As of 2024, the average cost of a data breach in the financial industry worldwide was **** million U.S. dollars, up from **** U.S. dollars in 2024. The global average cost of a data breach across all studied industries was **** million U.S. dollars.

Between 2008 and 2024, the most significant data breach in the financial industry worldwide was detected in 2019 in the United States at the First American Financial Corporation. This data breach caused the leakage of *** million financial and personal records. The financial industry is one of the most targeted sectors by cyberattacks that lead to data breaches. However, cyber-attacks are not the only reason for a data breach. Sometimes data compromise occurs due to other reasons, such as system errors.

In 2023, the number of data compromises in the financial services industry in the United States reached 744, up from 138 such incidents in 2020. The financial services sector was the second-most targeted industry by cyber security incidents resulting in data compromise. The number of data compromises includes data breaches, as well as exposure and leakage of private data.

In this document, comprehensive datasets are presented to advance research on information security breaches. The datasets include data on disclosed information security breaches affecting S&P500 companies between 2020 and 2023, collected through manual search of the Internet. Overall, the datasets include 504 companies, with detailed information security breach and financial data available for 97 firms that experienced a disclosed information security breach. This document will describe the datasets in detail, explain the data collection procedure and shows the initial versions of the datasets. Contact at Tilburg University Francesco Lelli

Cyber Security in Financial Services Market Outlook

The global cyber security in financial services market size was valued at approximately USD 45 billion in 2023 and is projected to reach around USD 90 billion by 2032, growing at a compound annual growth rate (CAGR) of about 7.5% during the forecast period. This dynamic growth is fueled by multiple factors, including the increasing frequency and sophistication of cyber threats, the growing adoption of cloud-based services, and regulatory mandates that emphasize the protection of sensitive financial data. As digital transformation sweeps across the financial sector, financial institutions are becoming prime targets for cybercriminals, prompting a heightened focus on robust security measures to safeguard assets and maintain customer trust.

The surge in digital banking, mobile payments, and online financial services has significantly expanded the attack surface for cyber threats, making cyber security paramount in the financial sector. The continuous innovation in financial technologies, while improving service delivery, simultaneously introduces vulnerabilities that cybercriminals exploit. Financial institutions are under pressure to not only adopt new technologies but also ensure these systems are fortified against potential breaches. The integration of artificial intelligence and machine learning in financial services offers enhanced customer experiences and operational efficiencies, yet it also requires advanced security mechanisms to protect against increasingly sophisticated cyber threats.

Regulatory compliance is a critical driver of market growth, compelling organizations to prioritize cyber security investments. Governments and financial regulatory bodies worldwide are instituting stringent policies to protect consumer data and maintain the integrity of financial systems. Regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States highlight the global emphasis on cyber security. Compliance with such regulations necessitates substantial investments in security solutions and services, catalyzing market expansion. Financial institutions are adopting a proactive approach by implementing comprehensive security frameworks to prevent costly breaches and avoid reputational damage.

The increasing reliance on third-party vendors and outsourcing in financial services presents additional security challenges, further driving market growth. As financial institutions engage with a myriad of external service providers, ensuring data protection and securing supply chains becomes complex. Cyber security solutions are critical in managing third-party risks and ensuring that external partnerships do not compromise organizational security. Moreover, the global shift towards remote work, accelerated by the COVID-19 pandemic, has necessitated robust endpoint and network security solutions to protect sensitive information accessed outside traditional office environments.

Financial Security Services are becoming increasingly crucial as financial institutions grapple with the dual challenge of adopting innovative technologies while safeguarding sensitive data. These services encompass a range of protective measures designed to secure financial transactions, customer information, and institutional assets from cyber threats. As the financial landscape evolves, institutions are investing in comprehensive security solutions that not only address current vulnerabilities but also anticipate future risks. This proactive approach is essential in maintaining trust and ensuring the resilience of financial systems in the face of ever-evolving cyber threats.

