BFSI Security Market

Global BFSI Security Market Size (2024 to 2029)

The global BFSI security market is predicted to reach USD 37.57 billion in 2024 and USD 59.74 billion by 2029, growing at a CAGR of 9.72% during the forecast period.

Commercial banks, insurance firms, non-banking financial companies, cooperatives, mutual funds, retail, and other entities comprise the Banking, Financial, Services, and Insurance (BFSI) sector. Banking transactions carried out through the Internet run the risk of disclosing the client's confidential information. The banking, financial, and insurance industry, or BFSI, was created to address the ongoing threat of cybersecurity breaches. This system's deployment has been tremendously successful since it has produced a more trustworthy platform on which clients can be assured that their data will not be modified or stolen.

Global BFSI Security Market Drivers:

There is an ever-increasing risk of data loss as cloud-based solutions become more widely used in the information technology sector. This aspect, along with the use of Internet of Things-based security solutions, is expected to boost the BFSI Security Market over the anticipated period. Furthermore, the market is likely to be driven by growing concerns about the security of sensitive data such as personal banking information, private corporate information, commercial banking details, and personally identifiable information in the forecast period. One of the challenges for the growth of this industry is the initial expenditure required to set up security infrastructure, as well as a lack of awareness among clients.

Impact of COVID-19 on the global BFSI Security Market:

The COVID-19 pandemic has significantly impacted the BFSI security market because of the rising use and adoption of online and digitalized financial services worldwide. Furthermore, to prevent virus spread, many nations have required lockdowns; as a result, BFSI security providers are increasingly offering software-as-a-service under security platforms, which is gaining traction during the pandemic situation. As a result, during the global health crisis, this has emerged as one of the leading growth drivers for the BFSI security market.

GLOBAL BFSI SECURITY MARKET REPORT COVERAGE:

This research report on the global BFSI security market has been segmented and sub-segmented based on physical security, information security, end user, and region.

Global BFSI Security Market - By Physical Security:

• Video Surveillance

• Access Control

• Intrusion & Fire Detection

• Physical Security Information Management (PSIM)

The BFSI security market was dominated by the video surveillance segment. Surveillance systems are commonly employed to protect financial institutions' physical infrastructure, detect physical intrusions, and secure the premises. Market participants provide customers with customized video surveillance solutions based on their needs. Video surveillance systems are also simple to connect to networks and IT systems.

Over the projected period, Physical Security Information Management (PSIM) is expected to be the fastest-growing segment. The PSIM system's sophisticated data processing capabilities, which enable insights and greater accountability of obtained data relating to clients and their financial transactions, are credited with the increase. The technology is known to improve the efficiency and efficacy of the BFSI industry's threat management system.

Global BFSI Security Market - By Information Security:

• Antivirus & Antimalware

• Data Loss Protection

• Disaster Recovery

• Encryption

• Firewall

• Identity Access Management

• Security & Vulnerability Management

• Unified Threat Management.

Encryption software is expected to be the fastest-growing segment over the projected period. Data encryption is frequently utilized to prevent illegal access and protect data relating to financial transactions and customer data. Industry participants provide end-to-end encryption solutions to prevent unauthorized access to sensitive data.

Global BFSI Security Market - By End-User:

• Banking

• Insurance

Over the projected period, banking is expected to be the largest and fastest-growing end-use segment. Increased digitization adoption across the banking industry is projected to boost growth. Demand for enhanced security solutions is increasing as mobile wallets or digital wallets become more popular for online transactions. In growing regions like the Asia Pacific, BFSI security is being applied on a big scale. By preserving existing clients' data, banks are increasingly implementing advanced security solutions, keeping and maximizing their potential.

Over the projection period, the insurance firms segment 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. In the approaching years, this aspect will be the driving force behind the segment. Insurance firms put money on dependable solutions to protect their clients' financial and personal data. Furthermore, businesses are concentrating on low-risk financial services. Insurance businesses are projected to embrace BFSI security solutions as a result of these considerations.

Global BFSI Security Market – By Region:

• Asia Pacific

• Europe

• Middle East and Africa

• North America

• Latin America

North America held the biggest market share in 2020 and is expected to maintain this position throughout the projected period. The existence of important market companies such as DXC Technology Company, McAfee, Inc., and Symantec Corporation is credited with this. These firms provide a wide range of data protection devices to the banking, financial services, and insurance security markets, including cameras, displays, detection sensors, and software.

The fastest-growing regional market is predicted to be the Asia Pacific, owing to the increasing usage of advanced banking solutions in China, Japan, India, and Australia. Furthermore, the regional market is being driven by the increased digitalization of BFSI enterprises to deliver online financial services. Financial institutions have been encouraged to create threat management systems to secure their digital assets and consumer data as a result of digitalization. Credit or debit card numbers, bank account numbers, and payment information are all examples of sensitive client information. Customers can now make online payments for food, transportation, and leisure activities due to the introduction of fintech services in the region. The growing use of mobile payments in emerging nations like India and China has prompted banks to implement a strong threat management system to protect financial data. The growing necessity to secure data from hackers has prompted the region's adoption of BFSI security solutions.

KEY MARKET PARTICIPANTS:

The major companies operating in the global BFSI security market include Booz Allen Hamilton (US), Broadcom (US), Cisco Systems (US), Dell Inc (US), Honeywell (US), Symantec (US), DXC Technology (US), Microsoft (US), Bosch Security Systems (Germany), Trend Micro (Japan), and others.

RECENT HAPPENINGS IN THE MARKET:

• Sophos, a global leader in next-generation cybersecurity, has revealed information about Memento, a new Python ransomware. The assault, described in the study "New Ransomware Actor Uses Password Protected Archives to Bypass Encryption Protection," locks files in a password-protected archive if the Memento ransomware is unable to encrypt the targeted data.

• A consortium led by Advent International, a US private equity firm, will buy McAfee Corp for USD 14 billion. Due to a pandemic-driven trend toward remote working and growth in cyber dangers, demand for antivirus and digital security products has increased. 

• The Federal Trade Commission has issued a final decision resolving allegations that Broadcom Inc. unlawfully monopolized markets for semiconductor components used in television and broadband internet services by using exclusive trading and other strategies. 

• Dell Technologies has added a feature for Dell EMC PowerEdge servers and PowerSwitch networking to its Cloud IQ solutions in India. CloudIQ is a cloud-based AIOps tool that uses machine learning (ML) and predictive analytics to identify problems that might otherwise have a significant impact on business processes.