Risk Management Software Market - Forecast(2024 - 2030)
Risk Management Software Market Overview
Risk
Management Software Market size was valued at $10.7 billion in 2020, and
it is estimated to grow at a CAGR of 7.7% during 2021-2026. Adoption of Risk
Management software in various industries such as manufacturing, transportation
and logistics, pharmaceuticals, and food & beverages sectors drive the
market, as this software assist industries in providing equilibrium between
supply and demand. Supply chain management encompasses the integrated planning
and execution of processes needed to optimize the flow of materials,
information, and financial capital in the areas that include demand planning,
sourcing, production, inventory management and storage, transportation or
logistics and return for excess or defective products. Adoption of this kind of
Risk Management software assists in enhancing business processes in
applications such as logistic management and enterprise risk
management which helps to reduce supply chain risk. This will drive
forward the Risk Management software industry. The
constant advancement in technologies requires assessing various risks factors
on regular basis. The Risk Management Software Market provides solutions on
various platforms like Enterprise Risk Management, Financial Risk Management,
Market Risk Management, and Integrated Risk Management.
Report Coverage
The
report: “Risk Management Software Market Forecast (2021-2026)”, by
IndustryARC, covers an in-depth analysis of the following segments of the Risk
Management Software industry.
By Deployment: On-Premise, Cloud.
By Type: Enterprise
Risk Management Software, Financial Risk Management Software, Integrated Risk
Management Software, Application Risk Management Software, Market Risk
Management Software, Credit Risk Management Software, Information Risk
Management Software, Quantitative Risk Management Software, Project Risk
Management Software.
By Service: Managed Service, Professional Service.
By Industry Vertical: Consumer Goods, Transport & Logistics, Healthcare, Retail,
Manufacturing, Food & Beverage, and Others.
By Geography: North America (U.S., Canada and Mexico); Europe (U.K.,
Germany, Italy, France, Rest of Europe); APAC (China, Japan, South Korea,
India, Rest of APAC); South America (Brazil, Argentina, Rest of
Americas); RoW (Middle East & Africa).
Key Takeaways
- North America dominated the Risk Management Software Market in terms of value in 2020 owing to the early adoption of advanced software solutions and increase in investments.
- Adoption of cloud deployment mode for Risk Management software implementation owing to its increased availability and high scalability drives the market.
- Increasing adoption of Risk Management software in transport and logistics sector for logistic management with increasing government initiatives is set to drive the market.
- Data security issues is one of the major challenges that hampers the market growth.
Risk Management Software Market, By Region, 2020
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Risk Management Software Market Segment Analysis - By Deployment Type
Cloud Segment held the major share around of 56.9% of Risk Management software Market in 2020. Cloud-based deployment allow industries to stay-up-to-date and aware with real time dashboard alerts. With this deployment, data can be synchronized seamlessly from multiple sources as it provides the ability to communicate and share data more easily than on-premise. Furthermore, ease of deployment, and pay per usage model have resulted in high adoption of cloud-based deployment. Blockchain will become the core technology for regulated industries such as banks and laws. Blockchain technology helps in storing the data in a decentralized and distributed manner eliminating the chances of single point of failure. The blockchain technology has the ability to identify whether the data has been manipulated. Venminder is the leading provider of third party risk management solutions. The company has raised $5 million in a Series B funding. The funding was supported by MissionOG and Bain Capital Ventures. Venminder’s SaaS based platform provides a perfect solution for all the critical processes such as contract management, risk assessment and questionnaire and task management. The company will use this fund in developing its compliance platform. The use of Artificial Intelligence (AI) in risk management will have huge impact on how financial firms handling risks. With increase in the use of AI and machine learning it said that the risk managers will shift their focus towards analytic to avoid losses.
