Enterprise Governance Risk and Compliance Market Analysis Report & Growth Analysis 2030

The enterprise governance risk and compliance market is anticipated to grow from US$ 17.22 billion in 2022 to US$ 34.43 billion by 2030, estimated at a CAGR of 9.0% from 2022 to 2030.

Analyst Perspective:

A wide range of sectors place a high value on enterprise governance, risk, and compliance. In addition, the market for enterprise governance, risk, and compliance is expected to increase over the forecast period as a consequence of the stringent regulations put in place by governments and other organizations. The purpose of compliance is to hold industries accountable and take precautions against potential hazards. Understanding internal and external elements is essential for any organization's future in order to make periodic decisions that adhere to enterprise governance risk and compliance (eGRC) rules. The need for information security has grown as a result of an increase in data breaches in several businesses. Throughout the forecast period, the enterprise governance risk and compliance market is expected to rise due to the growing complexity of transactions occurring in various industries. An organization can benefit from GRC and enterprise governance risk and compliance in a number of ways, such as controlling risks throughout the organization and putting defenses in place against attacks, standardizing workflow and streamlining processes, providing a buffer against regulatory oversight and mistakes, and making sure control systems are in place for uniformity throughout the enterprise.

Enterprise Governance, Risk, and Compliance Market Overview:

The term enterprise governance risk and compliance (eGRC) describes how a business creates internal controls, rules, procedures, regulatory controls, risk assessment, and risk monitoring that all staff members are required to follow. When it comes to financial data treatment in a complex corporate context, the required tools must be put in place to prevent errors from making their way through the data chain and into reports. Enterprise governance, risk, and compliance (EGRC) ensure that controls and procedures are in place to ensure that data is consistent across the organization. The growing dependency on digitally enhanced infrastructure to help organizations identify and manage the dynamic interrelations between risk & compliance and incorporate those disciplines into daily business activities, propelling the growth of the enterprise governance, risk, and compliance market.

Businesses operating in the enterprise governance risk and compliance industry have been developing eGRC solutions with extra features to draw clients and help them take a big chunk of the market. MetricStream, for instance, provides an AI-powered GRC solution that facilitates resilience and agility. Cummins Inc., Trimble Inc., Capricorn Group Limited, and UBS are among the company's notable clients. The eGRC market is expected to increase during the forecast period as a result of the eGRC solutions with extra features that are becoming more popular.

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Enterprise Governance Risk and Compliance Market: Strategic Insights

Market Size Value in	US$ 17.22 billion in 2022
Market Size Value by	US$ 34.43 billion by 2030
Growth rate	CAGR of 9.0% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Market Driver:

The Increased Number of Data Breaches Across Various Industries Driving Growth of Enterprise Governance Risk and Compliance Market

Organizations are becoming more conscious of the possible repercussions of poor risk management and compliance procedures as a result of the increasing frequency and severity of data breaches. Significant financial losses, harm to one's reputation, and legal consequences can result from data breaches. Organizations are now investing in enterprise governance risk and compliance solutions to reduce these risks and guarantee compliance as a result of this increased awareness. Enterprise governance risk and compliance management (GRC) in the cybersecurity framework is critical in cybersecurity planning and assists firms in mitigating risk in order to prevent future data breaches.

According to the Security Magazine, as of July 2023, more than thirty-nine percent (39%) of businesses experienced a data breach in their cloud environment last year, an increase of the 35% reported in 2022. In addition, human error was described as the primary cause of cloud data breaches by over half (55%) of those surveyed. Enterprise governance risk and compliance is concerned with five major areas: risk management, policy formulation, governance and compliance, strategic planning, and vulnerability assessments. Because every industry is different and data compliance is handled differently, most firms may wind up adopting more than one framework to satisfy their business needs. Enterprise governance risk and compliance assist stakeholders in reviewing security controls that have been implemented, doing internal and external audits, and establishing rules for data sharing with third-party solution providers.

