Global Governance, Risk, and Compliance Platform Market Report and Forecast 2024-2032

Global Governance, Risk, and Compliance Platform Market Outlook

The global governance, risk, and compliance platform market size attained a value of USD 38.23 billion in 2023. The market is expected to grow at a CAGR of 11.2% between 2024 and 2032 to reach almost USD 99.45 billion by 2032.

Key Takeaways:

• Eurostat reports that ICT services and manufacturing saw steady annual growth rates of 28.9% and 20.4% respectively from 2015 to 2020, leading to the expansion of the governance, risk, and compliance platform market.

• According to the U.S. Bureau of Labor Statistics in 2022, there's been a significant increase in labour across multiple sectors, thus driving the global governance, risk, and compliance platform market expansion.

• Adopting a GRC framework supports proactive risk mitigation, informed decision-making, and business continuity, offering holistic operations management and regulatory compliance.

Governance, risk, and compliance (GRC) framework serves as a structured approach for handling governance and compliance risks within an organisation. It encompasses the identification of critical policies essential for steering the company towards its objectives.

As per the global governance, risk, and compliance platform market report, embracing a GRC framework enables a proactive stance in risk mitigation, facilitating informed decision-making and safeguarding business operations for continuity. It offers a holistic approach to managing operations, ensuring regulatory compliance, informed decision-making, efficient IT investments, centralized risk assessment, and cost reduction, meeting global demand.

As per the U.S. Bureau of Labor Statistics in 2022, there has been a noticeable rise in labour across various sectors. This trend has played a role in driving the expansion of the market for governance, risk, and compliance platforms.

INDUSTRIES WITH THE HIGHEST LEVELS OF EMPLOYMENT IN COMPLIANCE OFFICERS

Key Trends and Developments

The global governance, risk, and compliance platform market growth is driven by increasing focus on risk mitigation, rising cyber threats, evolution in regulations, and boosting new organisations.

January 2024

Konfer launched an AI GRC Control Questions Generator and Catalog, aiding enterprise risk officers in developing governance controls based on specific AI Regulations.

October 2023

Pathlock Cloud introduced its newest release for application access governance, empowering businesses to reduce compliance expenses significantly.

October 2023

PwC India and Workiva collaborated in a strategic partnership to assist Indian companies in automating risk and compliance operations.

May 2023

Onspring, a SaaS platform focusing on GRC, secured strategic funding. Its automated GRC software provides enterprise-wide no-code connectivity, offering innovative integration.

Increasing risk mitigation

Increasing awareness drives organisations to prioritize risk mitigation, fuelling global governance, risk, and compliance platform market development. GRC platforms offer comprehensive risk visibility, enabling proactive risk identification and mitigation. They enhance decision-making and facilitate centralised risk management, minimising vulnerabilities and ensuring business continuity.

Rising cyber threats

Growing cyber threats globally is driving market expansion. Increased GRC platform adoption safeguards sensitive data and intellectual property, integrating cybersecurity practices. These platforms bolster defences and offer real-time monitoring, threat detection, and incident response, ensuring cybersecurity is integral to overall risk management, and minimising data breach risks and consequences.

Evolution in regulations

As per the global governance, risk, and compliance platform market analysis, industries grapple with evolving compliance demands, seeking to sidestep legal and financial ramifications. GRC platforms provide a unified solution for managing compliance efforts, automating processes, streamlining reporting, and enhancing accuracy and transparency.

Growing new organisations

GRC platforms automate workflows, aiding in meeting objectives and enhancing organisational efficiency, driving widespread adoption for resolving compliance and risk issues efficiently.

Global Governance, Risk, And Compliance Platform Market Trends

GRC encompasses structured practices and procedures aimed at aligning IT with business goals. It aids in efficiently managing IT and security risks, cutting costs, meeting compliance, and enhancing decision-making by offering an integrated view of risk management effectiveness.

GRC facilitates the establishment, automation, and oversight of risk assessments and mitigation strategies. Data from GRC platforms informs decision-making and resource allocation for risk mitigation. Audits, such as those mandated by the Sarbanes-Oxley Act, set benchmarks for GRC operations, necessitating departments to safeguard sensitive information for compliance readiness.

