Report Summary

What is eGRC Market Size and Growth?

According to our research report, the Enterprise Governance, Risk, and Compliance (eGRC) Market is projected to register a Compound Annual Growth Rate (CAGR) of 12.8% throughout the forecast period spanning from 2023 to 2030. In revenue terms, the Global eGRC Market was valued at around USD 40 billion in 2022 and is projected to surpass USD 100 billion by the end of 2030.

The growth of the eGRC market is fueled by its numerous implementation benefits, such as stability, optimization, transparency, reduced costs, and consistency. Several driving factors are propelling the expansion of the eGRC market, foremost among them being the escalating demand for compliance automation. Simultaneously, there is a pressing need for robust data protection and privacy measures due to increasing concerns in this digital age. Furthermore, the surge in regulatory compliance requirements is adding impetus to the advancement of the eGRC market.

The rapid growth trajectory is further propelled by the surging demand for eGRC solutions within end-use enterprises. These solutions play a pivotal role in shielding businesses from various risks, spanning reputation and financial concerns, linked to non-compliance. On a global scale, organizations and governments are progressively adopting enterprise GRC solutions. These solutions encompass a range of functions, including risk and compliance management, business resiliency applications, and audit management, among others.

Throughout the forecast period, several key factors are poised to bolster this growth trend of eGRC market. These include the implementation of stricter compliance mandates, the incorporation of advanced AI/ML and blockchain technologies into GRC solutions, and the escalation of data breaches and security vulnerabilities.

eGRC stands for Enterprise Governance, Risk, and Compliance. The primary objective of an eGRC system, encompassing both platforms and services, is to evaluate, anticipate, and safeguard organizations and their assets against potential financial risks stemming from diverse governmental regulations related to risk management and compliance. eGRC solutions actively supervise and guide an organization or enterprise by overseeing risk management, orchestrating risk control, and identifying potential risk pitfalls that could manifest within a critical business environment. The overarching purpose of eGRC is to ensure that the enterprise or company adheres rigorously to stringent regulations while maintaining elevated standards, thus fostering comprehensive growth and prosperity.

What are the eGRC Market Segmentations and Bifurcations?

eGRC Market Segmentation based on Component

• Software / Platforms
• Services

The eGRC market is segmented into software and services based on components. During the forecast period, the software segment is projected to hold the leading market share. This growth can be attributed to the extensive array of software solutions provided by numerous market players. Furthermore, the global presence of many eGRC companies has fostered the widespread adoption of software/platform solutions worldwide. For instance, Oracle, which operates in around 100 countries and boasts a vast user and developer community exceeding 5 million, has notably contributed to significant market expansion.

Simultaneously, significant expansion is anticipated in the services segment over the forecast period. The supplementary benefits provided by services, encompassing accessibility, cost-effectiveness, scalability, analytics, data storage, enhanced security, and operational management, among others, have propelled its growth during this projected period.

eGRC Market Segmentation based on Software Type

• Risk Management
• Audit Management
• Compliance and Regulatory Management
• Policy Management
• Incident Management
• Others

The eGRC market is bifurcated into software segments, encompassing risk management, audit management, compliance & regulatory management, policy management, incident management, and others. Notably, in 2022, the risk management segment held the largest market share. This growth can be attributed to the mounting demand within the market to address risks faced by organizations in their developmental pursuits. Risk management proves instrumental in preventing breaches and ensuring the identification and resolution of risks associated with enterprise activities, aligning with business objectives. Risk management vendors fulfill this demand by overseeing risk assessment and subsequent services.

The outbreak of the COVID-19 pandemic resulted in widespread remote working, prompting companies to manage unforeseen risks. This situation contributed to the growth of the risk management segment. Moreover, businesses seek specialized risk management for specific processes. For instance, credit risk management is undergoing a transformation, with financial institutions and banks favoring solutions like real-time early warning systems for credit monitoring to address non-performing assets. A multitude of players have stepped into this trend, offering diverse real-time early warning systems to cater to the rising demand.

