What are the Historical Developments and Current Growth Metrics of the eCommerce Fraud Detection And Prevention Market?
The ecommerce fraud detection and prevention market has seen considerable growth due to a variety of factors.
• Rapid expansion has been seen in the market size for ecommerce fraud detection and prevention in recent years. The size is projected to inflate from $61.01 billion in 2024 to $73.96 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 21.2%. This growth in the historic period was spurred by factors such as manual review processes, rudimentary rule-based systems, restricted payment options, preliminary data analytics, and security protocols.
What Does Future Hold for The eCommerce Fraud Detection And Prevention Market Size?
The eCommerce Fraud Detection And Prevention market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the ecommerce fraud detection and prevention market is predicted to experience a significant upsurge, increasing to a whopping $160.02 billion by 2029, with a compound annual growth rate (CAGR) of 21.3%.
This expected growth during the projected period can be credited to a rise in online shopping, progressive machine learning algorithms, behavior-based biometrics, AI-enabled automation, universal collaboration and data sharing, the broadening use of multi-factor authentication (MFA), and the inclusion of predictive analytics. The forecasted period will also witness several noteworthy trends, such as the incorporation with e-commerce platforms, biometric authentication, evaluation of geolocation and IP, prevention of fraud across various channels, and the use of blockchain for secure transactions.
What Are The Primary Growth Drivers In The eCommerce Fraud Detection And Prevention Market?
The expansion of the ecommerce fraud detection and prevention market is anticipated to be driven by increasing transactions on ecommerce platforms. Business transactions conducted primarily over the internet make up these ecommerce platforms. The growing volume of transactions on these platforms necessitates the use of ecommerce fraud detection and prevention tools and services. These tools evaluate potential risks for each transaction and assist in identifying high-risk transactions through algorithms. For example, a government report from November 2023 indicated that UK ecommerce revenues are forecasted to increase at an annual average of 12.6% by 2025, making the UK the third largest ecommerce market worldwide, behind China and the U.S. By 2025, revenues are likely to rise to $285.60 billion. As such, the surge in ecommerce platforms is driving the growth of the ecommerce fraud detection and prevention market.
What Is The Segmentation Of The Global eCommerce Fraud Detection And Prevention Market?
The ecommerce fraud detection and prevention market covered in this report is segmented –
1) By Type: Cloud Based, On-Premise
2) By Fraud Type: Card Testing, Credit Card Fraud, Friendly Fraud, Identity Theft, Merchant Fraud, Phishing, Refund Fraud
3) By Application: SME, Large Enterprise
4) By Industry: Automotive And Transportation, Banking, Financial Services And Insurance, Consumer Goods And Retail, Education, Government And Public Sector, Healthcare And Life Sciences, Information Technology, Media And Entertainment, Telecommunication, Travel And Hospitality
Subsegments:
1) By Cloud-Based: Software As A Service (SaaS), Platform As A Service (PaaS)
2) By On-Premise: On-Premise Software, Custom Solutions
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What Emerging Trends Are Shaping The eCommerce Fraud Detection And Prevention Market Landscape?
The rise in technology is becoming a significant trend prevalent in the ecommerce fraud detection and prevention market. Prominent companies in this space are leveraging superior technological capabilities to maintain their standing in the market. As an example, DG Financial Technology, a Japanese provider of payment services well-rooted in the online payment solutions industry with a broad client base in Japan, launched Sift in October 2022. This revolutionary AI-powered fraud prevention solution is designed to promptly detect and tackle fraud in e-commerce and online environments. The system's functions range from spotting credit card fraud and stopping account hijacking to reducing the effects of chargebacks. Sift aims to reduce the damage from fraud, strengthen prevention strategies, and assist businesses in the digital space to optimize their revenue by streamlining all fraud-related tasks.
Who Are the Key Players In The eCommerce Fraud Detection And Prevention Market?
Major companies operating in the ecommerce fraud detection and prevention market include:
• Forter
• Riskified
• Signifyd
• Kount
• Sift
• ACI Worldwide
• Fiserv PLC
• LexisNexis Risk Solutions
• Experian
• ClearSale
• Accertify
• FICO
• TransUnion
• PayPal
• ThreatMetrix
• Cybersource
• RSA Security
• IDology
• NoFraud
• Emailage
• Fraud.net
• Radial
• Pipl
• Ekata
• iovation
• NS8 Inc.
• Seon
• BioCatch
• Trustpilot
• Feedzai
What Are The Regional Insights Into The eCommerce Fraud Detection And Prevention Market?
North America was the largest region in the ecommerce fraud detection and prevention market share in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the ecommerce fraud detection and prevention market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
