BFSI Security Market: Size, Dynamics, Regional Insights and Market Segment Analysis

BFSI Security Market was valued at USD 49.05 Billion in 2021, and it is expected to reach USD 106.68 Billion by 2029, exhibiting a CAGR of 10.2 % during the forecast period (2022-2029) Banking, financial services, and insurance (BFSI), that offer a variety of financial goods or services, comprises universal banks that offer a variety of financial services as well as businesses that engage in one or more of these financial areas. Commercial banks, insurance firms, non-banking financial companies, cooperatives, pension funds, mutual funds, and other smaller financial enterprises are all part of BFSI. The banking, financial services, and insurance (BFSI) business is one of the most strictly regulated, particularly in terms of data privacy. The security landscape has increased as organisations in the industry adapt their IT infrastructure to suit client needs, exposing new vulnerabilities and threat actors. The increasing emphasis of banks and insurance companies on improving customer service, the growing demand for early fraud detection in Banking, Financial Services, and Insurance (BFSI), the demand for customer analytics, and the rising need for faster data processing are all expected to drive demand for big data analytics in the BFSI Security industry. However, big data analytics is vulnerable to data breaches, and data provided by users to a third party may be disclosed to competitors, making data security and related concerns key factors that may impede market growth to some extent during the forecast period. Furthermore, inconsistency in data gathering of big data analytics solutions is likely to restrict global market growth to some extent during the forecast period. BFSI Security MarketTo know about the Research Methodology :- Request Free Sample Report

BFSI Security Market Dynamics

Application Programming Interfaces (API) New Technology in BFSI Industry

With the advancement and innovation of API technology, banks, financial service organisations, and insurance firms have increased their digitization efforts to improve customer service. The BFSI business has undergone a revolution driven by payment innovation through the use of new technology, most notably APIs. Traditional banking and financial organisations may use digital transformation to promote corporate development and viability. APIs facilitate access to information and accelerate the creation of new business capabilities. APIfication also improves a brand's exposure and raises the sophistication of its offerings. APIs allow for the outsourcing of data and functionality via a standardised interface. This aids in the delivery of seamless services, the development of improved apps, and the enhancement of consumer experiences. APIs improve developer productivity and mobility by allowing existing features to be utilised everywhere rather than having to recreate them. Using pre-existing functionality also helps to reduce application development time. APIs also remove boundaries, allowing users to easily access your interface and experience the product based on their needs. Technology-enabled innovation in the BFSI sector is primed to finally deliver on its promise in the coming years. Fintechs and banks may collaborate to make this infrastructure more accessible while also working to mitigate security dangers and data privacy problems through the use of new technologies. Today's banking and insurance ease and customisation give enormous prospects for individuals and small and medium-sized businesses. Banking, financial services, and insurance organisations may realise their full potential using API.  

Artificial Intelligence (AI) & New Development Potential in BFSI Industry

As financial institutions prepare for the next wave of digital disruption, the usage of big data and machine learning algorithms is rapidly increasing in the BFSI business. When compared to 2020, the fintech sector had a 68% rise in global investment in 2021. Furthermore, the incorporation of AI into the BFSI toolchain in different digital financial services has increased need for BFSI Security. The rising popularity of Customer Relationship Management (CRM) in Germany has increased the demand for AI in BFSI security. BFSI colleges rely significantly on CRM systems to improve customer awareness, product segmentation, marketing campaign management, suitable targeting, long-term profitability, and mutually beneficial connections with customers. Banking institutions in Mexico are under pressure to implement machine learning-based algorithms as money laundering cases increase. AI-assisted decision making for a strong investment portfolio will increase the use of financial advice tools in the United States. Wealth management firms are providing robo-advisors to help their consumers better manage their money. These robo-advisors may give high-quality recommendations on investing decisions and are accessible anytime the user requires assistance through personalisation, chatbots, and customer-specific models. The rising use of artificial intelligence (AI) in BFSI tools to manage investment risks has opened new development potential. In 2021, the UK bank segment produced more over USD 400 million in revenue, owing to increased awareness of the use of AI in BFSI technologies by banks to boost operational efficiency and deliver better customer service. The UK bank segment produced over USD 400 million in sales, owing to increased awareness of the use of AI in BFSI technologies by banks to improve operational efficiency and customer experience.