During the forecast period from 2023 to 2030, the compliance & regulatory management segment is projected to exhibit the highest growth rate. The adoption of compliance management encompasses streamlined collaboration, automated compliance processes, simplified tracking of regulatory changes, reduced operational costs, and heightened customer satisfaction, among other benefits. The market hosts a considerable number of companies offering compliance management solutions. This extensive availability of solutions across industries has accelerated the growth of the compliance management segment in the forecast period.

eGRC Market Segmentation based on Deployment Mode

• On-Premises
• Cloud

Categorized by deployment mode, the eGRC market is segmented into on-premise and cloud-based solutions. The on-premise segment held the leading market share, driven by its increasing adoption among startups and SMEs. Conversely, the cloud-based segment is projected to exhibit the highest CAGR during the forecast period. This is attributed to the rising adoption of cloud-based applications for enhanced risk analysis and complexity reduction.

eGRC Market Segmentation based on Services Type

• Professional Services
  • Integration
  • Consulting and Training
  • Support
• Managed Services

The eGRC market is segmented by services, encompassing professional services and managed services. The professional services segment is subcategorized into integration, consulting and training, and support services. Notably, during 2022, the consulting and training segment commanded the highest revenue market share in this category.

eGRC Market Segmentation based on Organization Size

• Small & Medium Enterprises
• Large Enterprises

Segmented by organization size, the Enterprise Governance, Risk, and Compliance (eGRC) market is divided into small and medium enterprises (SMEs) and large enterprises. Notably, large enterprises claimed the largest market share. This prominence stems from their characteristics such as extensive customer bases, intricate business operations, a substantial workforce, and expansive organizational networks. These attributes necessitate robust GRC implementation, directly driving the growth of this segment throughout the forecast period.

Conversely, SMEs are directing their focus toward adopting cost-effective solutions harnessed from emerging digital technologies like cloud and AI, among others, across their business units. The growing cascade of government guidelines and global enterprise governance risk policies designed to safeguard clients' information is projected to intensify investments in eGRC solutions among SMEs.

eGRC Market Segmentation based on Vertical

• BFSI (Banking, Financial Services, and Insurance)
• Construction & Engineering
• Energy & Utilities
• Government
• Healthcare
• Manufacturing
• Retail & Consumer Goods
• Telecom & IT
• Transportation & Logistics
• Others

Segmented by vertical, the BFSI sector held the most substantial share within the enterprise governance, risk & compliance (eGRC) market. The BFSI sector is experiencing a surge in digitalization and the integration of various technologies. Notably, this industry has embraced significant growth in Big Data, AI, Machine Learning, and IoT, adopting fintech as a prominent development model. The rapid generation of data from the fintech and financial service realms has propelled the momentum of digital transformation. This transformative wave in the financial sector is also positively impacting the enterprise governance, risk & compliance market, thereby driving the growth of the BFSI segment

Meanwhile, the IT & Telecom sector is poised to emerge as the most rapidly expanding vertical in the eGRC market. The telecom industry is renowned for its swift embrace of innovation and new technologies, a trend that was further accelerated by the COVID-19 pandemic. As cyber-attacks proliferate within the telecom sphere, the adoption of GRC solutions is experiencing a direct upswing. With an elevated frequency of cyberattacks, telecom companies are leaving no stone unturned to fortify data, networks, and other critical elements, consequently spurring the growth of the IT & Telecom segment during the forecast period.

Additionally, the government sector is witnessing an escalating adoption of eGRC solutions due to their user-friendly attributes and cost-effectiveness. These solutions empower government regulatory bodies and state-owned enterprises to streamline the creation of their agreement and risk strategies, enhancing efficiency and effectiveness.

Forecasts indicate significant growth within the healthcare segment during the stipulated period. This growth can be attributed to the mounting adoption of cloud-based solutions, a strategic move aimed at mitigating privacy concerns and bolstering information security.

What are the Major Growth Drivers, Restraints, and Opportunities in the eGRC Market?

Stringent Compliance Mandates Drive Enterprise Governance, Risk, and Compliance Market

The eGRC market is experiencing a significant boost in growth due to the escalating stringency of compliance mandates. Enterprises are facing increasing complexity in adhering to governing standards and fulfilling various protocols mandated by regulatory bodies. This situation is creating a substantial demand for compliance solutions. These eGRC guidelines are directly influencing IT organizations and their interconnected business processes.

