AI in BFSI Security Market Set for Prosperity: Likely to Grow at a CAGR of 18.0% by 2027
Published | 05 November 2021
The AI in the BFSI security market is growing at a high CAGR because of the rapid surge in the number of cyberattacks and data thefts in the BFSI sector and growing investment towards higher security….
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the AI in the BFSI security market was estimated to grow at a CAGR of 18.0% during the forecast period. Because of the rapid rise in cyberattacks and data theft in the BFSI sector, the AI market in the BFSI security sector is growing rapidly. The financial industry uses AI (Artificial Intelligence) to analyze large amounts of information and gather meaningful customer insights. This technology's ability to perform tasks, such as natural language processing (NLP), image recognition, speech and text recognition, and advanced machine learning algorithms, will fuel the demand for AI in the BFSI sector over the forecast period.
Flourishing BFSI Sector in the Emerging Economies is Projected to Drive the AI in BFSI Security Market
Emerging economies such as China, India, Japan, South Korea, etc., are experiencing a boom in the BFSI sector that is leading the market growth. AT the same time, government bodies are also increasingly approving the application of AI in BFSI security. For instance, the National Stock Exchange of India Ltd (NSE) identified the advantages of using artificial intelligence (AI) and machine learning (ML) to increase existing algorithmic trading activities. NSE deems the enhanced ability of the technology to identify market patterns and automate low-complexity tasks as crucial to its objective of reducing trading risk. These factors are predicted to drive the market in the forecast period.
AI in BFSI Security Market - By Technology
Based on technology, the AI in the BFSI security market is segmented into deep learning, query method, natural language processing, and content-aware processing. The natural language processing segment holds the largest share in AI in the BFSI security market. The BFSI sector uses natural language processing to automate certain document processing, analysis, and customer service. However, the deep learning segment is projected to witness high CAGR during the forecast period as it is increasingly used for tracking consumer behavior on various financial platform and detect suspicious activities.
AI in BFSI Security Market - By End-User
Based on end-users, the AI in the BFSI security market is segmented into banking, insurance companies, and other financial institutions. Despite the high threat of cyberattacks and data thefts in the banking sector, this segment accounts for the largest share of the market. Banks across the country suffer severe monetary losses every day due to cyber-attacks. Furthermore, increasing dependence on net banking and apps for online transactions is anticipated to boost the demand for advanced technologies like AI for security in the forecast period. Due to the increasing volume of user data, other financial institutions such as investment banks, brokerage firms, credit unions, etc., play an important role in the market.
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AI in BFSI Security Market - Regional Insights
Geographically, the AI in the BFSI security market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. North America accounts for the largest market share among these regions. However, Europe also covers a substantial share in the market because of the well-structured financial sector, along with growing digitization in the industry. Additionally, stringent regulations regarding the protection of consumer data from theft and breaches are expected to drive the market in the forecast period. Due to the flourishing financial industry and the growing prevalence of online transactions, the Asia-Pacific region is projected to record the highest CAGR during the forecast period.
Impact of COVID-19 on AI in BFSI Security Market
The AI in the BFSI security market significantly proliferated after the outbreak of the COVID-19 pandemic. The number of cyberattacks against financial institutions multiplied severalfold following the implementation of COVID-19, causing millions of dollars in losses. In addition, the number of online transactions through net banking and online payment apps increased as well, thus, increasing the vulnerability of cyberattacks on the BFSI sector. As a result, many banks and other financial institutions began investing in advanced security solutions such as AI tools, which boosted its market growth.
Competitive Landscape
The leading players in the AI in the BFSI security market are Cisco Systems Inc., Computer Sciences Corporation, EMC Corporation, Honeywell International, Inc., IBM Corporation, Booz Allen Hamilton Inc., Mcafee, Inc., Intel Security Group, Sophos Group PLC, Symantec Corporation, Trend Micro Incorporated, Amazon Web Services, Avaamo, Inc., Cape Analytics, LLC, Microsoft Corporation, NEXT IT, Oracle Corporation, Google LLC, Baidu, Inc., and other prominent players.
Technology giants such as Microsoft, IBM Corporation, Google LLC, etc., dominate the market due to their extensive research and development activities. By leveraging AI, the companies provide banks and financial institutions with high levels of security. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of AI in the BFSI security market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of AI in the consumer BFSI security market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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Publish Date: November 2021
The demand for AI in BFSI security is growing at a high rate because of the increasing threats to cyberattacks and data theft along with rising awareness towards artificial intelligence (AI) and expanding investment towards strengthening cybersecurity in the BFSI sector.
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