Vendor Risk Management

Global Vendor Risk Management Market to Reach US$22.3 Billion by 2030

The global market for Vendor Risk Management estimated at US$10.4 Billion in the year 2024, is expected to reach US$22.3 Billion by 2030, growing at a CAGR of 13.5% over the analysis period 2024-2030. Financial Control, one of the segments analyzed in the report, is expected to record a 14.7% CAGR and reach US$5.8 Billion by the end of the analysis period. Growth in the Compliance Management segment is estimated at 14.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.7 Billion While China is Forecast to Grow at 17.9% CAGR

The Vendor Risk Management market in the U.S. is estimated at US$2.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.3 Billion by the year 2030 trailing a CAGR of 17.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 9.9% and 10.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.4% CAGR.

Global Vendor Risk Management Market - Key Trends & Drivers Summarized

Why Is Vendor Risk Management Gaining Importance in Today`s Business Landscape?

Vendor risk management (VRM) has become increasingly important in today’s business landscape as organizations rely more heavily on third-party vendors for critical operations and services. The growing complexity of supply chains, coupled with the heightened focus on regulatory compliance and cybersecurity, has made managing vendor-related risks a top priority for businesses across all sectors. Effective VRM strategies help organizations identify, assess, and mitigate risks associated with their vendors, including financial, operational, reputational, and security risks. As businesses seek to protect themselves from potential disruptions, data breaches, and compliance violations, the adoption of robust VRM solutions is on the rise, driving significant growth in this market.

How Are Technological Advancements Impacting Vendor Risk Management?

Technological advancements are playing a crucial role in enhancing the capabilities of vendor risk management solutions, making them more effective and comprehensive. The integration of artificial intelligence (AI) and machine learning (ML) into VRM platforms is enabling more sophisticated risk assessment and predictive analytics, allowing organizations to proactively identify and address potential vendor risks before they materialize. The use of cloud-based VRM solutions is also increasing, providing businesses with greater scalability, accessibility, and real-time monitoring capabilities. Additionally, advancements in data analytics and reporting tools are enabling more granular and accurate risk assessments, helping organizations make more informed decisions regarding their vendor relationships. These technological innovations are driving the adoption of VRM solutions, as they offer enhanced risk management and compliance capabilities in an increasingly complex and interconnected business environment.

What Are the Emerging Trends in Vendor Risk Management?

The vendor risk management market is witnessing several emerging trends that are shaping its future. One significant trend is the increasing focus on cybersecurity risk management, as businesses become more aware of the risks associated with data breaches and cyberattacks linked to third-party vendors. Another trend is the growing use of continuous monitoring tools, which provide real-time insights into vendor performance and risk levels, enabling organizations to respond more quickly to potential issues. The market is also seeing a rise in the adoption of automated VRM solutions that streamline the risk assessment process, reduce manual effort, and improve overall efficiency. Additionally, there is a growing emphasis on regulatory compliance, with VRM solutions being used to ensure that vendors adhere to relevant laws and standards, particularly in highly regulated industries such as finance, healthcare, and manufacturing. Furthermore, the integration of blockchain technology in VRM is emerging as a trend, offering enhanced transparency, security, and traceability in vendor transactions.

What Factors Are Driving the Growth of the Vendor Risk Management Market?

The growth in the vendor risk management market is driven by several factors, including the increasing reliance on third-party vendors, which has raised concerns about potential risks and vulnerabilities. The growing complexity of global supply chains, driven by globalization and outsourcing, is also fueling demand for VRM solutions, as businesses seek to manage the risks associated with their extended vendor networks. Additionally, the rising incidence of data breaches and cyberattacks, particularly those involving third-party vendors, is prompting organizations to invest in more robust VRM strategies. The continuous advancements in technology, including AI, ML, and cloud computing, are expanding the capabilities of VRM solutions, making them more effective and accessible to a wider range of organizations. The growing emphasis on regulatory compliance, driven by increasingly stringent laws and standards, is further boosting demand for VRM, as businesses seek to avoid costly penalties and reputational damage. Moreover, the rising awareness of the importance of proactive risk management in protecting business continuity and reputation is contributing to the market`s expansion.

SCOPE OF STUDY:

The report analyzes the Vendor Risk Management market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Solution (Financial Control, Compliance Management, Contract Management, Quality Assurance Management, Vendor Information Management, Audit Management); Deployment (Cloud, On-Premise); End-Use (Manufacturing, Retail & Consumer Goods, IT & Telecom, Energy & Utilities, Government, Healthcare, BFSI, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 41 Featured) -

• Bitsight Technologies, Inc.
• Genpact
• IBM Corporation
• Lockpath, Inc.
• MetricStream Inc.
• Nasdaq BWise
• Optiv Security, Inc.
• Quantivate, LLC
• Rapid Ratings International Inc.
• Resolver Inc.
• Rsa Security LLC
• Rsam
• SAI Global Pty Limited

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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