Amid the current economic landscape, many organizations are actively implementing eGRC solutions across their various business units, propelling their strategic business roadmaps forward.

Many organizations and enterprises are redirecting their focus from merely complying with conventional directives and regulations. Instead, they are now turning towards more advanced regulatory bodies that prioritize the intricacies of evolving risk and compliance. However, the ongoing adherence to a multitude of guidelines and regulations, encompassing HIPAA, GDPR, COBIT, and various state and federal directives, has grown intricate. Evading operational setbacks is becoming increasingly complex for organizations. Failing to meet these regulatory requisites can lead to substantial business losses. As a result, the escalating rigor of compliance directives is projected to be a driving force behind the growth of the enterprise governance, risk, and compliance market during the forecast period.

Rapid Integration of AI Technologies into eGRC Solutions Drives Lucrative Business Opportunities

The escalating integration of AI technologies into eGRC solutions is paving the way for enticing business opportunities. As data and information volumes continue to surge, a spectrum of possibilities emerges for corporate professionals, encompassing risk assessment, auditing, and governance and compliance enhancements. Moreover, the heightened necessity to scrutinize data repositories to pinpoint risks and present them to stakeholders or investors in a timely manner has become imperative.

As a result, diverse software and solution providers now offer AI-driven eGRC solutions, a strategic response to the multifaceted landscape of regulatory and compliance requisites. These solutions enable enterprises to fulfill the demanding demands of governance, risk management, and compliance.

By seamlessly integrating AI-powered eGRC solutions with an array of analytical tools and business intelligence capabilities, enterprises can derive valuable insights from vast data troves, enabling informed decision-making. Furthermore, AI-infused eGRC solutions have the potential to automate various business tasks intertwined with governance, risk management, and compliance.

The ongoing rise in the adoption of AI technologies within eGRC solutions is anticipated to drive substantial market growth throughout the projected timeframe.

Escalating Data and Security Breaches Boosting eGRC Market Growth

The escalating incidence of data breaches spanning various industries has amplified the urgency for enhanced information security. As industries grapple with the growing intricacies of transactions, the eGRC market is witnessing a pronounced upsurge in growth throughout the projected period.

eGRC solutions confer a multitude of advantages upon organizations. These include effective management of risks across the organizational spectrum, establishment of defenses against cyberattacks, streamlining of processes and standardization of workflows, provision of a shield against regulatory scrutiny and errors, and assurance of well-structured control systems to maintain consistency across the enterprise.

Growth in Acquisitions and Partnerships Fuel eGRC Market Expansion

Another factor that has boosted and provided lucrative opportunities in the eGRC market is the growth in acquisitions and partnerships over the forecast period. This surge is closely linked to the remarkable proliferation of eGRC solution adoption across the industry. Numerous vendors have strategically prioritized acquisition endeavors to fortify their product portfolios and extend their market footprint, capitalizing on this burgeoning demand for eGRC solutions.

What are the Regional and Country Trends in eGRC Market?

eGRC Market: Regional Segmentation Analysis

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

North America held the largest share in the global enterprise governance, risk, and compliance market by region. This dominance is underpinned by the pivotal role that enterprise governance, risk, and compliance play across all industry sectors within this region. The North American eGRC sector has witnessed remarkable advancement, mirroring the robust focus on digitalization, cybersecurity, and data protection embraced by businesses. The imperative to secure critical communication infrastructure and sensitive data has led to heightened government involvement, while the rising need for compliance fulfillment and penalty avoidance drives eGRC solution adoption.

Major industry players such as IBM, Microsoft, Oracle, SAS Institute, ServiceNow, FIS, and MetricStream thrive within the North American eGRC market. This robust presence, along with the integration of advanced technologies like artificial intelligence (AI) and machine learning (ML) into eGRC solutions, cements North America's position as the dominant market throughout the forecast period.

In this region, vendors are fervently fostering innovation, and the adoption of progressive business models by prominent countries like the U.S. and Canada significantly contributes to North America's eGRC leadership. Several driving forces further propel the eGRC market in North America, encompassing shifts in work dynamics driven by COVID-19, the Bring Your Own Device (BYOD) trend, wide-scale cloud and Internet of Things (IoT) integration, stringent compliance adherence, and the surge of advanced risks including Business Email Compromise (BEC), phishing, malware, and other sophisticated threats.