Regionally, North America holds a substantial share of the cyber security market in financial services, driven by high technological adoption and significant investment in security infrastructure. The presence of major financial institutions and tech companies in this region further propels market growth. Europe is also a significant player, benefiting from stringent data protection regulations and the proactive stance of financial institutions towards cyber security. The Asia Pacific region is expected to witness the highest CAGR during the forecast period due to rapid digitalization, economic growth, and increasing cyber threats. Emerging economies in Latin America and the Middle East & Africa are progressively adopting advanced security solutions to counter the growing prevalence of cyber-attacks, albeit at a more moderate pace compared to other regions.</p&

As of 2024, the average cost of a data breach in the United States amounted to 9.36 million U.S. dollars, down from 9.48 million U.S. dollars in the previous year. The global average cost per data breach was 4.88 million U.S. dollars in 2024. Cost of a data breach in different countries worldwide Data breaches impose a big threat for organizations globally. The monetary damage caused by data breaches has increased in many markets in the past decade. In 2023, Canada followed the U.S. by data breach costs, with an average of 5.13 million U.S. dollars. Since 2019, the average monetary damage caused by loss of sensitive information in Canada has increased notably. In the United Kingdom, the average cost of a data breach in 2024 amounted to around 4.53 million U.S. dollars, while in Germany it stood at 5.31 million U.S. dollars. The cost of data breach by industry and segment Data breach costs vary depending on the industry and segment. For the fourth consecutive year, the global healthcare sector registered the highest costs of data breach, which in 2024 amounted to about nine million U.S. dollars. Financial institutions ranked second, with an average cost of six million U.S. dollars for a data breach. Detection and escalation was the costliest segment in data breaches worldwide, with 1.63 U.S. dollars on average. The cost for lost business ranked second, while response following a breach came across as the third-costliest segment.

The global financial cybersecurity market is experiencing robust growth, driven by the increasing reliance on digital financial services and the escalating sophistication of cyber threats targeting financial institutions. The market's expansion is fueled by several key factors: the rising adoption of cloud computing and big data analytics in the financial sector, which while offering benefits, also expand the attack surface; the growing prevalence of mobile and online banking, creating new vulnerabilities; and the increasing regulatory pressure on financial institutions to strengthen their cybersecurity defenses following major breaches and data leaks. This necessitates significant investments in advanced security solutions, including threat intelligence platforms, security information and event management (SIEM) systems, endpoint detection and response (EDR) technologies, and robust data loss prevention (DLP) mechanisms. The competitive landscape is highly fragmented, with a mix of established players like Deloitte, PwC, and IBM, alongside specialized cybersecurity firms and emerging technology providers. Consolidation through mergers and acquisitions is anticipated as larger firms seek to expand their service portfolios and market share. Despite the growth, the market faces certain challenges, including the persistent skills gap in cybersecurity expertise, the rising costs associated with implementing advanced security technologies, and the ever-evolving nature of cyber threats requiring continuous adaptation. Looking forward, the market is expected to maintain a strong growth trajectory over the forecast period (2025-2033). This positive outlook is underpinned by continued digital transformation within the finance industry, increasing adoption of AI and machine learning for threat detection, and the development of new cybersecurity regulations aimed at improving data protection. The market is segmented across various service offerings (e.g., consulting, managed security services, software solutions), deployment models (cloud, on-premise), and geographical regions. North America and Europe currently dominate the market, but significant growth opportunities exist in the Asia-Pacific region driven by rapid digitalization and increasing government investment in cybersecurity infrastructure. The success of individual players will hinge on their ability to offer innovative solutions, build strong partnerships, and adapt to the ever-changing threat landscape.

During the third quarter of 2024, data breaches exposed more than *** million records worldwide. Since the first quarter of 2020, the highest number of data records were exposed in the first quarter of ***, more than *** million data sets. Data breaches remain among the biggest concerns of company leaders worldwide. The most common causes of sensitive information loss were operating system vulnerabilities on endpoint devices. Which industries see the most data breaches? Meanwhile, certain conditions make some industry sectors more prone to data breaches than others. According to the latest observations, the public administration experienced the highest number of data breaches between 2021 and 2022. The industry saw *** reported data breach incidents with confirmed data loss. The second were financial institutions, with *** data breach cases, followed by healthcare providers. Data breach cost Data breach incidents have various consequences, the most common impact being financial losses and business disruptions. As of 2023, the average data breach cost across businesses worldwide was **** million U.S. dollars. Meanwhile, a leaked data record cost about *** U.S. dollars. The United States saw the highest average breach cost globally, at **** million U.S. dollars.

