids organizations in making decisions guided by an understanding of the risks, thus lowering the probability of cyberattacks and fraud. As an example, the World Economic Forum, a non-governmental global organization based in Switzerland, reported that in 2024, there were roughly 2,220 cyberattacks daily in 2023, equating to upwards of 800,000 attacks yearly. This included five major or noteworthy incidents from that year. For instance, hackers breached Microsoft exchange and read thousands of emails, including at least 60,000 emails from Outlook accounts owned by employees of the US State Department. Therefore, the augmenting cybercrimes and frauds are contributing to the growth of the third-party risk management market.
What Key Areas Define The Segmentation Of The Global Third-party Risk Management Market?
The third-party risk management market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment Type: Cloud Based, On-Premises
3) By Organization Size: Small And Medium Size Enterprises, Large Enterprises
4) By End User: Banking, Financial Services, And Insurance, IT And Telecom, Healthcare And Life Sciences, Government, Aerospace And Defense, Retail And Consumer Goods, Manufacturing, Energy And Power, Other End Users
Subsegments:
1) By Solution: Risk Assessment Software, Compliance Management Solutions, Risk Analytics Tools, Incident Management Systems, Risk Monitoring Platforms
2) By Services: Consulting Services, Risk Assessment And Analysis Services, Training And Education Services, Managed Risk Services, Support And Maintenance Services
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How Are Emerging Trends Reshaping The Dynamics Of The Third-party Risk Management Market?
The emergence of new technologies is a significant trend gaining traction in the third-party risk management market. Leading corporations in the sector are honing in on technological innovation to cater to client needs and consolidate their market standing. For example, in August 2022, AuditBoard, a firm based in the US that specializes in cloud-based platforms, unveiled a sophisticated solution for third-party risk management. AuditBoard's comprehensive risk tool enables businesses to handle IT vendor risk by simplifying the procedures for third-party risk evaluation, tracking, and rectification for information security, regulatory compliance, and risk teams. Therefore, this solution empowers teams to save time and scale up with automatic and collaborative processes for effective third-party risk management.
Who Are the Key Players in the Third-party Risk Management Market?
Major companies operating in the third-party risk management market include:
• Deloitte LLP
• PricewaterhouseCoopers
• Ernst & Young LLP
• KPMG International Limited
• Genpact Ltd
• Optiv Security Inc
• Dun & Bradstreet
• One Trust LLC
• MetricStream Inc
• NAVEX Global Inc
• Galvanize
• RSA Archer
• Resolver Inc
• Venminder Inc
• Rsam
• Aravo Solutions Inc
• ProcessUnity
• Rapid Ratings International Inc
• BitSight Technologies
• Prevalent Inc
• Prevalent
• LogicGate
• CyberGRX
• Riskpro India Ventures Pvt Limited
• RiskIQ
• SAI Global Pty Limited
• RiskRecon Inc
• Lockpath
• Compliance 360
• ControlCase
• Riskonnect
• CyberSaint Security
• SureCloud
• Quantivate
• Tenable
• CyberArk
• UpGuard
• Securiti.ai
What Is The Most Dominant Region In The Third-party Risk Management Market?
North America was the largest region in the third party risk management market in 2024. The regions covered in the third-party risk management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
