Risk Analytics Market Size - By Component (Solution, Services), Deployment Mode (Cloud, On-premises), Organization Size (Large Enterprise, SME), Vertical (BFSI, Manufacturing, Transportation, IT & Telecom, Government, Healthcare) & Forecast, 2024 - 2032

Risk Analytics Market Size

Risk Analytics Market size was valued at USD 36.6 billion in 2023 and is estimated to register a CAGR of over 13% between 2024 and 2032, owing to the emphasis on enhancing operational efficiency and cost-effectiveness. In addition, advancements in technology, such as AI and big data analytics, enable the development of sophisticated risk assessment tools. This drives market growth as organizations seek innovative solutions to effectively manage and mitigate risks while maximizing efficiency and leveraging technological capabilities.
 

For instance, in September 2022, Verisk extended its geospatial ESG risk capabilities with Industry Risk Analytics from Verisk Maplecroft. This new solution identifies 80 sectors' exposure to 52 ESG and political risks across 198 countries, benefiting companies, insurers, and financial institutions.
 

The globalization of businesses and expansion into new markets propel the demand for risk analytics solutions that can address cross-border risks and regulatory complexities. Besides, the rising adoption of environmental, social, and governance (ESG) factors in decision-making necessitates comprehensive risk assessments. This synergy drives the growth of the risk analytics industry, with organizations seeking robust solutions to navigate the multifaceted risks inherent in global operations and ESG considerations.
 

For instance, in April 2022, TCS unveiled a risk-based monitoring solution for clinical trials, facilitating smart decision-making, bolstering compliance, and enhancing study effectiveness through agility and user-friendliness.
 

Though the risk analytics market is thriving, it faces challenges such as data privacy concerns and high implementation costs. However, they highlight a commitment to safeguarding sensitive information and fostering trust and confidence among stakeholders. Addressing these concerns enhances data integrity and promotes responsible data governance practices, laying a solid foundation for sustainable growth. Similarly, initial implementation costs signify an investment in robust risk management infrastructure, ultimately yielding long-term cost savings and operational efficiencies.
 

Risk Analytics Market Trends

The integration of geospatial data and analysis techniques, coupled with the integration of big data, serves as a pivotal trend propelling the risk analytics industry forward. By leveraging geospatial data, organizations gain insights into location-based risks, such as natural disasters and geopolitical instability, enhancing their risk assessment capabilities. Additionally, the integration of big data enables the processing and analysis of vast datasets, providing comprehensive risk insights across diverse domains, thus driving market expansion.
 

For instance, in January 2024, Tech Mahindra introduced i.Riskman, an ESG risk assessment platform aiding organizations in identifying, assessing, and managing climate-related risks. It offers a holistic solution to evaluate climate risk impacts on business strategies, finances, and overall risk exposure.
 

Risk Analytics Market Analysis

Based on component, the market is divided into solution and services. The solution segment dominates the market in 2023 and is projected to exceed USD 60 billion by 2032. The solution segment experienced a substantial upswing in 2023, driven by its pivotal role in providing scalable and customizable solutions to organizations worldwide. As businesses increasingly prioritize data-driven decision-making, the demand for sophisticated risk assessment solutions continues to surge.
 

Moreover, advancements in artificial intelligence and machine learning have revolutionized risk analytics, empowering solution vendors to offer predictive and prescriptive analytics capabilities. This technological edge positions the solution segment as the primary growth driver in the risk analytics industry.
 

Based on organization size, the risk analytics market is categorized into large enterprises and SME. The large enterprise segment held a major market share of around 73% in 2023. The large enterprise segment accumulated substantial gains in 2023 due to its expansive operations and complex risk management needs. These organizations face multifaceted challenges spanning diverse sectors, including finance, healthcare, and manufacturing. Their substantial resources enable investment in sophisticated risk analytics solutions tailored to their specific requirements. Also, regulatory compliance mandates compel these enterprises to adopt advanced risk mitigation strategies, further consolidating their dominance in the market.
 

North America dominated the global risk analytics market with a share of over 34% in 2023, fueled by its robust technological infrastructure, fostering innovation and adaptation. This region's extensive investment in research and development, coupled with a conducive regulatory environment, has propelled its ascendancy. Additionally, the presence of leading financial institutions and multinational corporations has fortified its expertise and proficiency in risk assessment methodologies. Thus, North America's substantial influence continues to be a significant contributor to the evolution of risk analytics.
 

By acquiring a substantial market share, the United States leverages its extensive technological prowess and thriving ecosystem of innovation. Renowned for its cutting-edge research institutions and a dynamic entrepreneurial culture, the US fosters the development of groundbreaking risk analytics market. Besides, its robust regulatory framework and the presence of leading global enterprises contribute to the nation's dominance in this domain, showcasing its unparalleled capacity to shape the future of risk management.
 

With proactive investments in R&D, South Korea, Japan, France, Germany, the U.K., Canada, the Netherlands, the UAE, and Saudi Arabia have cultivated robust ecosystems for innovation. By leveraging advanced technological infrastructure and a strategic focus on risk management, these nations have secured significant shares in the risk analytics industry. Furthermore, their proactive regulatory frameworks and thriving business landscapes have propelled the adoption of sophisticated risk analytics solutions, solidifying their positions as key contributors.
 

Risk Analytics Market Share

SAS Institute Inc. and IBM Corporation hold a significant market share of over 20% in the risk analytics industry. These companies are strategically investing in cutting-edge technologies and forging strategic partnerships to enhance their offerings. Leveraging advanced data analytics tools and machine learning algorithms, they can provide clients with comprehensive risk assessment solutions tailored to their specific needs. Furthermore, through targeted marketing efforts and thought leadership initiatives, they're amplifying their brand visibility and thought leadership, positioning themselves as trusted advisors in the risk management landscape.
 

Moreover, these companies are focusing on expanding their global footprint by establishing regional offices and forming alliances with local partners. By tapping into diverse markets and understanding unique regulatory landscapes, they can deliver localized risk analytics solutions that resonate with clients across various sectors. Their commitment to continuous innovation and customer-centric approaches ensures that they stay ahead of the curve, cementing their market presence and driving sustained expansion in the competitive risk analytics industry.
 

Risk Analytics Market Companies

Major companies operating in the risk analytics industry are:

• Experian
• FactSet Research Systems
• IBM Corporation
• Moody's Analytics, Inc.
• Oracle
• Risk Management Solutions (RMS)
• SAS Institute Inc. 
• Verisk Analytics
• Verisk Analytics, Inc.
• Wolters Kluwer
   

Risk Analytics Industry News

• In October 2023, Bloomberg and Riskthinking.AI introduced the inaugural set of physical risk indicators, incorporating all climate scenarios approved by the Intergovernmental Panel on Climate Change (IPCC).
   
• In October 2023, S&P Global Market Intelligence introduced the Supplier Risk Indicator, covering 12 million organizations. This new solution integrates supplier risk assessment across three core dimensions—resilience, conduct, and information security—providing a comprehensive risk indicator for informed decision-making.
   

The risk analytics market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By component

• Solution
  • Extract, transform and Load (ETL) tools
  • Risk Calculation engine
  • Scorecard and visualization tools
  • GRC software
  • Others 
• Services
  • Professional
  • Managed

Market, By Deployment Mode

• Cloud
• On-premises

Market, By Organization Size

• Large enterprise
  • Solution
  • Services 
• SME
  • Solution
  • Services

Market, By Vertical

• BFSI
• Manufacturing
• Transportation
• IT & Telecom
• Government
• Healthcare
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA