According to the new research report titled “Whistleblowing Software Market to 2027-COVID-19 Impact and Forecast and Global Analysis,” published by The Insight Partners, the global whistleblowing software market is expected to reach US$ 149.30 million by 2027, registering a CAGR of 9.6% during 2020-2027. The scope of study involves understanding the factors contributing to the growth of the whistleblowing software market; it also includes estimation and forecast of the revenues as well as conducting the market size analysis, along with spotting significant market players and their key developments.
APAC whistleblowing software market to register highest CAGR during forecast period
APAC comprises several developing economies such as China, India, Japan, South Korea, and Australia. APAC is the largest continent in the world and is well-known for its technological innovations taking place in aforesaid countries. Rapid developments pertaining to technologies, governments initiatives, digitalization of economies, and rising disposable income of the middle-income class group are among the factors propelling the growth of the overall economy of the region, driving it from a developing to developed phase. APAC is projected to register the fastest CAGR in the global whistleblowing software market during the forecast period. The governments of countries in the region are focusing on increasing its spending on IT operations related to various industries, to enable companies to adopt advanced software and services for simplifying their business process.
The number of whistleblowing tips the Securities and Exchange Commission (SEC) obtained from China rose up to 52 by 2016, from 27 in 2012 and ten in 2011. China is the third-largest source of tips to the SEC, after the UK and Canada. Although with all these upgradation, the region still falls behind when compared to its global counterparts. As per the Nations on Occupational Fraud and Abuse (Global Fraud Study) report in 2016, the companies in APAC witnessed a median loss of about US$ 245,000 per case. The amount does not include reputational damage and potential loss of shareholders. Similarly, the Global Fraud Study affirmed that more fraudulent activity has been reported with the presence of hotline i.e. around 47% compared to without a hotline i.e. ~28%. Thus, it demonstrates that the employees can’t access the anonymous and secure hotline, particularly in countries such as China, Japan, and Korea. Further, the implementation of several Acts, policy, and whistleblowing projects are also supporting the growth of whistle blowing software in the APAC region. For instance, the Whistleblowing Policy (“the Policy”) is envisioned to offer a framework for promoting secure and responsible whistleblowing without worrying about the adverse consequences.
Due to the outbreak of COVID-19, several countries in APAC such as China, Japan, South Korea, Australia, Hong Kong, and Taiwan have incurred a considerable loss. Due to this pandemic situation there is a significant rise in the adoption of internet, which, in turn is making a way for fraudulent activities. This factor is anticipated to create massive demand for the whistleblowing software among the organizations.
Impact of COVID-19 Pandemic on APAC Whistleblowing Software Market
The APAC is characterized by the presence of a large number of developing countries, positive economic outlook, high industrial presence, and a huge population. Countries in the APAC region are largely impacted by the spread of the COVID-19 pandemic. For instance, India is the second-worst affected country in the world after the US, with about 4,465,863 cases and 75,091 deaths. The government of various countries in the Asia Pacific has taken necessary steps to reduce its effects by announcing lockdowns, and thus, impacting the growth of the whistleblowing software market. The introduction of lockdowns has resulted in the shutdown of various businesses in the region. The spread of COVID-19 has resulted in major layoffs and cost-cutting. The companies in the APAC region are focusing on reducing their spending, which is expected to slow down the sales of whistleblowing software in APAC. The whistleblowing software market in APAC is expected to witness an abrupt downturn in 2020; however, the market will slowly recover in the coming years.
Key Findings of Study:
Whistleblowing encourages organizations to provide a combination of different reporting channels to enhance access to potential reporters in a way that suits their individual needs. There is a growing consensus that digital reporting systems, such as whistleblowing software, offers more advantages. Therefore, market players take significant technological development initiatives and perform organic and inorganic growth strategies to maintain a competitive edge and boost revenue growth. For example, in September 2019, Convercent partnered with StoneTurn; the relationship is designed to provide organizations with increased value by combining state-of-the-art technology with advisory expertise to solve the most challenging corporate ethics and compliance challenges.
Similarly, in December 2019, NAVEX Global announced the acquisition of WhistleB, an innovative whistleblowing solution provider based in Stockholm, Sweden. Acquisition aimed to strengthen the presence of NAVEX Global in Europe and the ability to accelerate international growth, as the demand for automated compliance solutions is on the rise across the world. Furthermore, the proliferation of regulatory requirements, including the EU Whistleblower Protection Directive, GDPR, and emerging standards, such as ISO 37002 whistleblowing system management, will contribute to the increasing demand for whistleblowing software in the coming years. Thus, significant technological development initiatives taken by leading market players are anticipated to provide growth opportunities to the whistleblowing software market during the forecast period.