BFSI Crisis Management Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment, By Enterprise Size, By Application, By End-user, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global BFSI crisis management market size was valued at USD 9.6 billion and is expected to expand at a compound annual growth rate (CAGR) of 18.4% from 2022 to 2030. Factors such as the growth in the digitization of banks and financial services and the remote working culture leading to more cybercrimes are driving the demand for BFSI crisis management. Furthermore, the introduction of cybercrime policies, initiatives, and regulations by the governments for the BFSI sector and crisis management solution providers is boosting the demand for crisis management services worldwide. The COVID-19 pandemic had a positive impact on the crisis management market. The financial industry has fundamentally changed its current business strategy, adjusting business performance and upgrading previous processes with a safer, alert, and more efficient approach.

Financial institutions were investing in crisis management services even before the pandemic, however, the pandemic boosted their adoption as more companies were facing crises and needed crisis management teams and plan to recover from this crisis and continue their businesses. A global increase in COVID-19 cases slowed the economy, and many corporations were shutting down as a result of partial or total lockdowns.

However, financial services, banking, and insurance continued to operate despite the pandemic. Due to this reason, BFSI firms required an instant crisis management plan for disaster recovery and business continuity to keep their services operational during the pandemic. Financial institutions adopted remote working at the beginning of the COVID-19 pandemic, owing to which the adoption of cloud technology became a priority. AI and cloud-based technology became essential for crisis management providers to efficiently handle BFSI firms’ issues and concerns. As a result, during the pandemic, the adoption of crisis management expanded.

Crisis management is a service that offers solutions for risk assessments, crisis notification alerts, crisis tracking dashboards, business continuity and disaster recovery plans, and risk and compliance management solutions. There was a rise in the global usage and adoption of online and digitalized financial services as a result of the COVID-19 outbreak and the following lockdown.

Component Insights

The software segment dominated the market with a share of over 70.0% in 2021 due to the fact that the crisis management software enables the key stakeholders to stay informed, assists the crisis teams to coordinate response activities, and puts important documentation in the hands of all employees with the help of a simple and effective cloud platform. On the basis of component, the market is categorized into software and services.

The services segment is projected to register the highest CAGR of 22.7% over the forecast period. The growth of the services segment can be attributed to the increased focus of technology companies on the development of technology as a service (TaaS).

Deployment Insights

The cloud-based segment dominated the market with a revenue share of over 55.0% in 2021. There is significant growth in the cloud-based segment as cloud computing provides banking firms with higher degrees of fault tolerance, data protection, and disaster recovery. Furthermore, it offers a high level of backup and redundancy at a minimal cost. In terms of deployment, the market is divided into on-premise and cloud-based.

For the BFSI firms, maintaining the privacy and security of the data is really crucial. Quick response time for delivering and receiving messages is another big concern for banks and financial institutions. Therefore, an on-premise solution provides low latency to the users because of few or no external dependencies, which cut short the feedback loop time i.e. time to receive and deliver messages between two parties. Moreover, on-premise deployment allows users to retain and control their data during a crisis time.

Enterprise Size Insights

The large enterprises segment accounted for the largest revenue share of over 60.0% in 2021. This is due to the trend of adopting the multi-cloud and hybrid cloud strategy among large enterprises as they are deploying workloads on multiple public clouds while also storing some data on the private cloud. Based on enterprise size, the market is divided into small and medium and large enterprises.

The small and medium enterprises segment is projected to expand at the highest CAGR of 20.2% over the forecast period. This segment is expected to give high returns as to overcome the pandemic's effects and business shocks, small and medium firms require a crisis management plan and team.

End-user Insights

The banks segment accounted for the largest revenue share of over 50.0% in 2021 as they largely adopt digital platforms and networked solutions. Furthermore, market participants are offering crisis management solutions in this sector in order to monitor and reduce business risks, identify fraud, and enhance event and document management. By end-user, the market is divided into banks, insurance companies, and financial service providers.

The financial service providers segment is expected to expand at the highest CAGR of 20.0% over the forecast period. This is due to the increased number of investments in fintech in the APAC region. In February 2022, according to a report by S&P Global Market in Intelligence, in 2021, fintechs in the Asia Pacific region received USD 15.69 billion in private funding.

Application Insights

The risk and compliance segment accounted for the largest revenue share of over 30.0% in 2021. This is due to the rise in cloud-based technology trends in the risk and compliance management industry as account decentralization and cloud computing challenges are at the forefront of regulation strategy. Moreover, it is projected that 91% of financial service businesses are currently using the cloud or will be moving there within the next nine months. Based on application, the market is segmented into risk and compliance management, disaster recovery & business continuity, incident management & response, crisis communication, and others.

The crisis communication segment is projected to register the highest CAGR of 20.4% over the forecast period. In 2020, the Business Continuity Institute estimated that 84% of firms had an emergency communication strategy in place and more than three emergency communication processes are used by 50% of firms.

Regional Insights

North America dominated the market with a share of over 30.0% in 2021 owing to the presence of prominent crisis management services and software providers. North America is likely to witness significant growth owing to the increasing adoption of cloud-based solutions and the COVID-19 pandemic.

The market in the APAC region is projected to register the highest CAGR of 20.3% over the forecast period. For instance, according to a report by S&P Global Market in Intelligence in 2022, fintechs in Asia Pacific closed 754 deals, which was an increase of 81% and 49% from 2020 and 2019, respectively.

Key Companies & Market Share Insights

The competitive landscape of the market is fragmented, featuring several global as well as regional players. The key participants are entering into strategic collaborations, partnerships, and mergers & acquisitions to expand their business footprint and survive the highly competitive environment. Moreover, service providers are investing considerably in research & development activities to incorporate new technologies in their offerings and develop advanced solutions to gain a competitive advantage over other market players.

In December 2021, MetricStream announced its strategic partnership with a leading global technology company, HCL technologies. This initiative was undertaken to provide IT and cyber risk management solutions to enterprise and mid-size organizations to improve decision making, assess risk, and mitigate IT threats. Some prominent players in the global BFSI crisis management market include:

• NCC Group

• Noggin

• LogicGate, Inc.

• MetricStream Inc.

• 4C Strategies

• IBM

• CURA Software Solutions

• Everbridge

• Konexus

• SAS Institute Inc

• Deloitte

• RQA Europe Ltd.

BFSI Crisis Management Market Report Scope

Global BFSI Crisis Management Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global BFSI crisis management market report based on component, deployment, enterprise size, application, end-user, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

  • Services

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • On-premise

  • Cloud-based

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small And Medium Enterprises

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Risk & Compliance Management

  • Disaster Recovery & Business Continuity

  • Incident Management & Response

  • Crisis Communication

  • Others

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Banks

  • Insurance Companies

  • Financial Service Providers

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa