Third Party Risk Management Market Analysis

Third Party Risk Management Market Analysis

To get key market trends

  Download Free Sample

Based on application, the IT & cybersecurity segment accounted for 31% of the market share in 2023, driven by the increasing complexity of global business ecosystems. As organizations collaborate with numerous external partners, vendors, and service providers, the potential for cybersecurity threats and data breaches rises. Heightened regulatory scrutiny and compliance requirements also contribute to the need for robust risk management. Organizations seek third-party risk management solutions to assess, monitor, and mitigate risks associated with their extended network, ensuring data security, regulatory compliance, and operational resilience in an environment where the interconnectedness of business relationships is expanding rapidly.
 

Based on component, the solution segment held around 57% of the third-party risk management market share in 2023, favoured by the escalating frequency and sophistication of cyber threats. As businesses increasingly rely on external vendors and services, the potential for security vulnerabilities rises. Stringent data protection regulations amplify the need for compliance, making organizations prioritize robust risk management practices.
 

Third-party risk management helps mitigate the inherent cybersecurity risks associated with external collaborations, ensuring a proactive approach to identifying, assessing, and managing potential threats. This adoption is further driven by the imperative to safeguard sensitive data and maintain the integrity of IT systems in an ever-evolving threat landscape.
 

North America third party risk management market recorded 34% of the revenue share in 2023. The increasing complexity of supply chains and business ecosystems demands robust risk mitigation strategies. The region's stringent regulatory environment, with a focus on data protection and privacy laws, compels organizations to invest in comprehensive risk management solutions.
 

Additionally, the escalating frequency and sophistication of cyber threats necessitate heightened vigilance. As businesses expand their networks of vendors and partners, the need to ensure regulatory compliance, data security, and operational resilience becomes paramount, driving the sustained growth of the third-party risk management industry in North America.