BFSI Security Market

BFSI security market Outlook - 2027

The global BFSI security market size was valued at $42,738 million in 2019, and is projected to reach $114,498 million by 2027, registering a CAGR of 13.2%. 

The BFSI sector includes banking, financial services, and insurance firms, which are operated in highly regulated & secured business environment. In addition, increase in need of BFSI security, owing to data breach incidences & other security issues across various operational standards also propels the market growth. Moreover, BFSI security solution & services ensure long term visibility of finances, with both cyber security & physical security of banking, financial institutions.

The key factors that drive the growth of the global BFSI security market trends include increase in physical & virtual threats such as data thefts, burglary, and cyber-attacks has become a major growth factor for the market. In addition, surge in adoption of advance technologies & change in business models by implementing software programs result in major security concerns over data. This factor, as a result, propels the BFSI security market growth. However, huge cost involved in implementation of security software & solutions and rise in risk due to third-party security services are some of the factors that limit the market growth.

Furthermore, developing economies offer significant opportunities for BFSI security solution providers to expand & develop their offerings, especially among emerging economies such as Australia, China, India, Singapore, and South Korea. In addition, surge in adoption of internet among BFSI sector & use of digitalized platforms via internet is expected to provide lucrative opportunities during the forecast period.

The large enterprises segment dominated the BFSI security industry in 2019, and is projected to maintain its dominance during the forecast period. This is attributed to the fact that enterprises under this category involve huge amount of data, hence are compelled to adopt regulatory programs. Therefore, massive presence of publicly traded companies across the BFSI sector emphasizes on importance of security solutions & services in the market. 

The report focuses on growth prospects, restraints, and trends of the BFSI security market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the BFSI security market.

Segment review

The BFSI security market is segmented on the basis of security type, enterprise size, end user, and region. On the basis of security type, the market is bifurcated into physical security and information security. In terms of physical security, the market is further bifurcated into system and services. Based on information security, the market is further bifurcated into solution and services. On the basis of enterprise size, it is segmented into large enterprises and small & medium enterprises (SMEs). By end user, it is segmented into banks, insurance companies, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

The report analyses profiles of key players operating in the BFSI security market industry, which include Booz Allen Hamilton Inc., Broadcom, Cisco Systems, Inc., Dell Inc., Honeywell International Inc., IBM Corporation, McAfee, LLC, Microsoft, Sophos Ltd, and Trend Micro Incorporated. These players have adopted various strategies to increase their market penetration and strengthen their position in the BFSI security market industry.

COVID-19 impact analysis

COVID-19 pandemic has a significant impact on the BFSI security market, owing to increase in use and adoption of online and digitalized financial services globally. Moreover, to curb spread of virus, several regions have imposed lockdowns, therefore, BFSI security providers increasingly offer software-as-a-services under security platforms and are gaining momentum during the pandemic situation. This, in turn, has become one of the major growth factors for the BFSI security market during the global health crisis. 

Top impacting factors

Increase in adoption of digitalization in BFSI sector

Rapid adoption of technologies such as artificial intelligence, machine learning, and block chain among the BFSI sector has led to massive threat issues for secured data. In addition, with increase in digitalization in this sector, demand for security of data due to cyber-attacks & thefts continues to rise in the BFSI security market. Moreover, banks, financial institutions, and other financing firms are rapidly switching toward digitalized business operations, and thus, adoption & implementation of security solutions & services has increased tremendously.  Therefore, the BFSI security market provides cyber-security services to protect the BFSI sector from such threat issues and as a result, is one of the major factors to propel the market growth.

Risk of third-party services  

The BFSI sector is exposed to both external as well as internal security threats, therefore, implements security solutions & services. However, BFSI security firms are mostly third-party service providers, offering security solutions across various industry verticals and at a different range of clients at the same time. Moreover, it may cause complexity issues for firms to manage data of different companies. Thus, trust issues over security solutions & services and risk of third-party involvement, which might result in leakage of sensitive information restrains the market growth.

Rise in adoption of internet in the BFSI sector 

Growth in adoption of internet across the BFSI sector stimulates the use of security products & services. Moreover, massive adoption & implementation of product lines such as intrusion, surveillance camera, and firewalls, which enables convenient & secured financial transactions are expected to grow in the market. In addition, easy & simpler access to internet is encouraging the BFSI sector to implement security solutions for threat management systems and securing payment gateways. Therefore, the aforementioned factors are anticipated to provide lucrative opportunities for the BFSI security market growth.

Key benefits for stakeholders 

• The study provides in-depth analysis of the global BFSI security market share along with current & future trends to illustrate the imminent investment pockets.
• Information about key drivers, restrains, and opportunities and their impact analysis on the market size are provided in the report.
• Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
• An extensive analysis of the key segments of the industry helps to understand the global BFSI security market forecast.
• The quantitative analysis of the global BFSI security market size from 2020 to 2027 is provided to determine the market potential.

Key market segments

By Security Type

• Physical Security 
• Cyber Security

By Physical Security Offering

• System
  • Physical Access System
  • Video Surveillance System
  • Perimeter Intrusion and Detection
  • Physical Security Information Management
  • Others
• Service
  • Remote Monitoring Services
  • Security Systems Integration Services
  • Others

By Information Security Offering

• Solution
  • Identity & Access Management (IAM)
  • Intrusion Detection System/Intrusion Prevention System (IDS/IPS)
  • Data Loss Prevention (DLP)
  • Disaster Recovery
  • Distributed Denial of Service (DDoS)
  • Antivirus/Antimalware
  • Encryption
  • Other Solutions
• Service
  • Implementation & Integration Service
  • Consulting Service
  • Support & Maintenance Service

By Enterprise Size

• Large Enterprises 
• Small & Medium Enterprises (SMEs)
• By End User
• Banks
• Insurance Companies
• Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia-Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Singapore
  • Rest of Asia-Pacific 
• LAMEA
  • Latin America 
  • Middle East
  • Africa

Key market players

• Booz Allen Hamilton Inc.
• Broadcom
• Cisco Systems, Inc. 
• Dell Inc. 
• Honeywell International Inc.
• IBM Corporation
• McAfee, LLC
• Microsoft 
• Sophos Ltd
• Trend Micro Incorporated 

 BFSI Security Market Report Highlights