The BFSI security market is projected to have a CAGR of 13.2% during the forecast period. The market is currently valued at US$ 61,994.54 Million in 2022. The market value is anticipated to reach a value of US$ 2,14,199.15 Million by the year 2032.
BFSI Security Market Value (2022)
US$ 61,994.54 Million
BFSI Security Market Anticipated Value (2032)
US$ 2,14,199.15 Million
BFSI Security Market Projected Growth Rate (2022-2032)
The BFSI security market has been witnessing an unprecedented surge over the recent years due to incidences of data breaches and other security concerns across various operational standards that have revamped the market dynamics and are fuelling the market shares of BFSI security devices. Further, security solution for the BFSI sector ensures visibility for longer durations for finances, with physical security and cyber security of financial institutions and banking both kept secure.
FMI has analyzed that the BFSI market drivers include a rise in physical and virtual threats such as cyber-attacks, burglaries, data thefts, and others. Additionally, there is a surge in the adoption of advanced technologies and change in the business models with the integration and implementation of software programs that are upscaling the security concerns over data and, therefore, propelling the adoption of BFSI security solutions.
Although the expert analysts at FMI have identified healthy growth in the market, there are certain aspects that are likely to hinder the pace of advancement in the global forum. They include the high initial investment required to set up the security infrastructure, challenging the market expansion in the long run.
Due to the existence of numerous international and regional companies, the market for BFSI security is very competitive. To strengthen their position in the market, major players are implementing a variety of methods, including product portfolio growth and regional development. The key players are adopting various business strategies, such as mergers and acquisitions, to expand their geographic presence and consumer base across the world.
The key players proliferating in the BFSI security market are integrating IoT, which is improving the security of banking and financial operations by assisting organizations in tracking the locations of crime, detecting and identifying devices used for breaching the company database, and remotely monitoring surveillance systems in order to detect the fraudulent activities.
Thus, with the integration of IoT, lucrative market opportunities are unraveling for the prominent players in the BFSI security market. Therefore, it is expected that the BFSI market is likely to witness significant growth through the forecast period, coupled with the development of intelligent security solutions for financial institutions and banks.
In past one decade, electronic banking platforms have been implemented as an efficient channel to process banking transactions remotely. These banking transactions are executed from web based applications over the internet network, thus creating security risk by exposing user’s data to hackers.
Apart from this, the banking, financial and insurance industry is continuously witnessing threat from global terrorism, cyber-crimes, and espionage which are leveraging the loopholes in the critical infrastructure. With the increase in cyber-crimes activities, security of sensitive data including, personably identifiable information, personal banking details, commercial banking details, and confidential corporate information is at high risk, due to which, the demand for BFSI security solutions has witnessed traction in the past couple of years.
Bank and financial institutions are operated in highly regulated environment. Data breach incidences in these cases occur mainly due to non-compliance to various operational standards. Therefore, there is increasing need of BFSI security to ensure the long term visibility of banking and financial institutions and their data. BFSI security includes cyber security and physical security of banking and financial institutions.
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In the current changing world of information technology, banking and financial institutions are facing privacy issues due to increased data theft and unauthorized accesses. In BFSI sector, there is always existence of both internal and external threats with increased adoptions of ATMs and online banking solutions. As security breach of customer’s financials can hamper brand image of a particular financial institution, there necessity of safeguarding physical assets and continuous monitoring of banking data driving the growth of the market. However, the initial investment required to set up the security infrastructure is one of the challenge for the growth of this market.
Video surveillance is used for monitoring activities inside out of the organization. Physical security has become necessary for banking and financial institutions to combat pilferage to theft related activities. This has created increase in demand for video surveillance solutions in the BFSI industry.
Access control is deployed for both physical security as well as information security. Access control systems seamlessly work against any unauthorized access. Access control solutions includes web-based access control, managed access control, control panel, visitor management systems, readers, and credentials.
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Intrusion detection systems inspect all the inner and outer network activities and identifies suspicious pattern to indicate data breach attempt in the system. Fire detection system is a combination of various devices which work seamlessly to counsel end-users from any threat of fire.
Physical security information management is a software that act as a standalone platform for integrating multiple unconnected security application and devices. It controls them using single user interface.
Asia-Pacific is witnessing rapid growth in the adoption of BFSI security solutions. With respect to this trend, various security vendors such as Honeywell International Inc. and Cisco System Inc. are expanding their business in this region in order to increase its market share in this market. Besides, the Asia-Pacific market is world’s fastest growing economy and soon is expected to be largest wealth market with the increase in private banks and financial instructions in countries such as China and India. In India, according to the data released by The Reserve Bank of India (RBI), the total number of bank accounts in India are around 600 million, out of which 25 million bank accounts holder are active users for mobile banking applications. North America has observed increased data breach attacks against BFSI industries in the recent past. The banking and financial institutions are promoting the use of digital wallet which is in turn is raising the risk of security for consumer’s data.
Cisco Systems Inc., Honeywell International Inc., Computer Science Corporation (CSC), IBM Corporation, and Symantec Corporation are some of the key players of global BFSI security market.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.