The fraud detection and prevention market size is projected to reach US$ 116.96 billion by 2031 from US$ 35.67 billion in 2023. The market is expected to register a CAGR of 16.0% during 2023–2031. The incorporation of advanced technologies such as AI is likely to remain a key trend in the market.
The increasing prevalence of online fraud and advanced cyberattacks globally is driving the need for fraud detection and prevention solutions. Moreover, the increasing trend toward utilizing advanced analytics for identifying threat patterns is contributing to the expansion of the fraud detection and prevention market. Furthermore, due to the rising trend of digitization and the popularity of e-commerce transactions, there is also a growing need for fraud detection and prevention solutions to combat the increasing online fraud threats that involve sensitive data, identity information, and personal information of individuals and businesses. Moreover, the anticipated growth of the fraud detection and prevention market in the future will be driven by the rising use of advanced technologies such as Al and ML to identify and prevent fraud.
Digital publishing, known as electronic or online publishing, involves disseminating various online content like journals, magazines, newspapers, and eBooks. By going through this process, any business or publishing entity can convert paper documents and data into digital format, which can be accessed online, downloaded, edited, and printed or shared at the discretion of users.
Cybersecurity risks are a significant issue in the current digital landscape. Serious repercussions affect individuals, corporations, and governments. It is crucial to prevent cyber-attacks. The increase in cyber-attacks has elevated the significance of cybersecurity for protecting crucial infrastructures and ensuring the security of people and businesses. Fraud detection and prevention solutions are now seen as essential tools for companies to protect themselves from online attacks. Using the software can assist companies in boosting sales with valuable clients, boosting approval rates, minimizing reserve account needs, avoiding chargebacks, and much more. Consequently, the rise in cyberattacks within businesses is leading to a higher need for fraud prevention options, driving the expansion of the fraud detection and prevention industry.
Predictive analytics is an advanced strategy for preventing fraud that uses data, statistical algorithms, and machine learning methods to predict future events based on past data analysis. In essence, predictive analytics involves predicting unforeseen future occurrences, and within the realm of fraud prevention, it is essential for detecting and minimizing possible fraudulent behaviors proactively. Predictive models use historical data analytics and user behavior to identify patterns that suggest the presence of fraud. For instance, a model that is trained on data containing fraudulent occurrences will be able to identify and highlight comparable patterns in fresh cases, such as call records, frequencies, or abnormal user actions.
Key segments that contributed to the derivation of the fraud detection and prevention market analysis are content component, deployment and end user.
The geographic scope of the fraud detection and prevention market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The US is expected to dominate the fraud detection and prevention market in North America in 2023. The retail and e-commerce sectors in North American countries such as the US and Canada are strong. Over 60% of Americans participate in online shopping for essential and luxury items they need in their everyday routines. Also, the United States ranks as the world's second-largest e-commerce market. The US Census Bureau reported that retail e-commerce sales in the first quarter of 2023 reached US$272.6 billion, marking a 3% growth from the previous quarter in 2022. Likewise, as stated by the International Trade Administration (ITA), around 27 million individuals in Canada were utilizing e-commerce in 2022, which equates to 75% of the Canadian populace, with projections showing an increase to 77.6% by 2025. E-commerce sales were at approximately US$ 2.34 billion in the country in March 2022, with projected growth to US$ 40.3 billion by 2025. The increasing acceptance of online shopping in the area is leading to a significant need for measures to prevent fraud, as it involves sharing sensitive information of individuals and companies. Therefore, the expansion of the e-commerce sector in the area is driving the market in North America.
The regional trends and factors influencing the Fraud Detection and Prevention Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Fraud Detection and Prevention Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 35.67 Billion |
| Market Size by 2031 | US$ 116.96 Billion |
| Global CAGR (2023 - 2031) | 16% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Fraud Detection and Prevention Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Fraud Detection and Prevention Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The fraud detection and prevention market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the fraud detection and prevention market are listed below:
(Source: NICE Actimize, Press Release, April 2024)
The “Fraud Detection and Prevention Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The market is expected to reach a value of US$ 116.96 billion by 2031.
The market is anticipated to record a CAGR of 16.0% during 2023–2031.
Accertify, Inc., BAE Systems, F5, FICO, Fiserv, Inc., IBM Corporation, Paypal, SAP SE, SAS Institute Inc., and Securonix are major players in the market.
Incorporation with advanced technologies such as AI is a key trend in the market.
Growing no. of cyberattacks across enterprises and increasing adoption of online banking applications and mobile banking services are driving the market.