The global eGRC market is expected to reach the valuation of USD 19,592.6 million in 2024. According to the analysis, the industry is projected to grow at a CAGR of 12.3% from 2024 to 2034 with global adoption of digital solutions. The industry is foreseen to surpass USD 61,875.4 million showcasing immense growth through 2034.
Enterprise Governance, Risk and Compliance (eGRC) solutions are quite dynamic and useful for the businesses in today’s landscape. These solutions bring everything together on an unified platform to make processes smoother, follow industry rules, and keep an eye on risks in real time.
eGRC solutions helps businesses in reducing the chances of financial penalties, reputational damage and operational damage by integrating governance, risk management and compliance.
They also assist in making data-driven decision making to point out potential risks and compliance problems in the earliest moments. As regualtions change and businesses get more complicated, eGRC solutions are really important for making sure companies can adapt and succeed in the long run.
Global eGRC Market Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 17,545.2 million |
| Estimated Size, 2024 | USD 19,592.6 million |
| Projected Size, 2034 | USD 61,875.4 million |
| Value-based CAGR (2024 to 2034) | 12.3 % CAGR |
eGRC solutions improve how businesses operate by cutting down on manual work and mistakes, freeing up teams to concentrate on important tasks. These solutions offer a clear view of potential risks, allowing organizations to prepare for and handle possible threats more efficiently.
With data analysis built in, eGRC solutions offer useful information to help companies make well-informed choices that meet both regulatory rules and company goals.
They also help make sure that everybody in the company follows the rules and reduces the chances of breaking any laws. By keeping an eye on things in real time and making it easier to see and understand what's happening, eGRC solutions also make it easier to be transparent and responsible.
This helps the company manage risks and follow the rules more effectively. In the end, these benefits help the company become stronger and better at dealing with complicated rules and laws.
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This below table presents the expected CAGR for the Global eGRC market over several semi-annual periods spanning from 2023 to 2033. In the first half (H1) of the year from 2023 to 2033, the industry is predicted to surge at a CAGR of 12.4%, followed by a slightly lower growth rate of 12.2% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 12.4% (2023 to 2033) |
| H2, 2023 | 12.2% (2023 to 2033) |
| H1, 2024 | 12.6% (2024 to 2034) |
| H2, 2024 | 12.0% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to hold at 12.6% in the first half from 2024-2034 and remain considerably decrease at 12.0% in the second half 2024-2034. In the first half (H1) 2024-2034 the market witnessed an increase of 20 BPS while in the second half (H2) 2024-2034 the market witnessed a decrease of 20 BPS.
Rising Cybersecurity Threats and Government Regulations Creates the Demand of eGRC Solutions
The businesses are increasingly focusing on strengthening their security frameworks to protect their databases against data breaches and reputational damage. The rising number of cyberattacks are pushing businesses to adopt comprehensive eGRC solutions that holds the capabilities to integrate cybersecurity measures with governance and compliance strategies.
The average cost of a data breach reached USD 4.45 million in 2023, which shows the emergence of robust security measures, as per IBM. This is leading to increase in the demand of eGRC platforms that can provide real-time risk analysis, automate compliance with challenging regulations and ensure strong data protection mechanisms are in place.
Many regulatory agencies around the world are making strict regulations around cybesecurity, which makes it hard for companies to comply with these standards. As a result, eGRC providers are updating their services to include advanced cybersecurity features.
Emergence of Integrated Risk Management Solutions in Several Industries.
Integrated risk management helps businesses in aligning risk management processes with strategic goals while improving decision-making and operational efficiency.
The adoption of integrated risk management solutions are rapidly deployed, owing to the emergence of regulatory demands. For example, GDPR and CCPA are pushing the companies to integrate their risk management practices with compliance efforts to avoid financial penalties and brand damage.
These solutions assists in consolidating risk data from different sources and enables businesses to monitor and minimize the risks in real-time.
IBM upgraded OpenPages with Watson in 2023, an AI-powered IRM solution providing real-time risk insights for businesses, showing the industry's move towards using AI and machine learning for managing complex risk environments. The other market leading companies offer all-inclusive IRM frameworks that combine risk, compliance, and audit functions into one platform.
The companies offers these frameworks to improve alignment with corporate governance strategies.
On the other hand, the COVID-19 pandemic also showed the importance of IRM as businesses deal with uncertainties and new risks. The companies are applying an integrated approach to manage risks across different industries.
Integration Complexities Might Pose as a Challenge in eGRC Landscape
As companies use more eGRC solutions to handle risk and compliance, integrating these systems with current IT setups has become a bigger challenge. This integration includes syncing different data sources, fitting with existing workflows, and making sure different systems can work together, which can take a lot of time and money.