Enhanced Security with Blockchain Solutions in BFSI Security Industry

By eliminating intermediaries with secure digital records, blockchain technology reorganises transaction administration. Furthermore, it allows all stakeholders in the financial network to discuss and settle on critical business information and transactions. It also provides quicker transaction processing speed as well as transaction and information traceability to all network organisations, which is expected to drive market growth. Furthermore, blockchain is recognised for its better security since it provides cryptographic protection for its databases and transactions, which is also a crucial aspect that adds transparency and aids in fraud reduction, and so is likely to drive market growth. The architecture boundaries of the global payments system, as well as diverse combinations of rules and processes, are key market drivers. For example, according to a poll of 300 experts from multinational firms, 64% want real-time payment tracking and 42% want rapid payments. Blockchain technology speeds up transactions, allowing for the creation of an efficient and real-time worldwide payment system that supports monetary policy, other compliances, and privacy. With its enhanced cryptographic security and transparency, blockchain technology is disrupting the banking and finance sector. 45% of financial institutions are frequently exposed to financial crimes, which is one of the primary reasons why banks and financial institutions are transitioning to blockchain solutions. Blockchain transactions can eliminate the need for third-party payment gateways, resulting in faster financial transactions. As a result, such factors are expected to present significant prospects for market growth in the coming years.  

Cyber Security Solutions Help Organizations in the BFSI Security Industry

Given the quantity of sensitive data that the BFSI industry deals with, it has been a prime target of hackers in recent years. Prioritizing and executing cybersecurity measures has become a major concern for organisations in the BFSI market, as it has become an evident goldmine for hackers. Cyber dangers are web-based threats that involve identity theft and data theft and disrupt IT systems in enterprises by utilising spyware, malware, or phishing to hack key information. Cyber security solutions assist firms in the BFSI industry in detecting, reporting, monitoring, and countering cyber attacks while ensuring information system confidentiality. The BFSI industry is taking a lot of initiatives to protect its IT infrastructure, but they are still challenged by the rate of innovation and the increasing sophistication of the assaults. A growing number of firms in the BFSI industry use cyber security solutions to safeguard critical information saved on a PC or other digital memory device. Moving toward integrated security, in which all components interact and communicate together, is one strategy to combat cybersecurity threats. Another strategy to combat such attacks is to boost the use of Machine Learning and big data analytics to store and analyse massive amounts of security data in real time, while also upgrading antivirus and anti-malware software. The industry is being driven by an increase in the danger of data loss as customer preferences change toward digital platforms. Furthermore, rising acceptance of cloud-based security solutions, rigorous government requirements, and greater use of mobile devices fuel market expansion. Furthermore, the market is likely to benefit from the advent of customised solutions, integrated packages, and biometrics, as well as cyber security solutions based on the Internet of Things (IOT). BFSI Security Market

