The global banking and financial industry is constantly eyeing the issues like terrorism, espionage, cyber sabotage and other such security related concerns. Strong security compliance management has become the need of the hour for the banking, financial services and insurance sector of the global market. Rapid rise in the adoption of physical as well as cyber security solutions is creating strong business prospects for the global BFSI security market. The global industry is aiming at healthy growth during the next few years, especially with the technological advancements of the security solutions and overall impressive growth of the banking and finance sector. Rising demand from the emerging regions is also driving potential investors towards these regions.
BFSI Security Solutions Market Drivers
The global BFSI security market is driven by strong enforcement prospects of security compliance regulations. These regulations are getting stringent with the increasing threats of global terrorism, opaque sources, regional instability, cyber attacks, transcontinental criminal networks, espionage and physical risk of damage to the critical infrastructure of the financial services and banking facilities. Increased risk of sophisticated threats is also a strong driver for the global market. Exponential growth in the internet of things market is also a significant driving force for this industry. Prospects of mergers and business acquisitions are also creating major investment opportunities for the established as well as potential players in this market. Increased budget for cyber security solutions, research and development activities and demand for BFSI centric solutions are also driving the industry ahead.
Segments, Restraints & Forecasts
The global BFSI security market is segmented on the basis of the basic components of the market, which include the types of physical security systems & services, information security services & solutions, sub-verticals in the industry and demand for these solutions and services from different geographic regions of the world. Geographic regions of the industry include Europe, North America, Latin America, Middle East and Africa and Asia Pacific. The basic types of physical security solutions in the market include intrusion and fire detection, access control, video surveillance, and physical security information management.
The information security solutions available in the market include risk and compliance management, identity and access management, IDS/IPS, encryption, firewall, disaster recovery, antimalware software, web filtering and so on. According to the experts, major restraints for the growth of this market include lack of success of the current defense mechanisms available at the banking and financial institutes and lack of intercommunication amongst different security channels available in the market. However, changing nature and technological advancements are creating better opportunities in the market.
According to the experts, the global BFSI security market is projected to grow at a CAGR of over 11% from 2014 to 2019. At the projected CAGR, the market is expected to grow from $21.53 billion (as of in the year 2014) to become worth more than $37.35 billion by the end of the year 2019.