BFSI Security Market Size, Share, and Trends 2024 to 2033

BFSI Security Market Size and Growth

The global BFSI security market size was USD 57.96 billion in 2023, calculated at USD 65.59 billion in 2024, and is expected to reach around USD 199.56 billion by 2033 growing at a solid CAGR of 13.16% from 2024 to 2033. The rising prevalence of cyber threats and customer data leakage drive the market's growth.

BFSI Security Market Key Takeaways

• North America led the BFSI security market with the largest market share in 2023.
• Asia Pacific is expected to expand at a solid CAGR of 15.32% during the forecast period.
• By physical security, the video surveillance segment dominated the market in 2023.
• By information security, the software encryption segment is expected to grow at the fastest rate during the forecast period.
• By end-use, the banking sector dominated the market in 2023 and is expected to grow with the fastest CAGR during the forecast period.

BFSI Security Market Market Overview

The BFSI industry is also considered to be the banking, finance, services, and insurance industry, as per consumer demands. The BFSI industry includes commercial banks, insurance banks, non-banking financial companies, and small financial institutions. Technological integration, such as digitization of artificial intelligence, blockchain, cyber security, and robotic process automation, contributes to the expansion of the BFSI industry. The rising population and the increasing awareness about the banking and insurance industry drive the customer base in the BFSI industry, driving the demand for enhanced security systems from the data protection that drives the growth of the BFSI security market.

BFSI Security Market Growth Factors

• The rising population that drives the demand for the banking and finance industry has accelerated the demand for the BFSI security market.
• The rising prevalence of cyber threats and data leakage in the banking and insurance companies are driving the growth of the market.
• The increasing integration of smart technologies in the banking and insurance sector to protect their data and ensure the effortless workflow that drives the growth of the market.
• The rising development of the BFSI industry in developed and developing economies is driving the demand for security systems that enhance the security process.
• The rising technological development and adoption in the banking and insurance sector increase the consumer experiences that drive the growth of the BFSI security market.
• The increasing investments in research and development activities for the development of new technologies and services drive the growth of the market.

BFSI Security Market Scope

BFSI Security Market Dynamics

Driver

Digitization in the BFSI industry

The digitization in the BFSI industry enhances the work culture and the efficiency of the process. Digitization combines the most technologically advanced tools for increasing organizational efficiency and taking on multi-dimensional benefits. Digitization is a safeguard operational with customer relevance, effortless Omni-channel experience, and digital security. Digitization helps the consumer in various processes, such as faster services, onboarding of loans and their disbursements, and quick customer response. Digitization replaces the traditional tedious process of business credit applications with the digitized business credit application. With the help of digitization, companies are integrating the latest technologies to streamline the consumer experience by offering relevant insights to consumers. Thus, the adoption of digitization in the BFSI industry streamlines security as well as other processes.

• For instance, in May 2024, DART (Dispatch, Acknowledgement, Reconciliation, Tracking) is a revolutionary secure system that revolutionizes the tracking and administration of dispatches and records. It was launched by the Crown Information Administration. DART, which was created especially for the banking, financial services, and insurance industry, blends cutting-edge technology with unmatched security, compliance, and efficiency features. DART is a plug-and-play system that requires little planning and can be implemented by enterprises in 10 days.

Restraint

Cost of the services

The high cost of implementing advanced security software and solutions is a major constraint for small and medium-sized firms looking to adopt comprehensive security systems in the BFSI (Banking, Financial Services, and Insurance) sector. This financial barrier limits the growth of the BFSI security market, as many smaller firms may not have the resources to invest in such advanced security measures. As a result, finding cost-effective solutions that still provide robust protection is crucial for broader market adoption. Overcoming this barrier could involve developing more affordable security options tailored to the needs and limitations of small and medium firms in the BFSI security market.

Opportunity

Emerging trends in the BFSI security

The prevalence of cyber threats in the BFSI industry is growing continuously, and BFSI industries are adopting the major emerging trends to minimize threats like cyberattacks, frauds, data leakage, etc. Some technologically advanced tools revolutionalize the security process in the financial sector: the adoption of artificial intelligence in fraud detection, reliability on advanced blockchain systems, secure access service edge (SASE) solutions, latest regularity technologies (Regtech), digital-only banking, zero trust adoption, and payments innovations are the major advancements in the cybersecurity system in the banking and insurance sector. All these cyber security advancements help safeguard sensitive data and systems from external attacks, protect identity, manage vulnerability, and protect data privacy. The adoption of these technologies in security management enhances the growth opportunity in the BFSI security market.

