Third Party Risk Management Market Research Report By Type (Operational Risk Management, Compliance Risk Management, Financial Risk Management, Reputational Risk Management), By Deployment (On-Premises, Cloud-Based), By Organization Size (Small Enterprises, Medium Enterprises, Large Enterprises), By End User (BFSI, Healthcare, Manufacturing, Retail) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Third party Risk Management Market Summary

As per MRFR Analysis, the Third Party Risk Management Market was valued at 5.09 USD Billion in 2023 and is projected to grow to 10.5 USD Billion by 2035, with a CAGR of 6.22% from 2025 to 2035. The market is driven by increasing regulatory compliance requirements, growing incidences of cyber threats, and the adoption of digital transformation initiatives across various sectors.

Key Market Trends & Highlights

The market is witnessing significant trends driven by regulatory pressures and technological advancements.

• Operational Risk Management segment is expected to lead with a valuation of 1.62 USD Billion by 2024.
• Compliance Risk Management is projected at 1.31 USD Billion in 2024, highlighting the importance of adhering to regulations.
• Cyber threats have risen by 40% over the last three years, emphasizing the need for robust risk management.
• North America is expected to grow from 2.2 USD Billion in 2024 to 4.25 USD Billion by 2035.

Market Size & Forecast

2023 Market Size: USD 5.09 Billion

2024 Market Size: USD 5.41 Billion

2035 Market Size: USD 10.5 Billion

CAGR (2025-2035): 6.22%

Largest Regional Market Share in 2024: North America.

Major Players

Key players include Venminder, CURA, Risk Management Solutions, Convercent, OneTrust, Resolver, Neudeck, LogicManager, Archer, Centrical, SAS Institute, Avetta, RSA Security, Diligent, ProcessUnity.

Key Third Party Risk Management Market Trends Highlighted

The Third Party Risk Management Market is seeing major developments as a result of rising regulatory scrutiny and supply chain complexity. As the frequency of data breaches and cyber threats increases, businesses are focusing more on risk assessment and mitigation techniques. This increased awareness is driving firms to implement more sophisticated third-party risk management solutions, guaranteeing compliance with numerous requirements and preserving their reputations. Furthermore, there is potential to investigate the integration of sophisticated technologies like as artificial intelligence and machine learning into risk management procedures.

These solutions can help organizations identify and mitigate risks connected with third-party providers, allowing them to take a more proactive approach to addressing any vulnerabilities. The need for automated and fast risk assessment solutions is also increasing, allowing businesses to optimize their procedures while receiving important insights into their third-party interactions. In recent years, businesses have also seen a trend toward a more holistic perspective of risk management, which includes collaboration across several departments and stakeholders. The emphasis is not just on compliance, but also on developing robust supply networks that can endure interruptions.

Furthermore, third-party providers are becoming more transparent and accountable as organizations want more detailed visibility into their operations and policies. This trend shows a rising realization of the relevance of ethical concerns and sustainability in third-party interactions, which is consistent with larger worldwide trends toward corporate responsibility. These patterns continue to change, shaping the worldwide landscape of third-party risk management.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Third Party Risk Management Market Drivers

Rising Regulatory Compliance Requirements

The Third Party Risk Management Market Industry is witnessing substantial growth driven by increasing regulatory pressures across various sectors. Governments and regulatory bodies are enforcing stringent guidelines to ensure the management of third-party risks effectively. For instance, the European Union's General Data Protection Regulation (GDPR) has set high standards for organizations engaged with third-party vendors, mandating them to secure personal data or face hefty penalties.

A report from the Government Accountability Office indicates that regulatory compliance costs can account for up to 10% of annual revenue for large corporations. This has led organizations like PwC and Deloitte to heavily invest in developing robust third-party risk management solutions to navigate these compliance challenges efficiently. With an emphasis on thorough due diligence and comprehensive risk assessments, companies are focusing on mitigating potential risks derived from their vendors or partners, thereby significantly influencing growth in the Third Party Risk Management Market Industry.

Growing Cybersecurity Threats

The increasing number of cybersecurity threats poses a significant challenge for businesses collaborating with third-party vendors, thereby catalyzing demand for third-party risk management solutions. According to a report published by the Cybersecurity and Infrastructure Security Agency, the number of cyberattacks has surged by more than 300% since the onset of the COVID-19 pandemic, with many high-profile breaches stemming from vulnerabilities in third-party systems.

