USD 34.5 billion
Report ID:
SQMIG45E2129 |
Region:
Global |
Published Date: June, 2024
Pages:
197
|Tables:
60
|Figures:
77
Risk Analytics Market size was valued at USD 34.5 billion in 2023 and is poised to grow from USD 42.15 billion in 2024 to USD 171.55 billion by 2031, at a CAGR of 22.2% during the forecast period (2024-2031).
A unified platform that makes it easier for risk managers and businesses to analyse, compute, forecast, and mitigate risk is the main factor driving the global market. Additionally, it is anticipated that there will be a lot of chances for software developers due to the rising demand from emerging economies and the integration of artificial intelligence (AI) into these analytics. Several vendors in the market are concentrating on offering AI-integrated solutions that aid organisations in addressing new dangers. Large volumes of structured and unstructured data are now being used more frequently across a range of end-user sectors, which increases the need for risk analytics to manage and protect data from threats. For instance, Seagate Technology PLC estimates that by 2020 and 2025, respectively, the total amount of data in the world would reach 47 and 163 zettabytes. The capital markets, banking, and insurance sectors are anticipated to spend USD 96 billion on risk information technologies and services, according to the Global Association of Risk Professionals. The demand for risk mitigation to manage and protect data from threats is rising as enormous volumes of organised and unstructured data are quickly adopted by many industries. The firms are moving towards a comprehensive approach to risk governance and the deployment of integrated strategies that enable improved regulatory reporting and keep them ahead of the competition.
US Risk Analytics Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 34.5 billion
Largest Segment
On- Premise
Fastest Growth
On- Premise
Growth Rate
22.2% CAGR
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Risk Analytics Market is segmented on the basis of type, end user, deployment outlook, enterprise size and region. By type, the market is segmented into big data analytics, business analytics, customer analytics, risk analytics, statistical analytics, others. By end user, market is segmented into BFSI, government, healthcare, IT & telecom, military & defense, others. by deployment outlook, the market is segmented into on-premise and cloud. by enterprise size, the market is segmented into the large enterprise, small & medium enterprise. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Risk Analytics Market Analysis by Type
The operational risk segment accounted for the largest revenue share in 2023. Compared to prior years, the regulatory and corporate climate has become more complicated and unclear. Recently, a number of new regulatory rules have been applied to financial organizations. Risks associated with money might result in harm if financial objectives are not achieved. Businesses are threatened by a lack of certainty regarding factors such as foreign exchange rates, interest rates, asset prices, stock prices, credit quality, liquidity, and the company's access to finance. In order to better evaluate risks, banks and financial institutions are using advanced risk analytics systems to forecast customer preferences and behavior. Analytics is a crucial component of building loyalty and maximizing revenue in banking, which is becoming more and more customer-centric.
Throughout the projection period, the category for Compliance risks is anticipated to increase at the greatest CAGR. Operational risk management is a strategy for businesses that want to include realistic risk control rules and regulations. Every business encounters a situation or significant changes in its state that might be perceived as posing varying degrees of risk to the business, from minor annoyances to risking its existence. By bolstering the decision-making process, which is where the majority of risks are related, these analytics solutions give firms the capacity to increase the dependability of corporate operations.
Risk Analytics Market Analysis by Deployment Outlook
The largest portion is held by the on-premises segment. The risk supervision department can closely monitor the configuration, upkeep, and protection of the computer network and data by utilizing risk assessment instruments that are located inside the company's premises. With this access, the risk supervision department can assess risks to the system.
Data mining frameworks, effective data storage platforms, and risk assessment tools are just a few of the advantages that cloud-based solutions offer, helping businesses run more efficiently. For businesses wishing to modernize their current solutions, a cloud-based solution is a popular choice today. These solutions have several advantages over on-premises systems, including better user interfaces, regular product upgrades, improved monitoring and analysis, among others.
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The greatest proportion of the market is anticipated to reside in North America. The expanding industry acceptance of risk governing technology is credited with the region's dominance. Businesses in the area are leaning more towards reworking their current risk management plans to get rid of hazards and duplications. As an illustration, in the wake of multiple cyberattacks, banks and financial institutions in the area are putting more of a focus on controlling cybersecurity risks. Vendors of analytics solutions are embracing cutting-edge technology including robotic process automation (RPA), machine learning, and cognitive analysis. Businesses are emphasizing the redesign of risk assessment frameworks with these technological linkages. Utilizing such technology can assist SMEs and major businesses in the area in increasing business efficiency by automatically testing a tremendous number of unstructured data, which can be used to spot problems and enable preventive measures.
Because of the region's widespread internet access, lax enterprise cybersecurity policies, growing cross-border data flows, and effective law enforcement, Asia Pacific (APAC) is a haven for cybercriminals. Companies in the region are adopting analytics solutions as a result of networking growth and the acceleration of digital transformation. In spite of their cybersecurity endeavors, businesses operating in all sectors of the nation are subject to information threats because of cyber susceptibility and data protection violations that are ingrained in their operations. These attacks frequently result in significant losses, like losses from unhappy customers, business interruptions, or damage to reputation.
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Risk Analytics Market Drivers
Expanding Complexity of Business Processes demand Risk Analytics
Risk Analytics Market Restraints
Regulations to Hinder Market Growth
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A select few major businesses control the majority of the market. The dynamics of the market, however, have evolved recently as a result of the growth of niche firms offering solutions tailored to specific industries. Mergers, acquisitions, and partnerships are common strategies used by businesses to improve their goods and acquire a competitive edge.
