The global BFSI crisis management market size was valued at $8.46 in 2019, and is projected to reach $31.15 billion by 2027, growing at a CAGR of 18.2% from 2020 to 2027.
Crisis management solutions are majorly used in several business areas such as lending, payments, international money transfers, personal finance, equity financing, and insurance. The need to incorporate crisis management solutions has increased in the financial services industry to protect an organization’s reputation and to manage threats in terms of financial viability, employees health, and overall public safety.
Increase in dependency on crisis management software & solutions among banks and financial institutions acts as a major driving force of the global BFSI crisis management market growth, as it provides digitalized solutions, including minimizing business risks, fraud detection, and incident & compliance management. In addition, rapid adoption of crisis management solutions among the BFSI sectors and rise in awareness of financial technology propel the growth of the BFSI crisis management market revenue.
By Component
Solution is projected as one of the most lucrative segments.
However, data theft & cyber security concern and complex management of network are some of the factors that limit the market growth. On the contrary, developing economies offer significant opportunities for BFSI crisis management solution providers to expand & develop their offerings, especially among the emerging economies such as Australia, China, India, Singapore, and South Korea. In addition, improvement in customer experience toward availing financial products & services is expected to provide remunerative opportunities for the expansion of the market during the forecast period.
The large enterprises segment dominated the BFSI crisis management market share in 2019, and is projected to maintain its dominance during the forecast period. This is attributed to the fact that enterprises under this category generate massive volume of data, therefore, are compelled to adopt regulatory programs. Thus, massive presence of publicly traded companies in this segment emphasizes on the importance of BFSI crisis management solutions & services in the market.
By Deployment Model
Cloud is projected as one of the fastest growing segments.
The report focuses on growth prospects, restraints, and trends of the BFSI crisis management market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the BFSI crisis management market.
Segment review
The BFSI crisis management market share is segmented into component, deployment type, enterprise size, application, end user, and region. Depending on component, the market is bifurcated into solution and service. In terms of deployment type, it is divided into on-premises and cloud. On the basis of enterprise size, it is segregated into large enterprises and small & medium enterprises (SMEs). The applications covered in the study include disaster recovery & business continuity, risk & compliance management, crisis communication, incident management & response, and others. Based on end user, the market is segmented into banks, insurance companies, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Enterprise Size
Large Enterprises accounted for the largest market share in 2019.
The report analyses the profiles of key players operating in the market include 4C Strategies, CURA Software Solutions, Everbridge, IBM, Konexus, LogicGate, Inc., MetricStream Inc., NCC Group, Noggin, and SAS Institute Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
COVID-19 impact analysis
COVID-19 is an infectious disease that originated in Hubei province of the Wuhan city in China in late December. The highly contagious disease, caused by a virus, severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), is transmitted from humans to humans. Since the outbreak in December 2019, the disease has spread to almost 213 countries around the globe with the World Health Organization declaring it a public health emergency on March 11, 2020.
By Application
Incident Management & Response is projected as one of the most lucrative segments.
The outbreak of COVID-19 pandemic had led to partial or complete shutdown of production facilities, which do not come under essential goods, owing to prolonged lockdown in major countries such as the U.S., China, Japan, India, and Germany. It has led to either closure or suspension of their production activities in most of the industrial units across the world. On the contrary, COVID-19 pandemic has a significant impact on the BFSI crisis management market growth, owing to increase in use and adoption of online and digitalized financial services, globally. Moreover, to curb the spread of virus, several regions have imposed lockdown, therefore, BFSI crisis management providers are offering advanced platform for managing uncertain incidents, risks, and cyber protection solutions for companies dealing in huge finances. This, in turn, has become one of the major growth factors for the BFSI crisis management market during the global health crisis.
Top impacting factors
Rapid digitalization by financial institutions & banks
Financial institutions and banks are rapidly adopting digitalize platforms & networked solutions for operating their business in the market. In addition, companies in the market are offering crisis management solutions to this sector for tracking & minimizing business risks as well as fraud detection and enhance incident & compliance management. Moreover, crisis management provides automated solutions to improve customer experience and improve effectiveness. Therefore, surge in digitalization has led to prompt adoption of advance crisis management solutions among the BFSI sector and these factors collectively contribute toward the growth of the global BFSI crisis management market.
