Report Overview

Deepening internet penetration, increasing use of security solutions depending on the IoT, and growing adoption of digitalization are projected to propel the expansion of Saudi Arabia BFSI Security Market during the forecast period between 2023 and 2029.

Saudi Arabia BFSI Security Market - Industry Trends & Forecast Report, 2029

Saudi Arabia BFSI (Banking, Financial Services and Insurance) security market size is expected to expand at a CAGR of 9.4% during the forecast period between 2023 and 2029. Major growth drivers for Saudi Arabia BFSI security market include deepening internet penetration and growing adoption of digitalization. Owing to the increasing risk of cyberattacks, BFSI security is widely used to enable secure and convenient financial transactions through the installation of surveillance cameras, security scanners, firewalls, biometric authentication, and anti-malware protection solutions. The increased use of encryption software to prevent illegal access and protect critical consumer data and financial activities is boosting market growth. Technology advancements, such as the integration of connected devices with the Internet of Things (IoT), machine learning (ML), and artificial intelligence (AI) solutions, are boosting the market growth. These technologies assist in transaction monitoring, tracing the location of financial crime, risk mitigation, fraud detection, and regulatory compliance management. As a result, increased worries about data security, such as private corporate information and personal and commercial banking details, are favorably impacting market growth. Other factors, such as growing digitalization and an increase in cyberattacks, are expected to propel Saudi Arabia BFSI security market during the period in analysis.

Saudi Arabia BFSI Security Market – Overview

Banking, financial services, and insurance (BFSI) security refers to financial firms' use of security services and solutions to avoid monetary fraud and reduce the risk of security breaches. Some typical forms of security services and solutions include antivirus, access control, encryption, firewall, video surveillance, identity and access management, risk and compliance management, and intrusion and fire detection. BFSI security offers a dependable, safe, and cost-effective platform that protects against ongoing dangers of cyber security breaches. It also secures a variety of functions, including accepting cash deposits, giving loans, advances, overdrafts, credits, and bill discounting.

Saudi Arabia BFSI Security Market

Growth Drivers

Growing Adoption of Digitalization

Rapid adoption of technologies in the BFSI sector, such as AI, ML, and blockchain, has resulted in massive data security vulnerabilities. As the BFSI security market gets more digitalized, the necessity for data protection due to cyberattacks and thefts grows. Banks, financial institutions, and other lending institutions are rapidly shifting to digitalized business operations, resulting in an explosion in the adoption and implementation of security solutions and services. Rapid urbanization and rising disposable income levels will boost market value growth. Adopting regulatory requirements and reducing the danger of data loss will slow the rate of growth in the BFSI security sector. Another major factor impacting the market growth is the increasing use of cloud-based security solutions.

Restraints

Risk of Third-Party Services

The BFSI industry installs security solutions and services because it is subject to both external and internal security threats. BFSI security organizations, on the other hand, are typically third-party service providers that offer security solutions to a wide range of industry verticals and clients. It may make it difficult for businesses to manage data from multiple vendors. As a result, trust issues with security solutions and services, as well as the likelihood of third-party participation, which could result in sensitive data leakage, limit market growth. On the other side, the complexity of security infrastructure and a lack of customer knowledge will slow the development pace of the BFSI security sector.

Impact of COVID-19 on Saudi Arabia BFSI Security Market

COVID-19 virus spread to nearly every country on the earth since its discovery in December 2019, causing the World Health Organization (WHO) to declare it a public health emergency. The COVID-19 pandemic had a significant impact on the BFSI security market because to the rising use and adoption of online and digitalized financial services around the world. Several countries have required virus lockdowns to limit viral spread; as a result, BFSI security companies are increasingly offering software-as-a-service (SaaS) under security platforms, which is gaining traction during the pandemic. As a result, in the midst of the global health crisis, this has emerged as one of the key growth drivers for the BFSI security market.

Saudi Arabia BFSI Security Market

Segmental Coverage

Saudi Arabia BFSI Security Market – By Type

By type, Saudi Arabia BFSI security market is bifurcated Physical Security and Cyber Security segments. The physical security is subdivided into system and service. The system sub segment includes physical access system, video surveillance system, perimeter intrusion & detection and physical security information management. In the system subsegment, video surveillance holds the highest market share in 2022. Surveillance systems are often used to protect the physical infrastructure of financial institutions, identify physical breaches, and secure the premises. Based on client needs, market participants’ offer customized video surveillance systems. Video surveillance systems are simple to integrate with networks and information technology systems. Likewise, physical security information management is predicted to lead the market. The surge may be attributed to the PSIM system's sophisticated data processing capabilities, which offer insights and enhanced accountability of gathered data relating to clients and their financial actions. The technology has been shown to improve the efficiency and effectiveness of the BFSI industry's threat management system. Low-cost solutions have been developed as a result of technology innovations.

Saudi Arabia BFSI Security Market – By Verticals

Based on verticals, Saudi Arabia BFSI security market is divided into Banking and Insurance Companies. The banking segment is expected to hold the highest market share during the forecast period. Increasing digitization adoption in the banking sector is expected to spur growth. With the development of mobile wallets or digital wallets for online transactions, the demand for stronger security solutions has skyrocketed. BFSI security is being implemented on a massive scale in developing regions. Banks are increasingly relying on enhanced security solutions to retain and maximize the potential of existing customers by keeping their data.

Saudi Arabia BFSI Security Market – By Services

Based on services, Saudi Arabia BFSI security market is divided into System Integration, Maintenance, and Support segments.

Competitive Landscape

Major players operating in Saudi Arabia BFSI Security market include SITE, Sirar by STC, IBM, Palo Alto Networks, SBM, Cipher, NourNet, Trusted Partners, Trend Micro Incorporated, Hewlett Packard Enterprise, Norton LifeLock Inc., Dell Technologies, and SAT Microsystems. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Physical Security

• Cyber Security

By Verticals

• Banking

• Insurance Companies

By Services

• System Integration

• Maintenance

• Support