BFSI Security Market Size To Reach $146.2 Billion By 2030

December 2024 | Report Format: Electronic (PDF)

BFSI Security Market Growth & Trends

The global BFSI security market size is estimated to reach USD 146.2 billion by 2030, expanding at a CAGR of 12.9% from 2024 to 2030, according to a new report by Grand View Research, Inc. Increasing risk of data loss owing to cyberattacks on banks and insurance companies is anticipated to propel the growth. Data related to the banking, financial services and insurance security (BFSI) industry is highly sensitive in nature as it contains personal or financial credentials. Thereby, cyber threats have prompted financial institutions to deploy reliable safety solutions at their premises.

Frequent emergence of new malware variants is driving demand for advanced safety solutions in the banking, financial services and insurance security market. For instance, in 2016, a mobile malware, masked as an application upgrade, was discovered. The malware displayed fake sites over authentic banking homepages for filching banking credentials of consumers. A generic solution would not have been enough to track this malware and that would have led to loss of large amounts of sensitive financial data.

Banking and insurance payment gateways require robust safety solutions to prevent breaches and enable secure transactions. Financial databases stored on cloud create need to verify safety systems of the cloud service provider. The market is lucrative in developing regions, such as Asia Pacific, owing to digitalized business operations in the BFSI industry.

Financial companies are stressing on consumer data protection and are implementing solutions such as firewall and threat management software. It has caused various companies to make huge investments in cybersecurity. Furthermore, governments across the globe have laid down stringent regulations to protect digital data related to BFSI. Such regulations have mandated response testing of threat management systems used in banks and insurance companies.

The industry includes a large number of Tier 1 companies that account for a majority share in the market. Industry giants acquire or collaborate with smaller players for sharing expertise and resources. Collaborations among big and small market players enable development of innovative products and services. The market is highly competitive in nature owing to the presence of major market players offering advanced safety solutions to the BFSI industry. Companies invest in R&D to develop innovative products for financial institutions. In addition, they adopt business strategies such as mergers and acquisitions to expand their product portfolio and gain a competitive edge.

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BFSI Security Market Report Highlights

The information security segment accounted for the highest revenue share of 70.2% in 2023 and the physical security segment is expected to contribute significantly in terms of revenue during the forecast period
Large enterprises accounted for the leading revenue share of 60.6% in the market in 2023 and the small- and medium-sized enterprises (SMEs), meanwhile, are expected to register the fastest CAGR of 14.0% during the forecast period
The banking sector accounted for the highest market revenue share of 40.3% in 2023 and on the other hand, the financial services sector is expected to register the fastest growth rate of 14.4% from 2024 to 2030
Asia Pacific is estimated to be the fastest-growing regional market due to growth of fintech companies encouraging implementation of threat management solutions

BFSI Security Market Report Highlights

Grand View Research has segmented the global BFSI security market report based on type, enterprise size, end use, and region

BFSI Security Type Outlook (Revenue, USD Billion, 2018 - 2030)

Physical Security
- Access Control Systems
- Video Surveillance Systems
- Intrusion Detection & Prevention Systems
- Security Guard Services
Information Security
- Network Security
- Endpoint Security
- Data Security
- Identity & Access Management (IAM)
- Security Information & Event Management (SIEM)