Major organizations like Microsoft and IBM have dedicated substantial resources to enhancing third-party risk management practices, working towards safeguarding sensitive information and maintaining operational integrity. This alarming rise in cyber threats underscores the necessity for robust third-party risk management solutions, propelling market growth.

Increase in Outsourcing and Globalization

With businesses increasingly outsourcing operations and expanding globally, the complexity of managing third-party relationships has risen significantly. The World Trade Organization reports that global trade in services has grown annually by approximately 6% over the past decade, reflecting a clear trend in the outsourcing of services. Companies like Accenture and Capgemini are observing this shift and are developing comprehensive frameworks for third-party risk management to ensure quality control and compliance across diverse regulatory environments.

These trends are pushing the Third Party Risk Management Market Industry to evolve rapidly to accommodate the intricate landscape of unpredictability associated with global partnerships and outsourcing.

Demand for Enhanced Operational Efficiency

Organizations are increasingly recognizing the need for enhanced operational efficiency, which is driving the demand for effective third-party risk management. According to the Business Roundtable, companies that focus on risk mitigation strategies effectively improve their operational efficiency by an average of 20%. Corporations such as Coca-Cola and General Electric have adopted advanced third-party risk management tools that not only streamline vendor evaluation processes but also ensure that risks are identified and mitigated proactively.

This drive for efficiency contributes significantly to the growth of the Third Party Risk Management Market Industry, as firms strive to optimize performance while maintaining robust risk management practices.

Third Party Risk Management Market Segment Insights

Third Party Risk Management Market Type Insights  

The Third Party Risk Management Market is increasingly significant as organizations recognize the importance of managing the risks associated with third party partnerships. Within this market, notable segments include Operational Risk Management, Compliance Risk Management, Financial Risk Management, and Reputational Risk Management.

Each of these segments plays a crucial role in safeguarding businesses against potential threats brought on by external relationships. For instance, the Operational Risk Management segment, valued at 1.5 USD Billion in 2024, is projected to grow to 3.0 USD Billion by 2035, highlighting its importance in minimizing disruptions to business operations caused by third-party failures. This growth can be attributed to rising awareness of how third-party vendors can impact operational efficiency, necessitating robust management solutions.

The Compliance Risk Management segment, beginning with a valuation of 1.2 USD Billion in 2024 and expected to grow to 2.45 USD Billion by 2035, reflects the increasing regulatory demands faced by organizations worldwide. Given the stringent compliance landscape, businesses find it essential to align third-party operations with current regulations, reducing the risk of non-compliance and associated penalties.

This segment's growth indicates organizations prioritizing compliance as a means to protect their reputation and avoid legal issues as they expand their external partnerships. Financial Risk Management, valued at 1.8 USD Billion in 2024 and anticipated to reach 3.6 USD Billion by 2035, also holds a significant position in the market. As businesses engage with various third parties, managing credit, market, and liquidity risks becomes essential to maintain financial stability and mitigate loss potential.

On the other hand, the Reputational Risk Management segment, valued at 1.91 USD Billion in 2024, showcases a unique trend, dropping to 1.45 USD Billion by 2035. This decline signifies a growing recognition of the long-term impacts third parties can have on brand image and customer trust. Nonetheless, businesses prioritize this area, knowing that a single incident involving a third party can lead to heightened scrutiny and diminished public perception, underscoring the importance of diligent reputational management practices.

The Third Party Risk Management Market is shaped by these segments, signifying an overall trend towards a more holistic approach to managing third-party relationships, encompassing operational, compliance, financial, and reputational aspects to ensure sustainable business growth. By focusing on these key areas, companies can effectively mitigate risks while harnessing opportunities for partnerships, thereby influencing overall market dynamics.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Third Party Risk Management Market Deployment Insights  

The Third Party Risk Management Market, focusing on the Deployment segment, demonstrates a strong trajectory of growth and evolution. By 2024, the market is expected to reach a value of 5.41 billion USD, reflecting a growing emphasis on managing risks associated with third-party relationships. This sector is primarily driven by increasing regulatory requirements and a heightened awareness of security risks that organizations face. Within this framework, the Deployment segment is notably divided into On-Premises and Cloud-Based solutions, each serving distinct preferences and operational needs.

