Vendor Risk Management Market By Component (Solutions, Services), By Deployment Type (On-premises, Cloud), By Enterprise Size (Small and Medium Enterprises (SMEs), Large Enterprises), By Vertical (Banking, Financial Services and Insurance (BFSI), Telecom and IT, Consumer Goods and Retail, Healthcare and Life Sciences, Manufacturing, Energy and Utilities, Government), & Region for 2024-2031
Report ID: 8937|No. of Pages: 202
Vendor Risk Management Market By Component (Solutions, Services), By Deployment Type (On-premises, Cloud), By Enterprise Size (Small and Medium Enterprises (SMEs), Large Enterprises), By Vertical (Banking, Financial Services and Insurance (BFSI), Telecom and IT, Consumer Goods and Retail, Healthcare and Life Sciences, Manufacturing, Energy and Utilities, Government), & Region for 2024-2031
Vendor Risk Management Market Valuation – 2024-2031
Vendor Risk Management (VRM) solutions help businesses manage and minimize risks related to their connections with third parties in the quickly changing business environment. According to the analyst from Verified Market Research, the Vendor Risk Management Market is estimated to reach a valuation of USD 23.97 Billion by 2031 over the forecast, subjugating the revenue of USD 7.99 Billion valued in 2023.
The increasing frequency and sophistication of cyber threats are driving the adoption of vendor risk management solutions to improve resilience and safeguard enterprises from potential third-party security issues. It enables the market to grow at a CAGR of 14.73% from 2024 to 2031.
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Vendor Risk Management Market: Definition/ Overview
Vendor risk management (VRM) is a systematic approach to identifying, assessing, and reducing risks posed by third-party vendors and suppliers. Its major goal is to ensure that enterprises can successfully manage and mitigate possible interruptions, vulnerabilities, and security threats posed by third parties in their supply chain. VRM entails analyzing vendors’ security procedures, compliance adherence, and overall risk posture to protect sensitive information and ensure operational continuity.
Furthermore, this process plays an important role in several industries, including banking, healthcare, and technology, where firms rely substantially on external relationships and services. By deploying VRM, businesses proactively address and reduce possible risks, resulting in a more secure and resilient corporate environment.
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What are the Factors that Surge the Demand for the Vendor Risk Management Market?
The frequency and sophistication of cyber threats have increased to unprecedented levels in recent years, affecting the global corporate ecosystem. The pervasiveness of these threats ranging from data breaches to ransomware attacks is compelling businesses to rethink and reinforce their cybersecurity procedures. As a result of recognizing that third-party relationships can be used by cyber adversaries, businesses are increasingly turning to Vendor Risk Management (VRM) solutions. These products play an important role in strengthening enterprises against growing cyber threats that originate from their broad vendor network, hence driving the demand for vendor risk management solutions.
Businesses have expanded into worldwide marketplaces, resulting in increasingly complex and interwoven supply chains. While globalization provides various benefits, it also poses a variety of concerns, particularly in terms of cybersecurity. Therefore, vendor risk management solutions allow companies to maintain awareness and control over possible hazards connected with this complex web of partnerships and result in the overall growth of the market.
Furthermore, vendor risk management solutions serve as a proactive defense mechanism, allowing enterprises to identify and reduce risks that disrupt operational continuity. By improving operational resilience, VRM contributes to the development of a robust and adaptable company ecosystem capable of overcoming a variety of obstacles.
Which Factors Hinder the Growth of the Vendor Risk Management Market?
Successful VRM depends largely on vendor cooperation and transparency. However, in other circumstances, providers may be reluctant to provide complete information about their security measures. This hesitation originates from concerns about disclosing sensitive information or a lack of knowledge of the necessity of open communication in creating a secure business ecosystem, and it is a major barrier in the Vendor Risk Management Market.
Furthermore, while technology is an important enabler for VRM, relying too much on automated solutions that lack human control proves problematic. The interpretation of complicated risk data and the contextual understanding of vendor relationships demand a human touch that automated solutions might lack, serving as a barrier or the expansion of the Vendor Risk Management Market.
Category-Wise Acumens
How does the Increasing Adoption of Solutions Impact the Growth of the Market?
According to VMR analysis, the solutions segment is estimated to hold a major share in the Vendor Risk Management Market during the forecast period. The advanced technology integrated management solutions in compliance with the regulations facilitate proactive risk management. The increasing prominence of this segment is due to organizations’ growing realization of the necessity for comprehensive and integrated tools to manage the complex web of risks connected with third-party partnerships.
Compliance with industry standards and government laws demands a systematic, technologically advanced approach to risk management. This is achieved through the VRM solutions which helps in entire governance and risk management frameworks of the enterprises. The adaptability and scalability of these solutions enable firms to modify their risk management strategies to unique regulatory needs, enabling the solutions component dominate the market.