Vulnerability Scanning in BFSI Market Outlook

The vulnerability scanning in BFSI market size was valued at USD 1.5 billion in 2023 and is projected to reach USD 3.8 billion by 2032, growing at a CAGR of 10.6% during the forecast period. The significant growth factor driving this market includes the increasing sophistication of cyber threats and regulatory requirements for information security, alongside the rapid digitization of financial and insurance services.

One of the primary growth factors for the vulnerability scanning market in the BFSI sector is the rising instances of cyber-attacks and data breaches. Financial institutions, being the custodians of vast amounts of sensitive customer and financial data, are prime targets for cybercriminals. The increasing frequency and complexity of these attacks have heightened the demand for robust vulnerability scanning solutions that can preemptively identify and mitigate potential security vulnerabilities. Organizations are prioritizing investments in comprehensive security measures to safeguard their data and maintain customer trust.

Additionally, regulatory mandates play a crucial role in propelling the market forward. Governments and regulatory bodies worldwide are imposing stringent data security and privacy regulations on financial institutions. Compliance with regulations such as GDPR, PCI DSS, and various national cybersecurity laws necessitates the implementation of advanced vulnerability scanning tools. These regulations compel BFSI enterprises to conduct regular security assessments and ensure robust protection mechanisms are in place, thereby fueling the demand for vulnerability scanning solutions.

The ongoing digital transformation in the BFSI sector is another significant growth driver. The adoption of cloud services, mobile banking, and digital payments has expanded the attack surface, making financial institutions more vulnerable to cyber threats. As BFSI organizations innovate and integrate new technologies, the need for proactive security measures, including vulnerability scanning, becomes more critical. The shift towards digital-first strategies is accelerating the adoption of advanced security solutions to manage and mitigate the risks associated with digital platforms.

From a regional perspective, North America currently dominates the vulnerability scanning market in the BFSI sector, owing to the region's robust technological infrastructure and the presence of numerous financial institutions. However, Asia Pacific is expected to witness the highest growth rate during the forecast period. The rapid digitization, increasing internet penetration, and growing awareness about cybersecurity in countries like India and China contribute to the burgeoning demand for vulnerability scanning solutions in the region.

Component Analysis

The vulnerability scanning market in the BFSI sector is segmented into software and services. The software segment encompasses various tools and platforms designed to detect and report vulnerabilities in IT systems. This segment holds a significant share of the market, driven by the continuous development and enhancement of security software. Financial institutions are increasingly investing in advanced software solutions that offer real-time vulnerability assessments, automated scanning, and comprehensive reporting capabilities. The demand for customizable and scalable software solutions is particularly high among large enterprises, which require robust systems to manage extensive IT infrastructures.

On the other hand, the services segment includes consulting, implementation, and managed services related to vulnerability scanning. This segment is experiencing considerable growth due to the increasing need for expert guidance and support in deploying and managing vulnerability scanning solutions. Financial institutions often lack the in-house expertise to fully leverage advanced security tools, prompting them to seek assistance from specialized service providers. Managed services, in particular, are gaining traction as they offer continuous monitoring and management of vulnerabilities, allowing BFSI organizations to focus on their core operations while ensuring robust security.

The integration of artificial intelligence and machine learning technologies into vulnerability scanning software is a notable trend in this market. These technologies enable advanced threat detection and predictive analytics, enhancing the effectiveness of vulnerability assessments. AI-powered solutions can identify patterns and anomalies that traditional too

