Risk Analytics Market Report and Forecast 2024-2032

According to the report, The global risk analytics market size reached approximately USD 40.31 billion in 2023. Aided by the growing implementation of predictive risk management and the rising adoption of AI and IoT, the market is estimated to grow at a CAGR of 11.3% in the forecast period of 2024-2032, reaching a value of around USD 107.44 billion by 2032.

Risk analytics is the process of using data analytics and statistical techniques to identify, assess, and manage risks in various contexts, such as finance, business operations, cybersecurity, and more. It involves collecting and analysing data related to potential risks to understand their likelihood and potential impact. The insights gained from risk analytics are used to make informed decisions and develop strategies to mitigate or avoid risks.

The risk analytics market growth is propelled by the increasing complexity of business operations, the need for compliance with regulatory standards, and the rising incidence of cyber threats and data breaches. As businesses operate in an increasingly dynamic and uncertain environment, the demand for advanced risk analytics solutions that can provide real-time insights and predictive analysis is surging.

One of the key risk analytics market trends is the integration of artificial intelligence (AI) and machine learning (ML) technologies. These technologies enable more sophisticated and accurate risk analysis by processing large volumes of data and identifying patterns and anomalies that may indicate potential risks.

The adoption of cloud-based risk analytics solutions is another significant trend aiding the risk analytics market expansion. Cloud-based platforms offer scalability, flexibility, and cost-effectiveness, making risk analytics accessible to a broader range of businesses, including small and medium-sized enterprises (SMEs).

The financial services industry is a major driver of the risk analytics market, as banks, insurance companies, and investment firms rely heavily on risk analytics for credit risk assessment, fraud detection, and regulatory compliance. However, the application of risk analytics is expanding to other sectors such as healthcare, retail, manufacturing, and government, where managing operational, financial, and reputational risks is crucial.

The North America risk analytics market holds a substantial position owing to the presence of a mature financial sector, a strong focus on innovation, and stringent regulatory requirements. The United States is the largest contributor to the market in this region.

The Asia Pacific is expected to witness the highest growth rate during the forecast period. This growth can be attributed to the rapid digitalisation of industries, increasing awareness about risk management, and the rising adoption of advanced technologies in countries such as China, India, and Japan.

Europe is also a significant market for risk analytics, with a growing focus on regulatory compliance, particularly in the financial sector. Countries such as the United Kingdom, Germany, and France are leading the adoption of risk analytics solutions in the region.

The global risk analytics market is highly competitive, with a mix of established players and emerging startups. Key players in the market include IBM Corporation, SAP SE, Oracle Corporation, SAS Institute Inc., and Moody's Analytics, Inc. These companies are continuously innovating and expanding their product portfolios to meet the evolving needs of businesses in managing risks.

One of the challenges facing the risk analytics market is the complexity and volume of data that needs to be analysed. However, this also presents an opportunity for the development of more advanced and efficient analytics tools and algorithms.

The increasing emphasis on data privacy and security presents both a challenge and an opportunity for the risk analytics market. While there is a need to ensure the protection of sensitive information, there is also a growing demand for solutions that can help businesses comply with data protection regulations and mitigate the risks associated with data breaches.

Market Segmentation

The global risk analytics market can be divided based on component, enterprise size, mode of deployment, application, end use, and region.

Market Breakup by Component

• Solution
• Services

Market Breakup by Enterprise Size

• Large Enterprises
• Small and Medium Enterprises

Market Breakup by Mode of Deployment

• Cloud
• On-premises

Market Breakup by Application

• Strategic Risks
• Financial Risks
• Operational Risks
• Others

Market Breakup by End Use

• BFSI
• IT and Telecom
• Retail
• Healthcare
• Energy and Utilities
• Manufacturing
• Government and Defence
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global risk analytics market. Some of the major players explored in the report are as follows:

• SAP SE
• Oracle Corporation
• IBM Corporation
• SAS Institute Inc.
• Provenir Group
• Risk Edge Solutions
• OneSpan Inc.
• Fidelity National Information Services, Inc.
• AcadiaSoft, Inc.
• Verisk Analytics, Inc.
• Others