Furthermore, the solutions prominence is enhanced by the ongoing evolution and invention of technology. Artificial intelligence (AI) and machine learning (ML) are increasingly being integrated into VRM solutions to improve predictive analytics and real-time threat identification. This technological integration improves the proactive aspect of risk management, allowing companies to keep ahead of developing hazards.
How will Large Enterprises Maintain their Dominance in the Vendor Risk Management Market?
The large enterprises segment is estimated to dominate the Vendor Risk Management Market during the forecast period. Large enterprises’ proactive approach to managing vendor-related risks not only protects their interests but also helps to mature and evolve the VRM market, establishing it as a dominant segment of modern risk management strategy.
Large companies require sophisticated VRM technologies that can handle the complexities of maintaining vendor relationships across multiple regions and industries. These firms deal with a large ecosystem of suppliers, making it important to have comprehensive risk assessment systems in place. As a result, VRM systems provide the scalability and flexibility required to meet the different needs of major companies, allowing them to easily react to changing threats and business conditions.
Furthermore, due to their extensive worldwide operations and complex supply chains, large businesses are more vulnerable to a variety of risks, such as operational disruptions, cybersecurity threats, and compliance issues. As a result, adopting comprehensive VRM solutions is no longer a choice, but a duty for these businesses as they seek to protect their valuable assets, preserve operational continuity, and comply with severe regulatory requirements.
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Country/Region-wise Acumens
Will Strict Regulatory Environment Boost the Demand for VRM in North America?
According to VMR analyst, North America is estimated to dominate the Vendor Risk Management Market during the forecast period. This growth is attributable to the stringent regulatory environment brought to effect to tackle increasing incidence of cybersecurity threats. This demand for technological innovation and early adoption is boosting the sales of vendor risk management solutions.
Growing awareness regarding impact on the environment is propelling the demand for application of VRM in various industries, driving the market in the region. The United States continues to be at the forefront of developing rigorous data protection and cybersecurity regulations. This regulatory landscape encourages firms, particularly in banking and healthcare, to invest heavily in VRM systems to ensure compliance with these regulatory frameworks and fuel its dominance in this region.
Furthermore, North America’s dominance is largely due to the coordinated efforts of the public and private sectors. Governments and industry associations actively promote cybersecurity measures, helping and directing businesses in minimizing vendor risks. This collaborative approach promotes the growth of the VRM market by sharing insights and best practices, which contribute to the region’s leadership in the Vendor Risk Management Market.
Will the VRM Market Grow in Asia Pacific Over the Forecast Period?
Asia Pacific region is estimated to be the most opportunistic region for the Vendor Risk Management Market during the forecast period. Asia Pacific is seeing unprecedented growth, owing to rapid economic expansion, increased awareness of cybersecurity threats, robust digital transformation programs, and proactive government cybersecurity measures.
The region is at the forefront of digital transformation activities, with businesses actively adopting innovative technology to boost efficiency and competitiveness. Vendor risk management solutions, which can identify and reduce risks associated with third-party partnerships, are perfectly aligned with Asia Pacific’s digitalization aspirations. These solutions help to ensure the secure and resilient integration of digital technology into corporate activities, resulting in a forward-thinking and technologically sophisticated business environment in this region.
Furthermore, Asia Pacific is witnessing an increase in cross-border business activities as companies push to expand into new markets and capitalize on global opportunities. This growth into international markets demands robust vendor risk management solutions to mitigate the risks associated with diversified and geographically distributed vendor networks.
Competitive Landscape
The Vendor Risk Management Market is characterized by fierce competition as businesses seek robust solutions to limit the risks associated with third-party interactions. Industry participants are working to provide comprehensive systems that include improved risk assessment, monitoring, and remediation capabilities. As firms prioritize vendor risk management as a strategic imperative, competitive dynamics in this market are expected to remain fluid and sensitive to changing cybersecurity issues.
Some of the prominent players operating in the Vendor Risk Management Market include:
SAP Ariba, Oracle GRC, Deloitte, PwC, EY, KPMG, Accenture, IBM Security, Rapid7, McAfee, Cisco Security, Palo Alto Networks, Fortinet, Crowdstrike, Qualys, CyberArk, SailPoint, Ping Identity, Axis Security, AppGuard.
Latest Developments
- In October 2023, Rapid7 announced the purchase of Albedo Security, a top provider of AI-powered supplier risk management solutions. This move enhances Rapid7’s VRM offerings, particularly third-party security posture assessment and continuous monitoring.
- In October 2023, SAP Ariba unveiled a new tool in its procurement platform that uses AI and machine learning to rate vendors based on their security posture, financial stability, and other risk indicators. This is intended to streamline vendor selection and reduce potential risks.
