Global Third-Party Risk Management Market Size, Share, Growth Report 2032

Market Research Store has published a report on the global third-party risk management market, estimating its value at USD 8.56 Billion in 2024, with projections indicating it will reach USD 26.80 Billion by the end of 2032. The market is expected to expand at a compound annual growth rate (CAGR) of around 15.33% over the forecast period. The report examines the factors driving market growth, the obstacles that could hinder this expansion, and the opportunities that may emerge in the third-party risk management industry. Additionally, it offers a detailed analysis of how these elements will affect demand dynamics and market performance throughout the forecast period.

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Third-Party Risk Management Market: Overview

The growth of the third-party risk management market is fueled by rising global demand across various industries and applications. The report highlights lucrative opportunities, analyzing cost structures, key segments, emerging trends, regional dynamics, and advancements by leading players to provide comprehensive market insights. The third-party risk management market report offers a detailed industry analysis from 2024 to 2032, combining quantitative and qualitative insights. It examines key factors such as pricing, market penetration, GDP impact, industry dynamics, major players, consumer behavior, and socio-economic conditions. Structured into multiple sections, the report provides a comprehensive perspective on the market from all angles.

Key sections of the third-party risk management market report include market segments, outlook, competitive landscape, and company profiles. Market Segments offer in-depth details based on Component, Deployment Mode, Risk Type, Industry, and other relevant classifications to support strategic marketing initiatives. Market Outlook thoroughly analyzes market trends, growth drivers, restraints, opportunities, challenges, Porter’s Five Forces framework, macroeconomic factors, value chain analysis, and pricing trends shaping the market now and in the future. The Competitive Landscape and Company Profiles section highlights major players, their strategies, and market positioning to guide investment and business decisions. The report also identifies innovation trends, new business opportunities, and investment prospects for the forecast period.

Key Highlights:

• As per the analysis shared by our research analyst, the global third-party risk management market is estimated to grow annually at a CAGR of around 15.33% over the forecast period (2025-2032).
• In terms of revenue, the global third-party risk management market size was valued at around USD 8.56 Billion in 2024 and is projected to reach USD 26.80 Billion by 2032.
• The market is projected to grow at a significant rate due to increasing regulatory scrutiny and supply chain complexity fuel demand for risk assessment solutions.
• Based on the Component, the Software segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• On the basis of Deployment Mode, the Cloud-based segment is anticipated to command the largest market share.
• In terms of Risk Type, the Compliance Risk segment is projected to lead the global market.
• By Industry, the BFSI segment is predicted to dominate the global market.
• Based on region, North America is projected to dominate the global market during the forecast period.

Third-Party Risk Management Market: Report Scope

This report thoroughly analyzes the third-party risk management market, exploring its historical trends, current state, and future projections. The market estimates presented result from a robust research methodology, incorporating primary research, secondary sources, and expert opinions. These estimates are influenced by the prevailing market dynamics as well as key economic, social, and political factors. Furthermore, the report considers the impact of regulations, government expenditures, and advancements in research and development on the market. Both positive and negative shifts are evaluated to ensure a comprehensive and accurate market outlook.

Third-Party Risk Management Market: Dynamics

Key Growth Drivers

The Third-Party Risk Management (TPRM) market is experiencing significant growth, primarily fueled by the increasing complexity and interconnectedness of modern business ecosystems. Organizations are relying more heavily on a vast network of third-party vendors, suppliers, and partners, which inherently introduces new avenues for various risks, including cybersecurity breaches, data privacy violations, operational disruptions, and reputational damage. Heightened regulatory scrutiny and the proliferation of stringent compliance mandates across industries (such as GDPR, CCPA, and industry-specific regulations) are compelling businesses to adopt robust TPRM solutions to avoid hefty fines and legal repercussions. Furthermore, the rising frequency and sophistication of cyberattacks targeting supply chains and third-party vulnerabilities have made proactive risk identification and mitigation a top priority for safeguarding sensitive data and maintaining operational resilience.

Restraints

Despite the compelling drivers, the TPRM market faces several restraints. A significant barrier is the high upfront cost associated with implementing comprehensive TPRM software and establishing robust programs, which can be prohibitive for small and medium-sized enterprises (SMEs). The sheer volume and complexity of managing hundreds, or even thousands, of third-party relationships can overwhelm internal resources and make consistent risk assessment and monitoring challenging. Furthermore, a lack of standardized risk assessment methodologies and the difficulty in obtaining accurate, timely, and complete information from third parties regarding their security posture and compliance practices can impede effective risk management. Organizational resistance to change and the challenge of integrating new TPRM systems with existing legacy IT infrastructure also act as significant impediments.

