The fraud detection and prevention industry generated $29.5 billion in 2022, and is anticipated to hit 252.7 billion by 2032, equivalent to a CAGR of 24.3% over the forecast period.
Analysis by Allied Market Research cites the introduction of big data analytics and cloud computing service, plus an upsurge in mobile payments, to bolster the growth of the market.
However, it adds that the high cost of fraud detection and prevention solutions is likely to restrict the pace of growth in some markets.
Based on component, the solution segment held the highest market share in 2022, accounting for nearly two-thirds of the fraud detection and prevention market revenue and is estimated to maintain its leadership status throughout the forecast period.
The growing instances of security breaches and cyber-attacks drive the segment growth. However, the service segment is projected to manifest the highest CAGR of 28.0% from 2023 to 2032. This is because fraud detection and prevention services help reduce the time and costs associated with optimizing systems in the initial phase of deployment.
Based on deployment mode, the on-premises segment accounted for the largest share in 2022, contributing to more than three-fifths of global fraud detection and prevention market revenue. This is because on-premises applications offer many benefits in terms of security, flexibility, and customization.
However, the cloud segment is expected to portray the fastest CAGR of 28.0% from 2023 to 2032 and is projected to maintain its lead position during the forecast period. Growth in the adoption of cloud-based fraud detection and prevention solutions among large and medium-sized enterprises mainly drives the growth of the segment.
Based on organization size, the large enterprises segment held the highest market share in 2022, accounting for nearly two-thirds of the fraud detection and prevention market revenue and is estimated to maintain its leadership status throughout the forecast period.
There is an increase in the adoption of fraud detection and prevention in large enterprises, owing to the rise in complexity, cyber risks, and threats in business processes, which leads to high competition across industries. However, the small and medium-sized enterprises segment is projected to manifest the highest CAGR of 28.6% from 2023 to 2032. The need to implement cost-effective security solutions such as encryption, risk & compliance, and incident management drives the adoption of fraud detection and prevention solutions in SME’s.
Based on region, North America held the highest market share in terms of revenue in 2022, accounting for more than one-third of the global fraud detection and prevention market revenue. However, the Asia-Pacific region is expected to witness the fastest CAGR of 28.8% from 2023 to 2032, and is likely to enhance the market growth during the forecast period. The surge in the usage of mobile data for various applications such as social media and mobile banking contributes to the adoption of fraud detection & prevention solutions in Asia-Pacific.
Image by Markus Spiske from Pixabay