Risk Management Software Market Segment Analysis - By Industry Vertical
Transport & Logistics is the fastest growing segment in Risk Management Software Market and is estimated to grow at a CAGR 10.0% during forecast period 2021-2026. In this industry, adoption of Risk Management software for applications such as estimating shipment histories, demand forecasting, and freight in transit applications is poised to propel the market growth. The growth of the transport and logistics segment is attributed to globalization of supply chain and transport networks, which have given rise to supply chain risks such as lack of supplier visibility, extensive sub-contracting, natural disasters conflict and political unrest. Extensive subcontracting may lead to integrity related risks such as child labor or forced labor, unsafe workplace conditions, illegal worker payment. These factors have led the transport and logistics companies to focus on implementing Risk Management solutions in order to analyze risk or security assessment, failure mode and effects analysis, market condition, and map the supply chain resilience risk. Furthermore, several governments such as India, South Korea and others are focusing on adopting Risk Management solutions to identify, assess, and prioritize risks. The Government of India is undertaking significant steps to support the logistics sector. In 2019, Indian Commerce and Industry Ministry has granted a funding of $0.011k to the logistics sector for building initial infrastructure. This kind of initiative provides opportunities for the market growth.
Risk Management Software Market Segment Analysis - By Geography
North America dominated the Responsible Sourcing Software market in 2020 with a market share of 36.9%, followed by Europe and APAC owing to the early adoption of advanced digital technologies and high investments in adopting them. The presence of large number of manufacturing plants and big retail chains drives the adoption of Risk Management software. In 2018, The Federal Energy Regulatory Commission (FERC) of U.S., approved new mandatory reliability standards for protection of transportation and logistics equipment and to strengthen Risk Management in manufacturing industries. Stringent regulations in manufacturing industries and strict adherence to these regulations due to covid-19 impact in 2020 drive the market in this region.
Risk Management Software Market Drivers
Government Initiatives in Supply Chain Management
Governments
of various countries are focusing on the development of supply chain management.
There has been significant growth in Indian Logistics Sector owing to the
implementation of its government initiative. In 2020, the government has
initiated National Logistics Policy to promote seamless movement of goods. Furthermore, the evolution of global pandemic disease has created demand for Risk
Management software in order to mitigate supply chain risks in healthcare and
pharmaceutical sectors and this is poised to drive the market post the pandemic
as well.
Integration of Advanced Technologies
Integration
of advanced technologies such as artificial intelligence (AI), machine learning
(ML) with Risk Management software is poised to boost the market and add value
to their customer. AI based Risk Management increased the efficiency in risk
processing and can be used to streamline and automate processes such as load
forecasting and vehicle scheduling. AI and ML can provide benefits to supply
chain and logistics operations such as cost savings through reduced
redundancies and risk mitigation, faster deliveries through more optimized
routes improved forecasting, and customer service. Integration of advanced
technologies with Risk Management software assist in logistic management and
enterprise risk management. Increase in investments and adoption of these
technologies provides lucrative opportunities for growth of the market.
Risk Management Software Market Challenges
Data Security Issues
Enterprises
that adopt Risk Management software face security and privacy issues.
Enterprises hold confidential data, which needs to be protected to avoid data
breaches and cyber-attacks. There are security issues in cloud deployment
compared to on-premise deployment as third parties hold the enterprise data and
unauthorized personnel can access it. Increase in adoption of cloud-based
deployment leads to security concerns that threaten the enterprise data
security and weaken business position, thereby hampering the adoption. However,
investments on cyber security software for data security is analyzed to
overcome this challenge.
Risk Management Software Market Landscape
Technology
launches, Acquisitions, Collaboration, and R&D activities are key
strategies adopted by players in the Risk Management Software Market. Risk
Management Software top 10 companies include SAP, Oracle, IBM, The AnyLogic
Company, SAS Institute Inc, ServiceNow, RSA Security LLC, Thomson Reuters,
Lockpath Inc, LogicManager Inc, and others.
Acquisitions/Technology Launches
- In September 2019, AEB had launched risk assessment software solution which is used in supply chain applications. Risk assessment software provides easy online access across all companies where global trade risks potentially arise from procurement and sales to shipping. This software also ensures that all relevant information is efficiently captured and automatically used for risk management.
- In March 2019, Riskmethods, a global leader in Risk Management, and Zurich Insurance Group, had entered into a strategic agreement providing Zurich’s commercial customers with new Risk Management services.
Relevant Reports:
Governance,
Compliance and Risk Software Market:
Report Code: ITR 0188
Vendor
Risk Management Market:
Report Code: ITR 60524
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