Verdantix Forecasts The Operational Risk Software Market Will Reach $14.6 Billion
London – October 1, 2018. Independent research firm Verdantix has published a ground-breaking forecast for operational risk management software. Based on a survey of 221 managers at industrial assets and an analysis of 88 vendors’ revenues, the model predicts that the market will grow from $1.3bn in 2018 to $3.1bn in 2028 and $14.6bn in 2038. Compound annual growth will be a healthy 13%.
“Operational excellence programmes and industry 4.0 strategies will drive a big increase in demand for operational risk management software” commented David Metcalfe, Verdantix CEO. “That’s why we are already seeing a surge of interest in software which dramatically improves the potential to control risks at complex industrial assets. Firms such as BASF and Shell have bought into the value of operational risk management software and hundreds of other firms will follow their lead.”
The Verdantix report, “Operational Risk Management Software 2018-2038 Market Size & Forecast”, provides investors and executives with a detailed analysis of market evolution.
In 2018, oil and gas will account for $548m which is 48% of spend; North America and Europe represent 77% of the market; and 41% of investment will be allocated to Asset Performance Management vendors such as ABB, AspenTech, Aveva and SAP.
Digitization of industrial assets, processes and equipment will drive long-term growth in spending on operational risk management software. Systems integrators such as Accenture and Deloitte will be big players in operational risk information architecture and digital twin risk control simulations.
From 2018 to 2028, spending on operational risk software will grow by 9% to 11% per annum. From 2029 onwards, growth will accelerate and reach a peak of 20% in 2035. Digital factory strategies will boost spending on software in manufacturing to $2.3bn.
“Enterprise-class software for operational risk management has been available for over a decade” stated Sebastian Winter, Verdantix Analyst. “What has changed is the embrace of digital technologies by industrial firms. This is accelerating growth in demand for proven software that can reduce industrial risks and increase production. Vendors like eVision, Petrotechnics, RAP, RiskPoynt need to expand out of petro-chemical industries to fully benefit from this new trend.”
Register to attend the Verdantix webinar: “Understanding The $14.6 Billion Operational Risk Management Market Opportunity” on October 11th.
Paige A. Rigas
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