The Financial Services Cybersecurity market is experiencing robust growth, driven by the increasing reliance on digital channels, the escalating sophistication of cyber threats, and stringent regulatory compliance requirements. The market's expansion is fueled by the need for robust security solutions to protect sensitive customer data, financial transactions, and critical infrastructure. While precise market sizing data is unavailable, a reasonable estimate, considering the industry's average growth rates and the size of the broader cybersecurity market, places the 2025 market value at approximately $50 billion. A conservative Compound Annual Growth Rate (CAGR) of 12% from 2025-2033 suggests a projected market value exceeding $150 billion by 2033. This substantial growth reflects the industry's continuous investment in advanced security technologies, such as artificial intelligence (AI), machine learning (ML), and blockchain, to counter emerging threats and enhance security posture. Furthermore, the increasing adoption of cloud-based services and the Internet of Things (IoT) within financial institutions contributes significantly to market expansion, creating a demand for integrated and scalable security solutions. The market is segmented by security solutions (network security, endpoint security, cloud security, data security, etc.), service type (consulting, managed security services, security information and event management (SIEM), etc.), and deployment mode (on-premise, cloud). Key players such as IBM, Ernst & Young, Fortinet, Cisco Systems, and others are actively competing in this space, constantly innovating to offer advanced and comprehensive cybersecurity solutions. However, the market faces constraints such as the high cost of implementation and maintenance of advanced security solutions, the skills gap in cybersecurity professionals, and the ever-evolving nature of cyber threats requiring continuous adaptation and investment. Despite these challenges, the financial incentives for robust cybersecurity – preventing data breaches, maintaining customer trust, and avoiding regulatory penalties – are strong drivers for continued market expansion and innovation throughout the forecast period.

Market Summary of Cyber Security Consulting Market:

• Global Cyber Security Consulting market size 2023 was XX Million. Cyber Security Consulting Industry compound annual growth rate (CAGR) will be XX% from 2024 till 2031. • The Cyber Threats and cyberattacks are driving the cyber-Security consulting the market's rapid growth along with Increase in the need for security in BFSI Sector. • The COVID-19 had presented obstacles for enterprises as they adjust to a work environment where telecommuting has turned into the new normal. Businesses were moving more quickly towards digital transformation, and cybersecurity is becoming a top priority • The dominating segment is the IT and Telecom. Mobile phones, smart IoT devices, data traffic subscribers, and SIM connections have all increased astronomically in the world. Because of this, network operators can now offer a significantly wider range of services, which requires them to handle more data security. • North America is the dominating region in this market due to the prevalence of large and mid-sized organization’s is rising, which is increasing the number of hosted servers and the frequency of cyberattacks.

Market Dynamics of Cyber Security Consulting Market:

Key Drivers of Cyber Security Consulting Market

Cyber Threats and cyberattacks are driving the cyber-Security consulting the market's rapid growth.

The growing threat landscape, which includes data breaches and ransomware assaults, is a major factor in the rise of cybersecurity consulting services. The Internet is becoming more and more popular across all industries as a result of digitization and technical improvements. The likelihood of cyberattacks rises with increased Internet usage. Cyberattacks are a major global threat that result in the loss of personal, corporate, and governmental data. Businesses are always under pressure to make sure their digital assets are safe from internet attacks, and cybersecurity threats are getting more complex. Consulting on cybersecurity is essential for protecting your company from possible dangers and lowering the likelihood of cyberattacks.Hence, These consulting services give companies the knowledge and resources they need to spot security flaws, create strong defences against online attacks, and keep their systems safe. Organisations can discover potential vulnerabilities and threats to their digital assets, such as sensitive information, financial data, and intellectual property, by conducting cybersecurity risk assessments, which is a crucial procedure. For Instance, The cybersecurity company Kaspersky issued a warning, stating that similar cyberthreats are likely to come India's way. The country saw over 200,000 ransomware attacks in 2023. Large ransomware gangs like Fonix and LockBit attacked companies in India and throughout the world in industries like manufacturing, retail, healthcare, agriculture, and media. (Source:https://www.businesstoday.in/technology/news/story/new-ransomware-attacks-still-keeping-indian-cyberspace-at-risk-kaspersky-424512-2024-04-05) Cybersecurity experts detect risks to a company's computer systems and networks, analyse security concerns, determine risk, and put remedies into place. In an IT environment that is evolving quickly, they create layers of protection and deal with a variety of issues while evaluating security systems. Ransomware, phishing, and hacking are examples of cybersecurity threats that have grown in sophistication along with technology. Attacks on servers known as total distributed denial of service (DDoS) cause disruptions to user access. Thus, it is essential to identify cyber threats and use strong cyber security consulting to guard against such breaches in order to implement a system with more robust security features.

Increase in the need for security in BFSI Sector, drives the market for Cyber Security Consulting Market.

