Market Overview

The Enterprise Governance, Risk and Compliance (EGRC) market is a rapidly growing industry that focuses on helping companies manage their risks and ensure compliance with regulations. EGRC solutions provide a comprehensive approach to managing governance, risk and compliance within an organization, by integrating various tools and systems.

According to a report by MarketsandMarkets, the global EGRC market is expected to grow from USD 25.1 billion in 2020 to USD 49.4 billion by 2025, at a CAGR of 14.4% during the forecast period. The increasing demand for regulatory compliance and risk management solutions, the growing adoption of cloud-based EGRC solutions, and the need for effective internal control systems are some of the key factors driving the growth of the EGRC market.

Meaning

Enterprise Governance, Risk and Compliance (EGRC) refers to a set of integrated solutions that help organizations manage their governance, risk and compliance activities. EGRC solutions provide a comprehensive approach to managing risk and compliance by integrating various tools and systems such as risk management, compliance management, internal control, audit management, and policy management.

The primary goal of EGRC solutions is to provide a centralized platform for managing governance, risk and compliance activities across the organization. By implementing EGRC solutions, organizations can streamline their risk management and compliance processes, improve decision-making, and reduce operational costs.

Executive Summary

The EGRC market is a rapidly growing industry that focuses on helping companies manage their risks and ensure compliance with regulations. The increasing demand for regulatory compliance and risk management solutions, the growing adoption of cloud-based EGRC solutions, and the need for effective internal control systems are some of the key factors driving the growth of the EGRC market.

The global EGRC market is expected to grow from USD 25.1 billion in 2020 to USD 49.4 billion by 2025, at a CAGR of 14.4% during the forecast period. EGRC solutions provide a comprehensive approach to managing governance, risk and compliance within an organization, by integrating various tools and systems such as risk management, compliance management, internal control, audit management, and policy management.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

– The global EGRC market is expected to grow at a CAGR of 14.4% during the forecast period.
– The increasing demand for regulatory compliance and risk management solutions is a key factor driving the growth of the EGRC market.
– The growing adoption of cloud-based EGRC solutions is expected to fuel market growth.
– The need for effective internal control systems is another key factor driving the growth of the EGRC market.
– North America is expected to dominate the EGRC market during the forecast period, owing to the presence of a large number of EGRC solution providers in the region.

Market Analysis

Market Drivers

1. Increasing Demand for Regulatory Compliance and Risk Management Solutions

The increasing demand for regulatory compliance and risk management solutions is a key driver of the EGRC market. With the increasing number of regulations and compliance requirements, organizations are under pressure to comply with various regulatory mandates. EGRC solutions provide a comprehensive approach to managing compliance and risk by integrating various tools and systems, thereby enabling organizations to manage their compliance requirements effectively.

2. Growing Adoption of Cloud-based EGRC Solutions

The growing adoption of cloud-based EGRC solutions is expected to fuel market growth. Cloud-based EGRC solutions offer several advantages over traditional on-premise solutions, including scalability, flexibility, and cost-effectiveness. Cloud-based solutions also allow organizations to access their EGRC solutions from anywhere, at any time, and on any device, thereby improving the efficiency of their compliance and risk management processes.

3. Need for Effective Internal Control Systems

The need for effective internal control systems is another key driver of the EGRC market. Internal controls are essential

for managing risks and ensuring compliance within an organization. EGRC solutions provide organizations with a centralized platform for managing internal controls, which can help improve the accuracy and completeness of financial reporting, reduce the risk of fraud, and ensure compliance with regulations.

4. Increasing Complexity of Regulatory Requirements

The increasing complexity of regulatory requirements is another factor driving the growth of the EGRC market. Organizations are required to comply with a growing number of regulations, which can be difficult and time-consuming to manage without the right tools and systems. EGRC solutions provide organizations with a comprehensive approach to managing regulatory compliance, which can help reduce the risk of non-compliance and improve the efficiency of compliance management processes.

Market Restraints

1. High Implementation Costs

One of the major restraints of the EGRC market is the high implementation costs associated with EGRC solutions. Implementing an EGRC solution can be a complex process, and requires significant investments in hardware, software, and personnel. This can be a major barrier for small and medium-sized enterprises, which may not have the financial resources to invest in EGRC solutions.

