The global market for operational risk management (ORM) software will grow from $1.4 billion in 2019 to $2.2 billion in 2024 according to a new study from independent research firm Verdantix. The forecasted annual growth rate of 8.9% will be driven by growing customer demands. Vendors positioned to benefit from this growth include ORM vendors such as Cority, DevonWay, DNV GL, Enablon, Intelex, Prometheus Group, Sphera and TenForce and Yokogawa RAP.
"Whilst the growth will slow in 2020 due to COVID-19 and the economic recession, we will see rapid recovery as managers leverage ORM capabilities to achieve their operational excellence objectives" commented Verdantix Industry Analyst, Sebastian Winter. "North America will lead spending on ORM software due to growing demand from companies in the extractives sector."
The Verdantix report, Market Size And Forecast: Operational Risk Management Software 2019-2024 (Global), provides vendor executives with all the information they need to assess their market opportunity. The US market accounts for 39% of the total at $850 million of spend in 2019. Europe accounts for 22% at $480 million, the Gulf States account for 8% as do Japan and South Korea. Onshore oil and gas accounts for 15% of spending on ORM software in 2019 at $219 million, chemicals manufacturing 12% and discrete manufacturing 9%. In 2024 process safety management software market will account for 71% of spend at $1.53 billion, control of work software $560 million and barrier risk management software $60 million. Between 2019 and 2024, total market growth will vary between 4.0% and 11.3%.
"COVID-19 and the ensuing recession will see a lower than anticipated growth of just 4% in 2020, however by 2022 growth will be back at pre-COVID-19 levels as stronger risk controls are implemented" continued Winter. "Our analysis indicates that vendors need to apply four tactics to exploit the ORM software opportunity, including managing current customer relationships, developing simplified functionality for lower EHS-risk markets, provide greater integration with industrial systems and leveraging emerging technologies to provide enhanced real-time risk management."
To find out more read the full report.