Following demonetization, digital payments have become more popular than ever before, underscoring the necessity of security policies and programmes for India's banking, financial services, and insurance (BFSI) industry. While financial institutions worldwide are concentrating on improving their programmes to prevent cyber threats, BFSI institutions continue to fail to recognise the significance and consequences of cyb...

Financial Services Cybersecurity Systems and Services Market Outlook 2032

The global financial services cybersecurity systems and services market size was USD 15.81 Billion in 2023 and is likely to reach USD 50.61 Billion by 2032, expanding at a CAGR of 13.8 % during 2024–2032. The market growth is attributed to the growing use of online transactions and increasing cyber threats and data breaches.



Increasing cyber threats and data breaches are expected to boost demand for financial services cybersecurity systems and services. Cyberattacksresult in significant financial losses due to fraud, theft, and system downtime. Cybersecurity systems and services help prevent these losses by detecting and neutralizing threats before they cause damage. Therefore, the rising cyber threats and data breaches are propelling the market. For instance,

• According to a published report, more than 8 million data breaches were recorded worldwide during the fourth quarter of 2023.

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The data exfiltration market is experiencing robust growth, driven by the increasing frequency and sophistication of cyberattacks targeting sensitive data. The rising adoption of cloud computing and remote work models has expanded the attack surface, making organizations more vulnerable to data breaches. Furthermore, stringent data privacy regulations like GDPR and CCPA are forcing businesses to invest heavily in robust data security solutions to mitigate the risks of hefty fines and reputational damage. This market is highly competitive, with established players like Symantec, McAfee, and Palo Alto Networks alongside emerging innovative companies constantly vying for market share. The market's growth is fueled by continuous advancements in exfiltration techniques employed by cybercriminals, necessitating ongoing innovation in detection and prevention technologies. We estimate the market size in 2025 to be $15 billion, growing at a Compound Annual Growth Rate (CAGR) of 15% from 2025-2033. This growth is supported by the escalating adoption of advanced threat detection and response systems across various industries, including finance, healthcare, and government. Key restraints include the high cost of implementation and maintenance of these solutions, along with the persistent skills gap in cybersecurity expertise, hindering effective deployment and management. However, the severity and financial implications of data breaches are compelling organizations to prioritize investments in prevention and remediation strategies, ultimately fueling market expansion. Segmentation within the market includes solutions focusing on endpoint detection and response, cloud security, and network security, each catering to specific needs and vulnerabilities.

In 2023, there were ***** reported cyber incidents in the financial industry worldwide, up from ***** in the preceding year. Coherently, the number of data breaches increased within the last two examined years, going from *** in 2021 to ***** in 2023. Overall, 2023 saw the most significant number of cyber incidents since 2013.

According to Cognitive Market Research, the Global Information Security Consulting Market is expected to have a market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.

The Asia-Pacific region has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
North America is the fastest growing with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
Cloud Security has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
The cloud segment has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
Large Enterprise has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.
The BFSI segment has the largest market share with an expected market size of XX million in 2024 with a growing CAGR of XX% during the forecast period.

Market Dynamics

Key drivers

The increasing number of cyber-attacks globally is favoring market growth

Strong security solutions are in more demand as a result of the growing anxiety that cyber assaults are causing among both individuals and enterprises. Any hostile action directed towards computer networks, infrastructures, personal computers, smartphones, or computer information systems is called a cyberattack. Because of this and the need for more stringent security and regulatory compliance, the information security consulting industry is growing quickly. For instance, according to McKinsey and company, cyberattacks are on track to cause $10.5 trillion a year in damage by 2025. That’s a 300 percent increase from 2015 levels. To protect against the onslaught, organizations around the world spent around $150 billion on cybersecurity in 2021, and this sum is growing by 12.4 percent a year. In all industries combined, the average cost of a single data breach as of 2022 was approximately 4.35 million US dollars. The healthcare industry was shown to be the most expensive for this, with each leak estimated to have cost the impacted party a whopping 10.1 million dollars. The segment on finances was closely followed. The Cam4 data breach in March 2020, which revealed over 10 billion data records, was the largest known data leak as of January 2024. The Yahoo data breach, which happened in 2013, is currently the second-largest data breach in history. To compact these increasing data breaches and cybercrimes, many company solutions have been in development and adopted. Cloud migration will remain a key component of many organizations' technological agendas. For this reason, cloud providers must be able to safeguard both standard and customized cloud configurations. Furthermore, there is a sharp rise in the demand for cyber security in the fields of healthcare, banking and financial services, aviation, and automobiles. Some of the main factors driving the demand for technologically advanced information security solutions among businesses are the emergence of IoT and connected technologies, the quick adoption of smartphones for digital payments, and the use of unsecured networks for accessing organizational servers. Therefore, the market is expected to grow significantly in the coming years.

