The Risk Analytics Market is projected to grow from USD 22.95 billion in 2024 to USD 67.11 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.35% during the forecast period (2024 - 2032). Additionally, the market size for risk analytics was valued at USD 19.69 billion in 2023.
The development of technology, the availability of more data, and the growing significance of risk management are the key market drivers enhancing market growth.
Figure 1: Risk Analytics Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The development of technology is driving the market growth
Risk analytics is called market CAGR for Identifying, evaluating, and mitigating potential risks that businesses and organizations may face. The development of technology, the availability of more data, and the growing significance of risk management in today's complex business environment have all contributed to the significant growth and innovation in this field. The combination of AI and ML technologies has emerged as one of the market's most significant trends in risk analytics. These technologies have enabled businesses to quickly and accurately analyze massive amounts of data, allowing them to spot potential risks and patterns that might not have been obvious using more conventional techniques. AI-powered risk analytics solutions have become crucial in industries like banking, insurance, and cybersecurity. A significant factor in influencing the market has been the emergence of Big Data. Thanks to the proliferation of connected devices and the Internet of Things (IoT), a huge amount of data is now available to businesses. Businesses have improved their decision-making processes and risk modeling by wisely utilizing this data.
Additionally, the market for risk analytics has seen significant growth in adopting cloud computing. The scalability, flexibility, and affordability of cloud-based solutions make them an appealing choice for companies of all sizes. Businesses can streamline operations and concentrate on strategic risk management initiatives by moving their risk analytics processes to the cloud. The growing emphasis on real-time analysis is crucial to the risk analytics market. The demand for timely and useful insights has increased as businesses face more dynamic and unpredictable risks. In a rapidly changing environment, real-time risk analytics solutions enable organizations to take advantage of opportunities and react quickly to new threats.
A holistic approach to risk management in place of compartmentalizing risks. Integrated risk analytics platforms combine data from various sources and offer a thorough picture of a company's risk exposure, assisting decision-makers in setting priorities and effectively allocating resources. The adoption of risk analytics solutions has continued to be heavily influenced by regulatory compliance. Numerous industries must comply with strict reporting and regulatory requirements, which calls for effective risk management procedures. Platforms for risk analytics provide the essential tools to track, evaluate, and report compliance-related risks, lowering the likelihood of fines and reputational harm. The need for advanced risk analytics solutions has increased as concerns about cybersecurity have grown. Businesses spend a lot of money on cybersecurity risk analytics to safeguard their digital assets and shield sensitive data from hacking attempts and data breaches. Thus, driving the risk analytics market revenue.
The risk analytics market segmentation, based on components, includes software and service. The software segment dominates the market, and large amounts of data can be quickly analyzed, allowing businesses to identify potential risks and opportunities. The accuracy of risk assessments increases, decreasing the possibility of decision-making errors thanks to modern algorithms and models. The software enables real-time risk monitoring, allowing businesses to react quickly to shifting conditions and new threats. Risk analytics software makes Scenario modeling easier, which assists organizations in simulating various outcomes to understand potential outcomes and make plans accordingly.
Figure 2: Risk Analytics Market, by Components, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on deployment, the risk analytics market segmentation includes cloud and on-premise. The cloud category generated the most income. Pay-as-you-go cloud services let you only pay for the resources you use, cutting down on infrastructure and up-front costs. For remote teams and distributed workforces, cloud-based risk analytics offer flexibility and convenience because they can be accessed from anywhere with an internet connection. Quicker risk assessment and f are possible thanks to cloud solutions' real-time data processing and analysis.
