Third-party Risk Management Global Market Report 2024

The third-party risk management market size has grown rapidly in recent years. It will grow from $5.18 billion in 2023 to $6.08 billion in 2024 at a compound annual growth rate (CAGR) of 17.3%. The growth witnessed in the historic period was influenced by various factors including data breaches and incidents, the globalization of business operations, the evolution of business models, past failures in risk management, a rise in outsourcing practices, and escalating concerns regarding data privacy. These elements collectively contributed to the growth observed during that time frame.

The third-party risk management market size is expected to see rapid growth in the next few years. It will grow to $11.34 billion in 2028 at a compound annual growth rate (CAGR) of 16.9%. The anticipated growth in the forecast period is expected to result from several factors, including the increased prevalence of cyber threats, the continued globalization of businesses, complexities within supply chains, challenges associated with remote work setups, a growing demand for AI-driven solutions, and shifts in consumer expectations.

The rise in cyber-attacks and frauds drives the expansion of the third-party risk management market. With increasing interconnectivity, cyber threats have surged, necessitating robust risk management strategies. Statistics from Positive Technologies indicate a 17% rise in cyber-attacks in Q1 2021, while Forbes reported a 15.1% increase in data breaches and cyber-attacks in 2021. This escalating threat landscape emphasizes the importance of third-party risk management to combat cyber risks and fraud.

The third-party risk management market anticipates growth with the rising automation industry. Automation supports risk assessment, monitoring, and mitigation concerning external partnerships. Approximately 76% of organizations use automation for workflow automation, while 36% use it for compliance, as reported by Formstack. This surge in automation adoption drives the third-party risk management market. For instance, in December 2023, according to Formstack, a US-based software company, 76% of organizations use automation to automate their daily workflows, automating data and reporting for planning purposes is used by 58%, and compliance with regulations is used by 36% of firms. Therefore, the rising automation industry is driving the growth of the third-party risk management market.


Technological advancements underscore a pivotal trend within the third-party risk management market. Notably, companies in this sector prioritize the development of novel technologies to address consumer demands and strengthen their market foothold. For instance, AuditBoard launched an advanced third-party risk management solution in August 2022. This cloud-based integrated risk platform streamlines third-party risk assessment, monitoring, and remediation for information security, compliance, and risk teams. The solution's automated and collaborative features enable efficient and comprehensive third-party risk management, saving time and expanding capabilities.

Leading entities in the third-party risk management domain focus on introducing cutting-edge solutions such as cybersecurity platforms to secure a competitive advantage. Trend Micro Inc.'s April 2023 release of Trend Micro One exemplifies this trend. This unified cybersecurity platform empowers organizations to prepare for and respond effectively to threats. Trend Micro One integrates risk assessment, cyber risk management, and extended detection and response (XDR) capabilities, facilitating comprehensive security measures, seamless integration with third-party providers, and expert cybersecurity services for enhanced protection and resilience against evolving threats.

In September 2022, BitSight Technologies, a US-based cybersecurity ratings company, concluded the acquisition of ThirdPartyTrust, a platform specializing in third-party risk management (TPRM). This undisclosed acquisition significantly expands BitSight's TPRM tool offerings, allowing global vendor risk management teams to access a comprehensive end-to-end third-party risk management solution, strengthening BitSight's position in the cybersecurity landscape.

Major companies operating in the third-party risk management market report are Deloitte LLP, PricewaterhouseCoopers, Ernst & Young LLP, KPMG International Limited, Genpact Ltd., Optiv Security Inc., Dun & Bradstreet, One Trust LLC, MetricStream Inc., MetricStream, NAVEX Global Inc., Galvanize, RSA Archer, Resolver Inc., Venminder Inc., Rsam, Aravo Solutions Inc., ProcessUnity, Rapid Ratings International Inc., BitSight Technologies, Prevalent Inc., Prevalent, LogicGate, CyberGRX, Riskpro India Ventures Pvt Limited, RiskIQ, SAI Global Pty Limited, RiskRecon Inc., Lockpath, Compliance 360, ControlCase, Riskonnect, CyberSaint Security, SureCloud, Quantivate, Tenable, CyberArk, UpGuard, Securiti.AI.

North America was the largest region in the third party risk management market in 2023. The regions covered in the third-party risk management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the third-party risk management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The key components revolve around solutions and services. Solutions refer to methods employed to handle challenges or resolve issues. These encompass financial control management, contract management, operational risk management, audit management, and compliance management as approaches within third-party risk management. These solutions are deployed through cloud-based or on-premises systems, catering to both small and medium-sized enterprises along with large enterprises. Industries such as banking, financial services, insurance, IT and telecom, healthcare and life sciences, government, aerospace and defense, retail and consumer goods, manufacturing, energy and power, among others, utilize these third-party risk management solutions.

The third-party risk management market research report is one of a series of new reports that provides third-party risk management market statistics, including third-party risk management industry global market size, regional shares, competitors with a third-party risk management market share, detailed third-party risk management market segments, market trends and opportunities, and any further data you may need to thrive in the third-party risk management industry. This third-party risk management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The third-party risk management market includes revenues earned by entities by providing cyber risk assistance, privacy services, information security, financial crime and reputational, operational risk services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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