(Source-http://https://www.statista.com/statistics/290525/cyber-crime-biggest-online-data-breachesworldwide/#:~:text=The%20largest%20reported%20data%20leakage,data%20breach%2C%20occurred%20in%202013.)

The rise in the number of regulations and developments has favoured the market growth

As cyber risks continue to grow, information security has become a key concern for both individuals and enterprises. The laws and regulatory requirements that are propelling the information security market's expansion are intended to strengthen cybersecurity defenses and shield private information from nefarious individuals. For instance, The United States government enacted two cybersecurity laws into law in June 2022. The first bill, the State and Local Government Cybersecurity Act of 2022, aims to improve cooperation between state, territorial, local, and tribal governments as well as the Cybersecurity and Infrastructure Security Agency (CISA). It is anticipated that these important actions will boost the i...

As per Cognitive Market Research's latest published report, the Global Cyber Security market size was $154.80 Billion in 2022 and it is forecasted to reach $353.15 Billion by 2030. Cyber Security Industry's Compound Annual Growth Rate will be 10.8% from 2023 to 2030. Market Dynamics of Cyber Security Market:

Increased target based cyber-attacks:

Every year, cybercrime dramatically rises as attackers become more proficient and sophisticated. In target-based cyberattacks, hackers or attackers focus on a single organisation because they have a particular business interest. Putting the attack together could take months so they can figure out the best way to get their exploit into your systems (or users). Because it has been precisely designed to attack your systems, processes, or persons, at the office and often at home, a targeted attack is frequently more harmful than an untargeted one. In addition to having an impact on the organization's and business's finances, cybersecurity also makes businesses more vulnerable and uncertain.

Cyberattacks can potentially harm a company's reputation, especially if private customer information is taken. The established customer trust may suffer as a result of cyberattacks. This breach of trust may be challenging to repair and may have long-term effects on the company. The activities of a company are also disrupted by these attacks, making it difficult or impossible to access vital systems or data. This might cause delays in manufacturing, disrupt customer service, and result in lost income. Businesses may occasionally have to stop operating completely until the attack is stopped, which will have a greater financial impact.

Growing need for automated cybersecurity due to the increased use of IoT devices.

Restraining Factor:

Budget restrictions and a lack of specialists among SME's:

Cybersecurity is crucial prat of any organization as it protects against unwanted access, theft, and damage to critical data and computer systems. Cyber-attacks are growing more prevalent in today's digital environment, and they could have very negative effects. Due to the complexity of technology, many organisations, especially SME's, cannot afford cybersecurity despite its necessity. Cybersecurity can be complicated and calls for knowledge in fields like software development, network security, and cryptography. The cost of acquiring and maintaining this expertise might be high. In addition, considering the consistently evolving cyber threats, the updating of cybersecurity measures is necessary. This requires ongoing investment in technology, personnel, and training. Therefore, budget restrictions coupled with expensive tools and software’s and a lack of specialists in SME's might affect the growth of the cyber security market.

Current Trends on Cyber Security:

Rising e-commerce platforms and online shopping:

Rising disposable income coupled with high penetration of internet and smartphone expected to drive the e-commerce market and online shopping. Online shopping is incredibly convenient for consumers as they can shop from the comfort of their homes or on-the-go using their smartphones or tablets. This is especially true during the COVID-19 pandemic when physical stores are closed or people prefer to avoid crowded places. In addition, online retailers can offer lower prices compared to physical stores due to lower overhead costs. Moreover, E-commerce platforms are open 24/7, which allows customers to shop at any time that is convenient for them. With advances in technology, e-commerce platforms have improved their shipping and delivery options. Overall, rising e-commerce platforms and online shopping provides new opportunities to cyber security market.

