Fraud Detection and Prevention Global Market Opportunities and Strategies to 2033

This report describes and explains the fraud detection and prevention market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global fraud detection and prevention market reached a value of nearly $42.4 billion in 2023, having grown at a compound annual growth rate (CAGR) of 16.4% since 2018. The market is expected to grow from $42.4 billion in 2023 to $108.9 billion in 2028 at a rate of 20.7%. The market is then expected to grow at a CAGR of 17.6% from 2028 and reach $244.9 billion in 2033.

Growth in the historic period resulted from the rising adoption of cloud-based solutions, increase in cyberattacks and rise of mobile banking. Factors that negatively affected growth in the historic period was limited availability of skilled personnel and technical expertise.

Going forward, growing e-commerce industry, increasing number of mobile phone users, expansion of internet of things (IoT) connections and rapidly growing volume of data in emerging markets will drive the growth. Factor that could hinder the growth of the fraud detection and prevention market in the future include high implementation costs.

The fraud detection and prevention market is segmented by fraud type into check fraud, identity fraud, internet /online fraud, investment fraud, payment frauds, insurance fraud and other fraud types. The payment frauds market was the largest segment of the fraud detection and prevention market segmented by fraud type, accounting for 29.9% or $12.7 billion of the total in 2023. Going forward, the internet /online fraud segment is expected to be the fastest growing segment in the fraud detection and prevention market segmented by fraud type, at a CAGR of 26.2% during 2023-2028.

The fraud detection and prevention market is segmented by application into insurance claims, money laundering, electronic payment and other applications. The electronic payment market was the largest segment of the fraud detection and prevention market segmented by application, accounting for 37.2% or $15.8 billion of the total in 2023. Going forward, the money laundering segment is expected to be the fastest growing segment in the fraud detection and prevention market segmented by application, at a CAGR of 25.1% during 2023-2028.

The fraud detection and prevention market is segmented by end-user into small and medium enterprises (SMEs) and large enterprises. The large enterprises market was the largest segment of the fraud detection and prevention market segmented by end-user, accounting for 72.7% or $30.8 billion of the total in 2023. Going forward, the small and medium enterprises (SMEs) segment is expected to be the fastest growing segment in the fraud detection and prevention market segmented by end-user, at a CAGR of 25% during 2023-2028.

The fraud detection and prevention market is segmented by deployment mode into cloud and on-premises. The cloud market was the largest segment of the fraud detection and prevention market segmented by deployment mode, accounting for 61.4% or $26 billion of the total in 2023. Going forward, the cloud segment is expected to be the fastest growing segment in the fraud detection and prevention market segmented by deployment mode, at a CAGR of 22.3% during 2023-2028.

The fraud detection and prevention market is segmented by solution into fraud analytics, authentication, reporting, visualization and other solutions. The fraud analytics market was the largest segment of the fraud detection and prevention market segmented by solution, accounting for 30.7% or $13 billion of the total in 2023. Going forward, the fraud analytics segment is expected to be the fastest growing segment in the fraud detection and prevention market segmented by solution, at a CAGR of 23.5% during 2023-2028.

North America was the largest region in the fraud detection and prevention market, accounting for 40.6% or $17.2 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the fraud detection and prevention market will be Asia Pacific and Western Europe where growth will be at CAGRs of 22.6% and 21.9% respectively. These will be followed by South America and Eastern Europe where the markets are expected to grow at CAGRs of 21.8% and 20.7% respectively.

The global fraud detection and prevention market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 9.69% of the total market in 2022. IBM Corporation was the largest competitor with 1.85% share of the market, followed by Fiserv Inc. with 1.49%, NICE Ltd with 1.22%, Fidelity National Information Services, Inc with 1.18%, Experian PLC with 1.00%, SAP SE with 0.79%, SAS Institute Inc. with 0.67%, Oracle Corporation with 0.53%, Global Payments Inc. with 0.50% and RELX Group with 0.47%.

The top opportunities in the fraud detection and prevention market segmented by fraud type will arise in the payment frauds segment, which will gain $19 billion of global annual sales by 2028. The top opportunities in the fraud detection and prevention market segmented by application will arise in the electronic payment segment, which will gain $19.8 billion of global annual sales by 2028. The top opportunities in the fraud detection and prevention market segmented by end-user will arise in the large enterprises segment, which will gain $42.7 billion of global annual sales by 2028. The top opportunities in the fraud detection and prevention market segmented by deployment mode will arise in the cloud segment, which will gain $45.1 billion of global annual sales by 2028. The top opportunities in the fraud detection and prevention market segmented by solution will arise in the fraud analytics segment, which will gain $24.5 billion of global annual sales by 2028. The fraud detection and prevention market size will gain the most in the USA at $21.2 billion.

Market-trend-based strategies for the fraud detection and prevention market include harnessing generative ai models for advanced fraud detection, developing real-time risk management solutions, empowering fraud prevention with advanced detection platforms, introducing innovative AI-based fraud detection and prevention solutions and driving innovation through strategic partnerships.

Player-adopted strategies in the fraud detection and prevention market include focus on strategic partnerships to better serve the industry and to strengthen position and enhance business operations through new product developments and product launch.

To take advantage of the opportunities, the analyst recommends the fraud detection and prevention companies to focus on leveraging generative ai models for enhanced fraud detection, focus on implementing real-time risk management solutions, focus on innovating advanced fraud detection platforms, focus on implementing ai-based fraud detection solutions focus on the internet or online fraud segment, focus on the cloud segment, focus on fraud analytics segment, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships, provide competitively priced offerings, focus on strategic pricing strategies for market leadership, participate in trade shows and events, continue to use B2B promotions, prioritize technical webinars for thought leadership, focus on money laundering segment and focus on small and medium enterprises (SMEs).