Vendor Risk Management Market Analysis, Key Players, and Forecasts Till 2030

Vendor Risk Management Industry Overview

The global vendor risk management market size was valued at USD 7.27 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030.

Enterprises are extensively dependent on a large number of third-party vendors that are located in different geographic locations to achieve their business objectives. Collaborating with these vendors often seems challenging for enterprises as they may bring different risks, which can damage the business objectives and processes. Thus, to mitigate and overcome these risks, enterprises adopt vendor risk management in their business processes.

Gather more insights about the market drivers, restrains and growth of the Global Vendor Risk Management Market

The market for vendor risk management is majorly driven by the increasing adoption of vendor risk management solutions to efficiently manage complex vendor ecosystems and the growing need among enterprises to reduce the risk associated with managing multiple vendors and enhancing production. Additionally, the growing demand for vendor risk management solutions in the highly regulated industries like manufacturing, healthcare, and banking & finance is expected to offer numerous opportunities for the stakeholders in the forecast period. However, the dependence of organizations on manual and conventional processes to manage risks is hindering market growth.

Amidst the COVID-19 pandemic, as global supply chains were disrupted due to stringent lockdowns and restrictions imposed by governments all over the world, organizations faced several difficulties in managing vendors. Reduced adoption of vendor risk management solutions was observed among industries like manufacturing, banking and finance, retail and consumer goods, and energy that were considerably affected by the crisis, however, these industries were in greater need of the solutions as the risk associated with vendors increased due to the crisis. A rapid increase in the adoption of the solutions was observed in the healthcare and life sciences and IT and telecommunication industries. Thus, the global market is estimated to be moderately affected by the pandemic.

Enterprises hire the best vendors from remote locations to optimize their product delivery, which leads to increased complexity in the supply chain. As a result, the increased risk of disruption is observed in many cases. To overcome this, enterprises are focusing on adopting advanced solutions that create vendor ecosystems in which supplier-supplier relationships emerge efficiently and management becomes easy. Thus, growth in the adoption of vendor risk management solutions is witnessed, which is driving the market. Managing functions of multiple vendors is a tedious activity for any organization through manual and non-formal processes. Thus, enterprises adopt vendor risk management solutions, which ease the enterprises’ task of evaluating the risks associated with different vendors.

Vendor risk management solution also supports the identification of critical issues associated with products and solutions and reduces the organization’s time and efforts in evaluating vendor’s performance based on time accuracy, product and solution delivery, and quality of the product. Thus, with effective vendor risk management, organizations are experiencing enhancement in their production rate, which is thereby contributing to the market growth. Several organizations across the world considerably rely on traditional manual processes to evaluate the risks associated with vendor dependency. These enterprises are unaware of the significance of vendor risk management solutions in reducing vendor risks. Thus, their reluctance in implementing these solutions is hindering market growth.

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Market Share Insights

• October 2021: Origami Risk announced that it had developed an online solution to help businesses streamline their vendor risk management process and enhance productivity.
• November 2020: Prevalent, Inc. introduced Vendor Intelligence Network and Third-Party Risk Management Platform that empowers enterprises with real-time vendor risk visibility by transforming static vendor profiles into dynamic vendor risk intelligence.
• November 2020: SecZetta, one of the solution providers, collaborated with Prevalent, Inc. to integrate vendor risk intelligence insights from Prevalent’s platform into SecZetta Third Party Identity Risk Solution to enhance product capabilities and as a part of their digital transformation initiative.

Key Companies profiled:

Some prominent players in the global vendor risk management market include

• BitSight Technologies
• Genpact
• LockPath
• MetricStream
• Optive Security, Inc.
• Rapid Ratings International, Inc.
• Resolver, Inc.
• RSA Security LLC
• SAI Global

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