Global Vendor Risk Management Market Report 2024

The vendor risk management market size has grown rapidly in recent years. It will grow from $7.29 billion in 2023 to $8.27 billion in 2024 at a compound annual growth rate (CAGR) of 13.4%. The rise in the historic period can be credited to the advent of VRM solutions, notable data breaches, intricate supply chains, regulatory mandates, and the imperative for expeditious transactions.

The vendor risk management market size is expected to see rapid growth in the next few years. It will grow to $13.84 billion in 2028 at a compound annual growth rate (CAGR) of 13.7%. The surge anticipated in the upcoming period is driven by escalating needs for adept management of intricate vendor networks, expanding outsourcing endeavors, proliferation of connected devices, growing numbers of third-party vendors, and heightened uptake of compliance management solutions. Key trends projected for the upcoming period encompass the integration of AI and machine learning in risk evaluation, advancements in technology, forging partnerships and collaborations, as well as the introduction of new products.

The vendor risk management market is poised for growth due to the increasing number of data breach incidents. Data breaches, which involve unauthorized access, disclosure, or destruction of sensitive information, pose significant risks to privacy, security, and regulatory compliance. These incidents stem from sophisticated cyber threats, vulnerabilities in technology infrastructure, inadequate security measures, and the expanding attack surface resulting from digital transformation and interconnected systems. Vendor risk management plays a crucial role in mitigating these risks by identifying vulnerabilities, implementing security measures, fostering collaboration, and ensuring regulatory compliance. For example, in April 2023, cybercrime affected 11% of businesses and 8% of charities overall in the UK, with higher percentages observed in medium-sized and large businesses, as well as high-income charities in 2023. As a result, the growing frequency of data breaches is driving the expansion of the vendor risk management market.

Leading companies in the vendor risk management sector are innovating to strengthen their market position, with a focus on automated risk assessment solutions. Automated risk assessment utilizes technology such as software algorithms or artificial intelligence to evaluate and analyze potential risks within an organization or system without manual intervention. For instance, in May 2023, Vanta, a US-based company specializing in compliance and safety monitoring, introduced a new vendor risk management solution. This platform offers automated vendor assessments, risk analysis, and mitigation strategies to ensure regulatory compliance. Additionally, it features a risk exchange to facilitate the sharing of vendor risk assessments and documentation, streamlining evaluation processes.

In March 2024, FluidOne, a UK-based provider of connected cloud solutions, acquired SureCloud Cyber Services to bolster its cybersecurity offerings. This acquisition enhances FluidOne's cybersecurity services portfolio by integrating SureCloud's expertise in governance, risk and compliance, vulnerability management, and incident response. SureCloud Cyber Services Limited, based in the UK, provides cybersecurity solutions such as penetration testing, risk assessment, and cyber risk consulting services.

Major companies operating in the vendor risk management market are International Business Machines Corporation, Cisco Systems Inc., Ernst & Young Global Limited, KPMG International Limited, Deloitte, PricewaterhouseCoopers International Limited, ServiceNow Inc., Palo Alto Networks Inc., Fortinet Inc., Symantec Endpoint Security, Check Point Software Technologies Ltd., McAfee Corp., CrowdStrike Holdings Inc., RSA Security, Tenable Inc., Rapid7 Inc., Tanium, OneTrust LLC, Qualys Inc., SentinelOne Inc., MetricStream Inc., Trustwave Holdings Inc., BitSight Technologies Inc., RiskIQ Inc., Cyber Global Risk Exchange Inc.

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

Vendor risk management (VRM) involves the systematic identification, evaluation, prioritization, and mitigation of risks linked to third-party vendors, suppliers, or service providers relied upon by an organization. Its purpose is to shield organizations from diverse risks associated with their associations with third-party vendors, ensuring operational resilience, adherence to regulations, safeguarding of data, and preservation of reputation.

The primary constituents of the vendor risk management market encompass solutions and services. Vendor risk management solutions encompass software platforms and tools engineered to automate and streamline the process of evaluating, overseeing, and addressing risks tied to third-party vendors. These solutions are deployed through various modes such as cloud-based and on-premises, catering to organizations of different sizes, including small and medium-sized enterprises, as well as large enterprises. They find utility across a spectrum of industries including banking, financial services, and insurance (BFSI), telecommunications and information technology (IT), healthcare and life sciences, consumer goods and retail, energy and utilities, manufacturing, government, among others.

The vendor risk management market research report is one of a series of new reports that provides vendor risk management market statistics, including the vendor risk management industry global market size, regional shares, competitors with a vendor risk management market share, detailed vendor risk management market segments, market trends and opportunities, and any further data you may need to thrive in the vendor risk management industry. This vendor 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 vendor risk management market includes revenues earned by entities by providing services such as vendor risk assessment, risk scoring and prioritization, vendor monitoring and surveillance, and cybersecurity and data protection 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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