USD 101.5 Billion
Report ID:
SQMIG45A2424 |
Region:
Global |
Published Date: January, 2025
Pages:
169
|Tables:
131
|Figures:
72
Global BFSI Security Market size was valued at USD 101.5 Billion in 2023 and is poised to grow from USD 107.79 Billion in 2024 to USD 164.2 Billion by 2032, growing at a CAGR of 5.40% in the forecast period (2025-2032).
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. 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.
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 global BFSI security market growth.
The COVID-19 pandemic substantially impacted the global BFSI security industry. BFSI security providers gained pace during the pandemic crisis and are progressively offering software-as-a-services under security platforms, Due to the global increase in the use and consumption of online and digitalized financial services. 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.
Market snapshot - (2025-2032)
Global Market Size
USD 101.5 Billion
Largest Segment
Banking
Fastest Growth
Financial Services
Growth Rate
5.40% CAGR
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Global BFSI security market is segmented into physical security offering, information security offering, enterprise size, end use, and region. Based on physical security offering, the market is segmented into system, physical access system, video surveillance system, perimeter intrusion and detection, physical security information management, others, service, remote monitoring services, security systems integration services and others. Based on information security offering, the market is segmented into 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 and support & maintenance service. Based on enterprise size, the market is segmented into large enterprises, small & medium enterprises. Based on end use, the market is segmented into banking, financial services, insurance companies and others. Based on the region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
As per the global BFSI security market analysis, the banking segment accounted for the highest market revenue share of 41.3% in 2024. This segment handles substantial financial assets and sensitive customer data, rendering it a prime target for cybercriminals and fraudsters. Worldwide, the banking segment has become vulnerable to both IT infrastructure attacks and physical security breaches. The implementation of certain measures such as investment in surveillance systems, incidence response planning and testing, threat detection and employee training leads to a significant expenditure, justifying a larger share of this segment in the market.
On the other hand, the financial services segment is expected to register the fastest growth rate of 14.4% from 2025 to 2032. The increasing adoption of digital channels and IT-based services in the financial service industry has increased the opportunities available for cyber attackers to breach these systems. Cybercriminals target customers by phishing, fraudulent emails, and phone calls to extract money from their accounts. According to Truecaller, about 70 million U.S. citizens lost nearly USD 40 billion to fraudulent phone calls in 2022. To safeguard customer information and maintain operational resilience, financial institutions are prioritizing security investments, leading to market growth.
As per the global BFSI security market outlook, large enterprises accounted for the leading revenue share of 61.6% in 2024. These organizations possess significantly larger volumes of sensitive financial data, customer information, and intellectual property compared to smaller financial institutions. Consequently, protection of such critical assets necessitates the presence of a robust security infrastructure and advanced solutions, driving higher security expenditure. Additionally, stringent regulatory frameworks developed by central banks of several countries for governing data privacy, security, and fraud prevention impose substantial compliance obligations on large BFSI institutions, leading to their larger share.
Small and medium-sized enterprises are expected to register the fastest CAGR of 14.0% during the forecast period. Small enterprises are becoming highly susceptible to being targeted by cybercriminals due to their perceived weaker security infrastructures. As a result, growing awareness of the financial and reputational consequences of cyberattacks has driven smaller enterprises to prioritize cybersecurity investments and risk mitigation strategies. Small enterprises can often provide more cost-effective solutions compared to larger vendors. This is particularly beneficial for smaller financial institutions with limited budgets. Small enterprises can tailor their services and solutions to meet the specific requirements and preferences of individual BFSI clients. This level of customization is often difficult to achieve with larger, more standardized offerings.
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North America region in the BFSI security market held the largest market share of 39.7% in 2024. The presence of major global financial institutions that handle substantial amounts of financial data in the region has created a considerable demand for sophisticated security solutions to protect critical assets and customer data. North American BFSI institutions have historically been prime targets for cybercriminals, accelerating the adoption of advanced security measures. The U.S. held a majority share in the regional market in 2023. Credit card fraud, account hacking, data breaches, and online banking scams are among the most frequently encountered financial attacks by U.S. citizens.
As per BFSI security market forecast, Asia Pacific is expected to register the fastest CAGR of 14.7%. The rapidly changing economic landscape and adoption of IT-based solutions for fast and efficient transactions have made the region prone to increased instances of cyber-attacks. With a steady rise in economic activities, the need for a reliable security infrastructure is expected to propel market expansion in this region from 2025 to 2032. Increasing digital transformation and economic affluence in India has heightened the vulnerability to cyber-attacks for the country's institutions. The region is at the forefront of technological innovation, particularly in areas like artificial intelligence, e-commerce, and renewable energy.
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Increasing Cyber Threats
Regulatory Compliance
Evolving Threats and Remote Workforce Management Challenge Growth
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The BFSI security market is highly competitive, with a growing need to safeguard sensitive financial information and adhere to strict regulations. Major market players, such as IBM Corporation, Cisco Systems, Inc., Check Point Software Technologies, Palo Alto Networks, Inc., and Trend Micro Incorporated, invest heavily in R&D to provide advanced threat cybersecurity solutions the use of AI to provide advanced protection against sophisticated cyber threats.
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According to SkyQuest analysis, the increasing number of banks, financial institutions, and other financing firms switching toward digitalized business operations and the need to adopt and implement security solutions and services have driven market growth. Growing economies provide considerable opportunities for BFSI safety to expand and broaden its offerings. Additionally, the rise in the internet option in the BFSI sector and the use of digitalized systems through the internet is anticipated to offer growth possibilities. The rising penetration of the internet in developing regions, which is stimulating the adoption of connected devices that enable convenient and secure financial transactions, is encouraging the BFSI security market to implement threat management systems for securing payment gateways. Significant growth in the BFSI industry across the globe is one of the key factors creating a positive outlook for the market. BFSI security is widely adopted to enable secure and convenient financial transactions by installing surveillance cameras, security scanners, firewalls, biometric authentication and anti-malware protection solutions due to the increasing risk of cyber threats. Asia Pacific is expected to register the fastest CAGR of 14.7% over the forecast period. The rapidly changing economic landscape and adoption of IT-based solutions for fast and efficient transactions have made the region prone to increased instances of cyber-attacks.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 101.5 Billion |
Market size value in 2032 | USD 164.2 Billion |
Growth Rate | 5.40% |
Base year | 2024 |
Forecast period | (2025-2032) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the BFSI Security Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the BFSI Security Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the BFSI Security Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the BFSI Security Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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