Risk Analytics Market Top Player’s Company Profiles
Risk Analytics Market Recent Developments
In January 2023, the UN Environment Programme (UNEP) and S&P Global unveiled the Nature Risk Profile, a new methodology designed to assess companies' impacts and dependencies on nature. This tool aims to help the financial sector measure and manage nature-related risks by offering scientifically robust and actionable analytics on nature impacts and dependencies.
In 2023, the financial industry saw the emergence of risk appetite statements to enhance communication with employees, investors, and regulators. While some level of risk is necessary to expand the loan portfolio, banks must have strategies to address excessive defaults. For instance, they might set a safety threshold for mortgage defaults or fraudulent transactions, ensuring they can still maintain profitability while managing risks effectively.
In January 2024, Sean Rider joined Aon as the Head of Advanced Risk Analytics for Commercial Risk in North America.
In November 2022, Synspective, a supplier of synthetic aperture radar (SAR) satellite data and solutions, and Geo Climate Risk Solutions Pvt. Ltd. (GCRS), a provider of solutions, consultancy, and advisory services that concentrate on natural hazards risk analytics and environmental and sustainability challenges, are pleased to announce a new partnership for solutions for SAR-based analysis in the mining and critical infrastructure sectors. In order to expedite regional net-zero projects, GCRS and Synspective will work together to provide risk analysis solutions for the mining and critical infrastructure sectors.
In November 2022, As the company grew, New York-based MGA Elpha Secure and CyberCube teamed together to leverage two of their cyber risk analytics solutions to convince vendors operating in the ILS market to provide capacity.
In February 2022, as part of the acquisition, IBM also added multi cloud expertise. Neudesic is a top U.S. cloud services consultant that focuses primarily on the Microsoft Azure platform. In addition to advancing the company's hybrid cloud and AI goals, this acquisition will dramatically broaden IBM's range of hybrid multi cloud services.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analyses, the global risk analytics market is experiencing significant growth and is expected to continue expanding in the coming years. The market is driven by the increasing complexity of risks faced by organizations across industries and the need for effective risk management strategies. Factors such as regulatory compliance requirements, cybersecurity threats, and the demand for data-driven decision-making are propelling the adoption of risk analytics solutions. The global risk analytics market is growing rapidly as organizations recognize the need for advanced risk management solutions. Technological advancements, industry-specific approaches, regulatory compliance, cybersecurity risks, cloud-based solutions, data privacy, and integration with ERM are key factors driving market growth. As risks continue to evolve, organizations will increasingly rely on innovative risk analytics solutions to mitigate threats and enhance their overall risk management capabilities.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 34.5 billion |
Market size value in 2031 | USD 171.55 billion |
Growth Rate | 22.2% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Risk Analytics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Risk Analytics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Risk Analytics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Risk Analytics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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REQUEST FREE CUSTOMIZATIONRisk Analytics Market size was valued at USD 43.45 billion in 2022 and is poised to grow from USD 53.10 billion in 2023 to USD 264.02 billion by 2031, at a CAGR of 22.2% during the forecast period (2024-2031).
A select few major businesses control the majority of the market. The dynamics of the market, however, have evolved recently as a result of the growth of niche firms offering solutions tailored to specific industries. Mergers, acquisitions, and partnerships are common strategies used by businesses to improve their goods and acquire a competitive edge. 'IBM Corporation (United States)', 'Oracle Corporation (United States)', 'SAP SE (Germany)', 'SAS Institute Inc. (United States)', 'FIS (United States)', 'Moody's Analytics, Inc. (United States)', 'Fiserv, Inc. (United States)', 'Verisk Analytics, Inc. (United States)', 'AxiomSL (United States)', 'Wolters Kluwer N.V. (Netherlands)', 'FICO (United States)', 'Numerix LLC (United States)', 'RiskEdge Solutions (India)', 'Gurucul (United States)', 'Experian plc (Ireland)', 'NICE Actimize (United States)', 'BlackRock, Inc. (United States)', 'Resolver Inc. (Canada)', 'Axtria Inc. (United States)', 'Quantzig (United States)', 'Provenir, Inc. (United States)', 'Sybase (United States)'
Organizations struggle to handle a huge amount of data and detect potential dangers in the face of growing business complexity. The main causes of increasing company complexity are expanding inventions, shifting types of complexity, a lack of information management, complex legislation, and governmental scrutiny. After the financial crisis of 2008, businesses started to take risk management more seriously and began spending a lot of money adopting innovative methods that can assist control risk throughout the business. Data has been generated in enormous amounts as a result of growing technical innovation and the spread of new technologies, including edge computing, AI, ML, and IoT.
The adoption of cloud computing is driving the shift towards cloud-based risk analytics solutions. Cloud-based platforms offer scalability, flexibility, and cost-effectiveness, allowing organizations to access risk data from anywhere, collaborate effectively, and scale their risk analytics capabilities as per their requirements. Cloud-based solutions also enable seamless integration with other enterprise systems and provide enhanced data security measures.
The greatest proportion of the market is anticipated to reside in North America. The expanding industry acceptance of risk governing technology is credited with the region's dominance. Businesses in the area are leaning more towards reworking their current risk management plans to get rid of hazards and duplications. As an illustration, in the wake of multiple cyberattacks, banks and financial institutions in the area are putting more of a focus on controlling cybersecurity risks. Vendors of analytics solutions are embracing cutting-edge technology including robotic process automation (RPA), machine learning, and cognitive analysis. Businesses are emphasizing the redesign of risk assessment frameworks with these technological linkages. Utilizing such technology can assist SMEs and major businesses in the area in increasing business efficiency by automatically testing a tremendous number of unstructured data, which can be used to spot problems and enable preventive measures.
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Report ID: SQMIG45E2129