Artificial Intelligence In Cybersecurity Market

The global Artificial Intelligence In Cybersecurity Market is valued at USD 23.4 Billion in 2023 and is projected to reach a value of USD 149.1 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 22.85 % between 2024 and 2032.

Key Highlights of Artificial Intelligence In Cybersecurity Market

• AI is revolutionizing the security market by enhancing threat detection, automating cyber-attack responses, analysing large data sets for anomalies, and improving overall cybersecurity.
• The cybersecurity market is highly competitive and fragmented, driven by rising cyber-attacks and the development of innovative technologies.
• Significant players like IBM Corporation and Cisco Systems Inc. invest significantly in R&D to expand their product offerings.
• By Application, the Fraud Detection/Anti-Fraud segment dominated the market in 2023
• By Type, the Network Security segment captures the highest market share of 38.1% in 2023
• By Region, North America dominated the market in 2023, gaining the major market share above 37.1%
• The Asia Pacific market is expected to grow significantly from 2024 to 2032

Artificial Intelligence In Cybersecurity Market: North America Overview

In 2023, the North America Artificial Intelligence In Cybersecurity market took the lead, capturing 37.1% of the revenue share.

In 2023, North America led the global cybersecurity market, driven by its early adoption of advanced technologies. The region faces significant economic and national security challenges due to rising cyberattacks, fuelled by the increasing number of network-connected devices, including IoT, 5G, and Wi-Fi 6. As organizations in the automotive, healthcare, government, energy, and mining sectors push for 5G expansion, new vulnerabilities emerge for hackers. Leading companies are investing in machine learning platforms, advanced analytics, and asset mapping for real-time threat assessment to address these threats. The growing use of mobile devices, including smartwatches and phones, is boosting the demand for AI solutions to enhance security and detect unusual behaviours. With 60% of mobile threats originating from browsing activities, stakeholders increasingly turn to AI algorithms to tackle cybersecurity challenges.

Artificial Intelligence In Cybersecurity Market: Asia Pacific Overview

The Asia-Pacific region is poised for significant growth in the cybersecurity sector, driven by increasing adoption of connected devices, heightened cybersecurity awareness among organizations, rapid economic development, and extensive use of advanced technologies like IoT, 5G, and cloud computing. This digital transformation has also brought forth escalating privacy and security concerns. According to Cisco, the region faces six threats per minute, with 51% of cyber-attacks resulting in losses exceeding USD 1 million. Countries like India, ranking third globally in internet users, reported over 1.3 million cyber-attacks, highlighting vulnerabilities amidst rapid digitization. Despite regulatory efforts and initiatives like AI-guided security guidelines in financial services, Asia-Pacific remains 80% more likely to be targeted by cybercriminals due to inadequate cyber laws and awareness. Innovations like IBM's AI-enhanced storage solutions aim to bolster defences against evolving threats, reflecting a growing reliance on AI for proactive cybersecurity measures in the region's changing digital landscape.

Artificial Intelligence In Cybersecurity Market: Type Overview

In 2023, the global Artificial Intelligence In Cybersecurity market saw significant growth, particularly in the network security sector, which held a dominant 38.1% share. The Vertical segment is divided into Network Security, Endpoint Security, Application Security, and Cloud Security. The prominence of ML algorithms and AI has led businesses to enhance cybersecurity measures against cyber-attacks. The zero-trust model, requiring all users to be authorized and authenticated, has gained traction. For example, Cisco's June 2022 announcement of its Cisco Security Hardware strategy highlights the shift towards less intrusive, risk-based authentication methods. AI-driven endpoint security is advancing, offering continuous monitoring, automated classification, and risk-based application control. With endpoint attacks rising, AI-based real-time authentication and behavioral analytics are becoming essential. Additionally, the increasing use of connected devices has driven companies to adopt AI-powered security technologies to detect suspicious activities and protect sensitive information.

Artificial Intelligence In Cybersecurity Market: Application Overview

In 2023, the global Artificial Intelligence In Cybersecurity market saw significant growth, particularly in the Fraud Detection/Anti-Fraud segment, which held a dominant 21.7% share. The Application segment is separated into Identity and Access Management, Risk and Compliance Management, Data Loss Prevention, Unified Threat Management, Fraud Detection/Anti-Fraud, Threat Intelligence, and Others. With machine learning technology proving effective, governments and businesses increasingly rely on AI to prevent fraudulent activities. This comes in response to rising fraud cases, highlighted by the FTC's report of 2.8 million fraud complaints in 2022. Additionally, unified threat management (UTM) systems have become more popular among enterprises for safeguarding digital assets. UTM solutions offer comprehensive security features such as VPNs, intrusion detection, network firewalls, and web content filtering. They are valued for their ability to detect and address threats like spyware, phishing, and trojans quickly and accurately. As a result, UTM tools and AI-driven solutions are expected to see further adoption and growth.

Key Trends

1. Rapid AI Integration and Investment: Companies rapidly incorporate AI into their cybersecurity systems to improve threat detection and response. The increasing frequency and complexity of cyberattacks have made this a matter of urgency, leading to significant investments in AI-powered solutions.
2. Proactive Threat Detection and Management: AI enables organizations to manage cybersecurity proactively, identifying and responding to threats in real-time. Machine learning allows AI to analyze vast amounts of data, spotting patterns and anomalies that indicate potential cyber threats.
3. AI as Core Cybersecurity Technology: AI will become the foundational technology for all aspects of cybersecurity, from threat detection and prevention to incident response and recovery. AI-powered solutions will be widely adopted across industries and organization sizes.
4. Advanced Predictive Analytics and Global Threat Intelligence: AI will utilize predictive analytics to foresee and mitigate potential cyber threats. AI systems will help create a global threat database, promoting real-time threat intelligence sharing and collaborative security strategies.