Market Segmentation

Global Governance, Risk, And Compliance Platform Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Deployment Model

• On-Premises  

• Cloud 

Market Breakup by Solution

• Audit Management

• Risk Management 

• Policy Management 

• Compliance Management  

• Others

Market Breakup by Component

• Software

• Services 

Market Breakup by Service

• Integration

• Consulting

• Support  

Market Breakup by End Use

• Small Enterprise

• Medium Enterprise

• Large Enterprise   

Market Breakup by Industry Vertical

• BFSI

• Construction and Engineering 

• Energy and Utilities

• Government

• Healthcare

• Manufacturing

• Retail and Consumer Goods

• Telecom and IT

• Transportation and Logistics

• Others   

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

The on-premises deployment model is witnessing growth in the governance, risk, and compliance platform market, attributed to its user-friendly nature and provision of direct data and security control to businesses

Organisations preferring data sovereignty, stringent regulations, or existing infrastructure investments favour this deployment. Rising adoption of on-premises solutions, offering customisation and security, drives market growth.

A cloud-based governance, risk, and compliance management framework that streamlines security operations in the cloud to meet enterprise business objectives efficiently.

In terms of solutions, compliance management dominates the global governance, risk, and compliance platform market share, ensuring conformity to pertinent regulations, standards, and internal protocols

GRC platforms' compliance management ensures adherence to regulations, standards, and internal policies, streamlining processes via centralised documentation, tracking, reporting, and automation.

GRC auditing evaluates how an organization implements GRC processes compared to a selected GRC framework. GRC auditing activities generally involve the following: Checking evidence that the organisation has GRC controls in place. Testing security controls that manage cybersecurity risks.

Software holds a significant market share in the governance, risk, and compliance platform market, offering organisations a unified solution for centralising data, automating processes, and optimizing workflows

GRC software integrates data analytics, reporting dashboards, workflow automation, and system integration, aiding businesses in proactive risk detection, regulatory compliance, and informed decision-making with advanced algorithms and real-time monitoring.

Services encompass tools and methodologies that harmonise an organisation's governance and risk management with its technological advancement and implementation.

Integration services drives the governance, risk, and compliance platform market growth by facilitating seamless interaction between the GRC solution and diverse systems

Consulting services offer specialized advice to organizations in implementing GRC solutions, assessing needs, recommending strategies, and tailoring platforms to align with objectives. Support services provide ongoing technical assistance, troubleshooting, and updates to maintain optimal functionality and security, ensuring minimal disruptions.

Medium-sized enterprises led the governance, risk, and compliance platform market share, often necessitating effective GRC solutions to effectively address risk management challenges

GRC platforms designed for large enterprises provide both extensive functionality and scalability, addressing their unique requirements. These solutions aid in consolidating compliance efforts, mitigating risks, and establishing robust governance practices cost-effectively.

BFSI constitutes a significant chunk of the global governance, risk, and compliance platform market

The BFSI sector utilises GRC platforms for risk management, compliance, and ethical practices. Tailored solutions include specialised modules for industry-specific challenges like AML regulations and financial reporting standards.

GRC also holds significance in sectors such as energy and utilities, government, healthcare, manufacturing, and other industry verticals, ensuring compliance and effective risk management practices.

Global Governance, Risk, And Compliance Platform Market Analysis by Region

North America dominated the market share owing to heightened demand for GRC platforms aimed at risk management and ethical governance.

The Asia Pacific region is driving growth in the GRC market due to increasing demand across various sectors. The rapid expansion of China's insurance sector is particularly contributing to this market growth, as reported by the National Bureau of Economic Research.

TOTAL PREMIUM REVENUE OF INSURANCE COMPANIES IN CHINA FROM 2019 TO 2022 (IN BILLION CNY).

According to Eurostat data, in Europe from 2015 to 2020, there was consistent annual growth in the value added by ICT services by 28.9%, and in ICT manufacturing by 20.4%. This growth has contributed to the governance, risk, and compliance platform market development.

Competitive Landscape

The companies are entering into strategic partnerships and are adopting AI and IoT to maintain their dominance in the market.

SAS Institute Inc. was founded in 1976 and is based in the United States. It specialises in advanced and predictive analytics software, alongside business intelligence and data visualization solutions.

IBM established in 1911 and based in the United States, focuses on addressing needs in various engineering lifecycle disciplines, including requirements and workflow management, system and software modelling, and test planning and execution. The ELM solution integrates artificial intelligence (AI) and analytics, offering advantages to teams designing software-intensive systems and products.

SAP SE was founded in 1988 and is based in the United States. The company provides SAP application software tailored for business enterprises, encompassing supplier relationships, production, warehouse management, sales, customer relationships, and administrative functions.

Microsoft Corporation was founded in 1975 and is based in the United States. The company develops, licenses, and provides support for various enterprise and consumer software products and services. These offerings encompass operating systems for personal computers, servers, and phones, server applications and management tools, as well as productivity applications.

Other global governance, risk, and compliance platform market key players are Dell, Inc., Oracle, Amazon Web Services, Inc., ServiceNow, Archer Technologies (Cinven), Mitratech Holdings, Inc. among others.

Key Highlights of the Report