Risk Analytics Market

Market outlook: 

The global risk analytics market is poised for robust growth, with a projected increase from USD 37.5 billion in 2023 to USD 90 billion by 2032, reflecting a compound annual growth rate (CAGR) of approximately 16.5%. This expansion occurs amid the complexity of business operations in various industries, which require risk management solutions. The primary factor driving the market growth is the increasing adoption of big data analytics, artificial intelligence, and machine learning technologies to effectively mitigate operational risks. Additionally, the demand for continuous risk assessment capabilities and predictive analytics tools is expected to drive the market growth. North America and Europe are expected to dominate the market due to the use of advanced technologies and regulatory framework. At the same time, Asia Pacific offers significant growth opportunities, driven by rapid digital transformation and increased investment in risk management solutions. Overall, the risk analytics market is growing due to technological advancements and increased understanding of risk management strategies in various industries across the globe.

Risk Analytics Market

Size, by Product, - (USD Billion)

Software

Services

Other Products

The Market will Grow

At the CAGR of:

16.5%

The Forecast Market

Size for in USD:

$90 billion

Key players:

1. IBM Corporation

2. SAS Institute Inc.

3. Oracle Corporation

4. SAP SE

5. FICO (Fair Isaac Corporation)

6. Moody's Analytics Inc.

7. Verisk Analytics, Inc.

8. Thomson Reuters Corporation

9. Aon plc

10. Marsh & McLennan Companies, Inc.

11. Deloitte Touche Tohmatsu Limited

12. PwC (PricewaterhouseCoopers)

13. EY (Ernst & Young)

14. KPMG International Cooperative

15. Risk Management Solutions, Inc. (RMS)

16. Palantir Technologies Inc.

17. Experian Information Solutions, Inc.

18. Wolters Kluwer N.V.

19. Quantitative Risk Management, Inc. (QRM)

20. FactSet Research Systems Inc.

Recent Developments:

MADRID, June 18, 2024 - Telefónica Tech and IBM announced a new collaboration agreement to drive the deployment of Artificial Intelligence (AI), analytics and data governance solutions and respond to the constant and dynamically evolving needs of enterprises. The agreement, initially limited to Spain, establishes a framework of collaboration between the two companies to help their customers deal with the complexity of managing new technologies in a heterogeneous and changing environment and to extract the full value of these technologies in their business processes.

Cary, NC Jun 20, 2024 iGA Istanbul Airport’s revenue increases after adopting SAS Customer Intelligence 360: Airports are busier than ever, and travelers report that flying is more stressful than going to the dentist. iGA Istanbul Airport, one of the largest airports in the world, constantly seeks innovative ways to improve the airport experience. Using SAS® Customer Intelligence 360, the airport has transformed its mobile app to provide timely, highly personalized communication and offers that optimize travelers’ visits.

Risk Analytics Market

Share, by end user, (USD Billion)

37.5 billion%

Banking, Financial Services, and Insurance

Healthcare

IT and Telecommunications

Retail and E-commerce

Other End-Users

90 billion

Total Market Size

USD (Billion),

16.5%

CAGR

-

Market segmentation:

By Type:

Software: Includes risk analytics platforms and solutions that organizations use to analyze and manage various types of risks using advanced algorithms and data analytics.

Services: Encompasses consulting, integration, and support services provided by companies to assist organizations in implementing and optimizing risk analytics solutions.

By Application:

Credit Risk Management: Involves assessing the creditworthiness of individuals or entities to manage lending risks effectively.

Fraud Detection and Prevention: Focuses on identifying, analyzing, and mitigating fraudulent activities across different sectors.

Market Risk Management: Deals with monitoring and managing risks arising from market fluctuations such as interest rates, exchange rates, and commodity prices.

Operational Risk Management: Addresses risks related to internal processes, systems, and human factors within an organization.

Insurance Risk Management: Involves analyzing and managing risks specific to the insurance industry, including underwriting risks and claims management.