Opportunities

The TPRM market presents substantial opportunities for innovation and expansion. The increasing adoption of cloud-based and Software-as-a-Service (SaaS) TPRM solutions offers greater accessibility, scalability, and reduced upfront costs, democratizing advanced risk management capabilities for a wider range of businesses. The integration of cutting-edge technologies like Artificial Intelligence (AI) and Machine Learning (ML) for automated risk assessment, continuous monitoring, predictive analytics, and enhanced threat detection is a major growth avenue. Opportunities also lie in developing industry-specific TPRM solutions that cater to the unique regulatory and operational risks of sectors such as BFSI, healthcare, and manufacturing. Furthermore, the rising awareness among SMEs regarding third-party vulnerabilities is opening up a growing segment for more tailored and affordable TPRM offerings.

Challenges

The TPRM market is confronted by several critical challenges. A paramount concern is ensuring the continuous and real-time monitoring of third-party risks, as point-in-time assessments often fail to capture the dynamic nature of threats. The consistent evolution of cybersecurity threats, including new attack vectors and AI-driven scams, demands that TPRM solutions constantly adapt and remain ahead of emerging risks. Maintaining a clear understanding of the entire third-party ecosystem and avoiding "blind spots" where unassessed vendors pose significant risks is a persistent challenge. Additionally, ensuring effective cross-functional collaboration within an organization (e.g., between procurement, IT, legal, and compliance departments) and fostering a strong risk-aware culture are crucial for successful TPRM, but often prove difficult to achieve.

Third-Party Risk Management Market: Segmentation Insights

The global third-party risk management market is segmented based on Component, Deployment Mode, Risk Type, Industry, and Region. All the segments of the third-party risk management market have been analyzed based on present & future trends and the market is estimated from 2024 to 2032.

Based on Component, the global third-party risk management market is divided into Software, Services.

On the basis of Deployment Mode, the global third-party risk management market is bifurcated into Cloud-based, On-premise.

In terms of Risk Type, the global third-party risk management market is categorized into Compliance Risk, Operational Risk, Financial Risk, Strategic Risk, Reputational Risk.

Based on Industry, the global third-party risk management market is split into BFSI, IT & Telecom, Healthcare, Manufacturing, Energy, Retail, Government.

Third-Party Risk Management Market: Regional Insights

The third-party risk management (TPRM) market is currently dominated by North America, which accounted for over 50% of global revenue in 2023, driven by stringent regulatory requirements (e.g., CCPA, NYDFS), high-profile supply chain breaches, and the presence of Fortune 500 enterprises in the U.S. and Canada. The U.S. leads the region, with financial services, healthcare, and tech sectors adopting AI-powered platforms (e.g., Prevalent, OneTrust) for vendor cyber risk assessments, continuous monitoring, and compliance with SEC disclosure rules. Europe follows as the second-largest market, with Germany, the UK, and France prioritizing GDPR-aligned due diligence and ESG risk scoring under DORA. Meanwhile, Asia-Pacific is the fastest-growing region, fueled by Japan’s supply chain resilience laws and India’s digital banking expansion. North America’s dominance is reinforced by mergers among TPRM providers (e.g., RiskRecon acquisition by Mastercard) and real-time API integrations with threat intelligence feeds.

Third-Party Risk Management Market: Competitive Landscape

The third-party risk management market report offers a thorough analysis of both established and emerging players within the market. It includes a detailed list of key companies, categorized based on the types of products they offer and other relevant factors. The report also highlights the market entry year for each player, providing further context for the research analysis.

The "Global Third-Party Risk Management Market" study offers valuable insights, focusing on the global market landscape, with an emphasis on major industry players such as;

• Genpact
• Prevalent
• Deloitte
• MetricStream
• RapidRatings
• BitSight Technologies
• OneTrust
• Ernst & Young
• KPMG
• SAI Global
• Aravo
• Resolver
• Optiv
• RSA
• Galvanize
• PwC
• ProcessUnity
• Venminder
• Riskpro
• NAVEX Global

The Global Third-Party Risk Management Market is Segmented as Follows:

By Component

• Software
• Services

By Deployment Mode

• Cloud-based
• On-premise

By Risk Type

• Compliance Risk
• Operational Risk
• Financial Risk
• Strategic Risk
• Reputational Risk

By Industry

• BFSI
• IT & Telecom
• Healthcare
• Manufacturing
• Energy
• Retail
• Government

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

Frequently Asked Questions