BFSI Security Market Segment Analysis

Based on Physical Security, the market is segmented into Software and Service. The video surveillance segment dominated the BFSI security market in 2021, with a market value of USD 9.8 billion. Surveillance systems are commonly employed to safeguard financial institutions' physical infrastructure, detect physical breaches, and secure the premises. Market participants provide customised video surveillance systems based on consumer needs. In addition, video surveillance systems are simple to integrate with networks and IT systems. Over the forecast period, Physical Security Information Management (PSIM) is expected to be the fastest-growing segment. The PSIM system's intelligent data processing capabilities, which enable insights and enhanced accountability of obtained data relating to clients and their financial activities, may be ascribed to the rise. The technology is recognised to increase the efficiency and efficacy of the BFSI industry's threat management system. Technological advancement has resulted in the development of low-cost systems. Based on Information Security, the market is segmented into Software and Service. Over the forecast period, encryption software is expected to be the fastest-growing segment. Sensitive encryption is commonly used to prevent unwanted access and to safeguard financial transaction and consumer data. End-to-end encryption solutions are provided by industry players to prevent unauthorised access to sensitive data. In 2021, the antivirus and antimalware market was worth USD 5.7 billion. Several firms, including McAfee, Inc. and Symantec Corporation, offer antivirus and antimalware products that are extensively used by both people and businesses. Recent ransomware assaults have damaged financial systems in a number of countries. For example, the Russian Federation's Central Bank was hijacked by the WannaCry ransomware, causing all of its systems to malfunction and resulting in the collapse of all financial activities and client access to banking services. This pushed financial institutions throughout the world to recognise the risks of cyberattacks and to modernise and install comprehensive threat management systems to safeguard sensitive data. Based on End-Use, the market is segmented into Banking and Insurance Companies. Over the forecast period, banking is expected to be the largest and fastest-growing end-use segment. Increased digitization adoption in the banking sector is likely to boost development. The introduction of mobile wallets or digital wallets for online transactions has increased need for enhanced security solutions. BFSI security is being deployed on a large-scale in growing regions such as the Asia Pacific. Banks are increasingly using advanced security solutions to retain and maximise the potential of current clients by preserving their data. Over the forecast period, the insurance companies category is expected to increase significantly. Because of the increasing complexity of assaults and the outsourcing of cybersecurity to third-party suppliers, mid-sized insurance businesses are more vulnerable to cyberattacks. This element will propel the segment forward in the approaching years. Insurance businesses invest in dependable solutions to safeguard their clients' financial and personal data. Furthermore, businesses are focused on low-risk financial service offerings. Such considerations are expected to promote insurance businesses' use of BFSI security solutions. Based on Deployment Type, the market is segmented into On-Premises and Cloud. Cloud-Based solutions is expected to dominate the market during the forecast period. One of the main worries that bankers have about utilising a cloud solution to manage risk and compliance is security. The fact that risk and compliance data would be housed in the cloud rather than on the banks' own systems may appear to be a system weakness. In actuality, cloud solutions can offer more security than most internal networks used by smaller institutions. There are a number of reasons why cloud-based solutions are more secure than on-premise alternatives. The most significant distinction is that cloud solutions are maintained by software suppliers who are security specialists. Another significant advantage of cloud solutions is that they are considerably more difficult to break into using social engineering.

BFSI Security Market Regional Insights

North America held the highest market share in 2021 and is expected to maintain its dominance during the forecast period. Because of the region's reliance on digital payments, North America, particularly the United States, is one of the greatest markets for BFSI security. The region is expected to grow significantly as a result of several government efforts in the country highlighting the need for stronger security solutions. This is because important market players like as DXC Technology Company, McAfee, Inc., and Symantec Corporation are present. These firms provide a wide range of solutions to enhance data security in the banking, financial services, and insurance security markets, including cameras, displays, detecting sensors, and software. Due to the country's reliance on online payments and the recovery of banking infrastructure after the 2007-2008 financial crisis, banks in this region saw a significant number of data breach attempts. Although the number of data breaches is small, 1,001 in 2020, a 32% decrease from the previous year, the quantity of sensitive data available in the banking industry is relatively large, making it a perfect target for hackers, particularly institutions employing SWIFT design. During the forecast period, Asia Pacific is expected to be the fastest-growing regional segment, owing to the increasing use of advanced banking solutions in China, Japan, India, and Australia. Furthermore, the regional market is being driven by the increasing digitization of BFSI enterprises in order to provide online financial services. Financial institutions have been pushed to create threat management systems to secure their digital assets and consumer data as a result of digitalization. Credit or debit card information, bank account information, and payment information are examples of sensitive consumer information. Customers may now make online payments for food, transportation, and leisure activities thanks to the arrival of fintech services in the region. Rising mobile payment penetration in emerging nations such as India and China has compelled banks to implement a robust threat management system to combat financial data breaches. The growing necessity to secure information from hackers has prompted the region's adoption of BFSI security solutions.

