Governance Risk Management and Compliance (GRC) Market Size, Share, Growth, And Industry Analysis, By Type (Audit, Risk Management, Enterprise Management, Compliance Management, Document Management, Business Continuity Management and Others), By Application (BFSI, Construction & Engineering, Energy & Utilities, Government, Telecom & IT, Transportation & Logistics and Others), Regional Forecast By 2031

Updated On: 29 April 2024

Governance Risk Management and Compliance (GRC) Market Report Overview

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The global governance risk management and compliance (GRC) market size was USD 44.07 billion in 2021.  As per our research, the market is expected to reach USD 184.06 billion by 2031, exhibiting a CAGR of 15.42% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the governance risk management and compliance (GRC) market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

An organization's strategy to governance risk management and compliance (GRC) is accounted for by the term governance, risk, and compliance, which is used collectively. GRC is a platform that tries to coordinate processes and information through risk management, and compliance in order to work more effectively. It also facilitates better data sharing, which helps prevent unnecessary overlaps.

Information technology (IT) is becoming more widely used, which has sparked technological advancements across a range of economic sectors. Businesses are implementing GRC solutions to improve risk management and reduce frauds in an effort to reduce financial losses. Over the course of the projected period, the GRC market has grown remarkably as a result of the growing implementation of GRC.

COVID-19 Impact: Dramatic Rise in Working Remotely lead to Higher Demand for GRC Products

The COVID-19 outbreak caused significant losses in several industries at a time when numerous companies were stepping up their investments in GRC solutions. Business groups looked at potential areas where the pandemic may cause considerable losses in terms of preserving assets. Due of this, there was a higher demand for GRC products during the COVID-19 epidemic. Another aspect that has led to growth for GRC solutions is the dramatic rise in working remotely. All things considered, the Covid-19 pandemic contributed to the growth of the governance risk management, and compliance sector globally.

Latest Trends

"Use of Latest GRC Software in an Organization to Keep Policies Centralized and Organized"

Businesses, particularly large and medium-sized corporations, are required to abide by numerous policies. Only a few of the criteria that a business might adhere to include GDPR, BSI IT-Grundschutz, ISO 27001, ISO 27019, and ISO 22301. It can be difficult, time-consuming, and demanding to correctly follow each of the rules. A singular contact point is needed to get rid of all the silos brought on by different standards management. A solid compliance solution is the most recent fad that can prevent a crisis. It will not only aid in keeping policies centralized and organized, but it will also flag any discrepancies, redundancies, and variations within norms. In order to eliminate inefficiencies as soon as feasible, new GRC software becomes essential.

Governance Risk Management and Compliance (GRC) Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Audit, Risk Management, Enterprise Management, Compliance Management, Document Management, Business Continuity Management and Others

• By Application Analysis

Based on application, the market can be divided into BFSI, Construction & Engineering, Energy & Utilities, Government, Healthcare, Manufacturing, Retail & Consumer Goods, Telecom & IT, Transportation & Logistics and Others

Driving Factors

"GRC Assists in Eliminating Fraud and Errors which is Propelling the Industry Expansion"

Through real-time analyses of corporate data, GRC assists in eliminating fraud and errors. Corruptions, warranty fraud, shady dealings, unauthorized access, and improper management of customer data are all detected automatically and warnings are given out. Furthermore, auditing guarantees that all confidential and sensitive data conforms to laws such as SOX, GDPR, SOC2, and others. The market for governance risk management and compliance (GRC) is expanding as a result of this. Through its implementation, many industrial departments are forced to adopt a mentality of stability and homogeneity. The process is streamlined as a result, and management transparency is improved along with the option for automated assessment.

"Inclusion of AI Technology in GRC Solutions will Hasten the Widening of the Management Sector"

Nowadays, there are many options for company experts to improve their operating effectiveness thanks to the information and data available. Additionally, it has become more crucial to examine data in order to determine risk. To help firms meet a variety of compliance and regulatory obligations, various software vendors offer AI-powered governance risk management and compliance (GRC) solutions. Organizations are helped by AI-powered GRC solutions that are coupled with analytical software and business intelligence to draw conclusions from vast amounts of data and make wise decisions. A number of corporate risk management-related tasks may be automated with the aid of AI-powered GRC systems. Therefore, it is anticipated that the inclusion of AI technology in GRC solutions will accelerate the growth of the global GRC market.

Restraining Factors

"Differentiation in Management Styles and Risk of Data Theft Hinder the Market Broadening "

Between nations and between businesses, regulatory rules have different management styles. A regulating authority to supervise these regulations is absent in many nations. One of the things preventing the governance risk management and compliance (GRC) market growth from growing is the absence of a clear guideline that must be adhered to. The different requirements of target users are being difficult for GRC solution vendors to address as a result of these issues. Besides this, software models for governance, risk, and compliance that rely primarily on cloud-based services are vulnerable to service interruptions and data theft. In rare cases, unstable network transmissions might also affect how an end user interacts with a system.

Governance Risk Management and Compliance (GRC) Market Regional Insights

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"North America to Dominate the Market due to Presence of IT Giants and Stringent Laws and Regulations Compel the Expansion"

Due to the dominance of IT behemoths such as Microsoft and Google in North America, the international GRC market is anticipated to dominate over the projection period. As advanced technology is being used in practically every area of the corporate world in North America, this is believed to be the main driver fueling the market's expansion in the region. The development of goods and services that utilize artificial intelligence (AI), statistics, natural language processing (NLP), and machine learning (ML) by a significant portion of the region's providers should drive the market's expansion. Additionally, the US authorities have stringent antitrust laws and regulations to guarantee that new companies adequately adhere to the governance, risk, and compliance requirements of the market. These factors propel the region to hold the largest governance risk management and compliance (GRC) market share during the anticipated time frame.

According to predictions, Europe will account for a sizable portion of the worldwide GRC industry. Many major players in Europe are employing governance risk management and compliance (GRC) solutions and successful company development methods to grow their businesses throughout other European nations. As governing bodies impose requirements in intricate regulatory settings, there is an expanding market for GRC services and solutions. These regulations are designed to stop additional loss. Due to these significant advantages, the European GRC industry is expanding quickly.

Key Industry Players

"Key Players Focus on Organic and Inorganic Techniques to Preserve their International Competitiveness"

The market for governance risk management and compliance (GRC) solutions has seen a notable increase in adoption over the last few years. To preserve their international competitiveness and adapt to the shifting client needs, several vendors use both organic and inorganic techniques. Top firms and small vendors alike are forming alliances and making acquisitions to strengthen their positions in the industry. Many market players are concentrating on acquisition strategies to boost their business portfolio and increase their market share in the GRC industry.

List of Market Players Profiled

• DTS Solution (U.A.E.)
• IBM (U.S.)
• SAS Institute (U.S.)
• SAI Global (U.S.)
• RSA Security LLC (U.S.)
• Software AG (Germany)
• AuditBoard，Inc. (U.S.)
• Logicgate (U.S.)
• SAP (Germany)
• Oracle (U.S.)

Report Coverage

This report covers the governance risk management and compliance (GRC) market. The CAGR expected to be in during the forecast period, and also the USD value in 202 and what it is expected to be in 2027. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.