Following growth of 7 percent to US$62bn in 2017, a new report estimates that growth in the global risk services market will accelerate to more than 10 percent in 2019, with the value of the market passing US$80bn by 2020. This will be an uplift of almost US$30bn (over 50 percent growth) in just five years.
The ‘The Global Risk Services Market in 2018’ report from Source Global Research, also states that more than half of the entire risk services market is based in the US (US$32bn) thanks largely to the size of its economy, the maturity of its professional services market, and a business culture that encourages the seeking of external advice.
With revenues of US$15bn and growth of 11 percent, cyber security was both the biggest and fastest-growing service line, and the resulting attractiveness of this service line is leading to an influx of technology-focused new entrants.
Callum Jack, Senior Analyst at Source Global Research, said:
“There is huge potential in the risk services market beyond the revenues achieved already, and the outlook is very positive for firms that can convince clients that their services complement—or are better than—clients’ internal capabilities.
Technology expertise will be central to winning work in risk services in the future with cyber risk continuing to grow and evolve in parallel with digitisation. For this reason, digital know-how will play an increasingly important role in the delivery of both low-cost and high-value services.”