Business Continuity Management Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Business Continuity Management Market Trends & Growth Drivers

Increasing Adoption in SMEs Is Key Trend

• The increasing demand for BCM from SMEs is the major trend. In recent years, an escalating number of SMEs have adopted BCM solutions and services to streamline their business structure and expand their organizations.
• The key players in the BCM market are focusing on providing more-flexible solutions and services for SMEs. This can be ascribed to the new consumer base's massive size and growing awareness of the importance of protecting their assets. The mushrooming demand has been specifically notable in enterprises that operate in under-regulated industries.
• Additionally, SMEs generally rely on limited resources for safeguarding their operations and solutions that generate revenue for the enterprise; this factor creates a high demand for SMEs to adopt BCM.
• There has been increasing pressure from larger organizations (such as Microsoft Corporation and Hewlett Packard Company) to secure the continuity of supply chains, new government laws, and adoption of BCM solutions. This is increasingly compelling SMEs to add BCM as a part of mainstream business operations.

Increasing Operational Risks in Organizations Are Key Driver

• Organizations that have complex business operations are subject to increasing operational risks due to stiff regulatory fines, economic uncertainties, and compliance mandates, in addition to the emerging risks with conduct, model, vendor, and cybersecurity.
• Such organizations are demanding robust risk mitigation, real-time risk assessment, and greater risk accountability from management and business lines.
• Additionally, with financial service institutions increasingly expanding their businesses, the requirement for process accountability and transparency, coupled with that for ensuring proactive risk mitigation, is propelling the demand for BCM solutions across the globe.
• For instance, cybersecurity risks are increasing with the growing level of digitization and reliance of small and large organizations on the internet. The current cyber threat landscape has made businesses more aware of the risks and the importance of responding to and recovering from such attacks.
• Moreover, natural disasters are an unavoidable and critically disruptive risk that is strongly being considered by the key market players and end users as the focal purpose of BCM. With the flurry of extreme weather events around the globe in recent years, organizations are increasingly taking steps to prepare themselves for unforeseen incidents.
• For instance, according to the China Earthquake Networks Center, on September 5, 2022, at 12:52 p.m. local time (approximately 1 a.m. EDT), Luding County was affected by a strong earthquake. The earthquake's epicenter was almost 140 miles from the capital of the Sichuan province, Chengdu, which is home to 21 million people; and nearly 27 miles southeast of the Kangding district, which has a population of over 100,000.

Security Concerns and Apprehensions Are Key Restraints for Market Growth

• The lack of trust in technology is a key factor impeding the growth of the BCM market. Some employees are concerned because a software makes decisions; therefore, questions arise on the factors it considers before arriving at any conclusion or recommendation.
• In regard to collaboration technologies, it is essential to have seamless coordination among different departments, and since sensitive data is to be shared, a threat of data breach is constantly present. Although BCM provides a broad range of solutions for regular risk assessment, the lack of security systems can result in a server breach, wherein all the data would be at risk. When adopting complete BCM for an organization, continual planning is required.
• However, a system crash could lead to operational downtime, due to which apprehensions grow among the personnel. This hampers business operations, leading to missing project deadlines and other issues.
• Further, the lack of proper IT guidance might lead to the adoption of ineffective technological tools, which would result in time and economical loss for the organization.

Business Continuity Management Industry Outlook

Offering Insights

• The solutions category held the larger revenue share, of around 70%, in 2023, and it is expected to maintain its dominance during the projection period. The growth is mainly attributed to the increasing deployment of BCM solutions for risk management, crisis management, and audit management.
• Additionally, the promptly changing corporate environments and the development of data recovery or risk management solutions will drive the business continuity management market in this category.

