The global risk analytics market is anticipated to grow at a CAGR of 14.1% during the forecast period. Risk analysis has become an important tool in recent times as the number of companies opting for risky investments has increased. Hence, the study of compliance, feasibility, and risk analysis on various hierarchy levels in an organization has become extremely important. There is increasing adoption of risk analytics tools in different industry verticals as risk analytics tools enable companies to be aware of the forthcoming risks and take decisions accordingly. This spurs the growth of the global risk analytics industry.

Furthermore, the risk analytics market growth is attributed to various factors such as increasing competitive pressure on small and medium enterprises and supportive government regulations and policies. Enhancements in technology and innovations in cloud services are also propelling the market growth. The increasing adoption of cloud-based services and advanced technologies in risk analytics tools has given rise to a lot of opportunities in this market. However, data security and privacy concerns and the requirement of huge investments act as major growth factors for the market. 

Impact of COVID-19 Pandemic on Global Risk Analytics Market 

The COVID-19 pandemic has wreaked havoc over the world, putting tremendous strain on individuals and businesses. The COVID-19 pandemic had a significant impact on the global Risk Analytics market. Competitive market dynamics, deteriorating credit standards, and threats to business continuity, among other things, have an impact on the risk management industry. The unanticipated recession frequently raises questions about the efficacy and agility of a company's current risk control procedures. In the face of such a public health crisis, governments are responding by enacting unusually strict quarantine measures, such as the Wuhan chain. Such reactions may result in business disruptions, forcing organizations to slow down or even cease operations entirely. However, laboratory testing influences a significant percentage of clinical decisions and plays an essential role in improving care for patients with common, high-risk conditions. In July 2020, LabCorp launched Insight Analytics reports that support provider organizations are delivering improved care, both individually and on a population level, for a range of high-risk health conditions.

Segmental Outlook 

The global risk analytics market is segmented based on the deployment model and verticals. Based on the deployment model, the market is bifurcated into on-premise deployment and cloud-based deployment of risk analytics tools. Among these, the cloud-based deployment of risk analytics tools is expected to exhibit significant growth during the forecast period. Further, based on verticals, the market is segmented into BFSI, IT & telecommunication, healthcare, retail, and others. 

Global Risk Analytics Market Share by Verticals, 2021 (%)

BFSI Segment is Expected to Hold a Prominent Share in the Global Risk Analytics Market

Based on the product, the advanced metering infrastructure under the software segment is expected to grow at a significant rate during the forecast period. The BFSI industry is expected to contribute significantly to the growth of the global market. Banks across the globe are focusing on the adoption of a more rational approach to manage an increasing plethora of risks in the BFSI industry, and hence are deploying risk analytics tools to deal with these risks. Further, the growth of this segment is attributed to the rising need to manage the increasing data more sustainably and the rising requirement to minimize the risk associated with governance & compliance requirements. For instance, in April 2019, Citigroup, Inc. launched an AI-powered NextGen project, an advanced risk analytics scoring engine by collaborating with Ernst & Young Global Limited (EY) and SAS Institute, Inc. NextGen was developed to further streamline time-consuming, heavily manual procedures involved with the analysis of large amounts of foreign trading transactions while maintaining regulatory compliance.

Regional Outlook

The global risk analytics market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Germany, Italy, Spain, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America). 

Global Risk Analytics Market Growth by Region, 2022-2028

North America Region Expected to Hold a Prominent Share in the Global Risk Analytics Market

The North American region holds a prominent share in the Risk Analytics market. The major factor driving the growth of the market due to the increasing adoption of risk analytics solutions and services by organizations to minimize risks and facilitate better decision making. Supportive government regulations and mandates are also factors fueling market growth in this region. The adoption of risk analytics in various industries and the emergence of cloud computing are creating new opportunities for the market. 

Market Players Outlook

The major companies serving the global risk analytics market include IBM Corp., Moody’s Corp., SAP SE, Oracle Corp, SAS Institute Inc., SAP SE, and others. To sustain in the market, these players adopt various strategies such as acquisitions, mergers, product launches, and expansions. For instance, in May 2019, IBM collaborated with Thomson to integrate AI with big data and form regulatory intelligence for banks and other financial institutions. This solution will provide financial institutions with access to RegTech, which is a solution provided by IBM.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global risk analytics market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.