Fraud Detection and Prevention Market Size, Top Players 2031
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.
Fraud Detection and Prevention Market Analysis
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.
Fraud Detection and Prevention Market Overview
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Fraud Detection and Prevention Market: Strategic Insights
Market Size Value in US$ 26,511.84 million in 2021 Market Size Value by US$ 75,139.66 million by 2028 Growth rate CAGR of 16.0% from 2021 to 2028. Forecast Period 2021-2028 Base Year 2021
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Fraud Detection and Prevention Market: Strategic Insights
| Market Size Value in | US$ 26,511.84 million in 2021 |
| Market Size Value by | US$ 75,139.66 million by 2028 |
| Growth rate | CAGR of 16.0% from 2021 to 2028. |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Fraud Detection and Prevention Market Drivers and Opportunities
Growing No. of Cyberattacks Across Enterprise to Favor Market
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.
Rising Demand for Predictive Analytics in Fraud Management
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.
Fraud Detection and Prevention Market Report Segmentation Analysis
Key segments that contributed to the derivation of the fraud detection and prevention market analysis are content component, deployment and end user.
- Based on component, the market is segmented into solution and services. The solution segment held a significant market share in 2023.
- Based on deployment, the market is segmented into on-premises and cloud. The on-premises segment held a significant market share in 2023.
- In terms of end user, the market is bifurcated into BFSI, healthcare, manufacturing, retail, telecommunication, and others. The BFSI segment held a substantial share of the market in 2023.
Fraud Detection and Prevention Market Share Analysis by Geography
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.
Fraud Detection and Prevention Market Report Scope
Fraud Detection and Prevention Market News and Recent Developments
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:
- NICE Actimize, a NICE business (Nasdaq: NICE), today announced the availability of IFM 11 (Integrated Fraud Management), a new release of its market-leading, AI-driven fraud management and detection platform. The new release leverages recent advancements in artificial intelligence together with NICE Actimize’s unique collective intelligence capabilities to introduce unprecedented fraud detection accuracy, agility and efficiency to protect financial services firms and their customers from the next generation of AI-driven fraud and scams.
(Source: NICE Actimize, Press Release, April 2024)
Fraud Detection and Prevention Market Report Coverage and Deliverables
The “Fraud Detection and Prevention Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Fraud detection and prevention market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Fraud detection and prevention market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Fraud detection and prevention market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the fraud detection and prevention market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Deployment, and End-user
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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