Governance, Risk and Compliance (GRC) Software Market

GOVERNANCE, RISK AND COMPLIANCE (GRC) SOFTWARE MARKET OVERVIEW

The global Governance, Risk and Compliance (GRC) Software Market was USD 17.60 billion in 2025 and is projected to reach USD 39.96 billion by 2033, exhibiting a CAGR of 10.5% during the forecast period.

Governance, Risk and Compliance (GRC) Software Market represents a critical function for all industries to allow organizations to be proactive about regulation, internal policies and business risks. Moreover, organizations want their GRC solutions to improve processes and accountability and reduce compliance risks. The use of GRC software has been enhanced with digital transformation, increasing regulation, complex business ecosystems, and the need for integrated systems of record. Cloud is the future of GRC software as organizations experience flexibility and scale of deployment options, as well as many more integration options, this is a value proposition for small and medium sized enterprises (SME). Large corporations tend to have both options available (cloud and on-premises). Employers are increasingly focusing on real-time visibility and systems that can automate various aspects of the GRC solutions to immediately respond to different threats. As industries become more connected and regulatory frameworks continue to increase, GRC software will be an aspect to assist organizations in their planning efforts.

GLOBAL CRISES IMPACTING GOVERNANCE, RISK AND COMPLIANCE (GRC) SOFTWARE MARKETCOVID-19 IMPACT

"Governance, Risk and Compliance (GRC) Software Market Had a Positive Effect Due to Increased Work from Home during COVID-19 Pandemic"

 The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencinghigher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic has changed the Governance, Risk and Compliance (GRC) Software Market market considerably. As people worked from home overnight, the immediacy for organizations was to make compliance easier and to provide risk visibility for disparate teams under dispersed operations. This created the perfect opportunity for cloud-based GRC systems to gain popularity - where there were easy options for remote monitoring of compliance and reporting outputs as well as policies for the underlying risk areas. The COVID-19 pandemic revealed weaknesses in the risk frameworks that businesses used to operate, so many needed to reassess their compliance frameworks and related crisis management systems. Vendors responded with enhanced real-time analytics, stronger integration in cybersecurity and improved mobile access to risk data. Healthcare and financial services sectors have increased GRC, as they implemented their evolving regulations during the pandemic. Ultimately, COVID-19 opened the door for organizations to rethink digital-first risk governance.

LATEST TREND

"AI-Driven Automation and Predictive Analytics in GRC to Drive Market Growth"

One of the most impactful trends in the GRC software market is the expansion of artificial intelligence (AI) and predictive analytics. More companies than ever take advantage of AI-powered solutions to automate compliance management, risk assessment and incident response. Predictive analytics contributes to the ability of companies to respond to risks that can be prevented before they develop, helping them to further strengthen governance, risk management and compliance. The technology is automating previously manual workflows, reducing the likelihood of human error via full visibility of compliance metrics in real-time. AI also allows companies to readily update policy documents in real-time, which helps inform decisions based on the most current decisions allowed by contextual choices, especially in fast moving regulatory environments. As regulations transform, intelligent GRC platforms that use machine learning will become essential for managing large amounts of data and keeping flexible. This will allow for GRC to evolve from a purely reactive function to a competitive advantage.

GOVERNANCE, RISK AND COMPLIANCE (GRC) SOFTWARE MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Cloud-based, On-premises:

• Cloud-based: Cloud-based GRC software solutions have rapidly become the preferred option amongst organizations looking for an agile, scalable and readily deployable (or accessed) solution. They provide up-to-date information in real-time for remote workers to manage compliance and risk anywhere they are working. Cloud-based solutions can easily be implemented with little or no infrastructure reducing cost and complexity. Beyond these benefits, with cloud-based GRC solutions you can receive regular updates to guarantee you are compliant with current regulations. Cloud-based solutions are especially favored by small and medium enterprises (SMEs) because of their cost and ease of implementation. Further, analytics and automation assist with creating effective decision-making steps in an efficient business process. As businesses continue to acclimate to hybrid work, cloud-based GRC will become even more popular.

• On-Premises: Though cloud options now dominate the market, on-premises GRC software still has relevance for larger enterprises and high-compliance industries that want maximum control of sensitive data. On-premises GRC software is installed on servers within an organization’s IT infrastructure, which offers some level of customization and oversight over security. It still represents the best option when or there exists a need for sovereign data, high-compliance activity in an industry, or organizational governance policies that require the data to be stored on the organization’s IT infrastructure. On-premises GRC software could maintain a high level of maintenance and cost. But software that is not cloud-based is often more integrated, likely out of necessity, with both legacy systems and better levels of service customization. The defense, government, and financial sectors continue to rely on the on-premises model to execute the mission-critical risk and compliance activities. While the industry has had great success in adopting the cloud, and the scalable/cloud-friendly GRC ecosystem continues to grow, on-premises GRC software remains firmly established.

