Published Date : 24 Jan 2024
The global risk analytics market size surpassed USD 38.32 billion in 2022 and is projected to attain around USD 79.24 billion by 2032, growing at a CAGR of 7.54% from 2023 to 2032.
Risk analytics is the examination of the potential uncertainties that businesses or organizations may face. Risk analytics uses statistical tools and data analytics to identify, measure, and manage risk effectively and accurately. Organizations are leveraging the business data owing to big data, improved computing capabilities, and advanced analytics. By analyzing the risk, organizations can make informed, calculated, and required decisions. Risk management helps in the growth of revenue with minimal losses associated with any fraudulent activities. The potential risks and problems within the organization can be identified. Risk analytics assists in allocating resources effectively and enables organizations to develop risk-management capabilities systematically.
The growth of the risk analytics market is driven by several factors, including rapid urbanization, rapid industrialization, emerging application of data science, increasing adoption of digital solutions, robust growth of the IT sector, increase in business difficulties, and increasing innovations in the tech industry. Moreover, the growing adoption of artificial intelligence (AI) and blockchain technology is likely to accelerate the growth of the risk analytics market.
North America is expected to dominate the market during the forecast period. The growth of the region is attributed to technological advancement, the presence of large companies, the rapid development of IT sectors, the rapid pace of industrialization, rising competitiveness in the industry, sophisticated financial infrastructure, and a supportive regulatory framework of government. Countries like the United States and Canada are the major contributors to the market in North America. The increasing expansion of IT, banking, and other financial sectors has increased the adoption of advanced solutions such as machine learning and AI for the detection of errors and fraudulent activities, which facilitates the expansion of the risk analytics market.
The financial services industry ranks second on the list of most targeted sectors due to the increasing number of cyber security compromising events resulting in data compromise. The number of data compromises includes data breaches and leakage of private data. In 2022, the number of data compromises in the financial services industry in the U.S. reached 268, which rose from 138 such incidents in 2020.
|Market Revenue in 2023
|USD 41.19 Billion
|Projected Forecast Revenue by 2032
|USD 79.24 Billion
|Growth Rate from 2023 to 2032
|CAGR of 7.54%
|2023 to 2032
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Expansion of IT, banking, and other financial sectors
The expansion of IT, banking, and other financial sectors is expected to fuel the growth of the global risk analytics market in the coming years. Risk analytics tools assist in identifying, measuring, and managing potential risk. The IT, banking, and other financial sectors generate vast amounts of data and are under immense pressure to reduce fraud and meet strict regulatory compliance requirements while growing their business. Systematic data analysis and management play a pivotal role in comprehending risks.
There are different types of risks present in the IT, banking, and financial sectors. The rise in several incidences of cyber-attacks, fraudulent activities, and data theft due to rapid digitization has led to the adoption of risk analytics and is likely to impact the market's growth positively.
Growing adoption of risk analytics by small and medium-sized enterprises
The growing adoption of risk analytics by small and medium-sized enterprises (SMEs) is anticipated to fuel the market's growth in the coming years. The increasing complexity in small, medium, and large enterprises gives rise to risk analytics. Risk analytics are the techniques that measure, provide valuable insights, and predict risk effectively. Enterprises can make informed decisions to optimize risk management and mitigate risks accurately.
Complexity in the installation of risk analytics
The complexity of the installation and configuration processes for the software is projected to hamper the market's growth. Several difficulties are faced during the installation and configuration of the software due to its complex nature. In addition, the high cost associated with risk analytics may act as a restraint.
Emergence of advanced technologies
The emergence of advanced technology, such as artificial intelligence and machine learning (ML), is projected to offer a lucrative growth opportunity during the forecast period. The digitalization era accelerated the adoption of AI and ML in organizations. Technological advancement is gaining traction. Risk analytics employs AI and ML technology to measure large volumes of data, understand the risk involved, and gain insights into potential risks. In addition, increasing demand from developed and developing nations and the integration of AI in risk analytics are anticipated to offer growth to the risk analytics market during the forecast period.
Rapid industrialization is expected to propel significant opportunities for the expansion of the global risk analytics market in the coming years. The increasing number of businesses employing advanced risk analytics to handle big data enhances the demand for data-driven insights as well as improves performance, increases profits, and accelerates growth.
Segments Covered in the Report
By Risk Type Application
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