BFSI Security Market 2023 – Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Market Size & Forecast 2030

BFSI Security Market Insights:

BFSI (Banking, Financial Services, and Insurance) companies are liable for handling sensitive financial information, making them a major target for cyber attacks. Therefore, security may be a critical concern for the BFSI sector. BFSI companies should take a comprehensive approach to security, including network security, access control, encryption, anti-malware and anti-virus software, security policies and training, and incident response planning, to guard their sensitive financial information and maintain the trust of their customers.

The global BFSI security market size was valued at $37.9 billion in 2022 and is predicted to succeed at $79.5 billion by 2030, at a CAGR of 9.7% during the forecast period (2023-2030). Identity and access management (IAM) is predicted to carry the most important market share during the forecast period, due to the increasing need for access control and identity management solutions to stop unauthorized access to sensitive financial data.

Geographically, North America is predicted to carry the most important market share thanks to the presence of major BFSI companies and therefore the increasing adoption of security solutions and services. However, the Asia Pacific region is predicted to possess the very best rate of growth during the forecast period, driven by the increasing adoption of digital banking and financial services and growing cyber threats within the region.

BFSI Security Market Growth Drivers:

The BFSI sector is becoming more susceptible to cyber attacks like data breaches, ransom ware attacks, and phishing scams resulting in a growing demand for security solutions and services to guard sensitive financial information.

Governments and regulatory bodies are implementing strict regulations and guidelines for the BFSI sector, mandating the implementation of security measures to guard customer data and stop financial fraud, meant to increase specialization in security solutions and services within the BFSI sector.

The adoption of digital banking, financial services, and insurance products is increasing, driving the necessity for security solutions and services to guard customer data and stop financial fraud. BFSI companies are investing heavily in security technologies like biometric identification, blockchain, and AI (AI) to enhance security and stop financial fraud.

With the growing adoption of mobile banking and financial services, the necessity for mobile security solutions is additionally increasing. Mobile security solutions are essential for shielding sensitive financial information on mobile devices and preventing unauthorized access. BFSI companies are increasingly adopting cloud-based security solutions to enhance scalability and reduce costs. Cloud-based security solutions also offer greater flexibility and simple management.

BFSI Security Market Segmentation:

1.       Security Solution: Identity & Access Management (IAM),Data Loss Prevention (DLP), Encryption, Disaster Recovery (DR), Unified Threat Management (UTM), Security Information and Event Management (SIEM)

2.       End-User: Banks, Insurance Companies, Brokerage Firms& Credit Card Companies, Others

3.       Deployment Model: On-Premises Deployment, Cloud-Based Deployment, Hybrid Deployment

4.       Organization Size: Small & Medium-Sized Enterprises (SMEs), Large Enterprises

5.       Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa

BFSI Security Market Security Solution Segment Review

Identity and Access Management (IAM) solutions hold the most important share of the BFSI security market, accounting for around 27.0% of the worldwide market in 2022. It provides secure access to enterprise applications and data and the market share within the BFSI security market is predicted to grow at a CAGR of around 15.0% between 2023 and 2030. IBM, Microsoft, Oracle, RSA Security, and CA Technologies are some of the profound players in the segment.

Data Loss Prevention (DLP) solutions hold the second-largest share of the BFSI security market and protect sensitive data from unauthorized access, theft, or loss with the market share expected to grow at a CAGR of around 18.0% during the aforementioned period. Encryption solutions provide secure communication and storage of sensitive data and are predicted to grow at a CAGR of around 16.0% enabling organizations to protect their data even if it falls into the wrong hands. Leading companies in this segment include Thales Group, Symantec, McAfee, and Trend Micro.

Disaster Recovery (DR) solutions provide a backup and recovery system just in case of a disaster or system failure. The market is expected to grow at a CAGR of 14.0%. Unified Threat Management (UTM) solutions provide a comprehensive security solution that has multiple security measures, like firewall, antivirus, and intrusion prevention. The market is predicted to grow at a CAGR of around 14.0% from 2023 to 2030. Security Information and Event Management (SIEM) is predicted to grow at a CAGR of around 12.0% with IBM, Hewlett-Packard Enterprise, Splunk, and Log Rhythm being the key players providing services of detecting and responding to security incidents in real-time.

BFSI Security Market End User Segment Review

The banking sector is the largest end-user of BFSI security solutions, accounting for around 40.0% of the worldwide market share, and its CAGR is predicted to be around 15.0% between 2023 and 2030. Key security solutions used by banks include access control systems, IAM solutions, encryption solutions, firewalls, IDPS, and SIEM solutions which protect against fraudulent activities, cyber-attacks, and other security threats.

