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 2026-2033

Global Third-Party Risk Management Market size was valued at USD 9.54 Billion in 2024 and is poised to grow from USD 11.11 Billion in 2025 to USD 37.44 Billion by 2033, growing at a CAGR of 16.4% during the forecast period (2026-2033).

The global third-party risk management (TPRM) market is experiencing significant growth, driven by the complexity of business ecosystems and heightened cyber threats. Organizations increasingly recognize the need to assess and manage risks associated with third-party relationships to maintain security and regulatory compliance. Technological advancements, particularly in AI and machine learning, are enhancing risk assessment capabilities within this market. Additionally, there is a growing awareness among businesses of the importance of comprehensive risk management strategies, leading to increased investments in TPRM solutions. These solutions provide end-to-end functionalities, including vendor scoring, onboarding, continuous monitoring, and compliance management, enabling firms to maintain a flexible and secure operational environment, while addressing regulatory challenges effectively.

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 is experiencing a significant surge in demand, driven by the rising frequency of cyberattacks targeting third-party vendors. As organizations recognize the potential risks associated with external suppliers, they are increasingly focusing on conducting thorough vendor audits, implementing ongoing monitoring, and ensuring compliance with regulatory standards. TPRM solutions offer real-time threat detection capabilities, enabling companies to proactively address security threats and safeguard sensitive data from potential breaches. This heightened awareness of security vulnerabilities is pushing businesses to adopt robust risk management strategies to protect their assets and maintain operational integrity.

Restraints in the Global Third-Party Risk Management Market

The Global Third-Party Risk Management market may face significant challenges due to the financial burden posed on small and medium-sized enterprises (SMEs) when attempting to implement advanced TPRM systems. These organizations may find it difficult to manage the initial investment required, which includes not just the acquisition of new solutions but also the training expenses for employees and ongoing maintenance costs. Consequently, many companies might be deterred from adopting comprehensive risk management systems, particularly in financial climates where budget constraints are prevalent and expenditures on such systems are limited. This reluctance could hinder the market's overall growth potential.

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) technologies. These advancements are transforming risk assessment processes by enabling predictive analytics and automation, allowing organizations to proactively identify emerging threats and streamline supplier evaluation. With real-time insights, businesses can anticipate and mitigate risks associated with third-party suppliers more effectively. As these technologies evolve, they will continue to enhance the overall efficiency and accuracy of TPRM frameworks, positioning them as invaluable tools for organizations striving to navigate complex supplier ecosystems and maintain compliance.