Third-Party Risk Management Market Size, Share, and Growth Analysis, By Component (Solution), By Service (Professional, Managed), By Deployment Mode, By Organization Size, By Verticals, By Region - Industry Forecast 2025-2032
Global Third-Party Risk Management Market size was valued at USD 8.2 billion in 2023 and is poised to grow from USD 9.54 billion in 2024 to USD 32.17 billion by 2032, growing at a CAGR of 16.4% during the forecast period (2025-2032).
The global third-party risk management (TPRM) market is experiencing significant growth driven by the evolving complexity of business environments and heightened cyber threats. Organizations increasingly prioritize analyzing and managing risks associated with third-party relationships, ensuring business security and compliance. The market is leveraging advanced technologies like AI and machine learning for enhanced risk assessment and regulatory adherence. Firms are also becoming more aware of the necessity for comprehensive risk management strategies, resulting in increased investments in TPRM solutions. These solutions offer comprehensive functionalities, including vendor assessment, onboarding, ongoing monitoring, and compliance management, enabling organizations to maintain a secure and agile operational framework. This trend underscores the strategic shift towards strengthening internal capabilities and refining third-party risk management processes.
Top-down and bottom-up approaches were used to estimate and validate the size of the Global Third-Party Risk Management market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Global Third-Party Risk Management Market Segments Analysis
Global Third-Party Risk Management Market is segmented by Component, Service, Deployment Mode, Organization Size, Verticals and region. Based on Component, the market is segmented into Solution. Based on Service, the market is segmented into Professional and Managed. Based on Deployment Mode, the market is segmented into Cloud and On-premises. Based on Organization Size, the market is segmented into Small and Medium-sized Enterprises (SMEs) and Large Enterprises. Based on Verticals, the market is segmented into BFSI, IT and Telecom, Healthcare and Life Sciences, Government, Defense, and Aerospace, Retail and Consumer Goods, Manufacturing, Energy and Utilities and Others (Includes Education; Travel and Hospitality; Transportation and Logistics; and Media and Entertainment). Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Driver of the Global Third-Party Risk Management Market
The Global Third-Party Risk Management (TPRM) market has witnessed significant growth fueled by a surge in cyberattacks targeting third-party vendors. As organizations recognize the potential risks posed by their external suppliers, there is a growing emphasis on conducting thorough vendor audits, implementing continuous surveillance, and ensuring compliance with security standards. TPRM solutions play a crucial role by offering real-time threat detection, enabling businesses to proactively address and mitigate potential security vulnerabilities. This heightened focus on safeguarding sensitive information underscores the importance of robust risk management strategies, ensuring that companies remain vigilant amid an increasingly complex threat landscape.
Restraints in the Global Third-Party Risk Management Market
One potential limitation within the Global Third-Party Risk Management market is that small and medium-sized enterprises (SMEs) may struggle to overcome the initial investment costs associated with advanced TPRM systems. These enterprises often face significant financial challenges that can hinder their ability to implement new technologies effectively. As a result, expenses related to integrating new solutions into existing frameworks, coupled with employee training and ongoing maintenance costs, can be prohibitively high. Consequently, this financial burden may discourage companies, particularly in cost-constrained environments, from adopting comprehensive risk management systems, thereby limiting market growth and innovation.
Market Trends of the Global Third-Party Risk Management Market
The Global Third-Party Risk Management (TPRM) market is witnessing a significant trend towards the integration of Machine Learning (ML) and Artificial Intelligence (AI), which is revolutionizing risk assessment and management processes. By leveraging these advanced technologies, organizations can enhance their ability to identify emerging threats, streamline supplier evaluation, and access real-time insights, enabling proactive risk mitigation. This technological evolution is anticipated to boost the efficiency and accuracy of TPRM systems, driving market growth as businesses increasingly prioritize robust risk management frameworks. As reliance on third-party vendors continues to rise, the incorporation of AI and ML will solidify TPRM's role in safeguarding organizational integrity.
Table of Contents
Introduction
Objectives of the Study
Scope of the Report
Definitions
Research Methodology
Information Procurement
Secondary & Primary Data Methods
Market Size Estimation
Market Assumptions & Limitations
Executive Summary
Global Market Outlook
Supply & Demand Trend Analysis
Segmental Opportunity Analysis
Market Dynamics & Outlook
Market Overview
Market Size
Market Dynamics
Drivers & Opportunities
Restraints & Challenges
Porters Analysis
Competitive rivalry
Threat of substitute
Bargaining power of buyers
Threat of new entrants
Bargaining power of suppliers
Key Market Insights
Key Success Factors
Degree of Competition
Top Investment Pockets
Market Ecosystem
Market Attractiveness Index, 2024
PESTEL Analysis
Macro-Economic Indicators
Value Chain Analysis
Pricing Analysis
Global Third-Party Risk Management Market Size by Component & CAGR (2025-2032)
Market Overview
Solution
Financial Control Management
Contract Management
Operational Risk Management
Audit Management
Compliance Management
Others (Includes Quality Assurance Management, Information Management, and Relationship Management)
Global Third-Party Risk Management Market Size by Service & CAGR (2025-2032)
Market Overview
Professional
Consulting
Integration and Design
Support and Maintenance
Managed
Global Third-Party Risk Management Market Size by Deployment Mode & CAGR (2025-2032)
Market Overview
Cloud
On-premises
Global Third-Party Risk Management Market Size by Organization Size & CAGR (2025-2032)
Market Overview
Small and Medium-sized Enterprises (SMEs)
Large Enterprises
Global Third-Party Risk Management Market Size by Verticals & CAGR (2025-2032)
Market Overview
BFSI
IT and Telecom
Healthcare and Life Sciences
Government, Defense, and Aerospace
Retail and Consumer Goods
Manufacturing
Energy and Utilities
Others (Includes Education; Travel and Hospitality; Transportation and Logistics; and Media and Entertainment)
Global Third-Party Risk Management Market Size & CAGR (2025-2032)
North America (Component, Service, Deployment Mode, Organization Size, Verticals)
US
Canada
Europe (Component, Service, Deployment Mode, Organization Size, Verticals)
Germany
Spain
France
UK
Italy
Rest of Europe
Asia Pacific (Component, Service, Deployment Mode, Organization Size, Verticals)
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America (Component, Service, Deployment Mode, Organization Size, Verticals)
Brazil
Rest of Latin America
Middle East & Africa (Component, Service, Deployment Mode, Organization Size, Verticals)