PUBLISHER: The Business Research Company | PRODUCT CODE: 1678564
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678564
Third-party risk management (TPRM) involves identifying, assessing, and controlling potential risks within business relationships with third parties, aimed at enhancing organizational resilience and performance while mitigating risks.
The key components revolve around solutions and services. Solutions refer to methods employed to handle challenges or resolve issues. These encompass financial control management, contract management, operational risk management, audit management, and compliance management as approaches within third-party risk management. These solutions are deployed through cloud-based or on-premises systems, catering to both small and medium-sized enterprises along with large enterprises. Industries such as banking, financial services, insurance, IT and telecom, healthcare and life sciences, government, aerospace and defense, retail and consumer goods, manufacturing, energy and power, among others, utilize these third-party risk management solutions.
The third-party risk management market research report is one of a series of new reports from The Business Research Company that provides third-party risk management market statistics, including third-party risk management industry global market size, regional shares, competitors with a third-party risk management market share, detailed third-party risk management market segments, market trends and opportunities, and any further data you may need to thrive in the third-party risk management industry. This third-party risk management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The third-party risk management market size has grown rapidly in recent years. It will grow from $5.92 billion in 2024 to $6.85 billion in 2025 at a compound annual growth rate (CAGR) of 15.7%. The growth in the historic period can be attributed to data breaches and incidents, globalization of business, evolving business models, previous risk management failures, increasing outsourcing practices, data privacy concerns.
The third-party risk management market size is expected to see rapid growth in the next few years. It will grow to $13.49 billion in 2029 at a compound annual growth rate (CAGR) of 18.5%. The growth in the forecast period can be attributed to rise in cyber threats, globalization of businesses, supply chain complexity, remote work challenges, demand for AI-driven solutions, shift in consumer expectations. Major trends in the forecast period include scalable risk solutions, cultural and ethical alignment, remote work and collaboration risks, resilience and business continuity, data privacy emphasis.
The increasing incidence of cyber-attacks and fraud is expected to drive the growth of the third-party risk management (TPRM) market in the coming years. A cyber-attack refers to an unauthorized attempt to access a computer system or network to inflict damage. The ongoing rise in internet interconnections has contributed to a higher frequency of cyber-attacks. TPRM is a systematic process that evaluates and mitigates the risks associated with outsourcing information to third-party vendors or service providers, enabling organizations to make informed risk-based decisions and minimize the likelihood of cyber-attacks and fraud. For example, in January 2024, the World Economic Forum, a Switzerland-based international non-governmental organization, reported approximately 2,220 cyber-attacks occurring each day in 2023, totaling over 800,000 attacks for the year. Among the notable incidents was a breach involving hackers who compromised Microsoft Exchange, accessing tens of thousands of emails, including at least 60,000 emails from Outlook accounts of US State Department employees. Therefore, the rise in cyber-attacks and fraud is propelling the growth of the third-party risk management market.
The third-party risk management market anticipates growth with the rising automation industry. Automation supports risk assessment, monitoring, and mitigation concerning external partnerships. Approximately 76% of organizations use automation for workflow automation, while 36% use it for compliance, as reported by Formstack. This surge in automation adoption drives the third-party risk management market. For instance, in December 2023, according to Formstack, a US-based software company, 76% of organizations use automation to automate their daily workflows, automating data and reporting for planning purposes is used by 58%, and compliance with regulations is used by 36% of firms. Therefore, the rising automation industry is driving the growth of the third-party risk management market.
Technological advancements underscore a pivotal trend within the third-party risk management market. Notably, companies in this sector prioritize the development of novel technologies to address consumer demands and strengthen their market foothold. For instance, AuditBoard launched an advanced third-party risk management solution in August 2022. This cloud-based integrated risk platform streamlines third-party risk assessment, monitoring, and remediation for information security, compliance, and risk teams. The solution's automated and collaborative features enable efficient and comprehensive third-party risk management, saving time and expanding capabilities.
Leading entities in the third-party risk management domain focus on introducing cutting-edge solutions such as cybersecurity platforms to secure a competitive advantage. Trend Micro Inc.'s April 2023 release of Trend Micro One exemplifies this trend. This unified cybersecurity platform empowers organizations to prepare for and respond effectively to threats. Trend Micro One integrates risk assessment, cyber risk management, and extended detection and response (XDR) capabilities, facilitating comprehensive security measures, seamless integration with third-party providers, and expert cybersecurity services for enhanced protection and resilience against evolving threats.
In September 2022, BitSight Technologies, a US-based cybersecurity ratings company, concluded the acquisition of ThirdPartyTrust, a platform specializing in third-party risk management (TPRM). This undisclosed acquisition significantly expands BitSight's TPRM tool offerings, allowing global vendor risk management teams to access a comprehensive end-to-end third-party risk management solution, strengthening BitSight's position in the cybersecurity landscape.
Major companies operating in the third-party risk management market include Deloitte LLP, PricewaterhouseCoopers, Ernst & Young LLP, KPMG International Limited, Genpact Ltd, Optiv Security Inc, Dun & Bradstreet, One Trust LLC, MetricStream Inc, NAVEX Global Inc, Galvanize, RSA Archer, Resolver Inc, Venminder Inc, Rsam, Aravo Solutions Inc, ProcessUnity, Rapid Ratings International Inc, BitSight Technologies, Prevalent Inc, Prevalent, LogicGate, CyberGRX, Riskpro India Ventures Pvt Limited, RiskIQ, SAI Global Pty Limited, RiskRecon Inc, Lockpath, Compliance 360, ControlCase, Riskonnect, CyberSaint Security, SureCloud, Quantivate, Tenable, CyberArk, UpGuard, Securiti.ai
North America was the largest region in the third party risk management market in 2024. The regions covered in the third-party risk management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the third-party risk management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The third-party risk management market includes revenues earned by entities by providing cyber risk assistance, privacy services, information security, financial crime and reputational, operational risk services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Third-party Risk Management Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on third-party risk management market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for third-party risk management ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The third-party risk management market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.