The Global Risk Analytics Market size is expected to reach $96.82 billion by 2031, rising at a market growth of 12.5% CAGR during the forecast period.
Retailers are increasingly adopting risk analytics solutions to mitigate risks associated with fraud, inventory management, supply chain disruptions, and customer data protection. With the rise of e-commerce and the need to secure digital transactions, retail businesses are turning to risk analytics tools to enhance operational resilience and protect customer trust. As the retail landscape continues to evolve, the importance of managing risks effectively in this sector has led to growing demand for risk analytics solutions. Thus, the retail & e-commerce segment held 11% revenue share in the market in 2023.
The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, In 2024, April, Oracle Corporation partnered with Palantir Technologies, a data analytics company known for its data integration and decision-making platforms, to deliver secure AI and cloud solutions to businesses and governments. The partnership leverages Oracle's cloud infrastructure and AI capabilities, combined with Palantir's platforms like Foundry and Gotham, to help organizations maximize data value, improve efficiency, and meet security and sovereignty standards across a range of industries, including defense and intelligence. Additionally, In April, 2024, Fair Isaac Corporation signed a partnership with Atto, an American manufacturing company, to enhance UK lenders' credit risk assessment by integrating Open Banking data into credit scoring. This partnership combined Atto's Open Banking technology with FICO's transaction data analytics, offering predictive models that improve risk management, customer acquisition, and portfolio performance for lenders in the UK.
Additionally, the global regulatory landscape is becoming increasingly complex, with new regulations and compliance requirements regularly introduced across various industries. These regulations ensure financial stability, protect consumer interests, and promote fair market practices. Navigating this intricate regulatory environment requires robust risk management systems that can provide accurate and timely compliance reporting. Hence, rising regulatory requirements and compliance are propelling the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
The Risk Analytics market is highly competitive, driven by advancements in AI, machine learning, and big data technologies. Key attributes shaping competition include real-time analytics, predictive capabilities, data visualization, and integration with enterprise systems. Providers emphasize tailored solutions for industries like finance, healthcare, and insurance to address sector-specific risks. Scalability, regulatory compliance support, and ease of use are critical differentiators. As businesses prioritize proactive risk management, innovation and robust data security are essential for maintaining a competitive edge in the market.
Retailers are increasingly adopting risk analytics solutions to mitigate risks associated with fraud, inventory management, supply chain disruptions, and customer data protection. With the rise of e-commerce and the need to secure digital transactions, retail businesses are turning to risk analytics tools to enhance operational resilience and protect customer trust. As the retail landscape continues to evolve, the importance of managing risks effectively in this sector has led to growing demand for risk analytics solutions. Thus, the retail & e-commerce segment held 11% revenue share in the market in 2023.
The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, In 2024, April, Oracle Corporation partnered with Palantir Technologies, a data analytics company known for its data integration and decision-making platforms, to deliver secure AI and cloud solutions to businesses and governments. The partnership leverages Oracle's cloud infrastructure and AI capabilities, combined with Palantir's platforms like Foundry and Gotham, to help organizations maximize data value, improve efficiency, and meet security and sovereignty standards across a range of industries, including defense and intelligence. Additionally, In April, 2024, Fair Isaac Corporation signed a partnership with Atto, an American manufacturing company, to enhance UK lenders' credit risk assessment by integrating Open Banking data into credit scoring. This partnership combined Atto's Open Banking technology with FICO's transaction data analytics, offering predictive models that improve risk management, customer acquisition, and portfolio performance for lenders in the UK.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal Matrix; Google LLC and Microsoft Corporation are the forerunners in the Risk Analytics Market. Companies such as Oracle Corporation, SAP SE, IBM Corporation are some of the key innovators in Risk Analytics Market. In June, 2023, Microsoft Corporation signed a partnership with Moody’s, a financial services company. The partnership aimed to develop advanced data, analytics, and risk solutions using Microsoft Azure OpenAI Service.
Market Growth Factors
As companies increasingly operate in a complex and interconnected global environment, the potential for diverse financial and operational risks has grown significantly. There is a growing recognition of the need to identify and mitigate these risks to ensure business continuity proactively. Enterprise Risk Management (ERM) frameworks provide a structured approach to managing risks, integrating risk management into all aspects of the organization.Additionally, the global regulatory landscape is becoming increasingly complex, with new regulations and compliance requirements regularly introduced across various industries. These regulations ensure financial stability, protect consumer interests, and promote fair market practices. Navigating this intricate regulatory environment requires robust risk management systems that can provide accurate and timely compliance reporting. Hence, rising regulatory requirements and compliance are propelling the market's growth.
