Cybersecurity in Banking Market Expected to Reach $282 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cybersecurity in Banking Market," The cybersecurity in banking industry was valued at $74.3 billion in 2022, and is estimated to reach $282 billion by 2032, growing at a CAGR of 14.4% from 2023 to 2032.

Cybersecurity in banking market growth includes certain measures taken by financial institutions and banks to protect their systems and networks from cyberattacks. Various cybersecurity measures taken by the banks include encryption, intrusion detection systems, and firewalls. Banking sector also employ teams of security experts who monitor the network for suspicious activity and respond quickly to any potential threats.

The digital transformation within the banking sector is influencing the growth of cybersecurity in banking industry. Technological advances in the banking sector such as utilization of big data and cloud computing, along with the development of the digital economy, made the deployment of Artificial Learning (AI)/Machine Learning (ML) systems even more effective. A 2020 survey of financial institutions by World Economic Forum revealed that 77% of all respondents expect that AI will be extremely significant to their businesses.

In addition, AI/ML capabilities are transforming the financial sector by reshaping client experiences such as communication with financial service providers through chat bots, investing in robo-advisor, easy borrowing through automated mortgage underwriting, and identity verification such as image recognition. These technologies are also transforming the operations of the banking sector, by automating processes through predictive analytics for better product offerings, and providing more adequate risk and fraud management processes and regulatory compliance. AI/ML systems provide central banks and prudential oversight authorities with various tools to enhance systemic risk surveillance and provide robust prudential oversight. Thus, digital transformation will largely influence the cybersecurity in banking market share sector.

The threat from cyberthieves is intense in banking due to the industry’s unique status and importance to the overall economy. As threat of cybersecurity is unending for the banking industry, regulatory obligations continue to evolve. Different regions have come up with their own regulatory requirements in order to secure the banking sector. One of the main problems disrupting cybersecurity compliance in the financial sector is the sheer volume of different security standards and the significant overlaps between them. However, some regulations are mandatory and some are optional to adopt with the system and thus this effort is usually counter-productive owing to the overlap in security controls between mandatory and optional standards. Therefore, this overlapping of cybersecurity governments rules and regulations could sometimes create a pressure and burden within banking industry.

Adoption of critical IT infrastructure within the banking sector is boosting the demand for cybersecurity in banking market analysis sector. For instance, implementing a Zero Trust Model will secure the infrastructure and data for the current digital transformation within the banking sector and will also uniquely addresses the challenges of banking business, including securing remote workers, hybrid cloud environments, and ransomware threats. In addition, Zero Trust Network Access (ZTNA) also removes vulnerable VPN clients, integrates device health, and allows remote workers a secure and seamless access to specific applications and data. Thus, ZTNA policy can prevent device from connecting to applications and data, efficiently preventing lateral movement and attacks like ransomware from the banking and financial services networks.

The cybersecurity in banking market size share is segmented on the basis of deployment mode, organization size, type, and region. By deployment mode, it is classified into public cloud, private cloud, data center, and managed services. By organization size, it is classified into small, medium, and large. By type, it is classified into data protection, governance, risk & compliance, email security & awareness, cloud security, network security, identity and access management, security consulting, web security, IoT/OT, endpoint security, application security, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America.

The key players profiled in the cybersecurity in banking market report include JP Morgan Chase & Co. Bank of America, Wells Fargo, BNP Paribas, CITI Group Inc, Bank of China, Barclays, HSBC, Standard Chartered, Agricultural Bank of China, and Mitsubishi UFJ Financial Group.

The report offers a comprehensive analysis of the global cybersecurity in banking market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Cybersecurity in Banking Market

• The COVID-19 pandemic introduced remote working model. Financial institutions like other organizations temporarily shifted to remote working to ensure that their workers are safe. Moving the majority of activities to the digital world increased the risk of cyberattacks.
• The financial sector has been hit relatively more often by cyberattacks than most other sectors since the pandemic started. The financial sector has the largest share of cyber events in recent years. Examples are phishing attacks that explicitly use the uncertainty to entice users to open fraudulent attachments or grant attackers access to networks.
• In the post-pandemic period, financial institutions are likely to continue to move parts of their IT operations to public cloud environments. As the market for cloud services is highly concentrated, there is huge possibility of increased homogeneity in the financial sector. Many companies have increased the cloud usage as a result of the pandemic and are expected to use cloud in a more strategic way in the future. Cloud migration has led to shared software, hardware, and vendors, which is expected to lead to increase in cyber incidents, further leading to higher losses for financial institutions and stress in the financial sector.

Key Findings of the Study

• Based on deployment mode, the public cloud sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on organization size, the large sub-segment emerged as the global leader in 2022 and the small sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on type, the cloud security sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on region, Asia-Pacific registered the highest market share in 2022 and is projected to be the fastest growing region during the forecast period.