Global eGRC market will reach USD 68.63 billion by 2025

The global eGRC market was valued at USD 31.27 billion in the year 2019 and is estimated to reach USD 35.64 billion by the year 2020.

It is expected to grow at the CAGR of 14.1% within the time horizon of 2020-2025 because of growing market for AI and blockchain technology, increasing volumes of digital data, increasing risk of data breaches, and increase in stringent compliance mandates.

Its market value will reach USD 68.63 billion by the end of the year 2025.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Trends
Industry Challenges
Technology Trends
Pricing Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

The Enterprise governance, risk, and compliance system is designed to evaluate, forecast, and safeguard the business entities from the impact of financial risks, and helps in risk management and compliance with different governmental rules and regulations.

It provides strong support to the organizations by assisting them in tackling the broad issues of risk management, efficient corporate compliance, and corporate governance. Along with this, it also helps the business entities in the sector of financial reporting, tax, information technology, anti-fraud, financial advisory, and human capital services

The enterprise governance, risk, and compliance market is concerned with the development of effective monitoring and management system for assessment of the external and internal business environment. Based on the vertical insights and components, the global enterprise governance, risk, and compliance market is categorized into the following categories.

Market Overview

The total market size of the global enterprise governance, risk, and compliance market is valued at USD 31.27 billion in the year 2019 and is expected to reach USD 35.64 billion in the year 2020. Its market value is expected to grow at a CAGR of 14.1% within the forecasted time horizon of 2020-2025. Its market value is expected to reach USD 68.63 billion by the end of the year 2025.

Based on geography, the North American region is leading the global market with a market share of almost 40% of the total global enterprise governance, risk, and compliance market. The market size of this region is valued at USD 12.5 billion in the year 2019 because of the higher adoption of big data, IoT, and cloud software technologies in this region.

Based on vertical insights, the BFSI segment is leading the market with a market share of almost 20.27% of the total enterprise governance, risk, and compliance market. The market size of this segment is valued at USD 6.34 billion in the year 2019.

Based on the type of components, the software segment is leading the market with a market share of almost 64% of the total enterprise governance, risk, and compliance market. The market size of this segment is valued at USD 20.01 billion in the year 2019.

Based on the enterprise type, the large enterprise is leading the market with a market share of almost 21% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 67.15 billion in the year 2019.

The growing market for AI and blockchain technology, increasing volumes of digital data, increasing risk of data breaches, and an increase in stringent compliance mandates are the factors responsible for the growth and development of the global enterprise governance, risk, and compliance market.

However, varying structure & policies of regulatory authorities and high cost of development of the governance, risk, and compliance software might restrain the growth and development of this market. The key market players engaged in the operation of its market are SAP SE, Metric Stream Inc, Thomson Reuters, Wolters Kluwer, IBM, Microsoft, Oracle, SAS institute, Dell EMC, and NAVEX Global.

Market Risks

Varying & changing the structure of regulatory authorities and their policies

Globally, the regulatory policies differ following the countries and businesses. Along with this, the governmental authorities and structures assigning and developing the regulations are also different and they have a different way of regulation and execution.

For instance, the regulations for cybersecurity in China and the United States. In some of the countries, the clear standard to follow the regulations, and regulatory structure is missing, which will create difficulties for the execution of eGRC services. So, the varying regulatory authorities might restrain the growth and development of the global enterprise governance, risk, and compliance market.

Top Market Opportunities

Growing market for AI and blockchain technology

Globally, the market for artificial intelligence technologies is expected to grow at a CAGR of 43.39% within the forecasted time horizon of 2020-2025. The market size of the global artificial intelligence market is valued at USD 28.42 billion in the year 2019 and is expected to reach USD 99.94 billion by the end of the year 2023.

Along with this, the global market for blockchain technology is expected to grow at a CAGR of 42.8% within the forecasted time horizon of 2020-2025. Most of the companies are using the AI-powered solutions to identify the risk, analyze the huge amount of data, and meet different regulatory and compliance requirements.

AI technology and blockchain technology are integrated to automate enterprise governance, risk, and compliance services. So, the growing market for AI and blockchain technology will create a significant opportunity for the growth and development of the global enterprise governance, risk, and compliance market.

Increasing volumes of digital data

Globally, most organizations maintain their data in digital form because of advancements in science and technology. The volume of digital data is also is in increasing trend. It has been expected that the entire digital universe will reach 44 zettabytes by the end of the year 2020, increased from 33 zettabytes in the year 2018. It has also been expected that the digital data sphere will reach 175 zettabytes by the end of the year 2025.

The global creation of digital data will reach 463 exabytes each day by the end of the year 2025. This increasing volume of the data will require the continuous need for monitoring, analysis, and assurance of ensuring adequate data security and privacy protection.

The increasing volume of digital data will create a significant opportunity for the growth and development of the global enterprise governance, risk, and compliance market.

