The FAIR Institute announces FAIRCON21
The global operational risk management (ORM) software applications market will grow from $1.5 billion in 2020, at a CAGR of 9 percent, to $2.6 billion in 2026 according to a new study from independent research firm Verdantix.
Verdantix research finds that the post-COVID-19 ORM software market is driven by maturation of the market, rise in remote operations, pandemic driven growth in digitisation to support lean operations, real-time risk management enablement, and safe operations rising to the top of executive priority lists. Vendors positioned to benefit from this growth include ORM software providers such as AdaptIT, CONFORMiT, Enablon, Go-Arc, MODS Management, NiSoft, RiskPoynt, SAP, Sphera, Tenforce and Yokowaga RAP.
“As expected, the COVID-19 pandemic significantly slowed the ORM software market’s nominal growth rate throughout 2020, but it proved fairly resilient,” commented Malavika Tohani (pictured), research director, operational excellence. “To maximise growth, ORM software providers must broaden their offerings to cover process safety management (PSM), have an open architecture to support greater integrations with industrial systems and incorporate digital twins to visually communicate risk.”
The Verdantix report, Market Size And Forecast: Operational Risk Management Software Applications 2020-2026 (Global), provides executives at ORM software providers, systems integrators and financial investors with the information they need to inform business planning and strategy. The model breaks down the market size and forecast trends across 16 industry segments specified by asset class and 10 economic regions. Oil and gas industries accounted for over one-third (34 percent) of ORM software spend in 2020, followed by manufacturing (25 percent) and power distribution and generation (18 percent). The ORM software market is forecast to experience the highest growth in spend from South Asia and China growing at a double-digit CAGR from 2020 to 2026 and will witness increased uptake amongst all industries, with the fastest growth in chemicals.
“The market is set for strong growth between 2021 and 2026,” said Hugo Fuller, Verdantix analyst. “To exploit the attractive market opportunity, ORM software suppliers need to expand their offerings to provide an integrated solution for PSM, incorporate digital twins to collate risks into a single source and communicate them visually, and have an open architecture to support easy integration with external systems.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Verdantix, COVID-19, Risk Management, Operational Risk Management (ORM), Technology, Insurance, Reinsurance, Malavika Tohani, Hugo Fuller, North America