Insurance companies hold sensitive customer information, including personal data, medical information, and financial information. They need to ensure the confidentiality and integrity of their data to prevent fraud and other security threats. The insurance sector is the second-largest user of BFSI security solutions predicted to be growing at a CAGR of around 18.0% from 2023 to 2030.

Brokerage Firms & credit card companies together account for the remaining share of the global market and are expected to grow at a CAGR of around 14.0% during the aforementioned period. These companies hold sensitive financial data and require robust security measures to protect their customers' information.

BFSI Security Market Deployment Model Segment Review

On-premises deployment is preferred by organizations that need complete control over their security solutions and wish to satisfy strict compliance and regulatory requirements. It holds the foremost important share of the BFSI security market, accounting for around 55.0% of the worldwide market share with a CAGR expected to be around 12.0% between 2023 and 2030. IBM, Cisco Systems, and Check Point Software Technologies are a number of the profound players offering On-premises BFSI security services.

Cloud-based deployment involves deploying security solutions on a cloud-based platform, with the provider liable for managing and maintaining the infrastructure. It offers the pliability of scaling up or down as required and reduces the burden of maintaining and updating security solutions. A key player in this segment includes Microsoft, Amazon Web Services (AWS), and Google, and is predicted to be growing at a CAGR of around 20.0% between 2023 and 2030.

Hybrid deployment involves a combination of on-premises and cloud-based deployment models which offers the simplest of both worlds, allowing organizations to take care of control over critical systems while taking advantage of the pliability and scalability of cloud-based solutions. IBM, VMware, and Hewlett-Packard Enterprise are a number of the profound players in this segment.

BFSI Security Market Organization Size Segment Review

Large enterprises hold the most important share of the BFSI security market, accounting for around 65.0% of the worldwide market share with a CAGR expected to be around 12.0% between 2023 to 2030. These enterprises typically have dedicated IT security teams and significant budgets allocated for security using a wide range of security solutions, including access control systems, IAM solutions, encryption solutions, firewalls, IDPS, and SIEM solutions. Leading companies in this segment include IBM, Cisco Systems, and Hewlett Packard Enterprise.

Small and Medium-sized Enterprises (SMEs) represent a smaller share of the BFSI security market, accounting for around 35.0% of the worldwide market share. However, the CAGR for BFSI security solutions in SMEs is predicted to be higher, at around 20.0% between 2023 to 2030. They typically use a more focused set of security solutions, including access control systems, encryption solutions, and firewalls. Cloud-based deployment models are also popular among SMEs, as they offer cost savings and reduce the burden of maintaining and updating security solutions. Microsoft, AWS, and Google are major players providing BFSI security to these industries.

BFSI Security Market Regional Synopsis:

The North American BFSI security market was valued at $13.6 billion in 2022 and is predicted to succeed at $27.9 billion by 2030, growing at a CAGR of 9.4% during the forecast period (2023-2030). The region holds the most important market share due to the presence of major BFSI companies and therefore the increasing adoption of security solutions and services. IBM, Cisco Systems, Hewlett Packard Enterprise, Symantec Corporation, and McAfee are some of the profound players in this region.

The European BFSI security market is predicted to grow at a CAGR of 8.9% from 2023 to 2030 driven by the increasing adoption of digital financial services and growing cyber threats. Key players in the region include Gemalto NV, Thales Group, and Diebold Nixdorf with countries like the UK, Germany, and France being major contributors to the market's growth.

The Asia Pacific BFSI security market is predicted to possess the very best rate of growth thanks to the increasing adoption of digital banking and financial services and growing cyber threats within the region. The market is predicted to grow at a CAGR of 11.6% (2023-2030)with countries like China, India, and Japan being major contributors to the market's growth.NEC Corporation, Hitachi Ltd., NCR Corporation, and Samsung SDS are some major players in this region providing a wide range of security solutions.

The Latin American BFSI security market is driven by the increasing adoption of digital financial services and growing cyber threats. The BFSI security market in the Middle East and Africa is expected to grow significantly in the coming years, owing to increasing digitalization in the banking sector. The market in the region is expected to grow at a CAGR of 8.4% and 11.2% during the forecast period (2023-2030) respectively with IBM, Cisco Systems, and Symantec Corporation being the major service provider in both regions.