BFSI Security Market Scope: Inquire before buying

BFSI Security Market
Report Coverage Details
Base Year: 2021 Forecast Period: 2022-2029
Historical Data: 2017 to 2021 Market Size in 2021: US $ 49.05 Bn.
Forecast Period 2022 to 2029 CAGR: 10.2% Market Size in 2029: US $ 49.05 Bn.
Segments Covered: by Physical Security • Software

o Video Surveillance o Access Control o Intrusion & Fire Detection o Physical Security Information Management (PSIM)

• Service

o Consulting & Training Services o Integration & Maintenance Service o Managed Security Services

byInformation Security • Software

o Antivirus & Antimalware o Data Loss Protection o Disaster Recovery o Encryption o Firewall o Identity Access Management o Security & Vulnerability Management o Unified Threat Management

• Service

o Consulting & Training Services o Integration & Maintenance Services o Managed Security Services

by End-Use • Banking • Insurance Companies
by Deployment Type • On-Premises • Cloud
by Enterprise Size • Small & Medium Enterprises (SMEs) • Large Enterprises

BFSI Security Market Key Players

• Symantec Corporation • Sophos Group Plc. • McAfee, Inc. • IBM Corporation • Honeywell International, Inc. • EMC Corporation • Computer Sciences Corporation • Trend Micro Incorporated • Booz Allen Hamilton, Inc. • Cisco Systems, Inc. • DXC Technology Company • Broadcom • RSA Security LLC • FireEye, Inc • Hewlett Packard Enterprise Development LP • LogRhythm, Inc. • Fortinet, Inc • Huntsman International LLC. • Securonix, Inc. • Juniper Networks, Inc. • Hillstone Networks • Exabeam • Alert Logic, Inc • Forcepoint • Haystax Frequently Asked Questions: 1] What segments are covered in the Global BFSI Security Market report? Ans. The segments covered in the BFSI Security Market report are based on Physical Security, Information Security, End-Use, Deployment Type, and Enterprise Type. 2] Which region is expected to hold the highest share in the Global BFSI Security Market? Ans. The North America region is expected to hold the highest share in the BFSI Security Market. 3] What is the market size of the Global BFSI Security Market by 2029? Ans. The market size of the BFSI Security Market by 2029 is expected to reach USD 106.68 Bn. 4] What is the forecast period for the Global BFSI Security Market? Ans. The forecast period for the BFSI Security Market is 2021-2029. 5] What was the market size of the Global BFSI Security Market in 2021? Ans. The market size of the BFSI Security Market in 2021 was valued at USD 49.05 Bn.
1. Global BFSI Security Market Size: Research Methodology 2. Global BFSI Security Market Size: Executive Summary 2.1. Market Overview and Definitions 2.1.1. Introduction to Global BFSI Security Market Size 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. Global BFSI Security Market Size: Competitive Analysis 3.1. MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2. Consolidation in the Market 3.2.1 M&A by region 3.3. Key Developments by Companies 3.4. Market Drivers 3.5. Market Restraints 3.6. Market Opportunities 3.7. Market Challenges 3.8. Market Dynamics 3.9. PORTERS Five Forces Analysis 3.10. PESTLE 3.11. Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • South America 3.12. COVID-19 Impact 4. Global BFSI Security Market Size Segmentation 4.1. Global BFSI Security Market Size, by Physical Security (2021-2029) • Software o Video Surveillance o Access Control o Intrusion & Fire Detection o Physical Security Information Management (PSIM) • Service o Consulting & Training Services o Integration & Maintenance Service o Managed Security Services 4.2. Global BFSI Security Market Size, by Information Security (2021-2029) • Software o Antivirus & Antimalware o Data Loss Protection o Disaster Recovery o Encryption o Firewall o Identity Access Management o Security & Vulnerability Management o Unified Threat Management • Service o Consulting & Training Services o Integration & Maintenance Services o Managed Security Services 4.3. Global BFSI Security Market Size, by End-Use (2021-2029) • Banking • Insurance Companies 4.4. Global BFSI Security Market, by Deployment Type (2021-2029) • On-Premises • Cloud 4.5. Global BFSI Security Market, by Enterprise Type (2021-2029) • Small & Medium Enterprises (SMEs) • Large Enterprises 5. North America BFSI Security