Impact of COVID-19 pandemic on Cyber Security Market:

With the widespread shift to remote work and online services, there has been a surge in cyber-attacks, making cyber security more important in COVID-19 pandemic. Organizations are investing in cyber security solutions to safeguard their systems and data as a result of the rise in cyberattacks brought on by the epidemic. The need for cyber security goods and services has increased as a result. Budget restrictions, especially for SME's, have been brought on by the economic burden of the epidemic on many organisations. Cost-effective cyber security solutions are now receiving more attention as a result of this. The CO...

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Banking, Financial Services And Insurance Security Market Size 2024-2028

The banking, financial services and insurance security market size is forecast to increase by USD 45.03 billion at a CAGR of 12.16% between 2023 and 2028.

The BFSI security market is experiencing significant growth due to several key trends. The increasing adoption of the internet In the BFSI sector is driving market expansion, as more financial institutions move their operations online.
However, digital transformation also brings about new challenges, such as the rise in cyber data breaches. To mitigate these risks, BFSI organizations are investing heavily in technological securities. Despite the high costs, the implementation of advanced security solutions, including the use of AI in BFSI, is essential to protect sensitive customer information and maintain trust In the industry. Overall, the BFSI security market is poised for continued growth as institutions prioritize cybersecurity to stay competitive and safeguard their assets.

What will be the Size of the BFSI Security Market During the Forecast Period?

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The BFSI (Banking, Financial Services, and Insurance) security market encompasses the provision of security solutions to commercial banks, insurance companies, mutual funds, pension funds, and other financial institutions. With the increasing digital transformation In the industry, technological integration through artificial intelligence (AI), machine learning (ML), blockchain, and robotic process automation has become essential for enhancing security systems and protecting customer bases from cyber threats. Internet penetration and the growing use of cloud-based services have expanded the attack surface, necessitating advanced threat management strategies.
Cybersecurity remains a top priority for BFSI organizations, with a focus on data protection and compliance with regulatory requirements. The market is expected to grow significantly due to the increasing adoption of advanced security solutions and the need to mitigate the risks associated with digitalization. Non-banking financial companies and retail banking segments are also investing heavily in security solutions to safeguard their operations and maintain customer trust.

How is this Banking, Financial Services And Insurance Security Industry segmented and which is the largest segment?

The banking, financial services and insurance security industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Delivery Mode

  Service
  Solution


Type

  Phycial security
  Cyber security


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    China


  Middle East and Africa



  South America

By Delivery Mode Insights

The service segment is estimated to witness significant growth during the forecast period.

The BFSI security market encompasses various services aimed at safeguarding the banking, finance, and insurance industries from evolving security risks. One such service is penetration testing, where ethical hackers simulate cyber-attacks to identify vulnerabilities in financial institutions' systems and infrastructure. This proactive approach strengthens security posture, mitigating risks of unauthorized access and data breaches. Other services include technological integration of AI, blockchain, cybersecurity solutions, risk management, and physical security. These services address threats like cybercrimes, data leakage, and fraud detection. Banks, commercials, non-banking financials, insurance companies, mutual funds, pension funds, and various banking sectors benefit from these offerings. Security measures include core banking, retail banking, corporate banking, cards, investment, stock broking, payment gateways, electronic banking, and digital security. Integration of smart technologies, video surveillance systems, encryption software, and disaster recovery solutions further fortify security.

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The service segment was valued at USD 23.43 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 58% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, the BFSI security market holds a prominent position due to the region's advanced technological infrastructure and stringent regulatory

Introduction

Cybersecurity Statistics: In a world that is increasingly becoming digital, cybersecurity statistics are now more important than ever for enterprises, governments, and individuals. The world has undergone significant changes in terms of online data storage and e-commerce, which have expanded the threat landscape. Cybercriminals have become sophisticated by using advanced methods to compromise security systems, steal private information, and disrupt operations. Cybersecurity statistics result in huge financial losses as well as reputational damages, hence making it one of the most critical elements in modern-day businesses and governance.

The global cybersecurity market has grown tremendously over the past few years due to the increasing number and complexity of cyber threats. In 2023, the cybersecurity industry was estimated to be worth around $217 billion, representing an increase of 15% from 2022. This growth was primarily due to increased awareness regarding cyber risks, coupled with numerous high-profile data breaches affecting both organizations and governments across the globe.

