Governance, Risk Management and Compliance (GRC) Software Market Size, Share, Growth, And Industry Analysis by Type (Cloud-based, On-premise) by Application (Large Enterprises, SMEs), Regional Insights, and Forecast From 2024 To 2031

Updated On: 15 April 2024

Governance, Risk Management and Compliance (GRC) Software Market Report Overview

• 

• Request a Free Sample to learn more about this report

The global governance, risk management and compliance (GRC) software market size was USD 1284.2 million in 2021 and is expected to reach USD 2209.8 million by 2031, exhibiting a CAGR of 5.5% during the forecast period.

Governance, risk management, and compliance (GRC) software is a powerful tool that helps organizations streamline and strengthen their internal processes. This software enables businesses to effectively manage and mitigate risks, maintain compliance with regulations and policies, and enhance overall governance practices. GRC software typically includes features such as risk assessment and analysis, policy management, audit tracking, compliance monitoring, and reporting capabilities. By implementing GRC software, organizations can centralize their governance, risk, and compliance functions, ensuring greater transparency, accountability, and efficiency. This technology plays a crucial role in promoting a culture of compliance and risk awareness, enabling businesses to proactively address potential challenges and protect their reputation.

The governance, risk management and compliance (GRC) software market size is experiencing significant growth due to several key factors. Firstly, there is an increasing recognition among organizations about the importance of robust governance, risk management, and compliance practices to mitigate risks and ensure regulatory adherence. With stricter regulations and heightened scrutiny across industries, businesses are actively seeking comprehensive GRC solutions to avoid penalties, reputational damage, and legal liabilities. Secondly, the ever-evolving technological landscape and the digitization of business processes have created a greater need for automated and integrated GRC tools to effectively manage and monitor risks in real-time. Lastly, the growing complexity of global business operations necessitates advanced GRC software that can handle diverse compliance requirements and provide holistic risk visibility.

COVID-19 Impact: Businesses Priorities Risk Mitigation And Regulatory Compliance As A Result Of The Pandemic's Exposure Of Supply Chain, Personnel, And Operational Vulnerabilities

The COVID-19 pandemic has been unprecedented and staggering, with governance, risk management and compliance (GRC) software 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.

The COVID-19 pandemic has had a significant impact on the market for Governance, Risk Management, and Compliance (GRC) software. As organizations worldwide faced unprecedented disruptions and uncertainties, the demand for GRC solutions soared. The pandemic exposed vulnerabilities in supply chains, workforce management, and operational resilience, leading businesses to prioritize risk mitigation and regulatory compliance. Remote work and digital transformation initiatives accelerated, creating a need for GRC software to manage risks associated with cybersecurity, data privacy, and remote access. Additionally, the pandemic triggered a surge in regulatory changes and compliance requirements as governments implemented emergency measures. This further fueled the demand for GRC software to ensure organizations stayed compliant. As a result, GRC software providers witnessed increased adoption and market growth, as businesses recognized the crucial role these solutions play in navigating challenging and rapidly changing environments. 

Latest Trends

"Incorporation Of Artificial Intelligence (AI) And Machine Learning (ML) Technology Is One Trend In The Market For Governance, Risk Management, And Compliance (GRC) Software"

One trend in the market for Governance, Risk Management, and Compliance (GRC) software is the integration of artificial intelligence (AI) and machine learning (ML) technologies. AI and ML are being leveraged to enhance the capabilities of GRC software, enabling organizations to automate processes, improve risk assessment and prediction, and identify compliance gaps more efficiently. New products and technologies are being launched that use AI and ML algorithms to analyze large volumes of data, detect patterns, and provide real-time insights into potential risks and compliance violations. Leading players in the market are investing in research and development to develop advanced AI-powered GRC solutions. They are also focusing on enhancing user experience through intuitive interfaces and user-friendly dashboards. Furthermore, integration with other enterprise systems, such as ERP and CRM, is being prioritized to streamline GRC processes and enable seamless data exchange. 

Governance, Risk Management and Compliance (GRC) Software Market Segmentation

• 

• Request a Free Sample to learn more about this report

• By type

Depending on governance, risk management and compliance (GRC) software market given are types: Cloud-based, On-premise. The Cloud-based type will capture the maximum market share through 2028.

• By Application

The market is divided into Large Enterprises, SMEs based on application. The global governance, risk management and compliance (GRC) software market  players in cover segment like Large Enterprises will dominate the market share during 2022-2028.