The risk analytics market segmentation, based on vertical, includes BFSI, healthcare, transportation, manufacturing, retail, and government. The BFSI category generated the most income. Financial institutions can identify and assess potential risks more precisely with risk analytics, enabling them to decide wisely and limit losses. Risk analytics helps make data-driven decisions, resulting in more effective strategies and optimized resource allocation. Innovative risk analytics tools can identify unusual patterns and anomalies, assist in detecting and preventing fraudulent activities and protect the institution and its clients.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American risk analytics market will dominate this market; the financial sector in the region continues to face difficulties related to fraud and financial crimes. Tools for risk analytics are crucial for spotting and stopping fraudulent activity, protecting both businesses and customers. E-commerce and digital payment systems are becoming more common, leading to worries about cybersecurity and transactional risks. Analytics for risk helps companies secure online transactions and safeguard customer data. Comprehensive enterprise risk management strategies are becoming more important to businesses in North America. Platforms for risk analytics offer useful insights for locating, evaluating, and minimizing various risks throughout the organization. Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: RISK ANALYTICS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's risk analytics market accounts for the second-largest market share. Many industries, including finance, healthcare, and telecommunications, are experiencing increased regulatory requirements in Asia. Solutions for risk analytics assist businesses in adhering to these rules and managing their risk exposure. Increased investments have been made across several sectors due to the area's rapid economic growth. For businesses to assess and reduce potential risks related to their operations and investments as they grow, they need powerful risk analytics tools. The region's booming financial services sector is driven by the demand for risk analytics solutions to manage operational, market, and credit risks in banking, insurance, and other financial institutions. Technology and big data capabilities are significantly advancing in the region. This creates a favorable environment for adopting sophisticated risk analytics tools and techniques to glean information from sizable datasets. Further, the German risk analytics market held the largest market share, and the UK risk analytics market was the fastest-growing market in the European region.
The Asia-Pacific Risk Analytics Market is expected to grow fastest from 2023 to 2032. organizations are putting more emphasis on risk analytics to find system vulnerabilities and safeguard sensitive data as cyberattacks become more frequent and sophisticated. Like Asia Pacific, Europe has strict rules for several sectors, including data protection, finance, and healthcare. Risk analytics solutions are crucial for businesses to adhere to these rules and keep customers' trust. European businesses are increasingly implementing risk-based decision-making processes to increase operational effectiveness, optimize resource use, and reduce potential losses. To support these decision-making processes, risk analytics is essential. Will boost market growth in this region. Moreover, China’s risk analytics market held the largest market share, and the Indian risk analytics market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the risk analytics market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The risk analytics industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the risk analytics industry to benefit clients and increase the market sector. In recent years, the risk analytics industry has offered some of the most significant advantages to medicine. Major players in the risk analytics market, including IBM Corporation (U.S.), SAP SE(Germany), Moody's Analytics, Inc. (U.S.), Oracle Corporation (U.S.), SAS Institute Inc. (U.S.), Verisk Analytics, Inc. (U.S.), Misys (U.K.), Risk Edge Solutions (India), Gurucul (U.S.), AxiomSL (U.S.), and Provenir, Inc. (U.S.) and others, are attempting to increase market demand by investing in research and development operations.
IBM Corporation (U.S.), To assist clients in finding solutions to their most pressing business problems, we combine all required technology and services, regardless of where those solutions originate. When clients pursue the digital transformation of the world's mission-critical businesses, IBM integrates technology and expertise, offering infrastructure, software (including market-leading Red Hat), and consulting services. They continued the history of sustainability leadership in 2021 when they declared a target of net-zero greenhouse gas emissions across all the nations where businesses by 2030. Customers are putting their aspirations into action with our data-driven sustainability solutions. IBM is constantly looking for the next big thing. Learn more about IBM Research's team of more than 3,000 scientists and researchers who firmly believe in the ability of the scientific method to create new things. For instance, setting the standard for quantum computing.
SAP SE (Germany) is redefining ERP and building networks of intelligent enterprises that provide transparency, resiliency, and sustainability across supply chains to help businesses of all sizes and industries run better. The market leader in enterprise application software. Customers can operate profitably, continuously adapt, and make a difference ly thanks to our comprehensive suite of applications and services. One of the world's top software developers for business process management, SAP creates products that streamline efficient data processing and information exchange between organizations. The business was founded in 1972 and was initially known as System Analysis Program Development (Systemanalyse Programmentwicklung), later becoming SAP. Since then, it has expanded from a five-person startup to a corporation with over 105,000 staff members based in Walldorf, Germany.
