Banking, Financial Services and Insurance (BFSI) Security Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Canada, China, UK, Germany - Size and Forecast 2023-2027

Banking, Financial Services and Insurance (BFSI) Security Market Forecast 2023-2027

The banking, financial services and insurance (BFSI) security market size is forecast to increase by USD 36.74 billion, at a CAGR of 11.13% between 2022 and 2027.  The rise in the adoption of the Internet in the BFSI (Banking, Financial Services, and Insurance) sector is leading to increased digitalization and automation of financial services, driving demand for related technologies and solutions. The growing mergers and acquisitions of companies in the market are leading to consolidation and expansion of businesses, driving growth and competition in the market. The increasing demand for UHD (Ultra-High Definition) video surveillance is driven by the need for high-quality video monitoring and security solutions, especially in sectors such as transportation, retail, and critical infrastructure.

What will be the size of the BFSI Security Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by delivery mode (service and solution), type (physical security and cyber security), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Delivery Mode 

The market share growth by the service segment will be significant during the forecast period. Services encompass a wide range of offerings that help identify, prevent, and mitigate various risks and threats faced by the BFSI sector. 

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The service segment showed a gradual increase in the market share of USD 21.56 billion in 2017 and continued to grow by 2021. Security consulting services assist in evaluating existing measures, conducting risk assessments, and designing comprehensive frameworks to counter emerging threats. These services make it possible for banks and insurance companies to take timely decisions on investments, thereby ensuring their compliance with industry regulations. Moreover, by outsourcing operations to MSSPs, financial organizations can focus on their core competencies while ensuring continuous protection against evolving threats.

By Type 

Physical security is essential in the BFSI sector to protect assets, information, and personnel from unauthorized access, theft, vandalism, or any other potential threats. One of the key features of physical security includes access control systems. These systems ensure that only authorized personnel have access to restricted areas within banks, financial institutions, and insurance companies. Other important elements of physical security in the banking, financial services, and insurance sector are surveillance systems and closed-circuit television cameras. In addition, for the purpose of enhancing protection at BFSI installations, alarm systems and sensors are used. In the event of a breach or unauthorized entry, these systems shall aim to detect and report to authorities. Such factors are expected to increase the adoption of physical security in the banking, financial services, and insurance sector, which will, in turn, fuel the growth of the market during the forecast period. 

By Region

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North America is estimated to contribute 56% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

North America holds a significant position in the global market. With its advanced technological infrastructure and robust regulatory frameworks, the region has established itself as a leader in the solution space for the BFSI sector. In view of the region's massive reliance on digital payments, North America is one of the major markets, especially in the United States. Moreover, due to a number of government initiatives that call for more efficient solutions in the country, regional growth is expected to be robust. One of the key factors driving the market in North America is the increasing number of cyber threats and breaches targeting financial institutions. 

Market Dynamics and Customer Landscape

The market is experiencing rapid growth due to increasing cybersecurity concerns in the financial system. With the proliferation of IT technologies and the rise of mobile apps and virtualized environments, the sector faces growing cybersecurity risks, such as cyber-attacks and data security threats. To address these challenges, the industry is adopting advanced technologies like artificial intelligence, machine learning, and blockchain for threat management and fraud detection. Additionally, the adoption of cloud-based security solutions and IoT devices enhances security and privacy in financial products and services.

Key Market Driver

The rise in cyber data breaches is driving growth in the market. The BFSI sector, which encompasses financial services institutions, faces a high risk of cyber-attacks and data breaches due to its extensive customer base and the sensitive financial information it handles. This sector is four times more vulnerable to cyber-attacks compared to other industries. The global market has seen a notable rise in the number of cyber breaches, a trend likely to continue as financial institutions increasingly rely on digital platforms.

As technology evolves and financial institutions embrace digital transformation, cybersecurity and privacy concerns become more pronounced. The sector is exploring augmented reality, virtual reality, AI, and machine learning to enhance security measures. Cloud-based security solutions and IoT devices are also gaining traction to bolster security and ensure safe financial transactions.

Additionally, expanding economies present significant growth opportunities for diversifying their offerings. The increasing Internet penetration in developing nations drives the adoption of connected devices, prompting the global market to implement robust threat management systems to secure payment gateways. These factors are poised to drive the demand for these solutions, fueling market growth in the foreseeable future.

Significant Market Trends

The rise in the adoption of the Internet in the BFSI sector is a primary trend in the market. The boom in the adoption of the Internet throughout the BFSI region stimulates the usage of protection merchandise and services. Moreover, massive adoption and implementation of product lines such as intrusion, surveillance cameras, and firewalls, which enable convenient and secured financial transactions, are expected to grow in the market. In addition, easy and simpler access to the Internet is encouraging the banking, financial services, and insurance sector to implement secure solutions for threat management systems and secure payment gateways.