Market Restraining Factors
Implementing advanced risk analytics solutions can be expensive, involving significant initial software, hardware, and skilled personnel investments. The high costs associated with these technologies can be a major barrier for small and medium-sized enterprises (SMEs) with limited budgets. Thus, high implementation costs and budget constraints impede the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Driving and Restraining Factors
Drivers- Growing Awareness of the Importance of Enterprise Risk Management (ERM)
- Rising Regulatory Requirements and Compliance
- Proliferation of Cyber Threats and Data Breaches Worldwide
- High Implementation Costs and Budget Constraints
- Data Quality and Availability Issues
- Growing Adoption of Internet of Things (IoT) Devices
- Development of Industry-Specific Risk Analytics Solutions
- Growing Complexity of Global Supply Chains
- Integration Challenges with Legacy Systems
Type Outlook
Based on type, the market is divided into software and services. The services segment held 36% revenue share in the market in 2023. This strong performance can be attributed to the increasing demand for specialized risk management services that assist organizations in effectively managing and mitigating risks.Services Outlook
The services segment is further subdivided into professional and managed. The managed segment procured 41% revenue share in the market in 2023. Managed services encompass ongoing support, monitoring, and maintenance of risk analytics solutions. The growing adoption of cloud-based risk analytics platforms has driven the need for managed services, as organizations seek continuous oversight and proactive management of their risk environments.Risk Type Outlook
On the basis of risk types, the market is segmented into operational risk, financial risk, strategic risk, and others. In 2023, the financial risk segment attained a noteworthy revenue share in the market. This significant contribution can be attributed to the growing complexity and interconnectivity of global financial markets, which necessitates advanced risk management solutions.Deployment Outlook
Based on deployment, the market is categorized into on-premise and cloud. In 2023, the on-premise segment registered 52% revenue share in the market. On-premises deployments offer businesses greater control over their data and infrastructure, which is especially important for organizations with stringent security, privacy, and regulatory requirements.
Vertical Outlook
By vertical, the market is divided into BFSI, retail & e-commerce, manufacturing, telecom & IT, energy and utilities, healthcare, government, and others. The manufacturing segment procured 13% revenue share in the market in 2023. Risk analytics solutions are essential for identifying and mitigating risks related to supply chain disruptions, equipment failures, safety hazards, and operational inefficiencies in the manufacturing sector.Market Competition and Attributes
The Risk Analytics market is highly competitive, driven by advancements in AI, machine learning, and big data technologies. Key attributes shaping competition include real-time analytics, predictive capabilities, data visualization, and integration with enterprise systems. Providers emphasize tailored solutions for industries like finance, healthcare, and insurance to address sector-specific risks. Scalability, regulatory compliance support, and ease of use are critical differentiators. As businesses prioritize proactive risk management, innovation and robust data security are essential for maintaining a competitive edge in the market.
By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated 26% revenue share in the market in 2023. The rapid economic growth, digital transformation, and increasing regulatory scrutiny in countries like China, India, and Japan have fueled the demand for risk analytics solutions.List of Key Companies Profiled
- IBM Corporation
- Oracle Corporation
- SAP SE
- Microsoft Corporation
- SAS Institute Inc.
- NTT Data Corporation
- TIBCO Software, Inc. (Vista Equity Partners Management, LLC)
- Salesforce, Inc.
- Google LLC (Alphabet Inc.)
- Fair Isaac Corporation (FICO)
Market Report Segmentation
By Type- Software
- Services
- Professional
- Managed
- On-premise
- Cloud
- Operational Risk
- Financial Risk
- Strategic Risk
- Other Risk Types
- BFSI
- Telecom & IT
- Manufacturing
- Retail & E-commerce
- Energy & Utilities
- Government
- Healthcare
- Other Vertical
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Risk Analytics Market by Type
Chapter 6. Global Risk Analytics Market by Deployment
Chapter 7. Global Risk Analytics Market by Risk Types
Chapter 8. Global Risk Analytics Market by Vertical
Chapter 9. Global Risk Analytics Market by Region
Chapter 10. Company Profiles
Companies Mentioned
- IBM Corporation
- Oracle Corporation
- SAP SE
- Microsoft Corporation
- SAS Institute Inc.
- NTT Data Corporation
- TIBCO Software, Inc. (Vista Equity Partners Management, LLC)
- Salesforce, Inc.
- Google LLC (Alphabet Inc.)
- Fair Isaac Corporation (FICO)
Methodology
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