The BFSI security market is estimated to grow from USD 30.23 Billion in 2016 to USD 48.95 Billion by 2021, at a CAGR of 10.1% during the forecast period. This growth can be attributed to the enforcement of regulatory security compliances, increasing number of sophisticated threats, and incorporation of the Internet of things (IOT). Hence, the adoption of BFSI Security is increasing in various industries.
The report provides insights on the BFSI security market, which is segmented on the basis of type, physical security, information security, subvertical, and region. Among types, the physical security segment has the largest market share and is expected to grow at a high CAGR, thus leading the overall market during the forecast period. Physical security solutions provide protection against various threats, in terms of malicious software, dishonest insider and external frauds, and natural and man-made disasters.
Based on physical security, the services segment is a more preferred method, as it plays a vital role in enhancing the existing video surveillance system by integrating digital video surveillance with network and IT systems. It is expected to register the highest growth rate during the forecast period. The system & components segment is estimated to account for the largest market share during the forecast period.
On the basis of information security, the BFSI security market is divided into system & components and services. Currently, the system & components segment leads the market with the largest market share and will continue to do so, during the forecast period. This can be attributed to the fact that they form a strong line of defense to tackle a variety of sophisticated threats in a multi-layered fashion for banks, insurance companies, and financial institutions. The service segment is expected to grow at the highest CAGR during the forecast period.
Among verticals, the banking segment is expected to account for the largest market share in the overall BFSI Security market, as banks are seeking to retain and maximize the potential of the pre-existing customers and are moving towards new low-risk financial services products. The insurance segment is expected to grow at the highest CAGR during the forecast period.
North America is expected to account for a large share of the BFSI security market, during the forecast period owing to the implementation of BFSI security solutions across varied industries in this region. However, the Asia-Pacific region is expected to grow at the highest CAGR by 2021. The growth in this region can be mainly attributed to the increasing adoption of BFSI security solutions across India, China, Japan, and Australia.
BFSI security offers numerous benefits to the users and organization, but at the same time, it accompanies various security risks, which is a restraining factor for the market. It has a wide complexity in security infrastructure. User awareness towards complex threats and system vulnerabilities is very critical. Banks and utilities need to continuously engage customers and educate them about their online security. It lacks interoperability between security products, which restrains the growth of the BFSI security market. Hence, BFSI security vendors are innovating their product portfolio to manage handling complexity.
Cisco Systems, Inc. is a leading supplier of networking products, systems, and associated services. It largely focuses on designing innovative networking solutions for various industries, such as transportation, retail, and manufacturing, among others. Cisco considers security portfolio as its top investment priority and is continuously supporting the R&D against revenue loss, intellectual property deprivation, and reputation diminution in the BFSI industry vertical. For instance, in August 2016, Cisco acquired Cloudlock, a privately-held company based in the U.S., which offers CloudLock and Cisco the industry’s broadest cloud security protection for users, applications, and data.
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