Market Trends

Increasing the risk of data breaches

A data breach is an event in which unauthorized viewers access the protected data. Globally, the number of data breaches is in increasing trend. According to Risk Based Security, more than 3,800 data breaches occurred in the year 2019, which is increased by almost 50% over the past four years.

Here, almost 89% of the breaches are occurred due to the outside attacks despite the rising concerns of the cybersecurity community. In the first six months of the year 2019, the incident of data breaches has exposed 4.1 billion records.

Because of this, cyber-attacks are considered to be one of the top five risks to global stability. The increased risk of the data breaches is driving the growth and development of the global enterprise governance, risk, and compliance market.

Increase in stringent compliance mandates

Globally, the number of mandatory government regulations is increasing and the environment for its compliance is getting complex. For instance, some of the regulations are Sarbanes-Oxley Act, The General Data Protection Regulation, The Payment Card Industry Data Security Standard, Health Insurance Portability and Accountability Act, The Federal Information Security Management Act, etc.

Here, the failure of the organization and business entities to comply with these mandatory regulations can result in huge business losses and should pay the penalties.

For instance, there was the corporate crisis of United Airlines, Nestle, Sony, Facebook, KFC, etc due to non-compliance with the business policies. Google was fined with USD 57 million in France for non-compliance with General Data Protection Regulation.

The complex governmental regulatory environment and necessity of mandatory compliance towards the regulations will create demand for eGRC solutions, which will ultimately drive the growth and development of the global enterprise governance, risk, and compliance market.

High cost of enterprise governance, risk and compliance software

The cost of the development of enterprise governance, risk, and compliance software is quite high. The average cost of the governance, risk, and compliance software ranges from USD 200,000 to USD 600,000 per unit. Along with this, the average cost of the maintenance, training, and support of enterprise governance, risk, and compliance software ranges from USD 11,815.79 to USD 70,894.74.

The high cost of the development, installation, support, and maintenance of the enterprise governance, risk, and compliance might restrain the growth and development of the enterprise governance, risk, and compliance market.

Industry Challenges

Difficulty in the development of comprehensive eGRC solutions

Globally, most of the organizations are delivering services to a wide range of industries such as healthcare, insurance, retail, etc. They usually need multiple solutions including risk management, mandates, and compliances to match the requirement of each business segment.

Here, the governmental regulations for each business segment are different. So, it is quite challenging for the market players engaged in the enterprise governance, risk, and compliance market to develop integrated solutions to meet the customer requirements.

Technology Trends

The adoption of new and advanced technologies is creating a favorable environment for the growth and development of the global enterprise governance, risk, and compliance market. For instance, artificial intelligence uses the machines to think similar to humans and mimic their actions.

It is used to identify, and monitor cyberattacks, and assure the compliance towards the regulatory frameworks in enterprise governance, risk, and compliance system. However, advancement in technology might restrain its market too.

For instance, increasing the use of blockchain technology will provide strong security for the digital data with a high level of accessibility, which will negatively impact the demand for the enterprise governance, risk, and compliance software.

Pricing Trends

The price of the enterprise governance, risk, and compliance software depends upon the type of product, components, application, size of the organization, and technology type. The average global cost of the development of enterprise governance, risk, and compliance software ranges from USD 200,000 to USD 600,000 per unit.

Along with this, the average global cost of the maintenance, training, and support of enterprise governance, risk, and compliance software ranges from USD 11,815.79 to USD 70,894.74.

Market Size and Forecast

The total market size of the global enterprise governance, risk, and compliance market is valued at USD 31.27 billion in the year 2019 and is expected to reach USD 35.64 billion in the year 2020.

Its market value is expected to grow at a CAGR of 14.1% within the forecasted time horizon of 2020-2025. Its market value is expected to reach USD 68.63 billion by the end of the year 2025.

Based on geography

The North American region is leading the global market with a market share of almost 40% of the total global enterprise governance, risk, and compliance market. The market size of this region is valued at USD 12.5 billion in the year 2019 because of the higher adoption of big data, IoT, and cloud software technologies in this region.
The European region accounts for a market share of almost 30% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 9.38 billion in the year 2019.
The Asia Pacific region accounts for a market share of almost 20% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 6.25 billion in the year 2019.
ROW stands for the rest of the world, which consists of the Middle East African and South American regions. This segment accounts for a market share of almost 10% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 3.12 billion in the year 2019.

Based on vertical insights

The BFSI segment is leading the market with a market share of almost 20.27% of the total global enterprise governance, risk, and compliance market. The market size of this segment is valued at USD 6.34 billion in the year 2019.
The government segment accounts for a market share of almost 12.5% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 3.9 billion in the year 2019.
The healthcare segment accounts for a market share of almost 15.83% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 4.95 billion in the year 2019.
The energy & utility segment accounts for a market share of almost % of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 3.03 billion in the year 2019.
The telecom & IT segment accounts for a market share of almost 11.66% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 3.64 billion in the year 2019.