2. Lack of Awareness about EGRC Solutions

Another restraint of the EGRC market is the lack of awareness about EGRC solutions among organizations. Many organizations are still using traditional methods for managing governance, risk and compliance, and may not be aware of the benefits of EGRC solutions. This can limit the demand for EGRC solutions, particularly in emerging economies.

Market Opportunities

1. Growing Demand for Integrated EGRC Solutions

The growing demand for integrated EGRC solutions is a major opportunity for the EGRC market. Integrated EGRC solutions can help organizations manage their governance, risk and compliance activities in a more efficient and effective manner, by providing a centralized platform for managing all of these activities. This can help organizations reduce the risk of non-compliance, improve decision-making, and enhance their overall governance and risk management processes.

2. Increasing Adoption of Artificial Intelligence and Machine Learning in EGRC Solutions

The increasing adoption of artificial intelligence and machine learning in EGRC solutions is another major opportunity for the EGRC market. AI and machine learning can be used to automate many of the tasks associated with governance, risk and compliance, such as risk assessment, compliance monitoring, and internal controls testing. This can help organizations reduce the time and cost associated with these tasks, and improve the accuracy and completeness of their compliance and risk management processes.

Market Dynamics

The EGRC market is a dynamic and rapidly evolving industry, driven by a number of trends and factors. Some of the key dynamics shaping the EGRC market include:

1. Increasing Adoption of Cloud-Based Solutions

The increasing adoption of cloud-based EGRC solutions is a major trend in the EGRC market. Cloud-based solutions offer several advantages over traditional on-premise solutions, including scalability, flexibility, and cost-effectiveness. Cloud-based solutions also allow organizations to access their EGRC solutions from anywhere, at any time, and on any device, which can improve the efficiency and effectiveness of their compliance and risk management processes.

2. Growing Importance of Data Privacy and Security

The growing importance of data privacy and security is another trend shaping the EGRC market. With the increasing number of data breaches and cyber-attacks, organizations are under pressure to ensure the security and privacy of their data. EGRC solutions can help organizations manage their data privacy and security risks, by providing a centralized platform for managing data privacy and security policies, controls, and incidents.

3. Emergence of Integrated EGRC Solutions

The emergence of integrated EGRC solutions is another trend in the EGRC market. Integrated EGRC solutions provide organizations with a comprehensive approach to managing their governance, risk and compliance activities, by integrating various tools and systems. This can help organizations improve the efficiency and effectiveness of their compliance and risk management processes, and enhance their governance and risk management practices.

Regional Analysis

The global EGRC market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America is expected to dominate the EGRC market during the forecast period, owing to the presence of a large number of EGRC solution providers in the region. The Asia-Pacific region is expected to witness significant growth during the forecast period, owing to the increasing adoption of cloud-based EGRC solutions and the growing demand for regulatory compliance and risk management solutions in the region.

Competitive Landscape

Leading companies in the EGRC market:

1. IBM Corporation
2. SAP SE
3. MetricStream Inc.
4. RSA Security LLC (Dell Technologies)
5. Thomson Reuters Corporation
6. Wolters Kluwer N.V.
7. SAS Institute Inc.
8. Oracle Corporation
9. ACL Services Ltd.
10. NAVEX Global

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The EGRC market is segmented based on component, deployment mode, organization size, and vertical. By component, the market is segmented into software and services. By deployment mode, the market is segmented into on-premise and cloud. By organization size, the market is segmented into small and medium-sized enterprises (SMEs) and large enterprises. By vertical, the market is segmented into BFSI, healthcare, energy and utilities, manufacturing, government and defense, and others.

Category-wise Insights

1. Software Segment to Hold the Largest Market Share

The software segment is expected to hold the largest market share during the forecast period. This is attributed to the increasing adoption of EGRC software solutions by organizations to manage their governance, risk and compliance activities. EGRC software solutions offer several advantages over manual and traditional methods, including increased accuracy and efficiency, reduced risk of non-compliance, and improved decision-making.