Market (2021-2029) 5.1. North America BFSI Security Market Size, by Physical Security (2021-2029) • Software o Video Surveillance o Access Control o Intrusion & Fire Detection o Physical Security Information Management (PSIM) • Service o Consulting & Training Services o Integration & Maintenance Service o Managed Security Services 5.2. North America BFSI Security Market Size, by Information Security (2021-2029) • Software o Antivirus & Antimalware o Data Loss Protection o Disaster Recovery o Encryption o Firewall o Identity Access Management o Security & Vulnerability Management o Unified Threat Management • Service o Consulting & Training Services o Integration & Maintenance Services o Managed Security Services 5.3. North America BFSI Security Market Size, by End-Use (2021-2029) • Banking • Insurance Companies 5.4. North America BFSI Security Market, by Deployment Type (2021-2029) • On-Premises • Cloud 5.5. North America BFSI Security Market, by Enterprise Type (2021-2029) • Small & Medium Enterprises (SMEs) • Large Enterprises 5.6. North America BFSI Security Market, by Country (2021-2029) • United States • Canada 6. European BFSI Security Market (2021-2029) 6.1. Europe BFSI Security Market, by Physical Security (2021-2029) 6.2. Europe BFSI Security Market, by Information Security (2021-2029) 6.3. Europe BFSI Security Market, by End-Use (2021-2029) 6.4. Europe BFSI Security Market, by Deployment Type (2021-2029) 6.5. Europe BFSI Security Market, by Enterprise Type (2021-2029) 6.6. Europe BFSI Security Market, by Country (2021-2029) • UK • France • Germany • Italy • Spain • Sweden • Austria • Rest of Europe 7. Asia Pacific BFSI Security Market (2021-2029) 7.1. Asia Pacific BFSI Security Market, by Physical Security (2021-2029) 7.2. Asia Pacific BFSI Security Market, by Information Security (2021-2029) 7.3. Asia Pacific BFSI Security Market, by End-Use (2021-2029) 7.4. Asia Pacific BFSI Security Market, by Deployment Type (2021-2029) 7.5. Asia Pacific BFSI Security Market, by Enterprise Type (2021-2029) 7.6. Asia Pacific BFSI Security Market, by Country (2021-2029) • China • India • Japan • South Korea • Australia • ASEAN • Rest of APAC 8. Middle East and Africa BFSI Security Market (2021-2029) 8.1. Middle East and Africa BFSI Security Market, by Physical Security (2021-2029) 8.2. Middle East and Africa BFSI Security Market, by Information Security (2021-2029) 8.3. Middle East and Africa BFSI Security Market, by End-Use (2021-2029) 8.4. Middle East and Africa BFSI Security Market, by Deployment Type (2021-2029) 8.5. Middle East and Africa BFSI Security Market, by Enterprise Type (2021-2029) 8.6. Middle East and Africa BFSI Security Market, by Country (2021-2029) • South Africa • GCC • Egypt • Nigeria • Rest of ME&A 9. South America BFSI Security Market (2021-2029) 9.1. South America BFSI Security Market, by Physical Security (2021-2029) 9.2. South America BFSI Security Market, by Information Security (2021-2029) 9.3. South America BFSI Security Market, by End-Use (2021-2029) 9.4. South America BFSI Security Market, by Deployment Type (2021-2029) 9.5. South America BFSI Security Market, by Enterprise Type (2021-2029) 9.6. South America BFSI Security Market, by Country (2021-2029) • Brazil • Mexico • Argentina • Rest of South America 10. Company Profile: Key players 10.1. Symantec Corporation 10.1.1. Company Overview 10.1.2. Financial Overview 10.1.3. Global Presence 10.1.4. Capacity Portfolio 10.1.5. Business Strategy 10.1.6. Recent Developments 10.2. Sophos Group Plc. 10.3. McAfee, Inc. 10.4. IBM Corporation 10.5. Honeywell International, Inc. 10.6. EMC Corporation 10.7. Computer Sciences Corporation 10.8. Trend Micro Incorporated 10.9. Booz Allen Hamilton, Inc. 10.10. Cisco Systems, Inc. 10.11. DXC Technology Company 10.12. Broadcom 10.13. RSA Security LLC 10.14. FireEye, Inc 10.15. Hewlett Packard Enterprise Development LP 10.16. LogRhythm, Inc. 10.17. Fortinet, Inc 10.18. Huntsman International LLC. 10.19. Securonix, Inc. 10.20. Juniper Networks, Inc. 10.21. Hillstone Networks 10.22. Exabeam 10.23. Alert Logic, Inc 10.24. Forcepoint 10.25. Haystax

About This Report

Report ID 80404
Category Information Technology & Telecommunication
Published Date Sept 2022
Updated Date
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