Premium Insights

AI is revolutionizing the security market by enhancing threat detection, automating cyber-attack responses, analysing large data sets for anomalies, and improving overall cybersecurity. AI systems can identify patterns of malicious activity, adapt to new threats, and provide real-time insights, helping security professionals stay ahead of potential breaches. As businesses connect more devices and applications, they become more vulnerable. AI offers proactive threat mitigation, which is crucial for constant supervision in today's digital economy. Atos and Ooredoo have partnered to secure Qatar's TASMU smart city program using AI-driven analytics from Atos Alsaac. Globally, cyberattacks are rising, targeting endpoints, networks, and data. Political, financial, and reputational motives drive these attacks. AI, integrated with machine learning, enables proactive threat prevention. Investment in AI/ML is growing, with significant funding from countries like South Korea. However, a shortage of skilled AI professionals and a need for more awareness may restrain market growth. AI deployment significantly reduces data breach costs and enhances security measures amidst geopolitical tensions.

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Market Dynamics

Drivers

• Enhanced security capabilities, faster fraud detection, and rising cybersecurity incidents.

AI security solutions offer superior security compared to human capabilities and accelerate the detection and identification of cyberfraud’s. This enhances the usage of AI technology in the cybersecurity market, especially with the rising incidents of cybersecurity risks. AI can quickly evaluate systems to identify vulnerabilities in computer systems and business networks, allowing companies to focus on crucial security tasks and secure corporate systems promptly. As a result, businesses are significantly increasing their AI cybersecurity budgets, supporting business strategies with robust cybersecurity plans, and developing cyber alertness programs for clients and staff.

Restraints

• Talent shortages, funding issues, and inadequate technology access

Despite its advantages, AI in the cybersecurity market faces significant challenges. Major sectors are investing in AI, but the need for more qualified internal staff is becoming increasingly apparent, hindering the implementation of AI projects. Implementing AI systems requires technical expertise to handle complex machine reasoning, talent searches, and client model implementation. Recruitment and skill-upgrading issues contribute to the talent shortage, which is anticipated to be the biggest challenge to AI advancement. Additionally, other notable restraints include a lack of funding, access to appropriate technology, and user data. AI’s current inability to defend against advanced persistent threats (APTs) also poses a limitation for the market.

Opportunities

• Demand for cloud-based solutions, digital media usage, and decentralized AI cybersecurity solutions

The AI in the cybersecurity market presents several growth opportunities. There is a rising demand for cloud-based security solutions among small and medium-sized organizations and increased digital media usage for business expansion. The rapid digital transformation across industry verticals, driven by technologies like the Internet of Things (IoT), has forced businesses to utilize more edge-based, decentralized AI cybersecurity solutions. This surge in cyberattacks and data breaches drives the market for advanced AI technology. More significant investment and growing recognition of the necessity for Artificial Intelligence In Cybersecurity solutions further promote market growth.

Competitive Landscape

The cybersecurity market is highly competitive and fragmented, driven by rising cyber-attacks and the development of innovative technologies. Significant players like IBM Corporation and Cisco Systems Inc. invest significantly in R&D to expand their product offerings. Key market developments include new product releases, mergers and acquisitions, increased investments, and strategic collaborations. In November 2023, Commvault launched its comprehensive Commvault Cloud software infrastructure, partnering with cybersecurity, AI, and cloud suppliers to enhance data protection and visibility. To thrive in this competitive environment, Artificial Intelligence In Cybersecurity must offer reasonably priced products and adopt local manufacturing to reduce costs. This industry has also contributed significantly to advancements in medicine, showcasing its broad impact and potential for growth.

Recent Market Developments

Innovation:

• In May 2024, Palo Alto Networks unveiled fresh security solutions to aid businesses in thwarting attacks generated by AI and effectively securing AI through design. By harnessing Precision AI, their new in-house innovation merges the strengths of machine learning (ML) and deep learning (DL) with the accessibility of generative AI (GenAI) in real-time. As a result, the renowned cybersecurity company is poised to deliver AI-driven security that can surpass adversaries. Most importantly, these solutions will actively safeguard networks and infrastructure, bringing a sense of assurance to the industry.

Collaboration:

• In April 2024, G42, a UAE-based AI technology holding company, and Microsoft Corp. announced a monumental strategic investment. Microsoft's staggering USD 1.5 billion injection into G42 underscores the depth of its commitment to the partnership and the significant impact it will have. This investment aims to bolster the introduction of the latest AI technologies from Microsoft and skilling initiatives in the UAE and other global locations, ensuring that businesses of all sizes in new markets can leverage Microsoft's AI and cloud advantages while maintaining the highest AI implementation and security standards.

Innovation:

• In November 2023, Rubrik, a US company specializing in data security solutions, developed a new generative AI extension called Ruby. This AI extension is designed explicitly for Rubrik Security Cloud and aims to enhance cyber threat detection, response, and recovery capabilities.

The global Artificial Intelligence In Cybersecurity market can be categorized as Type, Offering, Technology, Vertical, Application, and Region.