The Whistleblowing Software Market is estimated to be valued at US$ 213.2 Mn in 2022 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:-
Whistleblowing software provides a secure and anonymous reporting platform for organizations to receive concerns from employees, suppliers, and customers regarding unlawful or unethical practices. Integrating with HR software, the software helps organizations maintain fair practices and prevent financial and reputational risks.
Market Dynamics:-
Growing awareness of the need for robust compliance practices is a key driver for the whistleblowing software market. Stringent regulations such as Sarbanes Oxley Act in the US mandate Companies to establish anonymous reporting channels. Additionally, the COVID-19 pandemic has increased focus on health, safety, and labor issues, driving more organizations to implement secure reporting systems. For example, Convercent's software saw a 20% increase in reports related to safety precautions and protective equipment shortages during the pandemic.
Market key trends:-
The global whistleblowing software market has been witnessing high growth owing to increasing organizational needs for ensuring compliance and mitigating financial and reputational risks. Whistleblowing software allows organizations to establish anonymous and confidential reporting channels for employees and external stakeholders to report any unethical or suspected illegal activities internally. This helps companies address issues promptly and take necessary actions to prevent frauds and financial losses. With rising cases of frauds and non-compliance, there has been growing demand for effective whistleblowing platforms across industries.
SWOT Analysis:-
- Strength: Provides anonymous and secure reporting channels to encourage people to speak up without fear of retaliation. This helps in early detection of non-compliance issues.
- Weakness: Requires proper implementation and change management to drive awareness and usage across the organization. Lack of trust in the system can discourage reporting.
- Opportunity: Growing regulations around whistleblowing and compliance globally present an opportunity for software vendors to expand into new markets. Increasing instances of fraud also necessitate robust whistleblowing systems.
- Threats: Stricter privacy laws pose compliance challenges. Traditional anonymous reporting via letters or phone could impact adoption.
Key Takeaways:-
The Global Whistleblowing Software Market Growth is expected to witness high, exhibiting CAGR of 7.6% over the forecast period 2023 to 2030, due to increasing regulatory pressures on organizations across the world to establish effective whistleblowing mechanisms. The U.S. dominated the market in 2022, accounting for a share of over 35% owing to stringent regulatory compliance requirements for corporates in the country.
Regional analysis:
The North American region is expected to dominate the global whistleblowing software market during the forecast period. This is attributed to rising instances of non-compliance and frauds which made whistleblowing mechanisms mandatory for most organizations based out of the region. Europe is also expected grow substantially due to GDPR regulations which established guidelines around processing personal data and reporting non-compliance.
Key players:
Key players operating in the whistleblowing software market are Canary Whistleblowing System, Convercent, EQS Group AG, Ethicontrol, OU, Expolink Europe Ltd, GlobaLeaks, Got Ethics A/S., NAVEX Global, Inc., OneTrust, LLC, Safecall Ltd, Whispli Inc., WhistleB solution, WhistleBlower Security, Your Call, and EasyWhistle