BY APPLICATION

Based on application, the global market can be categorized into Large Enterprises, SMEs:

• Large Enterprises: Large Enterprises typically arise as GRC users and continue to stay engaged with this software due to their complicated structures, worldwide operations, and ever-evolving regulatory environment. They must manage vast amounts of data dealing with numerous compliance requirements simultaneously from numerous aspects of their operations across different industries and regions. GRC platforms assist them in navigating a comprehensive process of centralizing governance functions, streamlining reporting, and tracking enterprise-level risks. Complete integration with other enterprise platforms such as ERP, and HRMS, will further enhance their GRC platform. Large organizations have also demonstrated a continuous priority on customizable capabilities, advanced analytics functionality, and an established user management capability. Many of these companies utilize an on-premises deployment model, particularly where data protection and IT governance are important. Finally, GRC solutions also enable businesses to incorporate risk planning as part of a strategy to become more resilient in the long run.

• SMEs: Small- to Medium-Size Enterprises (SMEs) are increasingly investing in Governance, Risk and Compliance (GRC) Software Market to easily tackle compliance requirements, efficiently manage risks and create a comprehensive package of internal controls. Cloud-enabled GRC software is becoming popular with the SME segment as it is seen to be less expensive, easier to use and easier to deploy. SMEs reap the rewards of GRC software having access to dashboards, automated workflows and templates that will ensure they are compliant with regulations, without necessarily having a large compliance team. As we see an increase in threats from cybercrime, and stricter regulations around data protection and privacy, many SMEs are starting to put in place a more formalized risk and compliance systems. In conclusion, GRC software makes sure SMEs take a responsible view of risks they can control, increase stakeholder confidence and protect against punitive measures which could have been avoided because of not preparing for the unexpected.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.             

DRIVING FACTORS

"Rising Regulatory Complexity Across Industries to Boost the Market"

One of the significant drivers within the Governance, Risk and Compliance (GRC) Software Market growth has been the sheer complexity of global regulatory requirements. Companies in every sector face local, regional, and global regulations that provide guidance on their operations, industry regulations, data privacy regulations, and ethical governance. Then there are all the rules and regulations for different regulators under the same regulations. The additional regulatory requirements have made it impossible for organizations to simply track changes and create reports using old manual processes - especially organizations who are regulated in multiple jurisdictions. GRC software has set the standard for organizations meeting regulatory requirements. By providing organizations a centralized dashboard, data driven automation and live updates while being able to maintain an alert feature which can notify organizations of changes to the regulatory requirements, with the goal of keeping organizations compliant with the changing regulatory requirements. Being able to tell your stakeholders or the public that your organization is compliant with all regulations also provides a level of transparency and confidence to the organization. As the number and depth of regulations continue to grow, GRC software is becoming a critical application for organizations looking to provide integrity in their operations.

"Demand for Integrated Risk Management Solutions to Expand the Market"

The acceptance of GRC software is growing, in part, due to the expanded interest in enterprise risk management. An organization must evaluate a multiplicity of risks as they confront issues regarding cyber risk, supply chain risk, environmental and climate risk, and reputational risk. Organizations can no longer use siloed risk management approaches. GRC software products provide an integrated and coherent structure to evaluate, monitor, and respond to any risk situation at an enterprise level, using integrated and consistent approaches. GRC solutions can provide an organization the ability to share and consolidate information regarding risk across different departments in real-time, at an enterprise level and can raise the risk landscape for decision and strategy. There is a meaningful connection to compliance and governance solutions and a strong, resilient relationship which adds value to organizations through integrated solutions.

RESTRAINING FACTOR

"High Implementation and Maintenance Costs to ""Potentially Impede Market Growth"

A major constraining factor in the GRC software market can be attributed to the substantial cost of implementation, modification, and ongoing maintenance. For many organizations—especially SMEs— GRC software can require a substantial initial outlay before obtaining any return on investment (ROI). In addition to licensing tools/enterprise agreements, a company may also require additional training, system integrations, and updates. Compliance to new regulations also requires ongoing optimization of the platform, which can lead to unintended long-term costs. The combination of these and other factors can cause to delay adoption or partially implement the software, rendering the software less effective for organizations and minimizing the market share of the small players in the marketplace.

OPPORTUNITY

"Growing Emphasis on ESG Compliance Creates New Opportunities ""to Create Opportunity for The Product in The Market"

There is a major growth space for GRC software with the global trend of Environmental, Social, and Governance (ESG) compliance. The global trend is originating primarily by the enormous pressure exerted from investors, regulators, and consumers seeking accountability for organizations' sustainability actions. Organizations are already exploring how to manage or simply record ESG-related data through GRC as a class of software. As new generations of technology-enabled GRC solutions come online, it is likely they will offer ESG risk assessments, tracking of sustainability metrics, and transparent reporting frameworks and tools. This is a substantial opportunity for software vendors to grow and innovate their products into actionable ways. Organizations can begin to garner respect in the marketplace and reputational credibility in their brand and ecosystem while building value through stakeholder compliance by introducing their ESG initiatives to governance risk and compliance initiatives.

