Security Services For BFSI Sector Global Market Report 2024

Security services for the BFSI (Banking, Financial Services, and Insurance) sector are designed to safeguard access to company networks and applications, protecting them against theft and cyberattacks. The primary objective of these security services is to ensure the protection of systems, including hardware, software, and data, from unauthorized access and potential damage.

The main categories of security services for the BFSI sector encompass physical security and cybersecurity. Physical security involves the protection of personnel, hardware, software, networks, and data against physical actions and events that could lead to significant loss or damage. Various services fall under this umbrella, including managed services, professional services, system integration, support and maintenance, and consulting. These services encompass different aspects of information security, such as system and service security. The enterprise sizes involved range from large enterprises to small and medium enterprises (SMEs). End-users of these security services include banks, insurance companies, and other entities within the BFSI sector.

The security services for BFSI sector market research report is one of a series of new reports that provides Security services for BFSI sector market statistics, including security services for BFSI sector industry global market size, regional shares, competitors with security services for BFSI sector market share, detailed Security services for BFSI sector market segments, market trends, and opportunities, and any further data you may need to thrive in the security services for BFSI sector industry. This security services for the BFSI sector market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The security services for bfsi sector market size has grown rapidly in recent years. It will grow from $60.33 billion in 2023 to $67.14 billion in 2024 at a compound annual growth rate (CAGR) of 11.3%. The growth observed in the historical period can be attributed to increased cybersecurity threats in the BFSI sector, the influence of regulatory compliance and data protection requirements, the escalating pace of digital transformation in banking and finance, the high-stakes nature of financial transactions, and the imperative need for fraud detection and prevention in financial transactions.

The security services for bfsi sector market size is expected to see rapid growth in the next few years. It will grow to $110.32 billion in 2028 at a compound annual growth rate (CAGR) of 13.2%. The anticipated growth in the forecast period can be attributed to the adoption of advanced threat intelligence in BFSI security, the integration of artificial intelligence and machine learning, a heightened emphasis on cloud security for BFSI operations, the growth in endpoint security solutions, and an increased focus on insider threat detection. Key trends expected in the forecast period include the implementation of biometric authentication for enhanced security, the continuous monitoring and incident response, the adoption of blockchain for secure financial transactions, collaborative threat intelligence sharing in the BFSI sector, and an increased emphasis on zero-trust security models in BFSI security services.

The anticipated increase in cyber data breaches is set to drive the future growth of the market for security services in the BFSI sector. Cyber data breaches involve unauthorized access to computer systems or networks to obtain sensitive personal and financial information. The BFSI sector has experienced a surge in cyber-attacks, including planned breaches, thefts, invasions, data thefts, malware, and phishing attacks. These incidents have led to substantial financial losses and heightened concerns. To counteract these threats, the adoption of cybersecurity measures such as endpoint detection and response (EDR), biometric technology, cloud security, code audit, and embedded system security assessment is crucial. The Cost of a Data Breach Report 2021 by IBM indicates a significant year-over-year increase in data breach costs, rising from $3.86 million in 2020 to $4.24 million in 2021. Thus, the surge in cyber data breaches is expected to fuel the demand for security services in the BFSI sector.

The ongoing increase in cloud adoption is a substantial contributor to the burgeoning growth of security services for the BFSI sector. Cloud computing involves a network of servers accessible over the internet, housing infrastructure and applications. The BFSI sector's shift to cloud-based services necessitates robust cloud security services to ensure the safeguarding and privacy of data stored and processed in the cloud. For example, CloudZero reported a significant allocation of IT budgets to cloud services by SMEs, with a 67% increase from 2021 to 2022, reaching 47% in 2022. This upswing in cloud adoption is expected to drive the market for security services in the BFSI sector.

Technological advancement stands out as a key trend gaining traction in the market for security services in the BFSI sector. Major companies operating in this sector are concentrating on developing technologically advanced security services and solutions to fortify their market positions. For instance, Tata Communication launched the IZO Financial Cloud in July 2021, a customized community cloud platform designed to adhere to stringent data privacy, protection compliance, and security standards mandated by Indian regulators for the BFSI industry. This platform facilitates an open financial environment supporting cutting-edge digital services while ensuring compliance with data residency laws.

Companies are strategically integrating artificial intelligence (AI) and machine learning to enhance customer experience and fortify security solutions in the BFSI sector. The increased utilization of AI and machine learning for threat detection, anomaly detection, and predictive analytics plays a pivotal role in improving security incident response. Temenos, a Switzerland-based software company, launched a groundbreaking safe banking system utilizing generative AI in September 2023. This technology enables automatic and highly accurate classification of customer transactions from free-text narratives across multiple languages, enhancing various banking use cases.

In December 2021, Wipro Limited, an India-based information technology, consulting, and business process services company, acquired Edgile to create Wipro CyberTransformTM. This integrated suite aims to help enterprises enhance boardroom governance of cybersecurity risk, invest in robust cyber strategies, and realize practical security benefits. Edgile, a US-based cybersecurity consulting provider, focuses on risk and compliance, information and cloud security, and digital identity in the BFSI sector.

Major companies operating in the in the security services for bfsi sector market report are Booz Allen Hamilton, Cisco Systems, Computer Sciences Corporation, EMC Corporation, Symantec Corporation, IBM Corporation, Trend Micro Incorporated, Honeywell International, Sophos Group, Dell Inc., McAfee Security, Bosch Security Systems, Axis Communications, Microsoft Corporation, Seico Inc., Check Point Software Technologies Ltd., Accenture, Wipro Limited, HCL Technologies Limited, Tata Consultancy Services Limited, Infosys Limited, Capgemini SE, Cognizant Technology Solutions Corporation, DXC Technology Company, Atos SE, NTT Data Corporation, Fujitsu Limited, Verizon Communications Inc., SecureWorks Inc., Trustwave Holdings Inc.

North America was the largest region in the security services for BFSI sector market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the security services for bfsi sector market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the security services for bfsi sector market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The security services for the BFSI sector market consists of revenues earned by entities by providing cloud security, biometric technology and endpoint detection and response for the BFSI sector. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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