Banking, Financial Services and Insurance (BFSI) Security Market

Report Description

The global BFSI security market size was valued at USD 39.7 billion in 2020 and is expected to expand at a CAGR of 13.2% during the forecast period, 2021–2028. The growth of the market is attributed to growing concern of privacy issues such as illegal access and data theft of consumers in insurance and banking sectors.

The term "BFSI security" refers to the numerous safeguards systems and methods used to provide security to data and analytics operations. It guards against cyberattacks, thefts, and other criminal acts that might compromise sensitive information.

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It also aids in assuring the security of transactions and data storage records, increasing system efficiency, facilitating resource sharing, and preventing unwanted access to improve the organization's safety and performance. Since cyber-attacks may result in financial losses, reputational harm, and operational disruption; concern for security and protection of data becomes a top priority for enterprises all over the world.

The COVID-19 pandemic has pushed the adoption of work-from-home regulations, raising the necessity for BFSI security to offer employees with a cyber-safe remote-working environment. Furthermore, the growing preference for advanced digital technologies such as cloud-based solutions has substantially boosted the demand for security solutions.

Market Trends, Drivers, Restraints, and Opportunities

• Rising demand for cloud-based security solutions that enable to make meaningful use of the data and data protection of consumers are key factors that drive the market.
• Strict governments’ regulations towards the implementation of security compliance of enterprises is likely to propel the market during the forecast period.
• Introduction of advanced security systems and enhancing the systems’ monitoring capacity to combat a wide range of cyber threats are major drivers of the market.
• High implementation costs and scarcity of effective security solutions act as major hurdles that can hamper the market expansion.
• Advent of customized solutions, biometrics, and cybersecurity solutions based on the emerging advanced technology such as Internet of Things (IoT) are likely to create lucrative opportunities for the market growth.

Scope of BFSI Security Market Report

The report on the global BFSI security market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

BFSI Security Market Segment Insights

Software segment to expand at a considerable CAGR

On the basis of information security, the BFSI security market is bifurcated into services and software. The service segment is further fragmented into managed security services, integration & maintenance services, and consulting & training services. The software segment is further segregated into firewall, identity access management, security & vulnerability management, unified threat management, antivirus & antimalware, data loss protection, disaster recovery, and encryption.

The software segment is projected to expand at a considerable CAGR during the forecast period as wide adoption of encryption system to prevent illegal access and secure data relating to financial transactions and consumer data. On the other hand, the services segment is anticipated to account for a major market share during the forecast period as it offer effective security services to financial institutions around the world to recognize the dangers of cyberattacks.

Services segment to hold significant share of the market

In terms of physical security, the market is divided into services and software. The services segment is further categorized as managed security services, integration & maintenance services, and consulting & training services.

The software segment is further classified as access control, intrusion & fire detection, physical security information management, and video surveillance. The services segment is expected to hold significant share of the market ascribed to rising demand for innovative services to ensure the protection of financial institutions’ activities. However, the software segment is anticipated to account for a key market share of the market owing to data processing capabilities, which enable insights and greater accountability of obtained data relating to clients and their financial activities.

Banking segment to grow at a high rate

Based on end-users, the BFSI security market is bifurcated into insurance companies and banking.

The banking segment is expected to grow at a high rate during the projected period owing to increased digitization adoption across the banking industry. Moreover, the insurance companies segment is expected to be a fast-growing segment during the forecast period due to the increasing complexity of assaults and the outsourcing of cyber security to third-party suppliers in the sector.

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North America is anticipated to constitute a key market share

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

North America is expected to constitute a key share of the market during the projected period owing to the existence of important market companies such as DXC Technology Company, McAfee, Inc., and Symantec Corporation. However, the market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to the increased acceptance of modern banking systems in Japan, China, India, and Australia.

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