Physical security Insights

The video surveillance segment dominated the BFSI security market with the highest market share in 2023. The growth of the segment is attributed to the rising advancements in the BFSI industries and the rising adoption of video surveillance for security purposes in banking and insurance companies, which are driving the expansion of the segment. It is used in the banking and insurance industry's infrastructure. Video surveillance is used to secure and intrude on-premises. Video surveillance systems include components like display units, recorders, cameras, monitors, transmission equipment, and control systems.

Technological advancements in video surveillance for better service and rising market participation in video surveillance manufacturing are driving the growth of the BFSI security market. Video surveillance is deployed to monitor operations and vandalism and prevent theft, accidents, and damage to property to increase situation awareness and public safety.

• For instance, in April 2024, Axis Cloud Connect is presented by Axis Communications. With more than a million Axis cameras connected to the cloud today and two decades of experience in cloud connectivity, Axis Cloud Connect is designed to work seamlessly with Axis devices, giving businesses access to a full range of managed services that support cybersecurity demands, device and system management, and video and data delivery.

Information Security Insights

The encryption software segment is expected to grow at the fastest rate during the forecast period. The growth of the segment is attributed to the rising threat of data leakage that drives the demand for the software encryption segment. Encryption software is highly adopted by the banking and insurance sector for the prevention of unauthorized access and the protection of data associated with customer and transactional data. The integration of smart technologies in encryption software enhances the process of identifying unauthorized data and helps prevent sensitive data. Encryption software is used to prevent data from hackers and spying entities from hacking the personal or transactional data of customers in the banking and insurance industry. Some of the major types of encryption software tools are BitLocker, LastPass, VeraCrypt, AxCrypt, HTTPS Everywhere, Boxcryptor, Bitwarden, and NordLocker. The technological advancements in encryption software are driving the expansion of the encryption software segment in the BFSI security market.

End-Use Insights

The banking sector held the largest market share in 2023 and is expected to grow with the fastest CAGR during the forecast period. The growth of the segment is attributed to the rising adoption of technological advancements like digitization, artificial intelligence, and others in the banking sector, which are driving the growth of the BFSI security market. The rising BFSI industry due to the increasing global population and the rising income in the population has led to the higher adoption of the banking sector and the increasing ratio of customer data that demands efficient security systems for the prevention of data security of the customer data that drives the growth of the security systems in the banking sector.

• For instance, in July 2024, the online bank Monzo released further measures to protect its users from phone thieves who prey on their funds. The goal of Monzo's latest security measures is to address the problem of phone thieves pilfering funds.

Regional Insights

North America led the BFSI security market with the largest market share in 2023. The growth of the market in the region is increasing due to the early adoption of technologies in the banking and insurance industries that are driving the growth of the market. The increasing presence of the major market players in countries like the United States and Canada is boosting the growth of the market. The technological advancements in surveillance and the software tools in the security system in the banking and insurance sector, as well as the rising investments in research and development activities in the advancements in security enhancements, drive the growth of the BFSI security market in the region.

Asia Pacific is expected to witness the fastest growth in the market during the forecast period. The growth of the market in the region is expected to increase due to the rising population of countries like China and India, which led to the increasing demand for the banking and insurance sector and the demand for enhanced security systems for customer data protection, which drives the growth of the market. The rising investments in research and development activities in the development of technologies in the security system drive the expansion of the BFSI security market in the region.

BFSI Security Market Companies

• DXC Technology Company
• Axis Communications
• Honeywell International, Inc.
• McAfee, Inc
• Sophos Ltd.
• Symantec Corporation
• IBM Corporation
• Dell EMC
• Bosch Security Systems
• Booz Allen Hamilton, Inc.

Recent Developments

• In March 2024, leading FinTech and BFSI companies of India are recognized by the leading provider of business decision data and analytics “Dun & Bradstreet” at the 16th edition of Dun & Bradstreet BFSI & FinTech Summit 2024.
• In March 2024, Mahindra Group’s Mahindra and Mahindra Financial Service Limited (MMFSL) and leading non-banking finance companies in India announced the collaboration with the Manipal Academy of BFSI. The collaboration launches the “Prarambh,” a specialized business training program, especially for women candidates.
• In March 2024, the Reserve Bank of India introduced the omnibus framework for identifying self-regulatory organizations (SROs) for its authorized entities like NBFCs, banks, and housing financing companies.
• In March 2024, LGMS and CyberSecurity Malaysia (CSM) collaborated to launch StarSentry to enhance the cybersecurity of Malaysian SMEs.

Segments Covered in the Report

By Physical Security

• Software
  • Video Surveillance
  • Access Control
  • Intrusion & Fire Detection
  • Physical Security Information Management (PSIM)
• Service
  • Consulting & Training Services
  • Integration & Maintenance Services
  • Managed Security Services

By Information Security

• 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

By End-use

• Banking
• Insurance Companies

By Geography

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