- In October 2023, Accenture acquired Penumbra, a prominent AI-powered supply chain risk management start-up, to enhance its risk assessment and mitigation capabilities for vendor ecosystems. This move reflects the increased emphasis on AI and technology in VRM solutions.
Report Scope
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2018-2031 |
| Growth Rate | CAGR of ~14.73% from 2024 to 2031 |
| Base Year for Valuation | 2023 |
| Historical Period | 2018-2022 |
| Forecast Period | 2024-2031 |
| Quantitative Units | Value in USD Billion |
| Report Coverage | Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis |
| Segments Covered |
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| Regions Covered |
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| Key Players |
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| Customization | Report customization along with purchase is available upon request. |
Vendor Risk Management Market, By Category
Component:
- Solutions
- Vendor Information Management
- Contract Management
- Financial Control
- Compliance Management
- Audit Management
- Quality Assurance Management
- Services
- Professional Services
- Managed Services
Deployment Type:
- On-Premises
- Cloud
Enterprise Size:
- Small and Medium Enterprises (SMEs)
- Large Enterprises
Vertical:
- Financial Services and Insurance (BFSI)
- Telecom and IT
- Consumer Goods and Retail
- Healthcare and Life Sciences
- Manufacturing
- Energy and Utilities
- Government
- Others
Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
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Research Methodology of Verified Market Research
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Reasons to Purchase this Report
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support
Customization of the Report
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Frequently Asked Questions
1 INTRODUCTION OF GLOBAL VENDOR RISK MANAGEMENT MARKET
1.1 Overview of the Market
1.2 Scope of Report
1.3 Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY OF VERIFIED MARKET RESEARCH
3.1 Data Mining
3.2 Validation
3.3 Primary Interviews
3.4 List of Data Sources
4 GLOBAL VENDOR RISK MANAGEMENT MARKET OUTLOOK
4.1 Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porters Five Force Model
4.4 Value Chain Analysis
5 GLOBAL VENDOR RISK MANAGEMENT MARKET, BY COMPONENT
5.1 Overview
5.2 Solutions
5.3 Services
6 GLOBAL VENDOR RISK MANAGEMENT MARKET, BY DEPLOYMENT TYPE
6.1 Overview
6.2 On-premises
6.3 Cloud
7 GLOBAL VENDOR RISK MANAGEMENT MARKET, BY VERTICAL
7.1 Overview
7.2 Financial Services and Insurance (BFSI)
7.3 Telecom and IT
7.4 Consumer Goods and Retail
7.5 Healthcare and Life Sciences
7.6 Manufacturing
7.7 Energy and Utilities
7.8 Government
7.9 Others
8 GLOBAL VENDOR RISK MANAGEMENT MARKET, BY ENTERPRISE SIZE
8.1 Overview
8.2 Small and Medium Enterprises (SMEs)
8.3 Large Enterprises
9 GLOBAL VENDOR RISK MANAGEMENT MARKET, BY GEOGRAPHY
9.1 Overview
9.2 North America
9.2.1 U.S.
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 U.K.
9.3.3 France
9.3.4 Rest of Europe
9.4 Asia Pacific
9.4.1 China
9.4.2 Japan
9.4.3 India
9.4.4 Rest of Asia Pacific
9.5 Rest of the World
9.5.1 Latin America
9.5.2 Middle East & Africa
10 GLOBAL VENDOR RISK MANAGEMENT MARKET COMPETITIVE LANDSCAPE
10.1 Overview
10.2 Company Market Ranking
10.3 Key Development Strategies
11 COMPANY PROFILES
11.1 SAP Ariba
11.1.1 Overview
11.1.2 Financial Performance
11.1.3 Product Outlook
11.1.4 Key Developments
11.2 Oracle GRC
11.2.1 Overview
11.2.2 Financial Performance
11.2.3 Product Outlook
11.2.4 Key Developments
11.3 Deloitte
11.3.1 Overview
11.3.2 Financial Performance
11.3.3 Product Outlook
11.3.4 Key Developments
11.4 PwC
11.4.1 Overview
11.4.2 Financial Performance
11.4.3 Product Outlook
11.4.4 Key Developments
11.5 KPMG
11.5.1 Overview
11.5.2 Financial Performance
11.5.3 Product Outlook
11.5.4 Key Developments
11.6 Accenture
11.6.1 Overview
11.6.2 Financial Performance
11.6.3 Product Outlook
11.6.4 Key Developments
11.7 IBM Security
11.7.1 Overview
11.7.2 Financial Performance
11.7.3 Product Outlook
11.7.4 Key Developments
11.8 Rapid7
11.8.1 Overview
11.8.2 Financial Performance
11.8.3 Product Outlook
11.8.4 Key Developments
11.9 McAfee
11.9.1 Overview
11.9.2 Financial Performance
11.9.3 Product Outlook
11.9.4 Key Developments
11.10 Cisco Security
11.10.1 Overview
11.10.2 Financial Performance
11.10.3 Product Outlook
11.10.4 Key Developments
12 KEY DEVELOPMENTS
12.1 Product Launches/Developments
12.2 Mergers and Acquisitions
12.3 Business Expansions
12.4 Partnerships and Collaborations
13 Appendix
13.1 Related Research
Report Research Methodology
Verified Market Research uses the latest researching tools to offer accurate data insights. Our experts deliver the best research reports that have revenue generating recommendations. Analysts carry out extensive research using both top-down and bottom up methods. This helps in exploring the market from different dimensions.
