BFSI Security Market Size, Share & Trends Analysis Report By Physical Security (Software, Service), By Information Security, By End-use (Banking, Insurance Companies), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global BFSI security market size to be valued at USD 74.3 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 13.1% during the forecast period. Growing privacy concerns related to unauthorized access and data theft faced by banking and insurance companies are expected to foster growth. Rising adoption of cloud-based security solutions is expected to enable companies to deploy threat management systems for the protection of digital assets. Increasing demand for cloud-based security solutions that enable the banking, financial services, and insurance security (BFSI) sector to make meaningful use of their data is expected to further fuel market growth.

Growing penetration of the internet in developing regions is stimulating the adoption of connected devices that enable convenient and secure financial transactions. This is encouraging the banking, financial services, and insurance security market to implement threat management systems for securing payment gateways. It further helps safeguard networks, prevent unauthorized access by hackers, and reduce the risk of potential malware. Implementation of security compliance is expected to further propel the adoption of data protection solutions in the BFSI sector.

Threat management systems include hardware and software components. Most vendors offer additional services such as consulting and maintenance. Customers are increasingly adopting cloud-based services to reduce infrastructure expenses. Furthermore, these solutions are gaining traction owing to benefits such as flexibility of accessing financial and customer data.

The BFSI industry deals with both external and internal threats due to the increasing adoption of online banking solutions and ATMs. A security breach of clients’ financial information can hamper the brand image of financial institutions. Thereby, the ability of advanced security solutions to tackle a variety of cyber threats is expected to drive their adoption.

BFSI security solutions help improve investment monitoring in financial institutions including banks and insurance companies. Various organizations have started adopting such solutions to protect vital information stored on their systems and digital memory devices. Various factors such as the emergence of customized solutions, biometrics, and cybersecurity solutions based on the internet of things (IoT) are expected to create growth opportunities for the market. However, high implementation costs and a lack of efficient security solutions are expected to hinder the market growth.

BFSI Security Market Trends

The key factors that drive the global BFSI security market include growth in physical and digital threats together with information thefts, burglary, and cyber-assault. In addition, increase in adoption of technologies and alternatives in commercial enterprise through enforcing software program applications, brings about the most important safety worries over information. This safety component as a result, boosts the BFSI safety market.

The rapid adoption of technology along with system learning, synthetic intelligence, and blockchain, in several BFSI areas has led to major threat issues to data security. Additionally, the boom in digitalization in this sector calls for data security due to the prevalence of cyber-attacks and theft, thus, increasing the demand for BFSI security. Moreover, banks, economic institutions, and different financing companies are switching to digitalized commercial enterprise operations, and thus, the adoption and implementation of safety solutions have multiplied tremendously. The BFSI safety market offers cyber-security and it is expected to be one of the essential elements to propel market growth during the forecast period.

The BFSI sector is exposed to both internal and external threats. BFSI safety corporations are third-party service providers that impart safety throughout numerous enterprise verticals and to a specific variety of customers simultaneously. Moreover, it results in complex issues for corporations to control information of various companies. Thus, safety concerns of third-party involvement endangers sensitive data integrity, thus, restraining the market growth. Also, high prices concerned with the implementation of safety software programs and an increase in the number of threats owing to third-party involvement is restraining the growth of the market.

However, growing economies provide considerable opportunities for BFSI safety to expand and broaden its offerings. Additionally, the rise in the option of the internet in the BFSI sector and the use of digitalized systems through the internet is anticipated to offer growth possibilities during the forecast period.

Physical Security Insights

The video surveillance segment dominated the BFSI security market and was valued at USD 7.6 billion in 2018. Surveillance systems are widely used to secure the physical infrastructure of financial institutions, detect physical intrusions, and secure the premises. Market participants offer customized video surveillance solutions according to customer requirements. Also, video surveillance systems can be easily integrated with networks and IT systems.

Physical Security Information Management (PSIM) is expected to be the fastest-growing segment over the forecast period. The growth can be attributed to the PSIM system’s intelligent data processing capabilities that provide insights and better accountability of gathered data related to customers and their financial transactions. The system is known to improve the efficiency and effectiveness of the threat management system for the BFSI industry. Technological proliferation has led to the introduction of cost-effective systems.

Information Security Insights

Encryption software is expected to be the fastest-growing segment over the forecast period. Data encryption is widely used to prevent unauthorized access and to protect data related to financial transactions and customer data. Industry participants provide end-to-end encryption solutions to prevent access to sensitive data. The antivirus and antimalware segment was valued at USD 3.5 billion in 2018. Various companies including McAfee, Inc., and Symantec Corporation provide antivirus and antimalware solutions that are widely used by individuals as well as organizations.

Recent ransomware attacks have crippled banking infrastructure across many regions. For instance, the Central Bank of the Russian Federation was hacked by WannaCry ransomware, malfunctioning all its systems and leading to failure of all financial operations and lack of access to banking services to the customers. This impelled financial institutions across the globe to acknowledge the implications of cyberattacks and to upgrade and implement robust threat management systems to protect sensitive data.