According to Cognitive Market Research, the global cyber security In fintech market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The cloud-based is the fastest growing segment of the Cyber security In fintech industry

Market Dynamics of Cyber security In fintech Market

Key Drivers for Cyber security In fintech Market

Increasing cyber threats and data breaches to drive market growth

The rise in cyber threats and data breaches is a significant driver of growth in the cybersecurity in fintech market. As financial institutions and fintech companies increasingly digitize their services, they become prime targets for cybercriminals seeking to exploit vulnerabilities. High-profile breaches not only lead to substantial financial losses but also damage reputations and erode customer trust. This escalating risk prompts organizations to invest heavily in advanced cybersecurity solutions to protect sensitive data and ensure compliance with regulatory requirements. As incidents of identity theft, ransomware, and phishing attacks continue to rise, the demand for robust cybersecurity measures becomes critical. Consequently, fintech companies are prioritizing cybersecurity investments, leading to accelerated market growth as they seek innovative solutions to safeguard their systems and customer information from evolving threats.

Growing reliance on digital financial services to boost market growth

The growing reliance on digital financial services significantly boosts the cybersecurity in fintech market. As consumers increasingly favor online banking, mobile payments, and digital wallets, financial institutions are compelled to enhance their digital offerings. This shift towards digitalization not only provides convenience but also exposes sensitive financial information to potential cyber threats. Consequently, fintech companies are prioritizing robust cybersecurity measures to protect user data and maintain customer trust. The rising number of transactions conducted online increases the demand for secure platforms, driving investments in advanced security technologies. Additionally, the integration of emerging technologies, such as artificial intelligence and blockchain, further necessitates strong cybersecurity frameworks. As digital financial services continue to expand, the corresponding need for effective cybersecurity solutions becomes paramount, propelling market growth and innovation in the sector.

Restraint Factor for the Cyber security In fintech Market

Limited budget for small fintech firms to limit market growth

The limited budget for small fintech firms poses a significant restraint on the growth of the cybersecurity in fintech market. Many startups and smaller companies face financial constraints that hinder their ability to invest in comprehensive cybersecurity solutions. While larger organizations can allocate substantial resources to safeguard their systems, smaller firms often prioritize immediate operational costs over security investments. This reluctance to spend on cybersecurity can lead to vulnerabilities, making them attractive targets for cybercriminals. Additionally, smaller firms may lack access to the latest security technologies and expertise, further compromising their defenses. As a result, the disparity in resources creates a challenging environment for these companies, limiting their growth potential and overall contribution to the cybersecurity market. Addressing...

The largest reported data leakage as of January 2025 was the Cam4 data breach in March 2020, which exposed more than 10 billion data records. The second-largest data breach in history so far, the Yahoo data breach, occurred in 2013. The company initially reported about one billion exposed data records, but after an investigation, the company updated the number, revealing that three billion accounts were affected. The National Public Data Breach was announced in August 2024. The incident became public when personally identifiable information of individuals became available for sale on the dark web. Overall, the security professionals estimate the leakage of nearly three billion personal records. The next significant data leakage was the March 2018 security breach of India's national ID database, Aadhaar, with over 1.1 billion records exposed. This included biometric information such as identification numbers and fingerprint scans, which could be used to open bank accounts and receive financial aid, among other government services.

Cybercrime - the dark side of digitalization As the world continues its journey into the digital age, corporations and governments across the globe have been increasing their reliance on technology to collect, analyze and store personal data. This, in turn, has led to a rise in the number of cyber crimes, ranging from minor breaches to global-scale attacks impacting billions of users – such as in the case of Yahoo. Within the U.S. alone, 1802 cases of data compromise were reported in 2022. This was a marked increase from the 447 cases reported a decade prior. The high price of data protection As of 2022, the average cost of a single data breach across all industries worldwide stood at around 4.35 million U.S. dollars. This was found to be most costly in the healthcare sector, with each leak reported to have cost the affected party a hefty 10.1 million U.S. dollars. The financial segment followed closely behind. Here, each breach resulted in a loss of approximately 6 million U.S. dollars - 1.5 million more than the global average.