The global enterprise governance, risk and compliance market size is expected to reach USD 88.48 billion by 2027, according to a new report by Grand View Research, Inc. It is projected to exhibit a CAGR of 14.0% over the forecast period. The need for adherence to compliance across highly scrutinized industries such as BFSI, It and telecom, and oil and gas has necessitated the integration of the enterprise governance, risk & compliance (EGRC) solution. Implementation of GRC solution helps companies avoid financial repercussions and loss of face value among the marketers. Moreover, the tedious task of managing audit, risk, compliance, policy, and security breach is driving the demand for EGRC across enterprises.
The loss of money and reputation due to non-compliance has been a significant setback for company growth across all industries for large, small, and medium enterprises. For instance, the corporate crisis of United Airlines, Nestle, Sony, Equifax, Lululemon Athletica, KFC, Facebook, NiSource, Weinstein, and Company, Wynn Resort are some of the examples indicating huge revenue loss due to a non-compliance. Also, reputational risk due to non-compliance with business policies and ethics often results in irreversible damage to the business.
The EGRC market is anticipated to witness further growth on account of increasing demand for cost-effective solution to comply with myriad of regulations, such as Occupational Safety and Health Administration (OSHA), Health Insurance Portability and Accountability (HIPAA), GDPR, Foreign Account Tax Compliance Act (FATCA), and Payment Card Industry Data Security Standard (PCI-DSS). The vendors have been updating their EGRC solution and adding functions to support new challenges. In January 2019, XebiaLabs launched security and compliance risk assessment tracking for software to assist in tracking application release status information and asses security and compliance risks related to the failure of product releases, production security vulnerabilities, and IT governance violations. The large enterprises across the world have emerged as the largest revenue contributor in the market enterprise governance, risk and compliance, owing to a higher risk of failure to non-compliance. As large enterprises often engage
in cross border business which makes them vulnerable to local laws differing across countries, thereby also increasing the risk of non-compliance and for EGRC suite.
Further key findings from the report suggest:
- Demand for EGRC solutions in Telecom and IT sector is anticipated to witness the fastest growth over the forecast period owing to dynamic and stringent regulatory policies for the telecom sector
- Revenue from the risk management segment is expected to reach USD 14.42 billion by 2027, attributed to the need for overcoming challenges of revenue loss and data loss risk in the era of confidential and vulnerable data
- North America is expected to dominate the global EGRC market by 2027 owing to the presence of a huge IT hub where enterprises are at constant risk of cyberattacks and communication regulations
- Some of the major players present in the enterprise governance, risk and compliance market are SAP SE; Thomson Reuters; Wolters Kluwer; MetricStream Inc.; and BWise. These players dominate the market owing to their extended product portfolio and updated solution