Report Overview

AI in BFSI Security Market- Industry Trends & Forecast Report 2027

The AI in BFSI security market is projected to grow at the CAGR of 18.0% in the forecast period (2021-2027). Cyberattacks and data theft on banks and other financial institutions have increased at a rapid rate, causing the market to grow rapidly. In addition, increasing awareness regarding artificial intelligence (AI) and increasing investments in strengthening cybersecurity in the BFSI sector is anticipated to drive the market over the forecast period.

AI in BFSI Security Market- Overview

Financial institutions use artificial intelligence (AI) to collect, report, and analyze large amounts of data to gain valuable insights about their customers. A variety of technologies, including natural language processing, image recognition, speech & text understanding, and advanced machine learning algorithms, are enhancing cybersecurity within the BFSI sector. It is now possible to proactively monitor and prevent instances of fraud, money laundering, malpractice, and the detection of potential risks with artificial intelligence.

AI in BFSI Security Market Forecast and Trends

Growth Drivers

Increasing Number of Cyberattacks and Data Theft Cases

The banking, insurance, and financial institutions sector are most vulnerable to cyberattacks. The BFSI sector witnessed quite a sharp spike in cyberattacks in the COVID-19 period in 2020. Cyber attackers stole confidential information from customers and used it for malicious purposes. In order to release the data that the attackers are holding hostage, the banks had to pay huge amounts of money. As a result, financial institutions are seeking advanced security tools for cybersecurity, and artificial intelligence is emerging as one such technology that is driving its market share upward.

Technological Advancements in AI Cybersecurity

The growth in the demand for AI cybersecurity in the BFSI sector is associated with advanced security features such as access control, intrusion detection, and so on. Artificial intelligence is capable of detecting unknown threats that can potentially damage the network. Furthermore, the fusion of AI, machine learning, and threat intelligence can utilize past data to recognize patterns and identify suspicious activities that enable them to respond more quickly to incidents. Such benefits are anticipated to drive the demand for AI in the BFSI security market.

Restraints

Lack of Skilled AI Professionals

As a relatively new and quite advanced technology, artificial intelligence requires skilled professionals, especially in the banking, financial services, and insurance industries. However, the shortage of skilled professionals who are experienced in AI and its applications may act as a major restraining factor for the market. Ethical hackers and data thieves targeting the BFSI sector already use these technologies to commit cybercrimes, and if the professionals aren't ready in time, then the industry might suffer.

Impact of COVID-19 on AI in BFSI Security Market

The COVID-19 pandemic significantly impacted the BFSI security market. An increase in the number of online transactions and a rapid shift towards the cloud have made banking and other financial sectors more vulnerable to cyber threats and data theft. Soon after the COVID-19 outbreak, the limited security features and short-sightedness of this sector made the sector extremely vulnerable to cyber-attacks, resulting in immense damages. Therefore, banks and other financial institutions are significantly investing in adopting advanced security technologies like artificial intelligence (AI), which is anticipated to drive the market in the forecast period.

AI in BFSI Security Market - By Information Security

Based on information security, the AI in the BFSI security market is segmented into fraud detection & prevention, anti-money laundering, cyber threat prevention, and others. The fraud detection & prevention segment accounts for the largest share in the AI in the BFSI security market. Artificial intelligence can be used to detect fraud and suspicious activity in real-time by tracking and analyzing millions of transactions. Due to the increasing number of attempted data theft attacks on banks, cyber threat protection also covers a substantial share of the market.

AI in BFSI Security Market - By Physical Security

Based on physical security, the AI in the BFSI security market is segmented into video surveillance, access control, and Intrusion Detection. Among these, the video surveillance segment holds the largest market share. Video analytics provide banks and other financial institutions with enhanced dashboards on AI platforms that are cost-effective. In bank premises, video surveillance can track crowd patterns and detect unattended objects and suspicious activity. As a result, the market for video surveillance systems is expected to grow during the forecast period.

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 has the largest market share due to the high investment of the banking sector in innovative technologies like artificial intelligence. Every year, several banks in this region are targeted by millions of cyberattacks. With cyberattacks in North America increasing in frequency and severity, the BFSI industry is adopting AI to enhance its protection, which is expected to drive 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.

The market is dominated by technology giants such as Microsoft, IBM Corporation, Google LLC, etc. Due to extensive research and development activities, the giants stay ahead of the competition. The companies heavily focus on advancing their security and providing high security to banks and financial institutions. Additionally, partnerships, mergers, acquisitions, joint ventures, and other competitive strategies are also prevalent in this market.

Recent Developments

• In November 2021, Professional Holding Corp., the parent company of Professional Bank, announced a partnership with Vouched, an AI application that enables KYC, identity verification, and seamless onboarding for Professional Bank's superior personal service.

• In October 2021, Berkshire Hills Bancorp, Inc., a US-based bank holding company, announced its partnership with Upstart, an artificial intelligence lending platform to expand its consumer lending options.

Scope of the Report

By Information Security

• Fraud Detection & Prevention

• Anti-Money Laundering

• Cyberthreat Prevention

• Others

By Physical Security

• Video Surveillance

• Access Control

• Intrusion Detection

By Technology

• Deep Learning

• Query Method

• Natural Language Processing

• Content Aware Processing

By End-User

• Banking

• Insurance Companies

• Other Financial Institutions

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Increasing Number of Cyberattacks and Data Theft Cases
         2. Technological Advancements in AI Cybersecurity
      2. Market Restraints
         1. Lack of Skilled AI Professionals
      3. Market Challenges
         1. Lack of Sufficient IT Infrastructure in Developing and Underdeveloped Countries
      4. Market Opportunity
         1. Flourishing BFSI Sector in the Emerging Economies
         2. Positive Impact of the COVID-19
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. AI in BFSI Security Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Information Security
         1. Fraud Detection & Prevention
         2. Anti-Money Laundering
         3. Cyberthreat Prevention
         4. Others
      2. By Physical Security
         1. Video Surveillance
         2. Access Control
         3. Intrusion Detection
      3. By Technology
         1. Deep Learning
         2. Query Method
         3. Natural Language Processing
         4. Content Aware Processing
      4. By End-User
         1. Banking
         2. Insurance Companies
         3. Other Financial Institutions
      5. By Region
         1. North America
         2. Europe
         3. Asia-Pacific
         4. Latin America
         5. Middle East & Africa
6. North America AI in BFSI Security Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2020-2027
   2. Market Share and Forecast
      1. By Information Security
      2. By Physical Security
      3. By Technology
      4. By End-User
      5. By Country
         1. U.S.
         2. Canada
7. Europe AI in BFSI Security Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2020-2027
   2. Market Share and Forecast
      1. By Information Security
      2. By Physical Security
      3. By Technology
      4. By End-User
      5. By Country
         1. Germany
         2. U.K.
         3. Russia
         4. France
         5. Italy
         6. Spain
         7. Rest of Europe
8. APAC AI in BFSI Security Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2020-2027
   2. Market Share and Forecast
      1. By Information Security
      2. By Physical Security
      3. By Technology
      4. By End-User
      5. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Rest of APAC
9. LATAM AI in BFSI Security Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2020-2027
   2. Market Share and Forecast
      1. By Information Security
      2. By Physical Security
      3. By Technology
      4. By End-User
      5. By Country
         1. Mexico
         2. Brazil
         3. Rest of LATAM
10. MEA AI in BFSI Security Market Overview
    1. Market Size and Forecast
       1. By Value (USD Billion), 2020-2027
    2. Market Share and Forecast
    3. By Information Security
    4. By Physical Security
    5. By Technology
    6. By End-User
    7. By Country
       1. Saudi Arabia
       2. UAE
       3. South Africa
       4. Rest of MEA
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
12. Impact of COVID-19 on AI in BFSI Security Market
13. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Cisco Systems Inc.
    2. Computer Sciences Corporation
    3. EMC Corporation
    4. Honeywell International, Inc.
    5. IBM Corporation
    6. Booz Allen Hamilton Inc.
    7. Mcafee, Inc.
    8. Intel Security Group
    9. Sophos Group PLC
    10. Symantec Corporation
    11. Trend Micro Incorporated
    12. Amazon Web Services
    13. Avaamo, Inc.
    14. Cape Analytics, LLC
    15. Microsoft Corporation
    16. NEXT IT
    17. Oracle Corporation
    18. Google LLC
    19. Baidu, Inc.
    20. Other Prominent Players
14. Key Strategic Recommendations