This additionally supports the market researchers in segmenting different segments of the market for analysing them individually.
We appoint data triangulation strategies to explore different areas of the market. This way, we ensure that all our clients get reliable insights associated with the market. Different elements of research methodology appointed by our experts include:
Exploratory data mining
Market is filled with data. All the data is collected in raw format that undergoes a strict filtering system to ensure that only the required data is left behind. The leftover data is properly validated and its authenticity (of source) is checked before using it further. We also collect and mix the data from our previous market research reports.
All the previous reports are stored in our large in-house data repository. Also, the experts gather reliable information from the paid databases.
For understanding the entire market landscape, we need to get details about the past and ongoing trends also. To achieve this, we collect data from different members of the market (distributors and suppliers) along with government websites.
Last piece of the ‘market research’ puzzle is done by going through the data collected from questionnaires, journals and surveys. VMR analysts also give emphasis to different industry dynamics such as market drivers, restraints and monetary trends. As a result, the final set of collected data is a combination of different forms of raw statistics. All of this data is carved into usable information by putting it through authentication procedures and by using best in-class cross-validation techniques.
Data Collection Matrix
| Perspective | Primary Research | Secondary Research |
|---|---|---|
| Supplier side |
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| Demand side |
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Econometrics and data visualization model
Our analysts offer market evaluations and forecasts using the industry-first simulation models. They utilize the BI-enabled dashboard to deliver real-time market statistics. With the help of embedded analytics, the clients can get details associated with brand analysis. They can also use the online reporting software to understand the different key performance indicators.
All the research models are customized to the prerequisites shared by the global clients.
The collected data includes market dynamics, technology landscape, application development and pricing trends. All of this is fed to the research model which then churns out the relevant data for market study.
Our market research experts offer both short-term (econometric models) and long-term analysis (technology market model) of the market in the same report. This way, the clients can achieve all their goals along with jumping on the emerging opportunities. Technological advancements, new product launches and money flow of the market is compared in different cases to showcase their impacts over the forecasted period.
Analysts use correlation, regression and time series analysis to deliver reliable business insights. Our experienced team of professionals diffuse the technology landscape, regulatory frameworks, economic outlook and business principles to share the details of external factors on the market under investigation.
Different demographics are analyzed individually to give appropriate details about the market. After this, all the region-wise data is joined together to serve the clients with glo-cal perspective. We ensure that all the data is accurate and all the actionable recommendations can be achieved in record time. We work with our clients in every step of the work, from exploring the market to implementing business plans. We largely focus on the following parameters for forecasting about the market under lens:
- Market drivers and restraints, along with their current and expected impact
- Raw material scenario and supply v/s price trends
- Regulatory scenario and expected developments
- Current capacity and expected capacity additions up to 2027
We assign different weights to the above parameters. This way, we are empowered to quantify their impact on the market’s momentum. Further, it helps us in delivering the evidence related to market growth rates.
Primary validation
The last step of the report making revolves around forecasting of the market. Exhaustive interviews of the industry experts and decision makers of the esteemed organizations are taken to validate the findings of our experts.
The assumptions that are made to obtain the statistics and data elements are cross-checked by interviewing managers over F2F discussions as well as over phone calls.
Different members of the market’s value chain such as suppliers, distributors, vendors and end consumers are also approached to deliver an unbiased market picture. All the interviews are conducted across the globe. There is no language barrier due to our experienced and multi-lingual team of professionals. Interviews have the capability to offer critical insights about the market. Current business scenarios and future market expectations escalate the quality of our five-star rated market research reports. Our highly trained team use the primary research with Key Industry Participants (KIPs) for validating the market forecasts:
- Established market players
- Raw data suppliers
- Network participants such as distributors
- End consumers
The aims of doing primary research are:
- Verifying the collected data in terms of accuracy and reliability.
- To understand the ongoing market trends and to foresee the future market growth patterns.
Industry Analysis Matrix
| Qualitative analysis | Quantitative analysis |
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