April 2024, Parametrix, an organization specializing in cloud monitoring, modeling, and insurance services, introduced Parametrix Analytics. This innovative service enables reinsurers and counterparties to quantify, manage, and transfer cloud risks with unparalleled precision. As stated in the announcement, the proprietary modeling approach of Parametrix Analytics is constructed upon "discovery and analysis of the actual cloud footprint of insured portfolios and historical cloud performance data." This approach utilizes data from the Parametrix Cloud Monitoring System, which has amassed nearly 54 billion data points. The newly introduced service by the company is bolstered by state-of-the-art technology and data that Parametrix itself consistently updates. Based on our understanding, Parametrix Analytics utilizes the vast data resources and proprietary cloud monitoring platform that Parametrix has developed through its Lloyd's coverholder business. This novel service will grant reinsurers and insurers detailed visibility into the cloud exposure of their portfolios. Consequently, these revelations will empower accurate evaluation of risk, streamline the process of identifying sites of accumulation and aggregation, and grant reinsurers and insurers the assurance to quantify potential financial and insurance losses.
October 2023: Riskthinking.AI, a Toronto, Canada-based, award-winning, innovative climate risk startup, has today announced the launch of VELO®. Climate change is no longer a "problem for tomorrow"; governments and enterprises across the globe are already experiencing its consequences. Our reliance on physical, economic, social, and natural assets increases the vulnerability of these resources to disruptions and losses brought about by physical and transitional risk. Companies, financial institutions, and governments must comprehend where, when, how, and why they are exposed to climate risk more than ever before. In order to do so, their introduction of VELO simplifies this enormous and complex issue for organizations around the globe. VELO enables governments, corporations, and financial institutions to comprehend, quantify, report, mitigate, and adapt to climate risk with unprecedented speed, accuracy, and cost effectiveness. Delivered in near real-time, VELO is an exclusively stochastic approach for assessing climate-related financial risk. It operates on a dataset comprising 3.5 million assets from more than 250,000 corporations globally, over 100,000 of the most recent climate data sets, and 16 billion multi-factor stress tests. The Riskthinking.AI solution solves for integrated physical and transition climate hazards in a consistent manner using science-based methods.
March 2022: Google unveiled several AI-based improvements to the Workspace office tool and application suite for business teams to collaborate on projects. The business also unveiled Duet AI, which will help with text writing in Gmail and Google Docs and image generation for Slides, a PowerPoint-like slide presentation program. Additionally, it can sum up video conferencing conversations on Google Meet.
January 2022: AppTek and Expert announced the beginning of a strategic technology partnership to use AI-based text analytics on dynamic audio content available in various languages, by combining the natural language understanding (NLU) capabilities of experts. Ai, with AppTek's industry-leading automatic speech recognition (ASR) and neural machine translation (NMT) technologies, the partnership enables businesses to use audio content in the unstructured data sets they manage for enhancing intelligent automation and enhancing decision-making.
Software
Services
On-Premise
Cloud
BFSI
Manufacturing
Government
Retail
E-Commerce
· US
· Canada
· Germany
· France
· UK
· Italy
· Spain
· Rest of Europe
· China
· Japan
· India
· Australia
· South Korea
· Australia
· Rest of Asia-Pacific
· Middle East
· Africa
· Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 19.69 Billion |
| Market Size 2024 | USD 22.95 Billion |
| Market Size 2032 | USD 67.11 Billion |
| Compound Annual Growth Rate (CAGR) | 14.35% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Deployment, Vertical, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | IBM Corporation (u.s.), sap se (Germany), Moody's Analytics, Inc. (U.S.), Oracle Corporation (U.S.), SAS Institute Inc. (U.S.), Verisk Analytics, Inc. (U.S.), Misys (U.K.), Risk Edge Solutions (India), Gurucul (U.S.), AxiomSL (U.S.), and Provenir, Inc. (U.S.) |
| Key Market Opportunities | The availability of more data |
| Key Market Dynamics | The growing significance of risk management in the complex business environment |
Risk Analytics Market Highlights:
Frequently Asked Questions (FAQ) :
The risk analytics market size was valued at USD 19.69 Billion in 2023.
The market is projected to grow at a CAGR of 14.35% during the forecast period, 2024-2032.
North America had the largest share of the market
The key players in the market are IBM Corporation (u.s.), sap se (Germany), Moody's Analytics, Inc. (U.S.), Oracle Corporation (U.S.), SAS Institute Inc. (U.S.), Verisk Analytics, Inc. (U.S.), Misys (U.K.), Risk Edge Solutions (India), Gurucul (U.S.), AxiomSL (U.S.), and Provenir, Inc. (U.S.).
The software category dominated the market in 2023.
The cloud had the largest share of the market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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