(I-BusinessNews.Com, July 29, 2022 ) According to a new market research report titled, “Risk Analytics Market by Component (Software, Services), Risk Type (Strategic, Operational, Financial), Deployment Mode, Organization Size, and End User (BFSI, IT & Telecom, Retail, Transportation, Government, Healthcare) -Global Forecast to 2028”, published by Meticulous Research®, the risk analytics market is expected to grow at a CAGR of 13.4% from 2021 to 2028 to reach $68.8 billion by 2028.
Risk Analysis is a way of identifying and assessing factors that could negatively affect the success of a business or project. It examines the risks that the organization faces and helps decide whether to move forward with a decision. Risk analytics tools help organizations to be aware of the forthcoming risks and take decisions accordingly.
Over the years, risk analytics has gained much importance and is becoming a common part of organizations dealing with huge amounts of data and complex networking systems. Risk analytics is packed with several benefits, such as high performance, scalability, reliability, reduced cost of risk, agility, and real-time applications. Several industries and organizations, including retail & e-commerce, government, and professional service providers, deploy this technology on a considerable scale.
Rising digitization & business process automation, growing data & security breaches, stringent industry regulations, and increasing complexities across business processes are the key factors driving the growth of the risk analytics market. However, the intricate nature of regulatory compliance and the downward trend of the global economy are expected to challenge the growth of the risk analytics market.
Impact of COVID-19 on the Risk Analytics Market
The COVID-19 pandemic has adversely hit many economies around the globe. To combat this pandemic, complete lockdowns and quarantine measures were in place across the globe. This has had a strong impact on various industries worldwide, and the risk analytics industry is no exception. The uncertainty regarding the possible length of lockdowns and supply chain disruptions has made it an arduous task for industry players to anticipate the resurgence in the risk analytics industry. Thus, the crisis is expected to cause structural shifts that would have significant implications for this industry.
The pandemic affected the decision to incorporate novel technologies for some time. However, the demand for digital transformation is expected to stay elevated in the forecast period. Thus, digitally-driven intermediaries are proving to be effective, benefiting the risk analytics market. Further, the risk analytics market is projected to witness exponential growth amidst this pandemic. Various governments are implementing risk analytics facilitates to predict and track the virus spread in real-time.
However, several businesses are exerting extensively to move the risk analytics market in the right direction. Moreover, local governments are also undertaking several relief steps to mitigate the negative impact of COVID-19. As a result, the risk analytics market is expected to regain its original track beyond 2024 slowly.
The global risk analytics market is segmented based on component (software and services), risk type (strategic risk, operational risk, financial risk, other), deployment mode (on-premise and cloud-based), industry size (small & medium and large enterprises), end user (BFSI, manufacturing, transportation, retail, IT & telecom, government, healthcare, and others). The study also evaluates industry competitors and analyses the market at the regional and country levels.
Based on component, the software segment emerged as the largest segment in the overall risk analytics market in 2020. The large share of this segment is mainly attributed to the rising digitization & business process automation, growing data silos across the businesses, and rising data & security breaches. Besides, enhanced business agility, flexibility, regulatory compliance, and real-time application services further augment this segment's growth. However, the services segment is expected to grow with the highest growth rate over the forecast period.
Based on industry size, the large enterprises segment commanded the largest share of the risk analytics market in 2020, owing to its strong infrastructure, coupled with skilled IT personnel to manage risk analytics platforms. Furthermore, large enterprises have a strong financial backup, and hence, they can easily procure desired risk analytical solutions.
However, small and medium-scale enterprises also are realizing the significance of risk analytics. The growth of cloud deployment for risk analytics and cost-effective packages introduced by leading risk analytics providers is encouraging small and medium-scale enterprises to incorporate risk analytic tools. Hence, the segment is expected to grow at the highest growth rate over the forecast period.
Based on end user, the BFSI segment commanded the largest share of the overall risk analytics market in 2020. The large share of this segment is attributed to increasing transactional data and the growing need to implement risk and fraud analytics solutions. Furthermore, the rising need to minimize the risk associated with governance & compliance requirements and the growing need to obtain a unified view of risk across the organizations have encouraged players in the BFSI sector to adopt risk analytics solutions. However, the healthcare segment is projected to grow at the highest CAGR during the forecast period.
Geographically, the North American region commanded the largest share of the global risk analytics market in 2020. However, the Asia-Pacific region is expected to witness rapid growth during the forecast period. This can be attributed to the increasing adoption of technologies, such as AI, blockchain, and IoT. Furthermore, favorable government initiatives across the region and investments by major risk analytics companies further accelerate the growth of this regional segment.
The global risk analytics market is consolidated and dominated by few major players, namely, Verisk Analytics, Inc. (U.S.), Moody’s Corporation (U.S.), Oracle Corporation (U.S.), IBM Corporation (U.S.), Risk Edge Solutions (India), AxiomSL, Inc. (U.S.), Gurucul (U.S.), Provinir, Inc. (U.S.), SAS Institute (U.S.), Recorded Future, Inc. (U.S.), DataFactZ (U.S.), and SAP SE (Germany) among others.
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