During the study, we have analyzed two offerings in the report:

• Solutions (Larger Category)
• Services (Faster-Growing Category)

Organization Size Analysis

• The large enterprise category accounted for the larger revenue share, of around 65%, in 2023, and it will remain the same during the forecast period. This is attributed to the capacity of large enterprises to make considerable IT investments to deploy and enhance their business continuity plans.
• In addition, large enterprises have dispersed operations and massive amounts of vital data. Therefore, they are compelled to incorporate efficient business continuity plans to maintain operations.
• The SMEs category is projected to witness the higher CAGR, of 17.4%, during 2024–2030 in the market. With the increasing competition in the market, SMEs are focusing on safeguarding their assets and saving on operational costs. BCM would enable these enterprises to manage their assets, to maximize their reliability.

Organizations of the following sizes are covered in the report:

• Small & Medium Enterprise (SMEs) (Faster-Growing Category)
• Large Enterprises (Larger Category)

Industry Insights

• The BFSI category accounts for the largest share, of around 30%, in 2023. The need for BCM in the financial services industry is of utmost importance as these institutions need to be well-prepared to respond in times of emergencies, crises, disasters, threats, and other incidents.
• In addition, banks have a complex and detailed infrastructure, which requires to be fully operational 24X7. This mandates that ATMs, websites, and phone applications are all up and running. A business continuity strategy is needed to resolve the issue as quickly as possible in case the system goes down.
• The transportation & logistics category is expected to record the fastest growth, with a CAGR of 17.8%, during the forecast period. This can be attributed to the increasing risks in supply chain management. They can be global, such as civil and political unrest or border closures; environmental, including storms and other natural disasters, or domestic, including road accidents or road closures. These factors may impact business operations, scheduled deliveries, and customer satisfaction.

The following industries are included in the report:

•  Banking, Financial Services, and Insurance (BFSI) (Largest Category)
• Government
• Healthcare
• Transportation & Logistics (Fastest-Growing Category)
• Energy & Utilities
• Manufacturing & Retail
• Telcom & IT
• Others

Geographical Analysis

• Geographically, North America held the largest market share, of around 45%, in 2023. The dominance is primarily attributed to the presence of a large number of enterprises and major financial entities and threats of disruption to operations due to natural disasters. For instance, in the U.S., more than 60% of the organizations are investing in enterprise continuity management solutions. This is ascribed to the large number of IT firms and commercial enterprises in the region, which increases the overall security threat to the country.
• For instance, under normal circumstances, the North American wildfire profile of the Center for Disaster Philanthropy (CDP) starts in summer or autumn. However, as the adverse effects of climate change increase in frequency and severity, the concept of disaster seasons is being lost.
• APAC is the fastest-growing market, advancing at a CAGR of 17.6% during 2024–2030. This growth is mainly attributed to the rapid economic growth in the major countries, the increasing presence of large enterprises, the surging adoption of IT services, the accelerating IT investments in developing countries, such as India and China, and the emergence of cloud technology in the region.
• For instance, a few years ago the Government of India launched the ‘Startup India’ program to catalyze the startup culture and build a strong ecosystem for innovation and entrepreneurship in India.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Business Continuity Management Market Share

The market for BCM is demonstrating a fragmented landscape globally. With each passing year, market players (especially new entrants) are focusing on offering sophisticated solutions and services, to keep up with the demanding client base. The proliferating opportunities for the market players are attributed to two key factors: the increasing inclination of corporate organizations toward organization resilience and continual pressure on budget.

Business Continuity Management Industry News

• In February 2023, Shufti Pro introduced its risk assessment and eIDV services, aiming to help global enterprises combat data breaches and financial fraud, while ensuring compliance with the evolving KYC/AML regulations.
• In February 2023, Raghnall Insurance Broking introduced its latest offering, Business Cyber Shield, to deliver comprehensive cybersecurity services to organizations of various sizes.
• In November 2022, Protera unveiled an automated disaster recovery framework, introducing a new technology that enables enterprises to routinely test, validate, and demonstrate their ability to effectively respond to incidents and swiftly restore operations, thus minimizing business impact.
• SAI Global Pty. Ltd. has completed the acquisition of BWise from Nasdaq Inc., in order to strengthen its risk management and ethics learning business. The combination of BWise’s risk management, internal audit, and regulatory compliance platform with SAI Global’s SAI 360 risk and compliance solution has created an integrated approach to risk management in enterprises.