(MENAFN– Straits Research)
Introduction
The global vendor risk management market was valued at USD 7.26 billion in 2021 and is expected to reach USD 25.96 billion by 2030, with a CAGR of 15.21% from 2022 to 2030. This market focuses on managing various risks from third-party partnerships, including operational, compliance, strategic, and information security risks.
Market Dynamics
- Need for Efficient Management: Organizations spend significant time evaluating vendors. Vendor risk management systems help streamline this process, making it easier to assess vendor performance on delivery, timeliness, and quality.
- Reliance on Manual Processes: Many organizations still use manual methods to evaluate vendor risks, often unaware of the benefits of dedicated vendor risk management software.
- Streamlined Assessment Process: Large enterprises rely on multiple suppliers for business continuity, making vendor risk management crucial for identifying and resolving supplier risks efficiently.
Regional Analysis
The market is divided into regions: North America, Europe, Asia-Pacific, and LAMEA. North America is anticipated to dominate due to advancements in AI, machine learning, and data security.
Notable incidents, such as a data leak affecting 24 million credit records in 2019, highlight the importance of vendor risk management.
Key Highlights
- Market projected to reach USD 25.96 billion by 2030.
- Significant growth expected in the BFSI sector.
- North America holds the largest market share.
Competitive Players
- IBM Corporation (U.S.)
- MetricStream (U.S.)
- Lockpath Inc. (U.S.)
- Logic Manager (U.S.)
- BitSight Technologies (U.S.)
- Rsam (U.S.)
- Genpact (U.S.)
- SAI Global (Australia)
- Resolver (Canada)
- RapidRatings (U.S.)
Recent Developments
- Aug 2019: IBM launched a blockchain-based supply chain risk solution.
- Feb 2020: RSA introduced RSA Archer SaaS for enhanced risk management.
Segmentation
- By Component: Solutions (Vendor Info, Contract, Financial Control, etc.), Services (Consulting, Support, Managed Services)
- By Deployment: On-premises, Cloud
- By Organization Size: SMEs, Large Enterprises
- By Vertical: BFSI, Telecom, Retail, Healthcare, Manufacturing, Government, etc.
`