Driving Factors

"Complexity Of Regulatory Environments Is A Key Driver Fueling The Market For GRC Software"

One significant driving factor behind the governance, risk management and compliance (GRC) software market growth is the increasing complexity of regulatory landscapes. As regulatory requirements continue to expand and evolve across various industries, organizations face the challenge of managing compliance effectively. GRC software provides a comprehensive solution to navigate this complexity by centralizing compliance activities, automating processes, and ensuring adherence to regulatory standards. This factor drives the demand for GRC software as businesses seek efficient and reliable tools to monitor and manage compliance obligations. By utilizing GRC software, organizations can stay up to date with regulatory changes, streamline compliance workflows, reduce manual effort, and minimize the risk of non-compliance, thereby fostering their overall growth and sustainability.

"Growing Focus On Data Privacy And Cybersecurity Is Another Element Fueling The Market Expansion"

Another driving factor behind the market growth is the increasing emphasis on data privacy and cybersecurity. With the rise in cyber threats and data breaches, organizations are recognizing the critical need to protect sensitive information and maintain robust security measures. GRC software plays a crucial role in this aspect by providing tools and features to assess and manage cybersecurity risks, enforce data privacy regulations, and ensure secure handling of sensitive data. The growing awareness of the potential financial and reputational damages resulting from data breaches and non-compliance has propelled the demand for GRC software that can effectively address these concerns. By implementing GRC solutions, businesses can enhance their data protection practices, strengthen their cybersecurity posture, and build trust with customers, contributing to the market expansion of GRC software.

Restraining Factors

"The Aversion To Change Inside Organisations Is One Issue Limiting The Growth Of The GRC Software Industry"

One restraining factor that affects the governance, risk management and compliance (GRC) software market growth is the resistance to change within organizations. Implementing GRC software often requires a significant shift in organizational processes, workflows, and cultural norms. Some businesses may be resistant to change, particularly if they have been using traditional manual methods or outdated systems. The reluctance to adopt new technologies and embrace digital transformation can hinder the demand for GRC software. Additionally, the cost associated with implementing and maintaining GRC software, including licensing fees, training, and system integration, can be a barrier for smaller organizations with limited budgets. Overcoming these resistance factors and demonstrating the value and benefits of GRC software is crucial for driving its widespread adoption.

Governance, Risk Management and Compliance (GRC) Software Market Regional Insights

• 

• Request a Free Sample to learn more about this report

"North America Has Become A Prominent Market For GRC Software Due To Its Strict Regulatory Framework And Large Concentration Of Companies In A Variety Of Sectors"

The leading region in the market for Governance, Risk Management, and Compliance (GRC) software is North America. With its robust regulatory environment and a high concentration of industries across various sectors, including finance, healthcare, and manufacturing, North America has emerged as a significant market for GRC software. The region's focus on data privacy and security, along with stringent compliance requirements, has propelled the demand for advanced GRC solutions. Additionally, North America has witnessed a greater adoption of technological innovations and digital transformation initiatives, further driving the market share. The presence of key market players and their continuous efforts to develop and offer cutting-edge GRC software solutions have contributed to the region's leading position in the market.

The second-leading region in the market for governance, risk management and compliance (GRC) software market share is Europe. With its diverse and highly regulated business landscape, Europe has become a prominent market for GRC solutions. The region's stringent data protection regulations, such as the General Data Protection Regulation (GDPR), have compelled organizations to adopt GRC software to ensure compliance and protect sensitive information. Europe's focus on corporate governance and risk management practices has further driven the demand for GRC software. Additionally, the increasing adoption of cloud-based solutions and the growing awareness of cybersecurity risks have contributed to the growth of the GRC software market in Europe.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• IBM (U.S.)
• Dell (RSA Security) (U.S.)
• SAP (Germany)
• Oracle (U.S.)
• Software AG (Germany)
• LogicManager (U.S.)
• Riskonnect (U.S.)
• ACL GRC (Canada)
• SAI Global (U.S.)
• MetricStream (U.S.)
• SAS Institute (U.S.)
• Enablon (Wolters Kluwer) (France)
• Sword Active Risk (U.K.)
• Check Point Software (Israel)
• MEGA International (France)
• Resolver (Canada)
• Lockpath (U.S.)
• ProcessGene (Israel)
• Aravo (U.S.)
• ReadiNow (Australia)
• LogicGate (U.S.)
• Reciprocity ZenGRC (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.