Risk Management market to reach $18.50 Bn by 2026
According to the report from Allied Market Research, the global risk management market was estimated at $6.25 billion in 2018 and is expected to hit $18.50 billion by 2026, registering a CAGR of 14.6% during the estimated period.
Drivers, restraints and opportunities
Rise in data & security breaches in enterprises, surge in stringent government regulatory compliances, development in IoT landscape, and surge in adoption of risk management among financial institutions propel the growth of the global risk management market. On the other hand, high cost, and complexity in installation as well as configuration of the software hamper the growth to certain extent.
However, the integration of artificial intelligence in risk management software and an upsurge in demand from developing economies are expected to create an array of opportunities for the key players in the near future.
The software segment to lead the trail till 2026
Based on component, the software segment contributed to nearly three-fourths of the global risk management market share in 2018 and is expected to retain its dominance during the study period.
Increase in adoption of this software by different banks as well as financial institutions and stringent government regulations for data security has fueled the growth. The service segment, on the other hand, would showcase the fastest CAGR of 17.0% by 2026.
The BFSI segment to dominate during the estimated period
Based on industry verticals, the BFSI segment garnered the major share in 2018, holding nearly one-fourth of the global risk management market. This is attributed to rise in different types of risk such as credit risk, liquidity risk, money laundering, terrorist financing, risk compliance of bank’s operations, foreign exchange risk, interest rate risk, and other market risks.
At the same time, the manufacturing segment is projected to register the fastest CAGR of 17.7% by the end of 2026. This is due to rise in digitalization and need for smooth operational efficiency.
North America to maintain its top status in terms of revenue
Based on geography, North America accounted for more than one-third of the global risk management market revenue in 2018 and is anticipated to rule the roost throughout the forecast period. North American countries are anticipated to adopt risk management software at a high rate to bring great improvements in operational efficiency in IT infrastructure.
Simultaneously, the region across Asia-Pacific would grow at the fastest CAGR of 16.1% by 2026, owing to rise in digitalization in emerging economies such as China and India.
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