List of Figures

Figure 1: AI in BFSI Security Market Segmentation

Figure 2: AI in BFSI Security Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: AI in BFSI Security Market Size, By Value (USD Billion), 2017-2027

Figure 5: AI in BFSI Security Market Share (%), By Information Security, By Value, 2017-2027

Figure 6: AI in BFSI Security Market Share (%), By Physical Security, By Value, 2017-2027

Figure 7: AI in BFSI Security Market Share (%), By Technology, By Value, 2017-2027

Figure 8: AI in BFSI Security Market Share (%), By End-User, By Value, 2017-2027

Figure 9: AI in BFSI Security Market Share (%), By Region, By Value, 2017-2027

Figure 10: North America AI in BFSI Security Market Size, By Value (USD Billion), 2017-2027

Figure 11: North America AI in BFSI Security Market Share (%), By Information Security, By Value, 2017-2027

Figure 12: North America AI in BFSI Security Market Share (%), By Physical Security, By Value, 2017-2027

Figure 13: North America AI in BFSI Security Market Share (%), By Technology, By Value, 2017-2027

Figure 14: North America AI in BFSI Security Market Share (%), By End-User, By Value, 2017-2027

Figure 15: North America AI in BFSI Security Market Share (%), By Country, By Value, 2017-2027

Figure 16: Europe AI in BFSI Security Market Size, By Value (USD Billion), 2017-2027

Figure 17: Europe AI in BFSI Security Market Share (%), By Information Security, By Value, 2017-2027

Figure 18: Europe AI in BFSI Security Market Share (%), By Physical Security, By Value, 2017-2027

Figure 19: Europe AI in BFSI Security Market Share (%), By Technology, By Value, 2017-2027

Figure 20: Europe AI in BFSI Security Market Share (%), by End-User, By Value, 2017-2027

Figure 21: Europe AI in BFSI Security Market Share (%), By Country, By Value, 2017-2027

Figure 22: Asia-Pacific AI in BFSI Security Market Size, By Value (USD Billion), 2017-2027

Figure 23: Asia-Pacific AI in BFSI Security Market Share (%), By Information Security, By Value, 2017-2027

Figure 24: Asia-Pacific AI in BFSI Security Market Share (%), By Physical Security, By Value, 2017-2027

Figure 25: Asia-Pacific AI in BFSI Security Market Share (%), By Technology, By Value, 2017-2027

Figure 26: Asia-Pacific AI in BFSI Security Market Share (%), By End-User, By Value, 2017-2027

Figure 27: Asia-Pacific AI in BFSI Security Market Share (%), By Country, By Value, 2017-2027

Figure 28: Latin America AI in BFSI Security Market Size, By Value (USD Billion), 2017-2027

Figure 29: Latin America AI in BFSI Security Market Share (%), By Information Security, By Value, 2017-2027

Figure 30: Latin America AI in BFSI Security Market Share (%), By Physical Security, By Value, 2017-2027

Figure 31: Latin America AI in BFSI Security Market Share (%), By Technology, By Value, 2017-2027

Figure 32: Latin America AI in BFSI Security Market Share (%), By End-User, By Value, 2017-2027

Figure 33: Latin America AI in BFSI Security Market Share (%), By Country, By Value, 2017-2027

Figure 34: Middle East & Africa AI in BFSI Security Market Size, By Value (USD Billion), 2017-2027

Figure 35: Middle East & Africa AI in BFSI Security Market Share (%), By Information Security, By Value, 2017-2027

Figure 36: Middle East & Africa AI in BFSI Security Market Share (%), By Physical Security, By Value, 2017-2027

Figure 37: Middle East & Africa AI in BFSI Security Market Share (%), By Technology, By Value, 2017-2027

Figure 38: Middle East & Africa AI in BFSI Security Market Share (%), By End-User, By Value, 2017-2027

