• US: +1-408-610-2300
  • Toll Free: +1-866-831-4085
  • Login / Register
BFSI Security Market Size & Share, 2025 | Industry Analysis Report

BFSI Security Market Analysis Report By Physical Security, By Information Security, By End Use, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619988  |  Published: August 2020  |  No of Pages: 138
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The global BFSI security market size was worth USD 31.8 billion in 2018. It is projected to grow at over 13% CAGR from 2019 to 2025. Rising security concern pertaining to data theft and unauthorized access is predicted to bolster the market demand for BFSI security. Increasing cloud penetration has resulted in the deployment of threat management systems by enterprises to protect their digital assets. Thus, increasing cloud-based BFSI security solution is predicted to augment the market growth.

The rise in penetration of smartphones and other connected devices coupled with increasing internet reach has enabled users to carry out various financial transactions. Growing financial transactions through various connected devices are enabling BFSI stakeholders to incorporate threat management systems to secure their payment gateways. Further, it helps in securing networks and prevent unauthorized access along with protecting against potential malware. In addition, growing emphasizing on implementation of security compliance is estimated to further fuel the market growth.

U.S. BFSI physical security market

Threat management systems consist of both software and hardware components. In addition, vendors also offer services like maintenance and consulting. The demand for cloud services is gaining traction as it provides reduced infrastructure cost. Further, the cloud also provides flexibility in accessing customer and financial data.

Owing to the rising use of ATMs and internet banking, both internal and external threats have emerged in the BFSI sector.  Enterprises are investing a significant amount of money to secure their operations from any potential threats as a breach of security can significantly damage their reputation. Thus, the growing adoption of security solution to counter cyber threats is anticipated to supplement the market growth.

Security solution in BFSI industry helps in improving investment monitoring in insurance companies and banks. Organizations are increasingly adopting these solutions to protect their critical information stored in digital memory devices and their system. The advent of various solutions such as IoT based cybersecurity; biometrics and customized solutions are anticipated to create lucrative growth opportunity. However, high cost in implementation and concern regarding security concern is anticipated to adversely affect the market growth.

Physical Security Insights

In 2018, the video surveillance category held the largest share and accounted for USD 7.6 billion. This system is used to provide security to the physical infrastructure of various financial institutions, find out the physical intrusion and provide security to premises. Market players are focusing on offering custom made video surveillance solution to cater to customer needs. Moreover, these systems can be readily integrated with IT systems and networks.

On the other hand, Physical Security Information Management (PSIM) is projected to register the fastest CAGR over the forecast duration. This system is capable of processing data that provide better accountability and insights about consumers’ financial transactions. In addition, this system is used to improve the effectiveness and efficiency of the threat management system in BFSI system.

Information Security Insights

Encryption software is estimated to grow at the fastest pace from 2019 to 2025. Encryption helps in protecting financial transaction data along with preventing unauthorized access. End-to-end encryption solutions help in preventing access to critical data. On the other hand, the antimalware and antivirus category was worth USD 3.5 billion in the base year 2018. Leading companies such as Symantec Corporation and McAfee, Inc. provide antimalware and antivirus solution that is popular across industry verticals.

In the recent past, there has been a surge in ransomware attacks. For example, WannaCry ransomware hacked Central Bank of the Russian Federation leading to failure of various financial operations. This incident has forced financial institutions to emphasize on upgrading their security.

End-use Insights

The banking segment is predicted to the fastest-growing segment. In addition, the sector also held the largest share in the market in 2018. The rise in penetration of digital technologies in the banking sector is driving the growth. Further, the introduction of mobile wallet has significantly attributed to the popularity of online transaction. BFSI security solution is increasingly implemented in APAC. Growing implementation of the security solution is also aimed at retaining the existing customer and increasing potential customers.

Europe BFSI security market

On the other hand, the insurance companies’ category is predicted to register significant growth over the forecast years. Outsourcing of cybersecurity solutions from third parties and increasing complexity of attacks make mid-sized companies more vulnerable to cyber attacks. Insurance firms aim to invest in reliable solutions to safeguard customer personal information. In addition, companies are emphasizing on low-risk solutions.

Regional Insights

In 2018, North America held the largest share in the BFSI security market. Further, the region is anticipated to continue its domination from 2019 to 2025. The growing dominance of North America in the market is highly influenced by the presence of the major companies such as Symantec Corporation, McAfee, Inc. and DXC Technology Company. These key players provide a variety of products and services such as displays, software, cameras and detection sensors for BFSI security.

On the other hand, APAC is predicted to witness the highest growth over the forecast duration. Increasing adoption of advanced security solutions in the banking system of India, China, Australia and Japan is attributing to the growth of the region. In addition, increasing penetration of digital technologies and the growing popularity of internet baking are also supplementing the regional growth. Owing to the increasing digitalization, BFSI companies are emphasizing on introducing threat management solutions in order to safeguard the customer data and digital assets. Critical customer information involves the information about debit or credit card, payment information and details of bank accounts.

Growing penetration of fintech services has led to a rise in payment for transports, food, leisure services and shopping services through online platforms. Moreover, increasing adoption of mobile payments has resulted in a rise in the deployment of threat management solutions to safeguard customers against breach of financial data.

Impact of COVID-19

There has been a significant rise in the number of online transactions as people are forced to stay home amid the closure of banking, financial services and insurance physical branches. Rising online transactions demand robust security solutions and the need for strengthening the BFSI security is ever than before. However, the adoption of the security solution in the BFSI sector has been delayed owing to the outbreak of COVID-19. Further, COVID-19 outbreak led to the financial crisis across different sectors, the impact of which is also felt by the BFSI industry.

BFSI Security Market Share Insights

Major players in the BFSI security are Axis Communications, Honeywell, McAfee Inc., IBM Corporation, Sophos Ltd, Dell EMC, and Symantec Corporation among others. Owing to the presence of the various players, the market is competitive in nature. These players are engaged in designing solutions for the various industry like transportation, manufacturing and retail. To increase their dominance, major players are focusing on acquiring small and medium players.

Quality of services and products is the major factor driving the competition. Companies provide periodic update and maintenance to stay competitive in the market. Owing to the development of new products and solutions, the market is estimated to witness significant growth over the next few years.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Canada, U.K., Germany, China, India, Japan, Brazil, and Mexico

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as part of the customization.


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global BFSI security market report based on physical security, information security, end-user, and region:

• Physical Security Outlook (Revenue, USD Billion, 2014 - 2025)
    • 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, 2014 - 2025)
    • 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, 2014 - 2025)
    • Banking
    • Insurance Companies

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • Asia Pacific
        • China
        • Japan
        • India
    • Latin America
        • Brazil
        • Mexico
    • MEA

What questions do you have? Get quick response from our industry experts. Request More information
Key questions answered in the report include
key questions
We also offers customization on reports based on specific client requirement.
Request for Customization

Choose License Type

Research Assistance

Ryan Manuel
Ryan Manuel

Research Support Specialist, USA

  1. Phone: +1-408-610-2300
  2. Toll Free: +1-866-831-4085
  3. Email: [email protected]
  • World's largest premium report database
  • Transparent pre & post sale customer engagement model
  • Unparalleled flexibility in terms of rendering services
  • Safe & secure web experience
  • 24*5 Research support service
  • 100% Secure Payments
  • Our Promise
  • 100% Service Assurance
  • Market Monitoring
  • Service Flexibility
  • 24X5 Care available