Digital Risk Management Global Market Report 2024

The digital risk management market size has grown rapidly in recent years. It will grow from $10.58 billion in 2023 to $11.89 billion in 2024 at a compound annual growth rate (CAGR) of 12.5%. The growth in the historic period for digital risk management can be attributed to several factors, including the rise in cyber threats, increased focus on regulatory compliance mandates, the growing interconnectedness of global systems, and concerns regarding the sensitivity of data. As organizations expanded their digital presence, the need to effectively manage and mitigate risks associated with digital technologies became paramount.

The digital risk management market size is expected to see rapid growth in the next few years. It will grow to $20.42 billion in 2028 at a compound annual growth rate (CAGR) of 14.5%. The growth in the forecast period for digital risk management can be attributed to several trends and factors, including increased regulatory complexity, a growing dependency on digital technologies, a heightened focus on third-party risk management, and integration with enterprise risk management. Additionally, major trends in the forecast period include the rise of cloud-based digital risk management solutions, the application of artificial intelligence in risk assessment, a focus on brand reputation management, the utilization of big data analytics for risk insights, and the implementation of incident response planning. These developments reflect the evolving landscape of digital risks and the need for organizations to adopt advanced solutions to safeguard their digital assets and maintain trust with stakeholders.

The escalating number of cyberattack incidents has become a significant driver propelling the growth of the digital risk management market. Cyberattacks represent deliberate and malicious activities aimed at compromising computer systems, networks, devices, or data. Digital risk management plays a pivotal role in cybersecurity by identifying, assessing, and mitigating potential risks and threats encountered by organizations in the digital landscape. The increase in cybercrime reports, as illustrated in the Annual Cyber Threat Report 2021-2022 by the Australian Cyber Security Centre, highlights a substantial rise in cybercrime incidents in Australia, reaching 76,000 reports and reflecting a 13% increase from the previous financial year in 2021. This surge in cyberattacks serves as a catalyst for the growth of the digital risk management market as organizations strive to enhance their defenses against evolving threats.

The burgeoning reliance on digital technologies across industries is anticipated to be a key driver propelling the expansion of the digital risk management market. Digital technologies encompass electronic tools, devices, systems, and resources utilized by organizations for data creation, storage, and processing. As industries increasingly adopt digital technologies, the importance of safeguarding digital assets, securing customer data, and ensuring business continuity in an ever-digitized environment becomes paramount. International Data Corporation's projection of a substantial increase in organizations adopting a comprehensive digital transformation implementation roadmap - from 27% in 2020 to an expected 75% in 2023 - underscores the growing reliance on digital technologies. Consequently, the surge in reliance on digital technologies drives the demand for robust digital risk management solutions as an integral part of overall risk management strategies.

A significant challenge that hampers the growth of the digital risk management market is the lack of awareness and understanding of digital risk management practices within organizations. This deficiency in awareness and comprehension often leads to inadequate investment in digital risk management solutions, leaving organizations vulnerable to cyber threats and other digital risks. As highlighted in the Digital Risk Maturity Report 2022 by AuditBoard, a considerable number of organizations are still at the initial stages of defining and assessing their digital risks, with only 18% of respondents attributing ownership of digital risk to business management. This lack of awareness and comprehension presents a notable impediment to the growth of the digital risk management market as organizations may not prioritize the implementation of comprehensive digital risk management strategies.

The integration of artificial intelligence (AI) and machine learning (ML) algorithms within digital risk management has become a focal point for major companies operating in this sector. AI and ML technologies facilitate the utilization of advanced statistical and computational techniques, allowing computer systems to learn from data, make predictions, and aid in decision-making processes related to the assessment and mitigation of digital risks. For example, BCT Digital, an India-based FinTech firm specializing in risk management products, introduced the rt360 credit risk suite in May 2021. This suite leverages data analytics, AI, and ML algorithms, alongside configurable workflows and comprehensive reporting tools. By consolidating these elements, the rt360 credit risk suite empowers lenders to efficiently manage their credit lifecycle within a centralized platform. This integrated approach facilitates better control over asset books and enables financial institutions to concentrate on fostering profitable credit growth.

In June 2021, Deloitte Touché Tohmatsu Limited, a UK-based professional services firm, acquired Terbium Labs, a US-based digital risk protection and management company. Deloitte's strategic acquisition of Terbium Labs signifies an effort to enhance its capabilities in threat intelligence and cybersecurity services, thereby augmenting its capacity to assist clients in effectively managing digital threats. Terbium Labs' expertise in digital risk protection is expected to complement Deloitte's existing offerings, allowing the firm to offer comprehensive and robust solutions to address the evolving landscape of digital risks faced by organizations.

Major companies operating in the digital risk management market report are Microsoft Corporation, The International Business Machines Corporation, Oracle Corporation, Broadcom Inc., SAP SE, ServiceNow Inc, Rsam, SAS Institute Inc., Proofpoint Inc., RSA Security LLC, Optiv Security Inc, Rapid7, Qualys Inc., OneTrust, Metricstream, NAVEX Global Inc., Riskonnect Inc., ZeroFox Holdings Inc, SecurityScorecard, Archer Technologies LLC, Galvanize, LogicGate Inc., Resolver Inc., BitSight, Hyperproof Inc., OTORIO, Fastpath Solutions LLC, ProcessUnity, LogicManager Inc., Apptega.

North America was the largest region in the digital risk management market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital risk management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the digital risk management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The digital risk management market consists of revenues earned by entities by providing advisory services, digital risk protection services, and cloud security services. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital risk management market also consists of sales of third-party risk management tools, online reputation management tools, and incident response tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The main components of digital risk management include software and services. Digital risk management services play a key role in identifying, assessing, mitigating, and monitoring the digital risks that organizations encounter in their digital operations. These services can be deployed through cloud or on-premises solutions, catering to different enterprise sizes such as small and medium-sized enterprises (SMEs) and large enterprises. Various industries, including banking, financial services, and insurance (BFSI), information technology (IT) and telecom, healthcare, retail, manufacturing, and others, benefit from digital risk management solutions.

The digital risk management market research report is one of a series of new reports that provides digital risk management market statistics, including digital risk management industry global market size, regional shares, competitors with a digital risk management market share, detailed digital risk management market segments, market trends, and opportunities, and any further data you may need to thrive in the digital risk management industry. This digital 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 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.


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