On-Premises solutions offer organizations greater control over their data and compliance measures, which is particularly crucial in sectors like finance and healthcare where regulatory obligations are stringent. Conversely, Cloud-Based Deployment is gaining traction due to its scalability and efficient resource management capabilities, accommodating SMEs seeking innovative risk management strategies without substantial upfront investment. This trend towards cloud adoption is fueled by the ongoing digital transformation across industries. The overall market growth is further supported by technological advancements, increasing cyber threats, and the need for agile risk assessment methods, prompting organizations globally to integrate robust risk management solutions.

Third Party Risk Management Market Organization Size Insights  

The Third Party Risk Management Market demonstrates significant diversity when evaluated through the lens of Organization Size, encompassing Small Enterprises, Medium Enterprises, and Large Enterprises, each of which plays a crucial role within the market. As of 2024, the market is projected to reach a value of 5.41 billion USD, reflecting the growing emphasis on mitigating risks associated with third-party relationships. Small Enterprises often rely heavily on robust risk management frameworks due to limited resources and their increasing vulnerability to external threats; thus, their participation in this market is vital.

Medium Enterprises, on the other hand, find themselves in a position where effective risk management can unlock new business opportunities while maintaining compliance with regulations. Large Enterprises dominate the landscape through their extensive networks, necessitating sophisticated risk management strategies to safeguard their complex supply chains. This segmentation highlights the distinct but interconnected needs of varying organizational sizes, with each contributing to the overall expansion of the Third Party Risk Management Market, as organizations pursue improved governance and transparency in managing vendor risks.

The ongoing digital transformation across industries fuels the rising demand for cutting-edge risk management solutions, creating ample growth opportunities amidst evolving challenges in the global risk environment.

Third Party Risk Management Market End User Insights  

The Third Party Risk Management Market, focusing on the End User segment, has shown significant growth, with expectations of being valued at 5.41 USD Billion in 2024. This market is poised to capture a diverse array of industries, including Banking, Financial Services and Insurance (BFSI), Healthcare, Manufacturing, and Retail, where managing third party relationships is critical for operational continuity and compliance. The BFSI sector is especially prominent due to stringent regulatory requirements and increasing cybersecurity threats, driving demand for robust risk management solutions.

In the healthcare space, the focus on patient data protection and compliance with health regulations highlights the vital role of third party risk management. Manufacturing also plays a crucial part, with supply chain vulnerabilities necessitating careful risk assessments to mitigate disruptions. Meanwhile, the Retail industry faces challenges with supplier relationships and fraud risks. Together, these industries represent a substantial contribution to the Third Party Risk Management Market revenue, indicating strong industry dynamics and the necessity for comprehensive risk management strategies across all sectors.

As organizations recognize the importance of mitigating third-party risk, this market is expected to experience continued growth supported by advancements in technology and increasing regulatory scrutiny.

Third Party Risk Management Market Regional Insights  

The Third Party Risk Management Market shows significant regional variances, with North America holding the majority, valued at 2.3 USD Billion in 2024 and projected to grow to 4.5 USD Billion by 2035. This dominance is largely attributed to the increasing regulatory pressures and emphasis on cybersecurity in the region. Europe follows with a valuation of 1.5 USD Billion in 2024, expected to rise to 3.1 USD Billion, driven by stringent compliance requirements. South America, on the other hand, is valued at 0.5 USD Billion in 2024, and the growth trajectory to 1.0 USD Billion highlights emerging market considerations in risk management.

Asia Pacific's valuation of 0.9 USD Billion is anticipated to double by 2035, reflecting the region's expanding industries and heightened awareness of third-party risks. Lastly, the Middle East and Africa, with a smaller value of 0.2 USD Billion in 2024 increasing to 0.4 USD Billion, signify growing interest in risk management practices as economies diversify. Collectively, these regional insights provide a nuanced view of the Third Party Risk Management Market revenue, showcasing the varying pace of adoption and investment across different geographical areas.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Third Party Risk Management Market Key Players and Competitive Insights

The competitive landscape of the Third Party Risk Management Market is characterized by a diverse array of companies striving to enhance their risk management capabilities in an increasingly interconnected world. With the growth of digital transformation, organizations are becoming more dependent on third-party vendors, creating the necessity for robust risk management measures. Key players in this market are focusing on innovative technologies such as artificial intelligence, machine learning, and data analytics to streamline risk assessment processes and improve compliance.

Furthermore, as regulatory frameworks become more stringent, companies are dedicating resources to developing solutions that align with legal requirements while effectively managing risks associated with third-party engagements. The competition intensifies as firms seek to establish a foothold in various market segments by catering to the needs of diverse industries.