The need for eGRC solutions that cover governance, risk, and compliance is growing, but it's hard to fit these solutions into a company's current systems. For example, big companies often have old systems that don't work well with new eGRC platforms. This means a lot of customization is needed, which can slow down getting the system up and raise costs.
Recent changes have shown that integrating different systems has become more challenging. For instance, the shift to digital processes and using private cloud services has made it important for systems to work well together. The COVID-19 pandemic added to this by making many companies switch to remote work quickly, which meant that eGRC systems had to support this change and connect with more cloud applications.
In 2023, companies like Pathlock introduced new products to help with this, but it still takes a lot of work to fully connect them to complex IT setups.
As rules and regulations keep changing, eGRC systems also need to change. This means redoing how different systems work together to follow the new rules in all parts of the business. Having to make these ongoing changes shows how much effort it takes to keep an eGRC system working well.
Real-time Risk Management
Real-time risk management is an opportunity with rising complexities in regulatory environment and cybersecurity threats. With real-time risk management, businesses are able to respond swiftly to emerging threats. This ensures the compliance of businesses during rapidly evolving regulations and maintain business continuity.
On the other hand, the pandemic also had a fair share in the acceleration of real-time risk management demand. Owing to the unprecedented disruptions which highlighted the importance of responsive risk management systems. Businesses are increasingly adopting eGRC solutions that have the capabilities of integrating real-time monitoring and analytics.
It enables these businesses to detect and minimize the risks as they occur. For example, financial institutions are utilizing real-time early warning systems for credit risk management, which reduces the risk for non-performing assets and improves the financial ability.
Technological advancements have highly improved real-time risk management in eGRC solutions. eGRC solutions are able to predict and manage risks more accurately, which helps in making better decision. This is due to ability of eGRC solutions to integrate AI, ML and advanced analytics.
Principal Consultant
The eGRC market went through notable fluctuations and technological advancements in the historical period. The industry was valued at a valuation of USD 11,460.9 million in 2019 to reach USD 17,545.2 million in 2023 with a CAGR of 11.2 % from 2019 to 2023.
During pandemic, companies started to move towards cloud solutions rapidly due to the remote working trends. This digital transformation generated the demand of governance, risk and compliance solutions for enterprises. The pandemic also led to increased focus on operational risk management and business continuity planning.
eGRC market witnessed a considerable growth during the forecasting period between 2024 and 2034. The market reached the valuation of USD 61,875.4 million in 2034 from USD 19,592.6 million in 2024 with the CAGR of 12.3%.
During the forecasting period, the regulatory frameworks are expected to become more complex and this is expected to drive the demand of eGRC solutions rapidly. Another expectation is that the focus on ESG and sustainability is going to increase during the forecasting period.
Tier 1 companies have acquired substantial share of 35% to 40% in the eGRC market. These companies offer broad portfolio of eGRC solutions. IBM Corporation, Microsoft Corporation, Oracle Corporation and MetricStream are top Tier 1 companies that hold the largest market share globally. These vendors focus on providing end-to-end solutions and cater to large scale enterprises.
Tier 2 vendors in the global eGRC market are focusing on enhancing their end-to-end solutions capability. These vendors have the global market reach but lack in competing owing to the gaps in features and capabilities. The vendors in tier 2 bracket includes Thomas Reuters, SAI360, Navex Global among others. These vendors hold around 25% to 30% market share.
Tier 3 companies represent 30% to 35% of share of total eGRC industry. These vendors focus on the market expansion and providing end-user specific solutions. The vendors in the bracket includes Mitratech, Inc., LexComply among others.
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The below country-wise market analysis of the eGRC explains the recent developments and different government approaches in the market. The analysis also gives an idea of the country’s expected progress in the market landscape.
The data describes key highlights, growth factors, and CAGRs of these countries.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| India | 18.4 % |
| China | 15.9 % |
| USA | 12.7 % |
| Germany | 11.5 % |
The Indian government's focus on digital transformation, including initiatives like "Digital India" and strict data protection laws, has greatly increased the need for eGRC solutions. Swiss GRC, a European company that focuses on governance, risk, and compliance solutions, entered the Indian market in February 2024 to provide solutions in BFSI sector. This shows the increasing need for advanced GRC solutions to handle the intricate regulatory landscape in India.
In addition, iOPEX Technologies, a global digital transformation service provider, launched a compliance and governance add-on for ServiceNow's creator workflows, tailored for Indian businesses. This solution incorporates advanced risk management techniques, showing the growing demand for personalized, flexible eGRC solutions in the country.
The Chinese government is updating its regulations in finance, healthcare, and manufacturing to meet global standards, leading to a higher need for strong eGRC solutions. For example, Huawei has a solution called "Risk Management and Compliance" that uses AI and big data to monitor and report in real-time for Chinese businesses. It's popular in industries like telecom and finance where following rules is important.