Meanwhile, the Asia Pacific region emerges as a focal point for burgeoning growth, projected to attain the highest Compound Annual Growth Rate (CAGR) throughout the forecast period until 2030. This expansion can be attributed to remarkable technological strides observed in countries like China and Japan, among others. Notably, major players in the Asia Pacific, including countries like Japan and China, are spearheading advancements in cutting-edge technologies such as automation and 5G, fostering a culture of embracing the latest innovations. This trend bodes well for the future of eGRC adoption within the Asia Pacific, with an upswing anticipated in the upcoming years.

Moreover, India's robust economy is witnessing a surge in eGRC digitalization and stringent data protection regulations, obligating enterprises to adhere to compliance. This confluence of factors is propelling eGRC adoption in India, thereby playing an instrumental role in advancing the entire eGRC landscape within the Asia Pacific region.

How is the Competition Scenario in the eGRC Market?

The leading players within the global enterprise governance, risk, and compliance (eGRC) market boast an expansive international footprint and have cultivated versatile eGRC solutions tailored for diverse industries. These players and vendors have also introduced distinctive attributes within their eGRC solutions, solidifying their leadership share in the enterprise governance, risk, and compliance market.

Some of the major players operating in the global eGRC market include Allgress Inc, Blue Umbrella, BWise, CammsGroup, Dell, Diligent Corporation, DynamicGRC, FIS, IBM, Ideagen, Infosys, LexisNexis, LogicGate, LogicManager, Maclearglobal.com, Mega International, MetricStream, Microsoft, Módulo Security Solutions, Mphasis, Navex Global, OneTrust, Oracle, Origami Risk, Reciprocity, Riskonnect, RSA Security, Sai Global, SAP, SAS Institute, ServiceNow, Software AG, Tevora, Thomson Reuters, VComply, and Wolters Kluwer among others.

eGRC Industry Developments

• In June 2023, MetricStream unveiled AiSPIRE, an AI-driven GRC solution aimed at enhancing decision-making and efficiency by delivering cognitive insights across eGRC processes.

• In June 2023, Microsoft Corporation announced a partnership with Moody, intending to provide advanced data, analytics, research, collaboration, and risk solutions for financial services and global knowledge workers.

• In June 2023, SAI360 introduced its 2023 Release Two, presenting resources and tools for expediting and operationalizing ESG initiatives. The release includes software and educational materials to support governance, compliance, environment, learning, health, safety, and sustainability efforts.

• In June 2023, SAP SE collaborated with Google Cloud in May 2023 to introduce an open data offering simplifying data landscapes and enhancing enterprise AI development.

• In May 2023, SAI360 initiated the acquisition of Evotix, emphasizing growth and consolidation in the EHS and sustainability software sector as organizations prioritize environmental, health, safety, compliance, and sustainability initiatives.

• In May 2023, MetricStream partnered with Kinetix to provide compliance teams with AI-powered identification, extraction, and review of organization-specific regulatory requirements for precise and timely compliance.

• In December 2022, SAP SE collaborated with PwC to integrate sustainability into standard business operations, addressing essential ESG challenges.

• In November 2022, the Bank of East Asia, Limited chose Wolters Kluwer N.V.'s regulatory reporting software (OneSumX), contributing to the growth of the BFSI segment.

• In October 2022, IBM introduced OpenPages Risk Management for ESG, linking ESG objectives with eGRC capabilities, allowing organizations to assess risks effectively.

• In April 2022, Oracle announced release of its version 8.6.0 of Oracle Governance Risk Compliance Intelligence (GRCI), an intelligence reporting application extracting data from Oracle GRCC.

• In March 2022, IBM launched IBM OpenPages with Watson 8.3, an integrated GRC platform simplifying risk and compliance management.

• In January 2022, SAP introduced Access Violation Management, enabling real-time risk analysis, user access reviews, role management, and emergency access management for enterprise applications, both on-premises and in the cloud.