Figure 39: Middle East & Africa AI in BFSI Security Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: AI in BFSI Security Market Size, By Information Security, By Value, 2017-2027

Table 2: AI in BFSI Security Market Size, By Physical Security, By Value (USD Billion), 2017-2027

Table 3: AI in BFSI Security Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 4: AI in BFSI Security Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 5: AI in BFSI Security Market Size, By Region, By Value (USD Billion), 2017-2027

Table 6: North America AI in BFSI Security Market Size, By Information Security, By Value (USD Billion), 2017-2027

Table 7: North America AI in BFSI Security Market Size, By Physical Security, By Value (USD Billion), 2017-2027

Table 8: North America AI in BFSI Security Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 9: North America AI in BFSI Security Market Size, By End-User, By Value (USD Billion), 2017-2027,

Table 10: Europe AI in BFSI Security Market Size, By Information Security, By Value (USD Billion), 2017-2027

Table 11: Europe AI in BFSI Security Market Size, By Physical Security, By Value (USD Billion), 2017-2027

Table 12: Europe AI in BFSI Security Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 13: Europe AI in BFSI Security Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 14: the Asia-Pacific AI in BFSI Security Market Size, By Information Security, By Value (USD Billion), 2017-2027

Table 15: the Asia-Pacific AI in BFSI Security Market Size, By Physical Security, By Value (USD Billion), 2017-2027

Table 16: the Asia-Pacific AI in BFSI Security Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 17: the Asia-Pacific AI in BFSI Security Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 18: Latin America AI in BFSI Security Market Size, By Information Security, By Value (USD Billion), 2017-2027

Table 19: Latin America AI in BFSI Security Market Size, By Physical Security, By Value (USD Billion), 2017-2027

Table 20: Latin America AI in BFSI Security Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 21: Latin America AI in BFSI Security Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 22: The Middle-East & Africa AI in BFSI Security Market Size, By Information Security, By Value (USD Billion), 2017-2027

Table 23: The Middle-East & Africa AI in BFSI Security Market Size, By Physical Security, By Value (USD Billion), 2017-2027

Table 24: The Middle-East & Africa AI in BFSI Security Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 25: The Middle-East & Africa AI in BFSI Security Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 26: Cisco Systems Inc. Financial Analysis

Table 27: Cisco Systems Inc. Business Overview

Table 28: Computer Sciences Corporation Financial Analysis

Table 29: Computer Sciences Corporation Business Overview

Table 30: EMC Corporation Corporation Financial Analysis

Table 31: EMC Corporation Corporation Business Overview

Table 32: Honeywell International, Inc. Financial Analysis

Table 33: Honeywell International, Inc. Business Overview

Table 34: IBM Corporation Financial Analysis

Table 35: IBM Corporation Business Overview

Table 36: Booz Allen Hamilton Inc. Financial Analysis

Table 37: Booz Allen Hamilton Inc. Business Overview

Table 38: Mcafee, Inc. Financial Analysis

Table 39: Mcafee, Inc. Business Overview

Table 40: Intel Security Group Financial Analysis

Table 41: Intel Security Group Business Overview

Table 42: Sophos Group PLC Financial Analysis

Table 43: Sophos Group PLC Business Overview

Table 44: Symantec Corporation Financial Analysis

Table 45: Symantec Corporation Business Overview

Table 46: Trend Micro Incorporated Financial Analysis

Table 47: Trend Micro Incorporated Financial Analysis

Table 48: Amazon Web Services Financial Analysis

Table 49: Amazon Web Services Business Overview

Table 50: Avaamo, Inc. Financial Analysis

Table 51: Avaamo, Inc. Business Overview

Table 52: Cape Analytics, LLC Financial Analysis

Table 53: Cape Analytics, LLC Business Overview

Table 54: Microsoft Corporation Financial Analysis

Table 55: Microsoft Corporation Business Overview

Table 56: NEXT IT Financial Analysis

Table 57: NEXT IT Business Overview

Table 58: Oracle Corporation Financial Analysis

Table 59: Oracle Corporation Business Overview

Table 60: Google LLC Financial Analysis

Table 61: Google LLC Business Overview

Table 62: Baidu, Inc. Financial Analysis

Table 63: Baidu, Inc. Business Overview