By End User
Banks accounted for the largest market share in 2019.
Complex management of network
Crisis management solution providers manages massive volume of data for the companies engaged in finances, which, turn, complicates the management of network globally. Moreover, companies operating in the market uses different providers to offer its services, therefore, financial companies & banks avoid providing consumer data to any third party to manage their business. Thus, due to massive circulation of data & information across financing firms create complexity to manage huge business network. This, as a result limits the BFSI crisis management market growth.
Improved customer experience
Crisis management provides solutions that improve the customer experience in terms of automated fraud detection, fast payment system, and increased accessibility to financing solutions. In addition, crisis management is relatively new industry and is growing at a notable rate, due to innovative solutions it provides to financial institution and banks. Moreover, the automated solution of crisis management offering faster service, which saves the time & effort of financial institutions, enhances the user experience. Hence, improvement in the overall customer experience is expected offer potential growth opportunities for the expansion of the global BFSI crisis management industry in the upcoming years.
By Region
Asia-Pacific would exhibit the highest CAGR of 20.4% during 2020-2027.
Key benefits for stakeholders
- The study provides in-depth analysis of the global BFSI crisis management market share along with current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the BFSI crisis management market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- An extensive analysis of the key segments of the industry helps to understand the global BFSI crisis management market trends.
- The quantitative analysis of the global BFSI crisis management market from 2020 to 2027 is provided to determine the market potential.
Key market segments
By Component
- Software
- Services
By Deployment type
- On-premises
- Cloud
By Enterprises Size
- Large Enterprises
- Small & Medium Enterprises (SMEs)
By Application
- Disaster Recovery & Business Continuity
- Risk & Compliance Management
- Crisis Communication
- Incident Management & Response
- Others
By End User
- Banks
- Insurance Companies
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- Singapore
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
BFSI Crisis Management Market Report Highlights
| Aspects | Details |
 By Component |
|
 By Deployment type |
|
 By Enterprises Size |
|
 By Application |
|
 By End User |
|
 By Region |
|
 Key Market Players | .METRICSTREAM INC., 4C STRATEGIES, IBM, LOGICGATE, INC., .NCC GROUP, KONEXUS, CURA SOFTWARE SOLUTIONS, EVERBRIDGE, SAS INSTITUTE INC., NOGGIN |
Analyst Review
BFSI crisis management is making a new approach by utilizing various resources & technologies and by focusing on certain areas of business risk. This, as a result, is becoming major trends in the global BFSI crisis management market. In addition, the COVID-19 outbreak has a significant impact on the BFSI crisis management market, as several financial institutions & banks aim at investing in technologies and expanding their offerings in the market. However, a considerable number of companies perceive that they have minimum BFSI crisis management solutions exposure. This scenario is changing, and 2019 has witnessed an increase in sale of crisis management software & solutions, owing to spike in the number of cyber-attacks & data theft, which has led to increased adoption of crisis management in the BFSI industry.
The BFSI crisis management market is fragmented with the presence of regional vendors such as MetricStream Inc., Konexus, and LogicGate, Inc.. North America and Europe dominated the BFSI crisis management market, in terms of revenue in 2019, and are expected to retain their dominance during the forecast period. However, Asia-Pacific is expected to experience significant growth in the future, owing to the presence of emerging economies and increase in government support toward banking & financial industries for implementing crisis management solutions in the region. Furthermore, the BFSI crisis management market is growing rapidly in countries, such as China, Japan, India, Australia, Indonesia, Korea, Hong Kong, Taiwan, New Zealand, and Singapore, due to notable GDP growth and rise in per capita income.
Some of the key players profiled in the report include 4C Strategies, CURA Software Solutions, Everbridge, IBM, NCC Group, Noggin, and SAS Institute Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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