The risk-based monitoring software market, segmented by type, component, end-user, and geography, is expected to grow from USD 1.67 billion to 3.66 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 12.3% during the forecast period (2018–2023).
In terms of revenue, the risk-based monitoring software market has been segmented into a large enterprise, mid-market, and small/medium business segments, and with increased encryption and security requirements in banks, financial institutions, insurance companies, and healthcare organizations, risk-based monitoring software is expected to grow at a rapid pace over the next few years.
So, What is Risk-based Monitoring Software? What does the future hold for the global risk-based monitoring software market? What trends should we expect to see during this period?
These are some of the main questions that will be answered in this blog.
In order to answer these questions, we have conducted extensive research into the risk-based monitoring software market, including deep qualitative interviews with market leaders and influencers to make sure you have a comprehensive understanding of how risk-based monitoring software will fit into your business needs.
So without any further delay, let’s dive into our first question.
Risk-based monitoring software is a type of software that creates awareness among workers and managers with respect to their responsibilities, tasks, and other related areas. It is an automated tool that can be accessed from any location.
Additionally, risk-based monitoring software provides clear instructions regarding what employees need to do and how they are supposed to work, along with a daily/weekly report for further analysis. It helps in analyzing each specific area of a project in accordance with actual requirements and goals.
Also, it makes people well aware of their current position within a project or task.
Lastly, risk-based monitoring software has features like authorization accesses and permissions which help companies to maintain the confidentiality of data during transfer or while creating reports of different projects.
Overall, it helps keep track of all tasks performed by individuals along with real-time alerts based on deadlines.
The global risk-based monitoring software market will grow at a CAGR of 6.3% by 2023, to reach an estimated market size of USD 3.40 billion by 2023.
The global risk-based monitoring software market is mainly driven by the increasing need for implementing data governance and proper business continuity management.
Cyber security is expected to be one of the key applications of risk-based monitoring software.
Banking, financial services, and insurance industry segments are expected to have maximum market share in the risk-based monitoring software market by 2023.
1) According to a report by Transparency Market Research (TMR), the global risk-based monitoring software market is expected to reach US$ 2,891.8 by 2023. North America currently holds a strong position with over 30% share in the market and is projected to retain its supremacy throughout the forecast period.
2) Cybersecurity is one of such focus areas, where many governments have started to invest more and more in order to prevent any cyber-attacks. According to a report by TMR, North America currently holds a dominant position with close to US$ 470 in annual spending and is expected to grow at a CAGR of over 16% through 2023. India is also seen as an attractive market for growth as the government’s budget has been doubled for cybersecurity technology investments.
3) Banking, financial services, and insurance industry will be another key contributor to the global risk-based monitoring software market growth. Although it is one of the mature industries with a continuous focus on security and data protection, risks associated with such a sensitive industry have been rising. According to a report by TMR, spending by the BFSI sector accounts for more than 40% share expected to grow at a CAGR of over 15% through 2023.
Here are the top five industries present in the market that are currently thriving in the world of risk-based monitoring software:
It's no secret that today's manufacturing, assembly, and shipping industries are looking for ways to reduce costs, improve efficiency, and increase output. One way to do all of these things is by implementing a risk-based quality control system.
Industrial employees can use risk-based monitoring software to track metrics on defects or safety issues to prevent them from happening again. Also, as a bonus, using employee monitoring software with risk-based monitoring software can help you boost employee productivity through real-time reporting to spot and correct issues as they arise.
As businesses get more advanced, so do their cybersecurity efforts. Most companies already have a cybersecurity plan in place, but it's important to upgrade as hackers get more creative. One way to stay ahead is by implementing risk-based monitoring software with cybersecurity.
Risk-based solutions detect weak points and address them before they become vulnerabilities. This lets cyber security firms prioritize threats, provide faster alerts and give real-time visibility into any breaches or attacks.
Risk management is a significant part of how many professional services firms operate. If their clients are operating in heavily regulated industries, their demands for compliance extend to how they do business.
For example, most consulting firms either already use or are open to risk-based monitoring software, mainly because it helps them better understand and manage relationships with clients whose regulatory compliance requirements vary greatly from year to year.
With increasingly large amounts of capital invested in growth strategies, professional services firms are looking for new ways to streamline operations and increase efficiency across all departments.
By deploying risk-based monitoring software, these industries can increase security protection throughout their organization, improve compliance with regulations and reduce overall operational costs.
When it comes to sales, no industry can beat retail, and with such a large portion of GDP tied up in retail, theft is a huge issue for businesses. According to data from NPR, retailers lose $482 billion each year due to organized retail crime.
However, these losses can be avoided by using a risk-based monitoring software solution. This is because most shoplifters follow a pattern, which makes their actions predictable.
By analyzing behavior patterns, they can detect risky shoppers when they enter the store and don't need security guards at every entrance or exit looking out for potential thieves.
Instead, they will know exactly when someone's action begins to look suspicious and then decide if any further action is required.
Nearly every financial institution uses advanced data analytics to identify suspicious or fraudulent activity, allowing faster criminal identification. And because fraudsters are constantly evolving their techniques, institutions must adapt in kind to stay one step ahead.
That's where risk-based monitoring comes in. It helps institutions detect fraud patterns they might otherwise miss and improve customer service while minimizing false positives.
For example, consider a scenario where someone has a $100 credit limit on a credit card but spends $500. Using traditional fraud-detection systems, such transactions would set off alarm bells, but risk-based monitoring will merely consider an anomaly that warrants investigation.
Using risk-based monitoring software, the typical financial company could save more than 50 percent of its current fraud prevention budget.
According to a new report published by Technavio’s analysts, the global risk-based monitoring software market is expected to develop at a CAGR of 6.3% by 2023.
The ability to analyze and identify risks quickly and effectively can help organizations improve overall performance and comply with internal policies and regulatory requirements in multiple regions.
The growing importance of governance, compliance and risk management in corporate spheres will boost demand for these solutions going forward. Technavio’s analysts forecast that sales generated from risk-based monitoring software will exceed $1 billion by 2023.
All in all, the overall risk-based monitoring software market is expected to reach billions by the end of 2023. This development can be attributed to the increasing demand for smart solutions that can help analyze, identify, prioritize, and resolve risks quickly.
We have offered you complete information and insights into the market for risk-based monitoring software. In addition, we have also provided forecasts for various industries and their respective drivers to help you get a clearer picture of the overall global market.
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