|Study Period:||2019- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The BFSI security market was valued at USD 37.4 billion in 2021 and is expected to reach USD 66.02 billion by 2026, at a CAGR of 11% over the forecast period (2021 - 2026). Banks and other financial institutes are under increasing scrutiny to ensure they have the appropriate security measures in place, especially in the wake of the numerous high-profile data breaches that have taken place over the last few years.
- The increasing implementation of regulatory standards, coupled with the rise in the adoption of cloud-based security solutions and increasing modes of online payments, is expected to give rise to advanced security solutions.
- Also, because the adoption of cloud-based technologies has made data more vulnerable to security attacks, hackers have begun using malware, such as Odinaff, Danabot, Camubot, and Backswap, to target banks that rely on the SWIFT network to send money-moving messages. This has led to customers demanding more effective solutions.
- In countries such as Qatar, where significant investments in infrastructure are being made for the 2022 FIFA World Cup, banks are also investing in advanced security solutions.
- The lack of awareness regarding the modern BFSI security systems across developing economies and the need for convergence of various security solutions are the major factors restraining the BFSI security market.
- The pandemic has provided significant growth opportunities for the market in the long run since the digitization boom that further led to the adoption of cloud-based solutions, with the movement of various institutions to online operations has led to significant growth.
Scope of the Report
BFSI security refers to the adoption of several security solutions and services by banking and insurance companies to protect them or mitigate the risk of breaches. The scope of the market studied is characterized by Type of Security such as Physical Security (Access Control, Intrusion, and Fire Detection), Information Security (Identity and Access Management, Risk and Compliance Management), by Services such as System Integration, Maintenance, and Support, and Geography.
|Other Financial Institutions|
|Rest of the World|
Key Market Trends
Rise in Cyber Data Breaches
- The BFSI sector is one of the critical infrastructure segments that suffers several data breaches and cyber-attacks, owing to the large customer base that the industry serves and the financial information that is at stake. Financial service institutions have been identified to be four times more susceptible to cyberattacks than other industries, which is expected to drive the demand for such solutions.
- Sears Holdings, the parent company of Kmart, revealed that Kmart’s store payment systems were infected with malware. JPMorgan was a victim in one of the biggest bank breaches in history, where hackers got access to the financial information of around 3,500 customers. With such instances, the companies are bound to increase cybersecurity, which in turn, will be the growth driver for the BFSI security market.
- The increasing number of banks, financial institutions, and other financing firms that are switching toward digitalized business operations and the need for adoption and implementation of security solutions and services has driven the growth of the market.
- The rising penetration of the internet in developing regions which in turn is stimulating the adoption of connected devices that enable convenient and secure financial transactions is encouraging the banking, financial services, and insurance security market to implement threat management systems for securing payment gateways.
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North America is Expected to Hold Major Share
- North America, particularly the United States, is one of the largest markets for BFSI security owing to the region's majorly depending on digital payments. The region is expected to witness healthy growth as well due to multiple government initiatives in the country demanding the need for better security solutions.
- Due to the country's high dependence on online payments and recovering banking infrastructure from the financial crisis of 2007-2008, the banks in this region witnessed a high number of data breach attempts.
- Although the number of data breaches is small, which is 1,001 in 2020, which is a decrease of breaches compared to the previous year witnessed a drop of 32%, the amount of sensitive data available in the banking industry is very high, making it a prime target for hackers, especially banks using SWIFT architecture.
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The BFSI security market is fragmented and consists of several major players. Many companies increase their market presence by introducing new products or entering into strategic mergers and acquisitions.
- June 2021 - McAfee today announced a new partnership with Visa that enables Visa financial institution partners in North America and EMEA to offer award-winning internet security to Visa Business cardholders. Visa Business cardholders can get a subscription for McAfee solutions that protect sensitive data via email, provide web and firewall protection, offer mobile VPN, and safeguard devices from malware and other online threats.
- October 2021 - Sophos is was awarded Security Vendor of the Year in the European IT & Software Excellence Awards 2021. Sophos is working on the integration of AI into its products and services. Sophos Adaptive Cybersecurity Ecosystem (ACE) offers an open security architecture that optimizes threat prevention, detection, and response.
- April 2020 - Accenture has acquired the Symantec Cyber Security Services business from Broadcom Inc. The acquisition aims to enhance Accenture Security’s position as a provider of managed security services, further boosting its ability to help organizations anticipate, detect, and respond to cyber threats. The Symantec Cyber Security Services business serves organizations across a range of industries, including financial services, utilities, health, government, communications, media, technology, and retail.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Industry
4.5 Market Drivers
4.5.1 Growth of the online banking industry
4.5.2 Rise in Cyber Data Breaches
4.6 Market Restraints
4.6.1 Security and Privacy Concerns
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Information Security
5.1.2 Physical Security
5.2 By Services
5.2.1 System Integration
5.3 By Veritcal
5.3.3 Other Financial Institutions
5.4 By Geography
5.4.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
5.4.3 Asia Pacific
126.96.36.199 South Korea
188.8.131.52 South East Asia
184.108.40.206 Rest of Asia Pacific
5.4.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Symantec Corporation
6.1.2 Sophos Group Plc.
6.1.3 McAfee, Inc.
6.1.4 IBM Corporation
6.1.5 Honeywell International, Inc.
6.1.6 EMC Corporation
6.1.7 Computer Sciences Corporation
6.1.8 Trend Micro Incorporated
6.1.9 Booz Allen Hamilton, Inc.
6.1.10 Cisco Systems, Inc.
7. INVESTMENT ANALYSIS
8. FUTURE OUTLOOK OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The BFSI Security Market market is studied from 2019 - 2026.
What is the growth rate of BFSI Security Market?
The BFSI Security Market is growing at a CAGR of 11% over the next 5 years.
Which region has highest growth rate in BFSI Security Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in BFSI Security Market?
North America holds highest share in 2020.
Who are the key players in BFSI Security Market?
McAfee LLC, IBM Corporation, Cisco Systems Inc., Broadcom Inc. (Symantec Corporation), Microsoft Corporation are the major companies operating in BFSI Security Market.