GRC assists stakeholders in reviewing security controls that have been implemented, doing internal and external audits, and establishing rules for data sharing with third-party solution providers. Cyberattacks may take numerous forms and employ multiple technologies to enter a network or compromise assets. Still, the majority of data breaches are caused by credentials that are lost, stolen, or mismanaged. Enterprise governance risk and compliance takes a holistic approach to cybersecurity, utilizing all components via infrastructures, uniting enterprise risk management, governance, and compliance with the most recent requirements. It discovers potential security flaws and excels at giving extensive analytics to offer remedial recommendations and provide a full assessment of the organization's security posture. While cyberattacks may use a variety of methods and technologies to infiltrate a network or compromise assets, data breaches are most commonly caused by lost, stolen, or mismanaged credentials. Thus, the increase in data breaches is driving the growth of the enterprise governance risk and compliance market.

Segmental Analysis:

The enterprise governance risk and compliance market is segmented based on type into component, deployment, enterprise size, and industry vertical. The component segment held the largest share of the market in 2022. In contrast, the deployment segment is anticipated to register the highest CAGR in the enterprise governance risk and compliance market during the predicted period.  Based on the component, the enterprise governance risk and compliance market is segmented into software and services. And the deployment segment is segmented into on-premise and cloud. The on-premise segment held the largest share of the market in 2022.

In contrast, the cloud segment is anticipated to register the highest CAGR in the enterprise governance risk and compliance market during the predicted period. The enterprise size is segmented into SMEs and large enterprises. The industry vertical segment is segmented into BFSI, manufacturing, healthcare, energy, IT, and telecom, among others. 

Regional Analysis:

North America dominates the enterprise governance risk and compliance market. Some of the leading companies in the eGRC sector, such as Dell Inc., IBM, Microsoft, and Oracle, are based in this region. The presence of big corporations has directly spurred the growth of this region. Additionally, companies in this area have more positive views on data protection, cyber security, and digitization. For example, the United States ranks second globally in terms of digital competitiveness, according to September 2022 research titled "2022 IMD World Digital Competitiveness Ranking" from the International Institute for Management Development. There are increasing security risks as organizations become more interconnected. Due to this issue, identification and access management have become more important, and the national government is creating stronger rules in this area. As a result, businesses need to abide by all federal laws, rules, guidelines, and policies pertaining to identity management. The increasing laws and regulations were propelling the growth of the enterprise governance risk and compliance market.

Further, several players across North America are expanding through various inorganic strategies such as product launches, mergers and acquisitions, and others. For instance, in June 2023, integrated risk management (IRM) and governance, risk, and compliance solutions introduced Aspire, the industry's first AI-powered, knowledge-centric governance, risk, and compliance product. AiSPIRE would use big language models, GRC ontology-based knowledge graphs, and generative AI to maximize the value of an organization's existing governance, risk, compliance, and transactional data. AiSPIRE offers increased efficiency and predictive and data-driven decision-making by giving cognitive insights across all facets of business governance, risk, and compliance. Thus, such instances propelled the growth of the enterprise governance risk and compliance market.

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Key Player Analysis:

The enterprise governance risk and compliance market analysis consists of players such as SAI360 Inc., Deloitte Touche Tonmatsu Limited, IBM Corporation, LexisNexis (RELX Group)

MetricStream Inc., Oracle Corporation, Refinitiv, SAP SE, SAS Institute Inc., and Walters Kluwer Financial Services, Inc. are among the players in the enterprise governance risk and compliance market. SAI360 Inc and SAI360 Inc are the top two players owing to the diversified product portfolio offered.

Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the market. A few recent key enterprise governance risk and compliance market developments are listed below:

• In June 2023, SAI360 announced the release of 2023 Release Two, which includes additional tools and resources to assist businesses in accelerating and operationalizing their ESG projects. In addition, the release contains software and training tools to support activities in governance, compliance, environment, learning, health, safety, and sustainability.
• In March 2023, MetricStream announced a strategic agreement with Kinetix. The goal of this collaboration was to give compliance teams AI-powered and automated identification, extraction, and assessment of regulatory requirements that are unique to their organizations in order to ensure precise and timely compliance.