What are the Historical Developments and Current Growth Metrics of the Vendor Risk Management Market?
The vendor risk management market has seen considerable growth due to a variety of factors.
• The vendor risk management market has experienced rapid growth in recent years. It will rise from $8.27 billion in 2024 to $9.43 billion in 2025, at a CAGR of 14.0%.
This growth is driven by the emergence of VRM solutions, high-profile data breaches, increasing supply chain complexity, regulatory compliance requirements, and the demand for faster transactions.
What Does Future Hold for The Vendor Risk Management Market By 2029?
The vendor risk management market is expected to maintain its strong growth trajectory in upcoming years.
• The vendor risk management market is anticipated to grow to $15.71 billion by 2029 with a CAGR of 13.6%.
Growth is attributed to the need for effective management of vendor ecosystems, outsourcing practices, and the rise of third-party vendors. Trends include AI and machine learning adoption, product innovations, and new collaborations.
What Are The Primary Growth Drivers In The Vendor Risk Management Market?
The vendor risk management market is expected to see significant growth driven by an increased number of data breach incidents. Data breaches, which range from unauthorized access and disclosure to destruction of critical information, put individual privacy, organizational security and regulatory compliance at risk. The reason for such breaches often lies in advanced cyber threats, flaws in the technology infrastructure, insufficient security precautions, and an ever-expanding attack surface due to the digital transformation and system interconnections. Vendor risk management can mitigate these risks by detecting these vulnerabilities, setting up security protocols, fostering cooperation and ensuring compliance with regulations. For example, the UK's Department for Science, Innovation, and Technology announces in April 2023 that cybercrime had an effect on 11% of businesses and 8% of charities overall in 2022, with the figure surging to 26% for medium-sized businesses, 37% for large businesses and 25% for high-income charities in 2023. Consequently, the escalation in data breach incidents is propelling the growth of the vendor risk management market.
What Is The Segmentation Of The Global Vendor Risk Management Market?
The vendor risk management market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment Mode: Cloud, On-Premises
3) By Organization Size: Small And Medium-Sized Enterprises, Large Enterprises
4) By Verticals: Banking, Financial Services, And Insurance (BFSI), Telecom and Information technology (IT), Healthcare and Life Sciences, Consumer Goods and Retail, Energy and Utilities, Manufacturing, Government, Other Verticals
Subsegments:
1) By Solution: Risk Assessment Tools, Risk Monitoring Tools, Compliance Management Solutions, Vendor Performance Management Solutions
2) By Services: Consulting Services, Implementation Services, Training And Support Services
Pre-Book The Vendor Risk Management Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
Which Emerging Market Trends Are Altering The Vendor Risk Management Industry?
Key players in the vendor risk management market are focusing on advancements like automated risk assessments to consolidate their market standing. Automated risk assessments involve the use of technologies, such as AI or software algorithms, to examine and scrutinize possible risks in a system or organization, eliminating the need for manual interference. For example, Vanta, a US company that oversees its compliance and safety protocols, unveiled a novel vendor risk management solution in May 2023. This platform offers an inclusive risk management practice dedicated to identifying and diminishing risks related to vendors. It consists of automated vendor evaluations, risk assessments, and risk reduction strategies to maintain regulatory compliance. Additionally, the platform features a risk exchange, enabling the exchange of vendor risk assessments and additional documents, streamlining and minimizing the time and effort required for evaluations.
Who Are the Key Players In The Vendor Risk Management Market?
Major companies operating in the vendor risk management market are:
• International Business Machines Corporation
• Cisco Systems Inc.
• Ernst & Young Global Limited
• KPMG International Limited
• Deloitte
• PricewaterhouseCoopers International Limited
• ServiceNow Inc.
• Palo Alto Networks Inc.
• Fortinet Inc.
• Symantec Endpoint Security
• Check Point Software Technologies Ltd.
• McAfee Corp.
• CrowdStrike Holdings Inc.
• RSA Security
• Tenable Inc.
• Rapid7 Inc.
• Tanium
• OneTrust LLC
• Qualys Inc.
• SentinelOne Inc.
• MetricStream Inc.
• Trustwave Holdings Inc.
• BitSight Technologies Inc.
• RiskIQ Inc.
• Cyber Global Risk Exchange Inc.
What Are The Regional Insights Into The Vendor Risk Management Market?
North America was the largest region in the vendor risk management market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vendor risk management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
