BFSI Security Market
- March 2020 •
- 163 pages •
- Report ID: 5932781 •
- Format: PDF
"According to the market research report published , the global BFSI security market had a value of $31.3 billion in 2019 and is expected to reach $175.1 billion by 2030, advancing at a CAGR of 16.9% during the forecast period (2020–2030). This can be attributed to the increasing number of data breaches in the financial services industry.
Globally, Asia-Pacific (APAC) is predicted to witness the fastest growth during the forecast period. The rapid growth in the BFSI security market in APAC can be attributed to the rise in cloud-based technologies, increase in the number of commercial banks, surge in the number of cyberattacks, and stringent government regulations. For instance, it is mandatory for the commercial banks in China to put in place appropriate risk warning and monitoring systems in order to alleviate business risks.
The financial institutions and banks are in the process of shifting their core applications over cloud network, due to various factors such as increasing need for real-time analysis of large amounts of data, escalating risks related to the usage of conventional technologies, personalized customer experience, minimal capital expenditure, and superior operational control of platforms. As the data stored over the cloud network becomes more susceptible to security breaches, the BFSI industry is implementing cloud-based security solutions. It is expected that the adoption of such strict security measures will lead to more efficient management of operations over the cloud network.
Due to the involvement of financial assets and the presence of massive unstructured data, the financial services industry is one of the most lucrative targets for cybercriminals. In addition to this, the rapid rise in technological advancements including the shift toward digital operations and the wide-scale adoption of online banking, will increase the probability of data breaches, thus causing huge losses to the industry. For instance, there have been more data breaches in the U.S. than in any other country, thus, generating a loss of $8.19 million in 2019. As a result of the huge increase in data breaches, the demand for security solutions is shooting-up, thereby leading to huge growth in the global BFSI security market.
Internet of things (IoT) plays a crucial role in ensuring the security of banking and financial operations. This is primarily due to various factors such as the helpful role of IoT in tracking the location of the financial crime, identifying the devices used for leaking the vulnerabilities in the system, and remotely monitoring the surveillance tools in order to detect any suspicious activities. Therefore, it is extremely necessary for banks and financial institutions to implement smart security solutions, which provide automated work operations, centralized management systems as well as detect potential cyberattacks by proactively monitoring the surveillance systems. This creates an opportunity for the prominent players in the BFSI security market for developing efficient security solutions for banks and other financial institutions.
On the basis of security type, the physical category had the larger market share in the BFSI security market in 2019. Based on physical security, the video surveillance category had the largest share in the market in 2019. This is attributed to the rising adoption of closed-circuity television (CCTV) cameras in banks for monitoring and tracking activities. Additionally, the introduction of analytical solutions and new technologies are driving stable market growth in this category.
Depending on service, the system integration category is expected to register the fastest growth during the forecast period in the BFSI security market.
Banks held the largest share in the BFSI security market in 2019, on the basis of end user. Due to the increasing number of cyberattacks and the mandatory complying to strict regulations associated with the banking industry, the banks category is predicted to record the fastest growth during the forecast period.
Geographically, North America had the largest share in the market in 2019 and is expected to control the BFSI security market during the forecast period. In this region, the largest market share was held by the U.S. The country is predicted to continue its market domination in 2030 as well, on account of the increasing deployment of vulnerability management solutions by various banking and financial organizations in the country. Furthermore, these organizations are actively making more investments toward the implementation of cyberattack mitigation solutions and the upgradation of the physical and information security infrastructure. For instance, based on a report by the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3), the frauds, thefts, and cases pertaining to cybercrimes resulted in losses worth $2.7 billion, in 2018, even though the number of complaints were only 351,936.
The BFSI security market in APAC is expected to register the fastest growth during the forecast period, due to the increase in fraudulent activities, ballooning information technology (IT) investments in the emerging economies such as India and China, and rapid rise in technological advancements in banks and financial organizations. China is predicted to record the largest market share in the region in 2019. The key players in China are focusing on extending their control from video surveillance systems to broader security systems, in the market, by providing access control systems, trespasser alarm systems, and other physical security information management (PSIM) systems. In addition to this, the country is also witnessing an increasing shift toward video-centered IoT solutions and big data services in order to maximize security and profitability.
The key players in the worldwide BFSI security market are targeting mergers and acquisitions, product launches, and partnerships, in order to sustain and improve their position in the industry. For instance, Honeywell International Inc. launched Honeywell Forge Cybersecurity Platform, which is a cybersecurity platform, with the aim of improving the cybersecurity performance across an enterprise. The platform helps in making the vulnerabilities in the system more visible, thereby reducing risks and improving the overall efficiency of the cybersecurity management. Furthermore, the platform also allows the safe transferring of data and uses operations data for improving cybersecurity compliance.
McAfee LLC, which is a U.S. based security provider, announced the acquisition of NanoSec Co., in August 2019, for an undisclosed amount. McAfee, with the help of this acquisition, aims to strengthen the container security capabilities of McAfee MVISION, which would allow the customers to speed up the application delivery. This acquisition would also help McAfee to enhance security and compliance of multi-cloud and hybrid deployments.
The BFSI security market is not dominated by any one company. Instead, the market consists of several key players such as Honeywell International Inc., Cisco Systems Inc., DXC Technology Company, Trend Micro Incorporated, IBM Corporation, McAfee LLC, Dell Technologies Inc., Booz Allen Hamilton Holding Corporation, Broadcom Inc., and Accenture plc."