Therefore, the aforementioned factors are anticipated to provide lucrative opportunities for market growth during the forecast period. The majority of firms are third-party service providers, delivering solutions to several clients and business verticals at the same time. Furthermore, handling the data of multiple enterprises may present management issues for businesses. Trust issues with these solutions and services, as well as the possibility of third parties becoming involved and causing sensitive information leaks, limit market growth. Such factors will fuel the growth of the market during the forecast period.

Major Market Restrain

The huge cost of implementation of technological securities in the BFSI sector is a major challenge in the market. In the market, the uptake of technology securities in this sector has become even more important. Technological advancements have revolutionized the industry, but they have also brought about new threats. Financial institutions have invested a high level of investment in advanced solutions to protect confidential information and prevent unauthorized access. However, this implementation comes at a high cost. The BFSI sector operates in a highly regulated environment where the need for robust measures is paramount.

Moreover, financial institutions handle a vast amount of confidential and sensitive data, including the personal and financial information of their clients. A new way of exploiting vulnerabilities, and gaining access to confidential information, is being discovered by hackers every day. Financial institutions must regularly update their protection systems and invest in sophisticated technologies to prevent such attacks. This ongoing investment adds to the overall cost of implementation for protection. It can take time and effort to integrate different securing systems in order to ensure smooth communication among them, which increases the costs. Such factors will hamper the growth of the market during the forecast period.

Key Market Customer Landscape

The Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major BFSI Security Market Companies?

companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Booz Allen Hamilton Holding Corp. - The company offers BFSI security such as Cyber Fusion Center, Cloud Security and Analytics, Fraud Fusion, and Threat Hunting.

Broadcom Inc. - The company offers BFSI security, such as Symantec DLP, Symantec Web Protection Suite, Symantec Mirror Gateway, and Symantec Cloud Workload Protection.

Canon Inc. - The company offers BFSI security through its subsidiary Axis Communications such as an IoT-based bank.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Check Point Software Technologies Ltd.
• Cisco Systems Inc.
• Dell Technologies Inc.
• DXC Technology Co.
• Fortinet Inc.
• Hewlett Packard Enterprise Co.
• Honeywell International Inc.
• Intel Corp.
• International Business Machines Corp.
• LogRhythm Inc.
• McAfee LLC
• Microsoft Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Delivery Mode Outlook
  • Service
  • Solution

• Type Outlook 
  • Physical security
  • Cyber security

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

In the market, regulatory security compliance takes center stage as financial institutions prioritize information security. With a shift towards cloudbased solutions, the sector ensures robust protection for its system components. Stringent regulatory measures drive the adoption of advanced solutions, ensuring compliance with industry standards. Information becomes paramount in safeguarding sensitive data, and financial institutions invest in cutting-edge technologies to fortify their defense mechanisms. As the BFSI sector continues to evolve, the emphasis on regulatory compliance and innovative cloudbased solutions remains integral to maintaining the integrity and resilience of financial systems.

The market addresses privacy issues and data theft in financial institutes. With the rise of cloud-based security solutions, banking and insurance organizations adopt advanced security measures to combat illegal access and security attacks. Regulatory standards drive the adoption of biometrics, machine learning, and blockchain for data security. Despite concerns like data vulnerability and trust difficulties, the market offers customized solutions for online payments and investment monitoring. Cybersecurity solutions, including malware detection (e.g., Odinaff, Danabot), bolster the SWIFT network and online banking. However, challenges like implementation costs and lack of efficient security solutions persist, necessitating continuous adoption of these solutions in the banking industry.

The market is critical for banking organizations and financial service institutions facing major global data breaches and malware infections like Odinaff and Danabot. Advanced security solutions, including cloud-based technologies and Artificial Intelligence, protect against malware like Camubot and Backswap. The market addresses leakage of sensitive information and offers software-as-a-service for digitalized systems. Online banking opportunities and Internet of Things (IoT) integration enhance financial and personal details protection. Notably, the First American Financial Corporation breach underscores the need for these solutions in financing firms and critical infrastructure segments.

BFSI Security Market Scope
Report Coverage	Details
Page number	163
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 11.13%
Market growth 2023-2027	USD 36.78 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	9.87
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 56%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Booz Allen Hamilton Holding Corp., Broadcom Inc., Canon Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Dell Technologies Inc., DXC Technology Co., Fortinet Inc., Hewlett Packard Enterprise Co., Honeywell International Inc., Intel Corp., International Business Machines Corp., LogRhythm Inc., McAfee LLC, Microsoft Corp., Robert Bosch GmbH, Securonix, Sophos Ltd., Trend Micro Inc., and Seico Inc.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive 
  market growth and forecasting analysis of factors that will challenge the growth of market companies

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