Third Party Risk Management Market Size - By Component (Solution, Services), Application (Supply Chain Management, IT & Cybersecurity, Financial Services, BPO), Industry, Growth Prospects, Regional Outlook & Global Forecast, 2024 - 2032

Third Party Risk Management Market Size - By Component (Solution, Services), Application (Supply Chain Management, IT & Cybersecurity, Financial Services, BPO), Industry, Growth Prospects, Regional Outlook & Global Forecast, 2024 - 2032

Global Third-Party Risk Management Market is expected to witness a CAGR of over 15% during 2024-2032, driven by increasing cybersecurity threats, regulatory compliance requirements, and the growing complexity of supply chains.

According to IBM Security X-Force 2023, global cybersecurity vulnerabilities surged in 2022, with tracked incidents rising from 21,518 in 2021 to 23,964. The escalating cybersecurity threats and data breaches have propelled the demand for robust third-party risk management solutions. Organizations are increasingly relying on third-party vendors, suppliers, and partners to support their operations, making them vulnerable to security risks and compliance violations. The need to mitigate these risks and ensure regulatory compliance is fueling the market growth.

The overall third-party risk management industry is classified based on component, application, industry, and region.

Supply chain management segment is anticipated to grow significantly through 2032, as the sector is becoming complex and interconnected, with multiple third-party entities involved in the procurement, manufacturing, and distribution processes. Any disruption or security breach within the supply chain can have significant repercussions on business operations and reputation. Third-party risk management solutions aid in identifying, assessing, and mitigating supply chain risks, ensuring business continuity and driving segment growth.

Services segment is poised to showcase a decent growth trajectory during the study period, offering a range of consulting, implementation, and managed services to help organizations effectively manage third-party risks. Consulting services provide strategic guidance and risk assessment to identify vulnerabilities and develop risk management strategies. Implementation services assist organizations in deploying and integrating third-party risk management solutions into their existing systems and processes. Managed services offer ongoing monitoring, analysis, and remediation of third-party risks, enabling organizations to stay proactive and responsive to evolving threats.

Asia Pacific is expected to emerge as a prominent avenue in third-party risk management market by 2032, driven by factors such as the rapid digitization of business operations, increasing regulatory scrutiny, and the growing awareness of cybersecurity risks. Countries like China, India, and Japan are witnessing a surge in demand for third-party risk management solutions, particularly among large enterprises and multinational corporations. Moreover, the rise of cloud computing, IoT, and digital tech has increased the urgency for robust risk management, thereby inducing industry growth. Show more