Spend On GRC Software To Surpass $9 Billion In 2029

Spend On GRC Software To Surpass $9 Billion In 2029

In our 2024 market size and forecast report, Verdantix reveals that the global market for governance, risk and compliance (GRC) software will nearly double from $4.98 billion in 2023 to $9.08 billion by 2029, representing a compound annual growth rate (CAGR) of 11%. Here are the key insights from our research:

• Regulations are a dual force driving GRC growth.
  GRC market growth is predominantly fuelled by a complex landscape of regulatory demands. The EU’s Corporate Sustainability Reporting Directive (CSRD) is set to impact approximately 50,000 organizations, including non-EU entities with significant activities in the EU. Other regulations, such as the California Consumer Privacy Act (CCPA), imposes stringent data privacy requirements on businesses operating in California. These regulations serve as both ‘carrot’ and ‘stick’ drivers of GRC software adoption. This is because firms are beginning to realise that harnessing risk data for improved governance and compliance is just as much about identifying competitive differentiation opportunities as it is about tracking liabilities.
  
  
• Spend will continue to be primarily focused in North America and Europe.
  Expenditures on GRC software will continue to remain concentrated in North America and Europe, with CAGRs of 10% and 11% respectively. While these regions are relatively saturated and digitally mature economies, their growth is being driven by an increasing number of mid-market firms needing to address evolving compliance requirements. Additionally, advancements in cloud-based and modular GRC solutions have made these tools more accessible and cost-effective for smaller enterprises, further contributing to sustained high growth rates.
  
  
• Industries with high-risk compliance profiles are leading the charge.
  Organizations in the finance and oil and gas sectors are leading the adoption of GRC solutions, with each industry forecasted to grow at a CAGR of 12% through 2029. These sectors face intense regulatory pressures that necessitate robust compliance measures. In the finance sector, key regulations include Basel III, the Digital Operational Resilience Act (DORA) and AML regulations aimed at preventing and detecting illicit financial activities. Similarly, the oil and gas sector faces stringent regulations, especially as firms grow their international operations and publicly list subsidiaries in various countries, which necessitates adherence to regulations specific to each jurisdiction. Meanwhile, the healthcare sector is forecasted to expand its GRC capabilities at a CAGR of 11%, to address challenges related to supply chain disruptions and the integrity of sensitive data management.

To explore more about how the GRC software market is evolving, dive into our full 2024 market size and forecast report, and stay tuned for our upcoming Green Quadrant report on this market.