2. Cloud Deployment Mode to Witness Significant Growth

The cloud deployment mode is expected to witness significant growth during the forecast period, owing to the increasing adoption of cloud-based EGRC solutions by organizations. Cloud-based solutions offer several advantages over traditional on-premise solutions, including scalability, flexibility, and cost-effectiveness. Cloud-based solutions also allow organizations to access their EGRC solutions from anywhere, at any time, and on any device, thereby improving the efficiency and effectiveness of their compliance and risk management processes.

Key Benefits for Industry Participants and Stakeholders

– Improved compliance management and risk mitigation.
– Streamlined governance, risk and compliance processes.
– Enhanced decision-making and reporting.
– Reduced costs and increased efficiency.
– Improved data privacy and security.
– Competitive advantage and market differentiation.

SWOT Analysis

Strengths:

– Comprehensive approach to managing governance, risk and compliance activities.
– Centralized platform for managing compliance and risk management activities.
– Improved decision-making and reporting.
– Scalable, flexible and cost-effective solutions.

Weaknesses:

– High implementation costs.
– Lack of awareness about EGRC solutions among organizations.

Opportunities:

– Growing demand for integrated EGRC solutions.
– Increasing adoption of artificial intelligence and machine learning in EGRC solutions.

Threats:

– Increasing competition from new entrants and established players.
– Data privacy and security risks.

Market Key Trends

1. Increasing Adoption of Artificial Intelligence and Machine Learning

The increasing adoption of artificial intelligence and machine learning in EGRC solutions is a major trend in the EGRC market. AI and machine learning can be used to automate many of the tasks associated with governance, risk and compliance, such as risk assessment, compliance monitoring, and internal controls testing. This can help organizations reduce the time and cost associated with these tasks, and improve the accuracy and completeness of their compliance and risk management processes.

2. Emergence of Integrated EGRC Solutions

The emergence of integrated EGRC solutions is another trend in the EGRC market. Integrated EGRC solutions provide organizations with a comprehensive approach to managing their governance, risk and compliance activities, by integrating various tools and systems. This can help organizations improve the efficiency and effectiveness of their compliance and risk management processes, and enhance their governance and risk management practices.

Covid-19 Impact

The Covid-19 pandemic has had a significant impact on the EGRC market, with organizations facing new and complex risks and compliance challenges. The pandemic has forced organizations to rapidly adapt to new working environments, which has created new risks and compliance challenges. EGRC solutions can help organizations manage these risks and compliance challenges, by providing a centralized platform for managing governance, risk and compliance activities.

Key Industry Developments

1. IBM Acquires OpenPages

In 2010, IBM acquired OpenPages, a leading provider of governance, risk and compliance solutions. The acquisition strengthened IBM’s position in the EGRC market, and enabled IBM to offer a comprehensive suite of EGRC solutions to its clients.

2. RSA Security Launches RSA Archer

In 2019, RSA Security launched RSA Archer, a cloud-based EGRC solution that provides organizations with a comprehensive approach to managing their governance, risk and compliance activities. The solution is designed to help organizations manage their regulatory compliance, enterprise risk, business continuity, and third-party risk management activities.

Analyst Suggestions

According to analysts, the EGRC market is expected to witness significant growth during the forecast period, owing to the increasing demand for regulatory compliance and risk management solutions, the growing adoption of cloud-based EGRC solutions, and the need for effective internal control systems. Analysts suggest that EGRC solution providers should focus on strategic partnerships, acquisitions, and product launches to strengthen their market position and gain a competitive edge.

Future Outlook

The EGRC market is expected to witness significant growth during the forecast period, owing to the increasing demand for regulatory compliance and risk management solutions, the growing adoption of cloud-based EGRC solutions, and the need for effective internal control systems. The emergence of integrated EGRC solutions and the increasing adoption of artificial intelligence and machine learning are expected to shape the future of the EGRC market.

Conclusion

The EGRC market is a rapidly growing industry that focuses on helping organizations manage their governance, risk and compliance activities. The increasing demand for regulatory compliance and risk management solutions, the growing adoption of cloud-based EGRC solutions, and the need for effective internal control systems are driving the growth of the EGRC market. EGRC solutions provide organizations with a comprehensive approach to managing their governance, risk and compliance activities, and can help organizations improve their compliance management and risk mitigation, streamline their governance, risk and compliance processes, enhance their decision-making and reporting, reduce costs, and improve their data privacy and security.