BFSI Security Market Size, Trends, Growth, Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: BFSI Security Market


The global BFSI security market size was valued at USD 31.8 billion in 2018 and is expected to witness a CAGR of 13.1% over 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 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 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 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 expense. 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 increasing adoption of online banking solutions and ATMs. Security breach of clients financial information can hamper brand image of financial institutions. Thereby, the ability of advanced security solutions to tackle 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 cyber security solutions based on internet of things (IoT) are expected to create growth opportunities for the market. However, high implementation cost and lack of efficient security solutions are expected to hinder market growth.

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 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 systems 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 efficiency and effectiveness of 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 implications of cyberattacks and to upgrade and implement a 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 adoption of digitalization across the banking sector is expected to bolster growth. 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 Asia Pacific. 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 growing complexity of attacks and 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 of BFSI Security Market

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.

Asia Pacific is expected to be the fastest growing regional segment from 2019 to 2025, attributed to 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.
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 need to protect information from the hackers has propelled the adoption of BFSI security solutions in the region.

Market Share Insights of BFSI Security Market

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 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.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of BFSI Security Market Research Report

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 the purpose of this study, this market research report has segmented the global BFSI security market report based on physical security, information security, end use, and region:

Physical Security Outlook (Revenue, USD Billion, 2019 - 2030)

  
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, 2019 - 2030)

  
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, 2019 - 2030)

  
Banking
  
Insurance Companies