Global Vendor Risk Management Market Size Forecast 2024 - 2033
18 Dec, 2024
What Is The Definition Of The Global Vendor Risk Management Market?
Vendor risk management (VRM) refers to the process of identifying, assessing, prioritizing, and mitigating risks associated with third-party vendors, suppliers, or service providers that an organization relies on to conduct its operations. It protects organizations from a wide range of risks associated with relationships with third-party vendors, ensuring operational resilience, regulatory compliance, data protection, and reputation management.
Vendor Risk Management Global Market Report 2024 provides data on the global vendor risk management market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The vendor risk management market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
What Are The Projections Exist For The Global Vendor Risk Management Market Size And Annual Growth Rates?
The vendor risk management market has expanded rapidly in recent years. From $7.29 billion in 2023, it will grow to $8.27 billion in 2024, a CAGR of 13.4%. The growth is linked to the rise of vendor risk management (VRM) solutions, high-profile data breaches, increased supply chain complexity, regulatory compliance needs, and the demand for faster transactions. This market is expected to continue growing rapidly, reaching $13.84 billion by 2028, with a CAGR of 13.7%. This growth is attributed to a rising need for effective management of complex vendor ecosystems, more outsourcing, the increasing number of connected devices, and the adoption of compliance management tools. In the forecast period, AI and machine learning for risk assessment, technological progress, collaborations, and new product launches will be prominent trends.
Which Key Drivers Are Propelling The Vendor Risk Management Market's Growth?
The growing number of data breaches, resulting from unauthorized access, disclosure, or destruction of sensitive information, is fueling the vendor risk management market. Factors contributing to data breaches include advanced cyber threats, vulnerabilities in technology infrastructure, inadequate security measures, and the expanding digital landscape. Vendor risk management helps mitigate these risks by identifying vulnerabilities, enhancing security measures, ensuring compliance, and promoting collaboration. According to the UK Department for Science, Innovation, and Technology, 11% of businesses and 8% of charities experienced cybercrime in 2022, with higher rates among larger organizations in 2023, demonstrating the rising need for robust vendor risk management solutions.
Get Your Free Sample of the Global Vendor Risk Management Market ReportWhat Are The Key Segments Within 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
How Are New Trends Impacting The Size Of The Vendor Risk Management Market?
Companies in the vendor risk management market are advancing with solutions like automated risk assessment to improve their market standing. Automated risk assessment uses technologies like AI and software algorithms to evaluate and analyze potential risks within an organization without manual input. For example, Vanta, a U.S.-based company, launched a new Vendor Risk Management solution in May 2023. This platform offers a comprehensive approach to managing vendor-related risks, including automated vendor assessments and risk mitigation strategies to ensure compliance with regulations. The platform also provides a risk exchange, allowing the sharing of vendor assessments and documents to streamline the evaluation process.
Which Region Drives The Highest Growth In 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.