Based on the type of components

The software segment is leading the market with a market share of almost 64% of the total enterprise governance, risk, and compliance market. The market size of this segment is valued at USD 20.01 billion in the year 2019.
The services segment accounts for a market share of almost 36% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 11.25 billion in the year 2019.

Based on the enterprise type

The large enterprise is leading the market with a market share of almost 21% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 67.15 billion in the year 2019.
The SME segment accounts for a market share of almost 32.84% of the global enterprise governance, risk, and compliance market. The market size of the global enterprise governance, risk, and compliance market is valued at USD 10.27 billion in the year 2019.

Market Outlook

The global enterprise governance, risk, and compliance market are expected to grow at the CAGR of 14.1% within the forecasted period of 2020-2025 because of the growing market for AI and blockchain technology, increasing volumes of digital data, increasing risk of data breaches, and increase in stringent compliance mandates. Its market value will reach USD 68.63 billion by the end of the year 2025.

Technology Roadmap

The new technological changes such as the artificial intelligence adopted in this global enterprise governance, risk, and compliance market are increasing the operational efficiency and effectiveness of the system and driving the growth and development of this market.

However, the adoption of the advanced cybersecurity system might negatively influence the growth and development of this market.

Distribution Chain Analysis

The key stakeholders involved in the operation of this global enterprise governance, risk, and compliance market are software developers, distributors, retail & online sales, and end-users. At first, software for the enterprise governance, risk, and compliance system are developed and are available through the online and offline sales to the end-users. The major end-users of the global enterprise governance, risk, and compliance market are BFSI, government, healthcare, energy & utilities, and telecom & IT.

Competitive Landscape

The major market players engaged in the operation of this global enterprise governance, risk, and compliance market are SAP SE, Metric Stream Inc, Thomson Reuters, Wolters Kluwer, IBM, Oracle, and Others.

Here, Oracle is leading the market with a market share of almost 20% of the total global enterprise governance, risk, and compliance market. It is followed by SAP (19%), Metric Stream (13%), Wolters Kluwer (12%), IBM (11%), Dell (7%), and Others.

Competitive Factors

The key market players engaged in this market are competing for the product portfolio expansion, high investment in research and development activities, mergers & acquisitions, geographical expansion, and collaborations.

For instance, IBM collaborated with Thomson Reuters to deal with the increasing regulatory requirements in the year 2019. SAP SE collaborated with Accenture to develop the advanced SAP cloud for utilities. Along with this, in terms of new product innovation, Oracle has introduced an AI-based risk management cloud to increase the security level and fraud monitoring.

Key Market Players

The key market players engaged in the operation of its market are SAP SE, Metric Stream Inc, Thomson Reuters, Wolters Kluwer, IBM, Microsoft, Oracle, SAS institute, Dell EMC, and NAVEX Global. Short profile of the key market players engaged in the global enterprise governance, risk, and compliance market are discussed as follows:

IBM: It is the US-based multinational company engaged in the production and sales of computer hardware, middleware, and software. Along with this, it provides the hosting and consulting services in the sector of mainframe computers and nanotechnology. The revenue of this company is valued at USD 77.14 billion in the year 2019.

Microsoft: It is the US-based multinational company engaged in the development, manufacture, and sale of computer software, consumer electronics, personal computers, and other services. The revenue of this company is valued at USD 143 billion.

Oracle: It is the US-based multinational corporation engaged in the sale of database software & technology; cloud engineered systems, and enterprise software products. In the year 2019, this company was the second-largest software company in terms of revenue and market capitalization. The revenue of this company is valued at USD 39.5 billion in the year 2019.

SAP: It is the Germany-based multinational corporation engaged in the development of the enterprise software for the management of the business operations and customer relations. It is operating in more than 180 countries all over the world.

Thomson Reuters: This is the Canada-based multinational corporation engaged in the development of the transaction tax management software applications and other related services.

Wolters Kluwer: It is the Netherlands-based company engaged in the development of the software for health, corporate services, finance, tax, accounting, law & regulatory, and other sectors. It is operating in more than 150 countries all over the world.

SAS Institute: It is the US-based multinational company engaged in the development of the analytics software. Its major products are SAS software, SAS language, and JMP.

Dell EMC: It is the US-based multinational company engaged in the sale of products related to data storage, information security, virtualization analytics, cloud computing, and others.

Strategic Conclusion

However, varying structure & policies of regulatory authorities and high cost of development of the governance, risk, and compliance software might restrain the growth and development of this market.

References

Appendix

AI= Artificial Intelligence
SAP= Systems, Applications, and Products in Data Processing
SAS= Statistical Analysis System
USD= United States Dollar
CAGR= Compound Annual Growth Rate