BFSI Security Market Key Challenges:

Implementing effective security solutions and services is often expensive, and budget constraints can limit the power of some BFSI companies to take a position within the necessary security measures. As cyber attackers become more advanced in their tactics, BFSI companies got to constantly update their security solutions and services to stay up with the evolving threats which need a big investment in cyber security resources and technologies.

Regulatory compliance requirements for the BFSI sector are often complex and vary by region, requiring significant resources and expertise to make sure compliance with all regulations.

Integrating security solutions and services with existing systems is often a challenge, requiring significant time and resources to make sure compatibility and stop disruptions to operations. there's a shortage of skilled cyber security professionals, which may make it difficult for BFSI companies to seek out and hire qualified personnel to manage their security operations.

BFSI Security Market Key Global Players:

Several factors that define the competitive landscape of the BFSI security market include:

·         Companies got to constantly innovate and differentiate their products and services to remain before competitors within the market which incorporates developing new security solutions and services that address emerging threats and suit evolving regulatory requirements.

·         Established companies with strong brand reputations and enormous market shares have a competitive advantage within the BFSI security market. Companies within the BFSI security market also can often form strategic partnerships and make acquisitions to expand their offerings and gain access to new markets and customers.

·         Pricing and cost-effectiveness are important factors for companies within the BFSI security market, as customers are often sensitive to cost and seek cost-effective solutions that provide maximum security. Brands got to provide high-quality customer service and support to take care of customer satisfaction and loyalty which incorporates providing timely and effective technical support, also as training and education on security best practices.

·         Companies within the BFSI security market got to suit a variety of regulatory requirements, like GDPR and PCI-DSS, which may impact their ability to work in certain markets and win new business.

Numerous players are vying for market share and investing in new technologies and product development to stay ahead of the curve in the market. Several key global players in the BFSI security market include:

·         Amazon Web Services (AWS)

·         CA Technologies

·         Check Point Software Technologies Ltd.

·         Cisco Systems, Inc.

·         Dell EMC

·         Diebold Nixdorf

·         Fortinet, Inc.

·         Gemalto NV

·         Google

·         HCL Technologies Limited

·         Hewlett Packard Enterprise

·         Hitachi Ltd.

·         IBM Corporation

·         Log Rhythm

·         McAfee LLC

·         Microsoft

·         Oracle

·         Palo Alto Networks, Inc.

·         Rapid7, Inc.

·         RSA Security

·         Samsung SDS

·         Sophos Ltd.

·         Splunk

·         Symantec Corporation

·         Thales Group

·         Trend Micro Incorporated

·         Trustwave Holdings, Inc.

·         VMware

These companies offer a variety of security solutions and services for the BFSI sector, including network security, data protection, endpoint security, cloud security, and managed security services. They compete with supported factors like product innovation, pricing, customer service, and market presence, among others.

The report on the BFSI security market covers the following aspects:

·         Market Overview: A general overview of the global BFSI security market, including its current size and growth projections for the future.

·         Market Segmentation: A breakdown of the market by security solution, end-user, deployment model, organization size, and geographic region.

·         Market Dynamics: An analysis of the key drivers, challenges, and trends affecting the growth of the BFSI security market.

·         Competitive Landscape: A comprehensive analysis of the leading players in the BFSI security market, including their market share, product offerings, and key strategies.

·         Regional Analysis: A detailed analysis of the BFSI security market by geographic region, including market size, growth projections, and key trends for each region.

·         Company Profiles: In-depth profiles of key players in the BFSI security market, including their business overview, product offerings, financial performance, and recent developments.

·         Market Forecast: Projections for the future growth of the BFSI security market, including market size, growth rate, and key trends for the next five to ten years.

 

Attributes	Details
Base Year	2022
Trend Period	2018 – 2032
Forecast Period	2023 – 2030
Pages	215
Security Solution Segment	Identity & Access Management (IAM), Data Loss Prevention (DLP), Encryption, Disaster Recovery (DR), Unified Threat Management (UTM), Security Information and Event Management (SIEM)
End User Segment	Banks, Insurance Companies, Brokerage Firms& Credit Card Companies
Deployment Model Segment	On-Premises Deployment, Cloud-Based Deployment, Hybrid Deployment
Organization Size Segment	Small & Medium-Sized Enterprises (SMEs), Large Enterprises
Company Profiles	IBM Corporation, Cisco Systems, Inc., Symantec Corporation, McAfee LLC, Check Point Software Technologies Ltd., Fortinet, Inc., Trend Micro Incorporated, Dell EMC, and Others
Edition	4th edition
Publication	April 2023