Local companies like Newland Digital Technology are creating eGRC platforms in the cloud that meet the specific needs of the Chinese market, such as strict data localization and cybersecurity laws. These platforms help businesses follow the quickly changing Chinese rules and handle risks related to data breaches and operational issues.
The growth in USA is driven by increased cybersecurity risks and the fast adoption of digital changes, which require strong solutions for managing rules and risks. For instance, Credo AI introduced a platform in March 2024 to make sure AI is used ethically in businesses.
Also, the Bank of East Asia started using Wolters Kluwer's OneSumX software for reporting rules in late 2022, showing the need for advanced compliance tools in banking. These solutions highlight how the USA leads in using advanced tech to handle compliance and risk quickly, which helps the overall growth of the eGRC market.
The below section provides the category wise insights in the market with recent developments and future projections.
Cloud-based eGRC solutions are dominating as they are flexible, and cost-effective. They help manage risks in real time, integrate well with current systems, and keep data secure. This makes them great for companies worldwide in different industries.
| Segment | Cloud (Deployment) |
|---|---|
| Value Share ( 2024 ) | 64.1% |
Microsoft launched its eGRC solution on Azure in 2024. This solution uses AI and machine learning to automate compliance tasks and give real-time insights into potential risks. Similarly, IBM's OpenPages with Watson on Cloud provides AI-powered risk management and compliance solutions for organizations to rapidly identify and address risks.
The finance industry leads in the eGRC market as it has strict rules to follow, faces high financial risks, and needs to uphold trust through compliance and risk management. Financial institutions have to follow complex regulations like Basel III, GDPR, and the Sarbanes-Oxley Act. This requires strong eGRC solutions that can handle lots of sensitive data and give real-time updates on compliance.
| Segment | Finance (Industry) |
|---|---|
| Value Share ( 2024 ) | 32.3% |
For instance, BNB Paribas announced in October 2023 that they will be implementing Lenvi Riskfactor’s full-service risk management and fraud analytics software to support its risk management and operations efficiency.
The vendors in the market are focusing on untapped markets like Latin America and Africa. In order to meet the demand of SMEs, these companies are also offering cloud-based solutions.
However, the new companies entering the market are making it more competitive. The top sellers in the market provide integrated solutions and use AI and ML to offer advanced business solutions.
Recent Market Developments
eGRC market includes Software and Services.
The segment is divided into cloud-based and on premise.
Small Offices (1-9 employees), Small Enterprises (10-99 employees), Medium-sized Enterprise (100-499 employees), Large Enterprises (500-999 employees) and Very Large Enterprises (1,000+ employees) are segmented in this category.
Finance, Manufacturing & Resources, Distribution Services, Services, Public Sector and Infrastructure are segmented in this category.
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific Western Europe, Eastern Europe and Middle East and Africa (MEA).
The global industry is set to reach USD 19,592.6 million in 2024.
Demand is predicted to rise at 12.3 % CAGR.
Global sales are estimated to total USD 61,875.4 million by 2034.
South Asia & Pacific is set to offer lucrative opportunities rising with a CAGR of 16.6%.
Microsoft Corporation, IBM Corporation, Oracle Corporation, MetricStream, SAI360, SAS Institute, SAP SE among others.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Pricing Analysis, By Solution Type
5. Regulation Analysis, By Region
6. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Solution
7.1. Software
7.2. Services
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Deployment
8.1. Cloud-based
8.2. On-Premise
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Enterprise Size
9.1. Small Offices (1-9 employees)
9.2. Small Enterprises (10-99 employees)
9.3. Medium-sized Enterprise (100-499 employees)
9.4. Large Enterprises (500-999 employees)
9.5. Very Large Enterprises (1,000+ employees)
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Industry
10.1. Finance
10.2. Manufacturing & Resources
10.3. Distribution Services
10.4. Services
10.5. Public Sector
10.6. Infrastructure
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
11.1. North America
11.2. Latin America
11.3. East Asia
11.4. South Asia & Pacific
11.5. Western Europe
11.6. Eastern Europe
11.7. Middle East and Africa
12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
19. Sales Forecast 2024 to 2034 By Solution, Deployment, Enterprise Size, Industry for 30 Countries
20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
21. Company Profile
21.1. IBM Corporation
21.2. Microsoft Corporation
21.3. Oracle Corporation
21.4. SAP SE
21.5. Thomas Reuters
21.6. SAI360
21.7. Navex Global
21.8. SAS Institute Inc.
21.9. MetricStream
21.10. Mitratech, Inc
21.11. LexComply
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eGRC Market
