Banks, financial services, and insurance companies (BFSI) require IT infrastructure to be available within 24 * 7 * 365 days and meet strict internal and external service level requirements. The BFSI department mainly deals with end customers who contribute to the company’s revenue. Enterprise departments need to ensure that powerful IT infrastructure management tools are used to monitor end-user applications and business services. The tool also supports mission-critical availability and performance. The banking and financial services industry is considered to be the hacker’s favorite cyber-attack method, which means you need to have a highly vigilant security system. Moreover, these organizations are geographically distributed and are dealing with different technologies from legacy systems to hybrid cloud-based solutions.
The global BFSI security market size generated USD 46.58 Billion in 2019 and projected to reach USD 75.86 Billion by 2027, registering a CAGR of 5.95%, during the forecast period, 2020-2027. The major factors attributed to the growing demand for cloud-based security solutions and the increasing risk of cyber threats against BFSI infrastructure. Additionally, the surge in privacy concerns related to unauthorized access and data theft faced by banking and insurance companies are anticipated to influence the global BFSI security market in the upcoming periods. Moreover, the growing implementation of regulatory standards and the rise in preference for a common security platform, which reduces the cost and complications of financial services will accelerate the global BFSI security industry.
With the rise of global terrorism, cyber destruction, and espionage operations, financial companies have become increasingly complex. Further, the increasing risk of data loss as the customer preferences towards digital platforms are propelling the growth of the market. Also, the growing adoption of online banking solutions and ATMs are driving market growth in the next few years. Additionally, the swelling mobile data usage, stringent government regulations relating to data security along with growing penetration of internet of things will spur the global BFSI security market share. The upsurge in applications of BFSI security to improve investment monitoring in financial institutions, including banks and insurance companies, are expected to trigger the market growth in the analysis period.
Security solutions in BFSI provide safe, compliant, stable, and reliable overall solutions for banks, insurance, securities, Internet finance, and other customers. It also helps financial customers quickly realize cloud-based business deployment and improve business innovation. The recognition of innovative cloud applications such as intelligent customer service, risk control, precision marketing, and fake accounts in the financial industry continues to increase. In addition to Internet finance, traditional banks, insurance, and securities companies have begun to explore and practice in-depth vigorously.
The popularity of big data technology has increased the risk and cost of data leakage. The use of big data is based on a vast database. If companies neglect to implement protection measures such as encryption and isolation on the database, once the information is leaked, it will cause huge losses. Portable mobile terminals pose a potential threat. Smartphones, tablet computers, notebooks, USB, and other portable devices that are often used for the work store have a lot of corporate information and data. Such mobile terminals are very easy to leak sensitive information due to difficulties in management and restraint. Network security insurance is insurance for customers to avoid Internet risks such as data loss and network interruption. At present, the development of global cybersecurity insurance is in its infancy.
Based on type, the global BFSI security market bifurcates into information security and physical security. Physical security will witness remarkable growth in the forecast period. It is primarily attributed to its protection against various threats, in terms of malicious software, dishonest insider and external frauds, and natural and human-made disasters.
Information security will be the fastest-growing segment in the estimated period due to its help to detect, report, monitor, and counter cyber threats while maintaining the confidentiality of information systems.
Based on physical security, the global BFSI security market segregated into Software (Video surveillance, Access control, Intrusion and fire detection, Physical Security Information Management (PSIM)), and Services (Consulting & training services, Integration & maintenance services, and Managed security services). The video surveillance segment held a lucrative share in 2019 and likely to dominate the global BFSI Security market by 2027. It is due to its secure physical infrastructure of financial institutions, detect physical intrusions, and secure the premises.
The Physical Security Information Management (PSIM)) will be the fastest-growing segment in the forecast period. It is owing to PSIM help in providing insights and better accountability of gathered data related to customers and their financial transactions.
Services segment will grow with a significant rate during the analysis period, on account of its help in enhancing the existing video surveillance system by integrating digital video surveillance with network and IT systems.
Based on information security, the global BFSI Security market bifurcated into Software (IAM, Encryption, Disaster Recovery, Unified Threat Management, Firewall, Security and Vulnerability Management, Encryption, Data Loss Protection, Antivirus & Antimalware) and Services (Consulting & training services, Integration & maintenance services and Managed security services). The software segment estimated to lead the market by 2027 due to encryption software used to prevent unauthorized access and to protect data related to financial transactions and customer data.
Antivirus & Antimalware will grow with a significant rate during the forecast period owing to the huge adoption of antivirus by individuals and organizations.
Based on end-use, the global BFSI Security market categorized into Banking, Insurance Companies, and Others. The banking segment held for a substantial market share in 2019 and will witness to gain maximum market revenue by 2027. It is attributable to the rising adoption of digitalization across the banking sector, and the advent of mobile wallets to make online transactions is strengthening banking security.
Insurance expected to account for the significant market share in the overall BFSI Security market, owing to growing risk cyber-attacks led to adoptions of third-party vendor’s security solutions by insurance companies.
Based on geography, the global BFSI Security market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to occupy the lion’s share in the BFSI Security market by 2027. It is owing to the presence of key market players in these regions, the surge in digital payments, and various government initiatives in these regions, demanding the need for better security solutions in the banking industry.
Asia Pacific will hold a prominent share of the BFSI Security market and projected to remain dominant by 2027. It is due to rapid urbanization, an increasing number of users on the online platform, and growing demand for data security of the confidential data.
Companies such as Cisco Systems, Inc., Computer Sciences Corporation (CSC), EMC Corporation, Honeywell International, Inc., IBM Corporation, Booz Allen Hamilton, Inc, McAfee, Inc. (Intel Security Group), Sophos Group Plc., Symantec Corporation, DXC Technology Company, Axis Communications, Dell EMC, Bosch Security Systems and Trend Micro Incorporated, are the key players in the Global BFSI Security Market.
By Physical Security
By Information Security