United States (U.S.) Financial Service Cyber Security Market Overview
Growing number of individuals increasing the internet along with increasing trend of digital banking and payment systems are some of the factors which are raising the need for implementation of cyber security systems, which is believed to benefit the expansion of the United States (U.S.) financial service cyber security market. According to the statistics of the International Telecommunication Union (ITU), 4.1 billion people or 53.6% of the global population were estimated to use the internet in the year 2019. Additionally, the growing banking and insurance sector are increasingly utilizing the internet technologies to transform their services online backed by the rising adoption of smartphones amongst individuals. Moreover, according to the statistics by the International Trade Administration of the U.S. Department of Commerce, the finance and insurance sector in the United States represented 7.4% or USD 1.5 trillion of the nation’s GDP in the year 2018. Online payment systems and digital banking systems provide users the ease of banking at the tip of their fingers without going physically to a bank. Moreover, these digital services also save the customer’s time and overall provides greater accessibility to other associated digital services.
The United States (U.S.) financial service cyber security market is slated to grow at a highest CAGR of around 6% over the forecast period 2019-2025. This demand is primarily due to the increasing banking services online backed by the growing banking industry. Further, the United States (U.S.) financial service cyber security market accounted for around USD 5.0 billion in the year 2018 and is predicted to cross USD 7.40 billion by the end of 2025.
Market Segmentation Synopsis
By Product Type
The United States (U.S.) financial service cyber security market is segmented on the basis of product type into hardware, software and services. The services segment is estimated to expand at a CAGR of around 5% over the forecast period and is showcasing great potential for the future growth of the segment. Further, the segment was valued at around USD 2600 million in the year 2019 and is anticipated to cross USD 3400 million by the end of 2025. Cyber security services deal with all the services required for the safeguarding of the hardware and software provided to a client. The prime aim of the services segment is to ensure there is no degradation in the service quality offered by a cyber security service provider to its clients. Additionally, cybersecurity services offer tremendous monetary and non-monetary value within an organization. Further, the cyber security services segment in the United States (U.S.) financial service cyber security market held a market share of around 50% in the year 2019.
Market Drivers and Challenges
Growth Indicators
According to the statistics of the Federal Trade Commission, in the year 2018, 444602 cases of identity theft complaints were registered in the U.S., which was an increase by 45650 cases as compared to 398952 cases registered in the year 2016. The statistics also stated that 1,226,402 cases were registered as fraud complaints in the year 2016, which further increased to 1,427,563 cases in the year 2018.
Although technology has benefitted mankind massively, yet concerns for the increasing cases of cybercrimes and cyber threats across all industries, especially in the BFSI, has raised the need amongst government of nations to acquire stringent norms that restrict such crimes, as well as for organizations to avail cyber security systems, so as to protect the company data as well as important customer information. The banking and finance industry consist of numerous important banking details of customers. Any theft of data can lead to the loss of a large sum of money, which will act as a loss to both the government and the citizens of the nation. Over the years, United States has observed several attempts of cybercrimes and cyber threats, especially in the BFSI, which has raised the necessity of the banking and financial institutions to adopt cyber security systems. Further, the United States government has also invested massively to adopt such services for the safety and security of the banking and finance industry. Such factors are anticipated to drive the growth of the United States (U.S.) financial service cyber security market.
Barriers
Owing to the high cost of cyber security systems, numerous organizations in the BFSI industry, especially small private firms, are unable to afford the security upgrades and thereby prefer traditional security services. Additionally, fear of failure of cyber security services on the back of constant attempts of criminals along with the fear of service downtime costs are some of the factors anticipated to impact negatively towards the growth of the United States (U.S.) financial service cyber security market.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the United States financial service cyber security market are Broadcom Inc., IBM, FireEye, Inc., Forescout Technologies Inc., Cisco, Tenable®, Inc., Zurich, ThreatWarrior, Ernst & Young Global Limited and Amazon.com, Inc.
