BFSI Security Market Size (2024 - 2029)

BFSI Security Market Analysis

The BFSI Security Market is expected to register a CAGR of 12.43% over the forecast period. Banks and other financial institutes are under increasing scrutiny to ensure they have 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. Growth is anticipated due to escalating privacy issues brought on by data theft and illegal access to banking and insurance organizations.

• 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.
• 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. Market growth is anticipated to be further driven by rising demand for cloud-based security solutions that allow the BFSI sector to use their data effectively.
• Multiple factors, such as the emergence of customized solutions, biometrics, and cybersecurity solutions based on the internet of things (IoT), are expected to increase online banking opportunities in the market. However, high implementation costs and a lack of efficient security solutions hinder the market growth.
• Most BFSI security companies are third-party service providers, providing security solutions simultaneously to various clients and business verticals. Additionally, managing the data of several companies might cause management challenges for companies. Trust difficulties concerning security solutions and services, as well as the potential for third parties to become involved and cause the leakage of sensitive information, restrain the market growth.
• Due to the global increase in the use and consumption of online and digitalized financial services, the COVID-19 pandemic substantially impacted the BFSI security market. BFSI security providers gained pace during the pandemic crisis and are progressively offering software-as-a-services under security platforms. Consequently, amid the global health crisis, this has emerged as one of the key growth factors for the BFSI security industry. After the pandemic, the market is growing rapidly with increasing digital payments across the globe.

BFSI Security Industry Segmentation

BFSI security refers to the adoption of several security solutions and services by banking and insurance companies to protect from or mitigate the risk of breaches.

The BFSI Security Market is segmented by Type (Information Security, Physical Security), Services (System Integration, Maintenance, Support), Vertical (Banking, Insurance), and Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD million for all the above segments.

The competitive landscape was considered to calculate the BFSI security penetration and how players involve themselves in organic and inorganic growth strategies. The companies continuously innovate their products and services to increase their market share and profitability. Further, the market study focuses on the impact of the COVID-19 pandemic on the market ecosystem.