The global risk analytics market size to grow from USD 32.6 billion in 2021 to USD 64.7 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 14.7% during the forecast period. Various factors such as compliance with stringent industry regulations, increasing complexities across business processes, rising digitalization and BPA, and growing data and security breaches are expected to drive the adoption of risk analytics solutions and services.
COVID-19 pandemic has made an adverse impact on credit portfolios. There has been an unprecedented rise in unemployment and disruption in economic activity, which are putting a strain on the solvency of customers and companies. Central banks have taken a proactive approach by injecting liquidity into the market by lowering interest rates and asset purchase programs. As per an article by Genpact, Mortgage forbearance increased sharply, showing a nearly 3,000% increase from March 2020 to May 2020. To prepare for such extreme shocks and uncertainty, large US banks increased their loss provisions by ~3–4 times for Q1 2020 compared to Q4 2019, based on their expectations of impending defaults and charge-offs. Regulators are focusing on implementing various measures to get financial institutions back on the path of recovery. Basel Committee on Banking Supervision (BCBS), along with the International Organization of Securities Commission (IOSCO), has decided to postpone implementing the final two phases of margin requirement by one year.Increased volatility in the market has caused high trading losses, affected earnings, and capital preservations, and have led to breaches of limit/thresholds. Higher volatility, price movements, and counterparty risks have directly impacted risk-weighted assets. Hence, the COVID-19 pandemic has disrupted the global financial markets and has created panic, uncertainty, and distraction in the operations of global corporations.
The GRCsoftwaresegment to have the largest market size during the forecast period
The Risk analytics market has been segmented based on components into software and services. The software solutions offered in the market include ETL tools, risk calculation engines, scorecard and visualization tools, dashboard analytics and risk reporting tools, and GRC software, and others (operational risk management, human resource risk management, and project risk management). The GRC softwaresegment is expected to have the largest market size during the forecast period. The GRC software enables organizations to build data strategies for managing several corporate governances and corporate compliance issues to meet regulatory requirements. This leads to the adoption of GRC software in the risk analytics market.
The cloud segmentto have the highest CAGR during the forecast period
By deployment mode, the risk analytics market has been segmented into on-premises and cloud. The cloud deployment mode enables resiliency and risk reduction, which is not found in on-premises infrastructure. Cloud-hosted environments enable companies to move more rapidly when there is an outage or disruption as compared to on-premise outages and disruptions because the issues are easier to identify and rectify. This leads to the higher growth of cloud deployment mode.
Large enterprises segment to have the largest market size during the forecast period
The risk analytics market has been segmented by organization size into large enterprises and SMEs. The market share of large enterprises is higher; however, the market for SMEs is expected to register a higher CAGR during the forecast period.Organizations need to adhere to various regulatory compliances. The need to identify the potential threats faced by the organizations leads to the adoption of risk analytics solutions by large organizations.
Among regions, APAC to hold higherCAGR during the forecast period
APAC is expected to grow at a good pace due to growing digitalization, business complexity, and rising cyberattacks and fraudulent activities in the region.APAC has continually presented lucrative market opportunities for risk analytics solution providers with a notable increase in risk analytics across both its developed and emerging countries. China, Japan, and India have displayed ample growth opportunities in the risk analytics market.
Breakdown of primaries
In-depth interviews were conducted with Chief Executive Officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the Risk analytics market.
- By Company:Tier I: 34%,Tier II: 43%, and Tier III: 23%
- By Designation: C-Level Executives: 50%, D-Level Executives: 30%, and Managers: 20%
- By Region:APAC: 30%, Europe: 30%, North America: 25%, MEA: 10%, Latin America: 5%
The report includes the study of key players offering Risk analyticssolutions and services. It profiles major vendors in the global Risk analytics market. The major vendors in the global Risk Analytics market include IBM (US), Oracle (US), SAP (Germany), SAS Institute (US), FIS (US), Moody’s Analytics (US), Verisk Analytics (US), AxiomSL, (US), Gurucul (US), Provenir (US), Risk Edge Solutions (India), BRIDGEi2i (India), Recorded Future (US), DataFactZ (US), Alteryx (US), AcadiaSoft (US), Qlik (US), CubeLogic (UK), Equarius Risk Analytics (US), Quantifi (US), Actify Data Labs (India), Amlgo Labs (India), Zesty.ai (US), Artivatic (India), Attestiv (US), RiskVille (Ireland), Quantexa (UK), Spin Analytics (UK), Kyvos Insights (US), and Imply (US).
The market study covers the risk analytics market across segments. It aims at estimating the market size and the growth potential of this market across different segments, such as components, deployment mode, organization size, vertical, and region. It includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report would provide the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall Risk analytics market and its subsegments. It would help stakeholders understand the competitive landscape and gain more insights better to position their business and plan suitable go-to-market strategies. It also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.