CURA has distinguished itself within the Third Party Risk Management Market through its innovative solutions and commitment to customer-centric approaches. The company leverages advanced technologies to deliver a comprehensive risk management platform that enables organizations to effectively evaluate and mitigate risks associated with their third-party relationships.

CURA's strengths lie in its ability to provide customizable solutions that address the unique challenges faced by different sectors, making it a preferred choice for many organizations seeking reliability and efficiency in risk management. With a strong market presence, CURA continuously seeks to enhance its offerings and expand its reach globally, affirming its status as a significant player in the third party risk management domain. The company’s focus on building strategic partnerships and fostering collaborative networks further amplifies its competitive edge.

Diligent has established a strong position in the Third Party Risk Management Market, offering a wide range of key products and services tailored to address the growing need for effective risk management solutions. Known for its governance, risk, and compliance software, Diligent emphasizes user-friendly interfaces and actionable insights, allowing organizations to proactively monitor and manage risks associated with third parties.

The company maintains an extensive market presence through its innovative solutions that cater to the needs of organizations across various industries. Diligent's strengths are augmented by a series of strategic mergers and acquisitions that have enhanced its technological capabilities and broadened its service offerings. By continuously evolving its platform and integrating new features, Diligent remains at the forefront of the Third Party Risk Management Market, empowering organizations to mitigate risks effectively while ensuring regulatory compliance in a global context.

Key Companies in the Third Party Risk Management Market Include

• CURA


• Diligent


• UnitedLex


• OneTrust


• McKinsey & Company


• Alacriti


• IBM


• Resolver


• Riskmethods


• LogicManager


• Navex Global


• Archer


• SAP


• SAI Global


• Everbridge

Third Party Risk Management Market Industry Developments

Recent developments in the Third Party Risk Management Market have highlighted significant growth and investment in risk management solutions, particularly with companies like Diligent and OneTrust expanding their portfolios to enhance compliance and governance offerings. In September 2023, CURA announced a partnership with IBM to leverage advanced analytics for improved risk assessment processes.

Additionally, in August 2023, Navex Global released new tools focused on third-party vendor assessments, reflecting the increasing demand for stringent risk evaluations. Current affairs in the market emphasize the growing regulatory pressures that organizations face, driving demand for robust third-party risk management frameworks.

Notably, in August 2023, LogicManager launched significant TPRM feature enhancements, boosting risk assessment capabilities. Over the past few years, SAP has advanced its GRC and supplier risk offerings through product expansions and ecosystem integration, though not via high-profile acquisitions. McKinsey & Company remains a leading advisor helping organizations integrate TPRM with regulatory and operational strategies.

Third Party Risk Management Market Segmentation Insights

• 
  Third Party Risk Management Market Type Outlook
  
  
  
  • Operational Risk Management
  
  
  • Compliance Risk Management
  
  
  • Financial Risk Management
  
  
  • Reputational Risk Management
  
  
  
  

• 
  Third Party Risk Management Market Deployment Outlook
  
  
  
  • On-Premises
  
  
  • Cloud-Based
  
  
  
  

• 
  Third Party Risk Management Market Organization Size Outlook
  
  
  
  • Small Enterprises
  
  
  • Medium Enterprises
  
  
  • Large Enterprises
  
  
  
  

• 
  Third Party Risk Management Market End User Outlook
  
  
  
  • BFSI
  
  
  • Healthcare
  
  
  • Manufacturing
  
  
  • Retail
  
  
  
  

• 
  Third Party Risk Management Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa
  
  
  
  

Report Attribute/Metric	Details
Market Size 2023	5.09(USD Billion)
Market Size 2024	5.41(USD Billion)
Market Size 2035	10.5(USD Billion)
Compound Annual Growth Rate (CAGR)	6.21% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	CURA, Diligent, UnitedLex, OneTrust, McKinsey & Company, Alacriti, IBM, Resolver, Riskmethods, LogicManager, Navex Global, Archer, SAP, SAI Global, Everbridge
Segments Covered	Type, Deployment, Organization Size, End User, Regional
Key Market Opportunities	Rising regulatory compliance needs, Increased outsourcing and partnerships, Demand for advanced analytics tools, Growing cybersecurity concerns, and Integration with existing systems
Key Market Dynamics	increasing regulatory compliance requirements, growing cyber threat landscape, demand for supply chain resilience, rising awareness of data privacy, and need for efficient risk assessment
Countries Covered	North America, Europe, APAC, South America, MEA