Supply Chain Risk Management: Focuses on identifying and mitigating risks within supply chain operations to ensure continuity and efficiency.

Others: Includes risk analytics applications in sectors such as healthcare (patient safety), cybersecurity (threat detection), and regulatory compliance (compliance risk assessment).

By End User:

Banking, Financial Services, and Insurance (BFSI): Significant users of risk analytics for regulatory compliance, credit risk management, and fraud detection.

Healthcare: Utilizes risk analytics for patient safety initiatives and healthcare operational efficiency.

IT and Telecommunications: Manages cybersecurity risks and operational efficiencies using advanced analytics.

Retail and E-commerce: Uses risk analytics for fraud prevention, supply chain optimization, and customer data security.

Risk Analytics Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

16.5%

The Forecast Market

Size for in USD:

$90 billion

Regional Analysis:

North America is the dominant region:

North America is the dominant region in the global risk analytics market. With a strong technology landscape and early adoption of advanced analytics solutions, North America is leading the way in deploying artificial intelligence, machine learning and big data technologies for end-to-end risk management across sectors. The region's strict regulatory environment, particularly in sectors such as finance and healthcare, increases the demand for advanced risk analysis tools to ensure compliance and operational efficiency.

Major global players and technology giants based in North America are further strengthening their leadership and contributing to the development and implementation of state-of-the-art risk management solutions. In addition, significant investments in digital infrastructure and research projects will improve the region's ability to innovate and implement effective risk management strategies. As a result, North America continues to set the benchmark for risk analysis, influence market trends and shape the future of risk management practices worldwide.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants in the risk analytics market is moderate. While significant barriers such as large initial capital investments in technology infrastructure, expertise in data analysis and strict regulatory requirements prevent new entrants from emerging, the lure of high growth potential stemming from increasing demand for advanced risk management solutions can attract technology start-ups and existing companies to diversify to analysis.

Bargaining power of suppliers: Bargaining power of suppliers in the risk analytics market is low. The market is characterized by many software vendors, consulting firms and technology service providers offering a wide range of solutions. This variety allows buyers to negotiate prices, service terms and customization options, reducing supplier influence.

Bargaining Power of Buyers: Buyers have significant bargaining power in the risk analysis market. Organizations in the banking, healthcare and manufacturing industries have a wide variety of vendors that offer risk analysis software and services. Buyers can demand customized solutions, competitive pricing and added value in the form of knowledge and support that influence market dynamics.

Threat of Substitute Products or Services: The threat of substitute products for risk analysis software and services is relatively low to moderate. Traditional risk management methods, including manual processes and legacy systems, still exist, but are increasingly being replaced by more sophisticated analytical solutions. The efficiency, accuracy, and scalability of stand-alone risk assessment software present significant barriers to replacement programs, although advances in technology and evolving regulatory requirements may affect these dynamics.

Industry Competition: Competition in the risk analytics market is fierce, indicating intense competition in the industry. Many incumbents, including global technology giants and specialized analytics firms, compete on the basis of technological innovation, service differentiation, domain expertise and geographic reach. Continued innovation in artificial intelligence, machine learning and predictive analytics will increase competition as companies strive to deliver superior solutions that meet changing customer needs and regulatory challenges.

Key Benefits to Stakeholders:

• Risk Analytics Market analysis includes in-depth information on major industry players.

• Porter's five forces analysis helps to analyze the potential of buyers and suppliers and the competitive situation of the industry in strategy formulation.

• The report includes an in-depth analysis of the Risk Analytics Market forecast from 2024 to 2032.

• The report highlights the current global chlorine dioxide trends and the future scenario of the Risk Analytics Market from 2024 to 2032 to understand prevailing opportunities and potential investment pockets.

• Key drivers, restraints, and opportunities along with their detailed impact analysis are explained in the Risk Analytics Market study.

