Market Size in 2023 | Market Forecast in 2032 | CAGR (in %) | Base Year |
---|---|---|---|
USD 48.7 Billion | USD 179.5 Billion | 15.6% | 2023 |
The global governance, risk management, and compliance (GRC) market size was worth around USD 48.7 billion in 2023 and is predicted to grow to around USD 179.5 billion by 2032, with a compound annual growth rate (CAGR) of roughly 15.6% between 2024 and 2032.
Organizations use a governance risk and compliance framework (GRC) to control the interactions among corporate governance policies, regulatory compliance, and enterprise risk management programs. GRC strategies are meant to help companies to guarantee moral behavior and improved coordination of people, technology, and procedures.
A well-considered GRC strategy can help address many problems with the traditional, segmented approach to risk and compliance, including misunderstandings, departmental conflict, and inefficiencies. Every company can gain from the GRC structure. Still, it's especially useful for large companies trying to effectively carry out cross-organizational governance, risk, and compliance programs.
The growing focus of organizations to mitigate risk drives market growth
The growing awareness of the necessity to safeguard operations, assets, and reputation among businesses is driving market expansion by increasing attention to risk mitigation in different companies.
Moreover, GRC solutions provide a whole picture of risks across the business and help to recognize and minimize proactive threats. Furthermore, using centralizing risk assessment, monitoring, and reacting, these systems help to improve risk management strategies and decision-making.
Moreover, preventive approaches help to lower prospective hazards and preserve general corporate continuity. The growing demand to enhance decision-making processes and lower operational risks is driving the expansion of the Governance Risk Management and Compliance (GRC) market.
High implementation & maintenance costs hinder market growth
One of the primary obstacles to the GRC industry is the high installation and maintenance expenses, which could deter businesses, especially small and medium-sized enterprises (SMEs), from applying GRC solutions. Many GRC solutions depend on costly licenses, either subscription or per-user-based. Large companies require specific GRC systems, which drive even more costs.
To adopt on-site GRC solutions, one also needs investments in servers, security systems, and IT infrastructure. Data storage and transfer expenses could be relevant even for cloud-based solutions.
Changing the regulatory framework offers a lucrative opportunity for market growth
Growing utilization of GRC systems spurred on by the changing regulatory environment is driving the expansion of the governance, risk management, and compliance market. Industries always have to deal with different standards and compliance criteria.
Businesses are negotiating these complex systems to remain out of legal and financial areas. GRC systems also ensure that businesses stay up-to-date with the most recent rules and offer a centralized way of tracking and controlling compliance projects.
Thus, the automation of compliance processes by these technologies increases accuracy and transparency, simplifies reporting and auditing, and reduces the labor involved in manual tasks, all of which help create a positive market environment.
The lack of skilled professionals poses a major challenge to market expansion
A major barrier preventing the governance, risk management, and compliance industry from expanding is the lack of competent professionals able to effectively monitor compliance processes, risk assessment, and governance structures. Demand is higher for professionals with an understanding of risk management, compliance rules, and cybersecurity.
For many companies, finding qualified risk analysts, GRC experts, and compliance officers presents a difficulty. Moreover, few consistent GRC training programs cover governance, risk, and compliance as a whole. Though available, certificates like CRISC (Certified in Risk and Information Systems Control) and CGEIT (Certified in Governance of Enterprise IT) are not regularly used.
Report Attributes | Report Details |
---|---|
Report Name | Governance, Risk Management And Compliance (GRC) Market |
Market Size in 2023 | USD 48.7 Billion |
Market Forecast in 2032 | USD 179.5 Billion |
Growth Rate | CAGR of 15.6% |
Number of Pages | 221 |
Key Companies Covered | RSA Security LLC, Software AG, Oracle, SAP, IBM, DTS Solution, SAI Global, SAS Institute, Logicgate, AuditBoard, Evisort, PwC, EY, KPMG, Deloitte, MetricStream, Solix Technologies, Appian, Wolters Kluwer, and others. |
Segments Covered | By Type, By Application, and By Region |
Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA) |
Base Year | 2023 |
Historical Year | 2018 to 2022 |
Forecast Year | 2024 - 2032 |
Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
The global Governance, Risk Management, and Compliance (GRC) industry is segmented based on type, application, and region.
Based on the type, the global Governance, Risk Management, and Compliance (GRC) market is bifurcated into audit, risk management, enterprise management, compliance management, document management, business continuity management, and others. The audit segment is expected to hold the largest market share over the forecast period.
The need for sustainability consulting services has increased as a result of the implementation of new climate reporting rules. The GRC industry is expanding as a result of businesses spending more on sustainability audits to adhere to Environmental, Social, and Governance (ESG) laws.
Based on the application, the global Governance, Risk Management, and Compliance industry is bifurcated into BFSI, Construction & Engineering, Energy & Utilities, Government, Healthcare, Manufacturing, Retail & Consumer Goods, Telecom & IT, Transportation & Logistics, and Others.
The BFSI segment is expected to dominate the market expansion over the projected period. Advanced GRC solutions are required to handle operational and cybersecurity risks as a result of the additional risks brought about by the quick adoption of digital banking and fintech advances.
North America dominates the market over the projected period
North America is expected to dominate the global governance, risk management, and compliance market. The growing need for GRC systems to control risks and guarantee moral behavior is the reason for the geographical expansion.
Furthermore, a favorable market outlook is being provided by financial services' increasing use of integrated data platforms.
In addition, the market is expanding due to the growing need for risk management solutions for fraud detection. Furthermore, the market is expanding because of the growing usage of GRC in financial institutions to simplify financial data and obtain insightful information.
The global Governance, Risk Management And Compliance (GRC) market is dominated by players like:
The global Governance, Risk Management, and Compliance (GRC) market is segmented as follows:
By Type
By Application
By Region
FrequentlyAsked Questions
Organizations use a governance risk and compliance framework (GRC) to control the interactions among corporate governance policies, regulatory compliance, and enterprise risk management programs.
The Governance, Risk Management, and Compliance (GRC) market is influenced by several variables, such as the growing regulatory requirements, rising cybersecurity threats & data breaches, growing adoption of AI & automation in GRC, expansion of remote work and cloud adoption, and others.
According to the report, the global governance, risk management, and compliance market size was worth around USD 48.7 billion in 2023 and is predicted to grow to around USD 179.5 billion by 2032.
The global Governance, Risk Management, and Compliance (GRC) market is expected to grow at a CAGR of 15.6% during the forecast period.
The global governance, risk management, and compliance market growth is expected to be driven by North America. It is currently the world’s highest revenue-generating market due to the presence of major players and technological innovation.
The global Governance, Risk Management And Compliance (GRC) market is dominated by players like RSA Security LLC, Software AG, Oracle, SAP, IBM, DTS Solution, SAI Global, SAS Institute, Logicgate, AuditBoard, Evisort, PwC, EY, KPMG, Deloitte, MetricStream, Solix Technologies, Appian and Wolters Kluwer among others.
The governance, risk management, and compliance market report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, sentiment analysis, PESTLE analysis, trend analysis, SWOT analysis, trade area analysis, demand & supply analysis, Porter’s five forces analysis, and value chain analysis.
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