CHALLENGE

"Resistance to Organizational Change and User Adoption ""Could Be a Potential Challenge for Consumers"

A significant issue in the GRC Software ecosystem is an existing resistance to change within organizations. Switching to a new GRC platform usually requires some flexibility or alteration of existing workflows, retraining staff, and changing established compliance practices. Employees are often hesitant to try new systems, especially when frameworks are deemed complicated or intrusive. Resistance to new processes and systems can slow down implementation and lower the tangible usefulness of the software. Also, an executive buy-in, especially when change management strategies are poor, can be detrimental to use and contribution. Accomplishing this requires clarity, adequate levels of training support, and a staged implementation to allow for smoother transitional integration for greater long-term success.

GOVERNANCE, RISK AND COMPLIANCE (GRC) SOFTWARE MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America is a leader in the GRC software market given the highly regulated environment, well-developed IT supports, and high level of organizational awareness surrounding risk and compliance. The highest level of adoption is United States Governance, Risk and Compliance (GRC) Software Market, especially within Financial Services, Healthcare, and Technology, where regulation is more frequently scrutinized. Businesses in the region also desire as much automation as possible along with strong cybersecurity capabilities and cloud-based GRC implementations to show transparency and compliance. In fact, with the nearly constant re-crafting of data privacy regulations and financial regulation that occurs, organizations must invest in GRC technology, to keep up with and understand the underlying risks created by these regulations. Companies with leading vendor status in the GRC market are also able to innovate and customize features more rapidly.

• EUROPE

The European GRC Software Market is relatively healthy, with a positive regulatory environment and a heightened focus on data privacy because of the General Data Protection Regulation (GDPR). Many organizations choose to invest in GRC platforms because they can better manage compliance across the varying jurisdictions and compliance obligations—specifically mandated industry compliance. GRC is being embraced as an essential foundational aspect of compliance activities and processes, especially through their GRC systems by financial services and public sector organizations, as well as a growing interest in compliance for ESG through their GRC platforms and systems. Organizationally, European companies are looking to take both on-cloud and on-premises solutions for GRC technologies, and some companies considered strictly on-cloud solutions with considerations relating to only the location and storage of the data. The degree of complexity at the regional level is driving demand for GRC platforms and/or systems that can be implemented as a regional or language-agnostic basis.

• ASIA

In the coming years, the GRC software industry will continue to expand as Asian countries (India, China, Japan, and Singapore) make progress in their digitalization journeys, strengthen their regulatory environments, and governments and businesses alike understand the awareness of cyber security risk. There are countries in the region making big investments to build Governance and Risk Management capability at the state level. Large enterprises are leading the way in terms of the adoption of these applications in Asia, soon small- and medium-enterprises will also see in of cloud-enabled GRC applications. Companies will continue to move toward a regulatory framework that recognizes data protection legislation and increased regulatory scrutiny of awareness of foreign investment. Due to the differing legal systems and cultures, flexibility and localization are vital. There is great potential for GRC software vendors to take advantage as the growth in Asia continues to rise and the digital ecosystem matures.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key players of the GRC software industry are innovating, integrating platforms and expanding their global footprint to strengthen everybody's position in the market. to attract customers and reduce churn. Incumbents like IBM, SAP, Oracle, etc. have introduced AI-enabled analytics and automation capabilities for smarter compliance/risk management tools. Similar to niche players like Logic Manager and Logic Gate, who are starting to gain traction with their agile, cloud-based offerings aimed at mid-sized companies. Collaboration, M&A and developing ESG-ready modules are becoming prevalent among the GRC players. The key players are also focused on improving user experience and real-time monitoring to drive adoption and customer retention.

LIST OF TOP GOVERNANCE, RISK AND COMPLIANCE (GRC) SOFTWARE MARKET COMPANIES

• IBM (United States)
• • • RSA Security (United States)
    • SAP (Germany)
    • Oracle (United States)
    • Software AG (Germany)
    • LogicManager (United States)
    • Riskonnect (United States)
    • Diligent – Galvanize (United States)
    • SAI Global (Australia)
    • MetricStream (United States)
    • SAS Institute (United States)
    • Wolters Kluwer (Netherlands)
    • Check Point Software (Israel)
    • MEGA International (France)
    • Resolver (Canada)
    • NAVEX Global – Lockpath (United States)
    • ProcessGene (Israel)
    • Aravo (United States)
    • ReadiNow (Australia)
    • LogicGate (United States)
    • Reciprocity – ZenGRC (United States)

KEY INDUSTRY DEVELOPMENT

June 2024: Riskonnect, a provider of GRC software solutions, announced it acquired Camms, an Australian provider of purpose built and cloud-based Governance, Risk and Compliance (GRC) tools. This acquisition extends Riskonnect's platform and includes Camms best-in-class performance management and operational risk capabilities. There are two major components to this acquisition. First, it bolsters Riskonnect's international capabilities. Second, and potentially most significant, it enhances Riskonnect's ability to evaluate GRC platforms for organizations of any size. In addition, this acquisition reflects a larger trend in the industry of consolidation and organizations' willingness to meet global requirements from companies around the globe, while also raising their total value proposition through integrated risk intelligence solutions.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.