Key Market Drivers:

Regulatory Compliance: Increasingly stringent regulatory requirements across industries such as banking, healthcare and insurance increase the demand for robust risk analysis solutions that ensure compliance and mitigate regulatory risks.

Data explosion: The explosion of volumes and types of data requires advanced analytical tools to gain actionable insights and improve decision-making processes.

Growing Cyber ​​Threats: Increasing cybersecurity threats are forcing organizations to invest in advanced risk analytics to detect, prevent, and mitigate threats to sensitive data and operations.

Operational efficiency: Companies aim to improve their operational efficiency by using risk analysis to optimize processes, reduce costs and improve overall organizational performance.

Market Volatility: Increased volatility in financial markets and global supply chains increases the need for effective market and supply chain risk management strategies supported by predictive analysis and scenario planning.

Developments in the insurance industry: insurance companies are adopting risk analysis to refine underwriting processes, estimate losses more accurately and manage the risks inherent in their operations, which promotes innovation and competitiveness.

Key Trends:

Integrating Artificial Intelligence and Machine Learning: The use of artificial intelligence (AI) and machine learning (ML) algorithms is increasing to improve predictive analytics, automate risk assessment processes and improve decision-making accuracy.

Real-time risk monitoring: Move to real-time monitoring and analysis to quickly identify and respond to emerging risks, enabling proactive risk management strategies.

Cloud-based solutions: Cloud-based risk analysis solutions are becoming increasingly popular due to their scalability, accessibility and cost-effectiveness, which facilitates seamless integration with existing IT infrastructure.

Convergence of data sources: Integrating different data sources (structured and unstructured data, IoT data, social media analytics) to get a holistic view of risks and opportunities, enabling a comprehensive risk assessment.

Cyber ​​Security Focus: Greater focus on cybersecurity risk analysis to combat evolving cyber threats, including ransomware, data breaches and insider threats, using advanced analytics to detect and prevent threats.

Regulatory Technology (RegTech): RegTech solutions that leverage risk analysis to streamline compliance processes, increase transparency and effectively reduce compliance risks.

Predictive and predictive analytics: Move to predictive and predictive analytics to predict future risks, simulate scenarios and recommend proactive risk management strategies based on data led.

Risk Analytics Market TO (USD BN)

CAGR OF

16.5%

Risk Analytics Market

90 billion%

Key Opportunities:

Expansion in Emerging Markets: Diffusion of risk analytics solutions in emerging markets in Asia Pacific, Latin America and Africa due to rapid digital transformation, increasing regulatory scrutiny and increased awareness of risk management practices.

Integration with IoT and Big Data: Using data generated by IoT and big data analysis to improve risk analysis capabilities in sectors such as manufacturing, transportation and smart cities, enabling proactive risk mitigation and operational efficiencies.

Cybersecurity Risk Management: Growing demand for advanced cybersecurity risk analysis solutions to combat evolving cyber threats, including AI-based threat detection, vulnerability assessment and incident management.

Healthcare analytics: Capabilities for healthcare risk analytics, including patient safety monitoring, disease predictive analytics, healthcare fraud detection and clinical workflow optimization.

Supply Chain Resilience: Greater focus on supply chain risk management solutions that can address disruptions, improve visibility, optimize inventory and ensure business continuity across global supply chains.

Frequently Asked Questions (FAQ’s):

1.What is the current Risk Analytics Market size?

The global risk analytics market is poised for robust growth, with a projected increase from USD 37.5 billion in 2023 to USD 90 billion by 2032.

2.Which is the fastest growing region in Risk Analytics Market?

North America is estimated to grow at the highest CAGR over the forecast period (2024-2032).

3.Which region has the biggest share in Risk Analytics Market?

In 2024, the North America accounts for the largest market share in Risk Analytics Market.

4.What are the opportunities in Risk Analytics Market?

Expansion in Emerging Markets, Integration with IoT and Big Data, Cybersecurity Risk Management Healthcare analytics and Supply Chain Resilience are good opportunities in Risk Analytics Market.