End-use Insights

Banking is expected to be the largest and fastest-growing end-use segment over the forecast period. Increasing the adoption of digitalization across the banking sector is expected to bolster growth. The advent of mobile wallets or digital wallets to make online transactions is driving demand for advanced security solutions. BFSI security is being implemented on a large-scale in developing regions such as the Asia Pacific. The growing implementation of advanced security solutions in banks is retaining and maximizing the potential of existing customers by safeguarding their data.

The insurance companies segment is anticipated to witness considerable growth over the forecast period. Mid-sized insurance companies are at higher risk of witnessing cyberattacks owing to the growing complexity of attacks and the outsourcing of cybersecurity to third-party vendors. This factor will drive the segment in the forthcoming years. Insurance companies invest in reliable solutions to protect customers’ financial and personal information. Moreover, companies are focusing on low-risk financial service products. Such factors are expected to drive the adoption of BFSI security solutions among insurance companies.

Regional Insights

North America accounted for the largest market share in 2018 and is anticipated to continue its dominance over the forecast period. This is attributed to the presence of key market players such as DXC Technology Company; McAfee, Inc.; and Symantec Corporation. These companies offer a broad range of products such as cameras, displays, detection sensors, and software to support data security in the banking, financial services, and insurance security market.

The Asia Pacific is expected to be the fastest-growing regional segment from 2019 to 2025, attributed to the growing adoption of advanced banking solutions in China, Japan, India, and Australia. Furthermore, growing digitalization across BFSI firms to provide online financial services is driving the regional market. Digitalization has encouraged financial institutions to implement threat management systems to protect their digital assets and customer data. Sensitive customer information includes credit or debit card details, bank account details, and payment information.

The introduction of fintech services in the region has enabled customers to make online payments for food, transport, and leisure services. Rising adoption of mobile payments across emerging economies such as India and China has further impelled banks to employ a robust threat management system to counter financial data breaches. Increasing the need to protect information from hackers has propelled the adoption of BFSI security solutions in the region.

Key Companies & Market Share Insights

Some of the key market players are DXC Technology Company; Axis Communications; Honeywell International, Inc.; McAfee, Inc.; Sophos Ltd.; Symantec Corporation; IBM Corporation; Dell EMC; Bosch Security Systems; and Booz Allen Hamilton, Inc. The market is highly competitive due to the presence of a large number of companies. Key players focus on designing innovative networking solutions for numerous industries, such as manufacturing, retail, and transportation. They emphasize on acquiring small and medium BFSI security solution providers to increase their market footprint.

Product quality and service are two significant factors steering market competition. The vendors provide maintenance and support services and periodic updates of new malware and threats to maintain their market position. The market is expected to witness robust growth owing to the expansive scope of product innovation and new product development Key players invest in R&D to prevent reputation diminution, intellectual property deprivation, and revenue loss in the BFSI industry.

Recent Development

• In April 2022, MRW, a renowned Spanish provider of logistics services, gave DXC Technology and Nutanix a five year contract to replace MRW's IT systems with hybrid cloud technology. MRW expects to boost the speed of its delivery business as well as strengthen its cybersecurity defences because of the shift

• In April 2022, Sophos purchased SOC.OS, a UK based start-up that addresses the issue of alarm fatigue and restricted visibility that plagues IT security environments. Sophos plans to use SOC.OS for improving its XDR (Extended Detection and Response), and MTR (Managed Threat Response) solutions for all business sizes. This can successfully be constituted by adding context, telemetry from alerts, and events from number of the third-party endpoints   

• In May 2022, McLean Jason Fickett joined Booz Allen Hamilton as a leader of the firm's national cyber strategy, with an aim of delivering safe, and resilient technology to strengthen the nation's cyber operations. Fickett has claimed to support clients across the firm's civilian, national security businesses, and defense to protect critical infrastructure and assets from cyber threats

BFSI Security Market Report Scope

Global BFSI Security Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global BFSI security market report based on physical security, information security, end-user, and region:

• Physical Security Outlook (Revenue, USD Billion, 2014 - 2025)

  • Software

    • Video Surveillance

    • Access Control

    • Intrusion & Fire Detection

    • Physical Security Information Management (PSIM)

  • Service

    • Consulting & Training Services

    • Integration & Maintenance Services

    • Managed Security Services

• Information Security Outlook (Revenue, USD Billion, 2014 - 2025)

  • Software

    • Antivirus & Antimalware

    • Data Loss Protection

    • Disaster Recovery

    • Encryption

    • Firewall

    • Identity Access Management

    • Security & Vulnerability Management

    • Unified Threat Management

  • Service

    • Consulting & Training Services

    • Integration & Maintenance Services

    • Managed Security Services

• End-use Outlook (Revenue, USD Billion, 2014 - 2025)

  • Banking

  • Insurance Companies

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA