eGRC Market Size, Share & COVID-19 Impact Analysis, By Component (Software and Services), By Deployment Model (Cloud-based, On-premise), By Organization Size (Large Enterprises, and Small and Medium Enterprises (SMEs)), By Vertical (BFSI, Healthcare, Government, Energy & Utilities, Manufacturing, Retail & Consumer Goods, Telecom & IT, and Others), and Regional Forecast, 2021-2028

The global eGRC market size was USD 27.01 billion in 2020 and is projected to reach from USD 30.12 billion in 2021 to USD 75.24 billion in 2028, at a CAGR of 14.0% during the 2021-2028 period. Based on our research, the global market exhibited a substantial growth of 11.3% in 2020, as compared to the average year-on-year growth during 2017-2019. The impact of COVID-19 on the global market has been exceptional and surprising, with eGRC components witnessing a diverse demand across the region during the pandemic. 

The growth of the market is mainly driven by the rising demand for eGRC solutions by end-use enterprises to overcome the reputational and monetary hazards of non-compliance. Governments and organizations globally are adopting enterprise GRC solutions to leverage numerous features such as risk & compliance management, business resiliency applications, audit management, among others. Also, the increasing cyber-attack incidents are expected to fuel the growth of the eGRC market during the forecast period. 

According to EC-Council, around 300% growth in the cybersecurity attacks on IoT devices was observed across the globe in 2019 compared to 2018. This fact has stimulated enterprises to implement innovative risk management solutions to reduce the possibilities of cybersecurity attacks.

COVID-19 Impact

Proliferating Demand for Cloud-based Solutions to Aid Growth amid COVID-19 Pandemic

The Covid-19 crisis has formed a sense of terror worldwide. The disease's rapid spread has obligated governments and public enterprises to adopt strict lockdowns and social distancing measures. In organizations, compliance management teams and risk superiors are struggling to tackle this epidemic. In the present situation, risk management optimization over eGRC solutions has emerged as one of the finest solutions for enterprises to secure their business. Numerous enterprises are leveraging the proficiencies of their risk management teams by focusing on smart investments into risk managing technologies. Hereafter, enterprises are progressively implementing these solutions to aid employers in addressing exposures related to COVID-19.

• For instance, in April 2020, Wolters Kluwer's CPM business developed and launched "COVID-19 Noteworthy Developments Bulletins". The solution is based on COVID-19 related regulatory compliance resources. The purpose is to offer COVID-19 related regulatory updates such as notices, changes, global regulatory orders, and other updates for the BFSI sector.

 Such active initiatives are expected to drive the eGRC market growth in the coming period.

LATEST TRENDS

Integration of the AI, IoT, and ML with eGRC Solutions to Aid Market Growth

The integration of technologies such as the Internet of Things (IoT), AI, machine learning (ML), cloud, and others, with eGRC solutions is expected to accelerate the demand for the solutions. The AI-enabled eGRC solutions are highly adopted across enterprises as they offer effective analysis features. The AI-enabled solutions assist in the enormous processing volumes of data that governments and enterprises have to deal with regularly. These solutions also provide features such as process optimization, reduced costs, improved effectiveness, and others. Key players in the market aim to advance their product portfolio by launching solutions based on AI and ML technologies.

• For instance, in November 2019, Infosys Limited introduced "Infosys Governance Risk & Compliance (GRC)" - digital application suite. The solution is based on AI- and ML technologies. The solution offers a conversational interface and robotic process automation (RPA)-enabled control testing for the MetricStream platform to provide ease-of-use and enhanced user experience.

DRIVING FACTORS

Increasing Stringency of Compliance Mandates for Enterprises to Drive the eGRC Market

The increasing complication of governing standards and the necessity to fulfill different protocols enforced by governing organizations are expected to generate huge demand for solutions. eGRC guidelines directly impact IT organizations and the associated commercial procedures. Organizations are concentrated on shifting from traditional directives and regulatory compliance rules such as the Sarbanes-Oxley Act (SOX) to advanced risk- and compliance-related regulatory authorities.

In the present economic situation, numerous organizations deploy solutions across their business units to advance their business road maps.

Continuing to comply with the guidelines and regulations, including GDPR, COBIT, HIPAA, and other states & federal directives, is becoming complex for organizations to escape operational loss. Failure to fulfill these regulations requirements can result in enormous business loss. Consequently, the increasing stringency of compliance directives is expected to drive the enterprise governance, risk, and compliance market growth in the upcoming years.

Following are some regulations and compliance acts in North America & Europe:

• Control Objectives for Information and Related Technologies (COBIT)


• The General Data Protection Regulation (GDPR)


• The Federal Financial Institutions Examination Council (FFIEC)


• Health Insurance Portability and Accountability Act (HIPAA)


• The Gramm-Leach-Bliley Act (GLBA)


• The Federal Information Security Management Act (FISMA)


• The Payment Card Industry Data Security Standard (PCI DSS)


• The National Institute of Standards and Technology (NIST)

RESTRAINING FACTORS

Data Privacy and Information Security Concerns Associated with Cloud Solutions to Impede Growth

The eGRC market is developing at a prompt pace, owing to its multi-tasking capabilities across numerous verticals. The arrangement of regulatory policies and governance varies from enterprise to enterprise and country to country. Several countries, such as Iraq, Afghanistan, Nigeria, and others, do not have an allocated body to government regulatory guidelines. Such policies and guidelines must be implemented and controlled by considering multiple factors, such as micro and macro-economic risk factors coupled with the corporate requirements.

The lack of awareness of the solution in developing nations can be considered one of the restraining factors for the market's growth. Such factors are making it challenging for providers to provide solutions to the end-user requirements across developing nations.

SEGMENTATION

By Component Analysis

Increasing Implementation of eGRC Software among Enterprises to Propel the Market

Based on the component, the market has been bifurcated into software and services. Among them, the software is predicted to grasp the largest market share during the estimated period. The growth is due to the increasing demand for software such as the SAP GRC, GRC Envelop, SAI360, and IBM OpenPages. With the advancement of the updated and automated eGRC programs, the demand for software is expected to surge.

The services segment is likely to grow at a noteworthy CAGR during the study period. The growth is attributable to the increasing adoption of advisory services to tackle enterprises' numerous risk and compliance encounters.

By Deployment Model Analysis

Rising Demand from Enterprises for Cloud-based Deployment Will Support the Growth

Based on the deployment model, the eGRC market is distributed into on-premise and cloud-based. The on-premise is probable to dominate the market share. The segment's growth is mainly due to the growing adoption of on-premise software deployment across start-ups and SMEs.

The cloud is projected to display the highest CAGR during the forecast period. This is attributable to the escalating implementation of cloud-based applications to advance an in-depth analysis of risk and decrease complexity.

By Organization Size Analysis

Implementation of eGRC Solutions among SMEs to Aid Market Growth

The market is separated into small & medium enterprises (SMEs) and large enterprises based on the organization size.

Among them, SMEs are likely to hold the largest market share during the estimated period. SMEs are highly focused on implementing cost-effective solutions based on emerging digital technologies such as artificial intelligence (AI), cloud, and others across their business units. Growing government guidelines and global enterprise governance risk policies for SMEs to secure clients’ information are expected to boost investment in software and services.

The large enterprise segment is anticipated to grow at the uppermost CAGR during the prediction period. These solutions aid large enterprises to advance their operational efficiency and deliver improved customer experience across the different locations.

By Vertical Analysis

Adoption of eGRC Solutions in the BFSI Sector to Fuel the Market

Based on verticals, the eGRC market is divided into government, BFSI, healthcare, telecom & IT, energy & utilities, retail & consumer goods, manufacturing, and others.

Among all, the BFSI segment is expected to hold the largest share during the estimated period. Also, the adoption of solutions across the government segment is growing traction owing to their ease of use and cost-effectiveness. These solutions assist government regulatory and state-owned enterprises to create their own agreement and risk plans/strategies more proficient and effective.

Healthcare is expected to record significant growth during the estimated period. The growth is owing to the mounting adoption of cloud-based solutions to reduce privacy concerns and increase information security. Also, the growing implementation of these solutions across other industry verticals such as telecom & IT, BFSI, manufacturing, energy & utilities, retail & consumer goods, and others will propel the growth of the market.

REGIONAL INSIGHTS

Geographically, the eGRC market is divided across five major regions, namely North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

North America is likely to dominate the market share in terms of revenue during the projection period. The growth in the region is due to the early adoption of innovative technologies and key players such as Oracle Corporation, Microsoft Corporation, and IBM Corporation. Also, the increasing implementation of cloud-based computing applications and growing liability of information breaches to cyber threats are likely to further boost regional growth. Key players in the market are focusing on launching new products to expand their products portfolio.

• For instance, in September 2019, OneTrust, LLC launched its flexible and integrated governance, risk, and compliance management platform - "OneTrust GRC". The aim is to deliver a complete, seamless, and measured view of businesses’ risk portfolios.

Asia Pacific is predicted to develop exponentially during the forecast period. The growth in the region is due to the increasing demand for solutions across industries such as manufacturing, government, and healthcare. Key market players are concentrating on completing various business strategies such as acquisition, partnership, merger, and others to augment their market position.

Europe is expected to exhibit a significant growth level during the projection period. The growth in the region is attributable to the presence of a large number of solution providers and end-users.

The Middle East & Africa, and Latin American regions are likely to observe a progressively rising growth rate throughout the forecast period. The growth is attributable to the growing investment by country governments to implement progressive technologies such as AI, 5G, ML, cloud, IoT, and others.

KEY INDUSTRY PLAYERS

Key Players Develop Innovative eGRC Solutions to Strengthen their Position

Major players such as IBM Corporation, MetricStream Inc., SAP SE, and Microsoft Corporation are strengthening their market position by advancing their present product outlines. In addition, key players in the market are deploying eGRC solutions with advanced technologies such as ML, AI, IoT, cloud, and others to augment the products and deliver cutting-edge solutions.

• For instance, in April 2020, Tricor Group (Tricor), a Hong Kong-based company, acquired Malaysian operations of Axcelasia Inc., an SGX-Listed company. The aim is to provide GRC solutions for end-users to manage their complex compliance and regulatory requirements and responsibilities.

LIST OF KEY COMPANIES PROFILED:

• SAS Institute (North Carolina, United States)


• IBM Corporation (New York, United States)


• Microsoft Corporation (New Mexico, United States)


• SAP SE (Weinheim, Germany)


• Thomson Reuters Corporation (Toronto, Canada)


• Wolters Kluwer N.V. (Alphen aan den Rijn, Netherlands)


• MetricStream Inc. (California, United States)


• BWise (New York, United States)


• Infosys Limited (Bengaluru, India)


• Software AG (Darmstadt, Germany)


• Dell Technologies (Texas, United States)


• SAI Global (Illinois, United States)


• NAVEX Global, Inc. (Oregon, United States)


• LogicManager (Massachusetts, United States)


• Ideagen Plc (Nottingham, United Kingdom)


• Tevora (California, United States)


• OneTrust, LLC (Georgia, United States)


• Blue Umbrella Limited (Quarry Bay, Hong Kong)


• Riskonnect, Inc. (Georgia, United States)


• Origami Risk (Illinois, United States)


• Onetrust LLC (Georgia, United States)

KEY INDUSTRY DEVELOPMENTS:

• April 2020: - MetricStream Inc. introduced an advanced COVID-19 Solution to support several end-use enterprises in dealing with the COVID-19 outburst. Enterprises are deploying these solutions to manage business processes such as information management, responses & processes, decision making capabilities that impact business management, managers, employees, partners, vendors, and customers.

REPORT COVERAGE

The eGRC market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope and Segmentation

ATTRIBUTE	DETAILS
Study Period	2017-2028
Base Year	2020
Forecast Period	2021-2028
Historical Period	2017-2019
Unit	Value (USD Billion)
Segmentation	Component; Deployment Model; Organization size; Vertical and    Region
By Component	Software Services
By Deployment Model	Cloud-based On-premise
By Organization size	Large Enterprise Small & Medium Enterprise
By Vertical	BFSI Healthcare Government Energy & Utilities Manufacturing Retail & Consumer Goods Telecom & IT Others (Transportation & Logistics, Construction, etc.)
By Region	North America (Component; Deployment Model; Organization size; Vertical and Country)  United States Canada Latin America (Component; Deployment Model; Organization size; Vertical and Country) Brazil Mexico Rest of Latin America Europe (Component; Deployment Model; Organization size; Vertical and Country) United Kingdom Germany France Russia Rest of Europe The Middle East & Africa (Component; Deployment Model; Organization size; Vertical and Country) GCC South Africa Rest of the Middle East & Africa Asia Pacific (Component; Deployment Model; Organization size; Vertical and Country) China India Japan Rest of Asia Pacific