AI in Cyber Security Market Size (2023 – 2030)

AI in cyber security market was valued to be at USD 18.75 billion in 2022 and is estimated to register a revenue of USD 102.79 billion by 2030. The market is anticipated to witness a stellar compound annual growth rate (CAGR) of 23.7% over the forecast period of 2023 - 2030. Growing adoption of IoT and the number of connected devices, escalating cases of cyberattacks, rising worries about data privacy, and expanding susceptibility of Wi-Fi networks to security risks are all primary factors of market expansion. In addition, the rising demand for cloud-based security solutions among SMEs and the greater usage of social media for business operations are underlying potential for AI in the cybersecurity industry.

INDUSTRY OVERVIEW

Artificial intelligence (AI) is a field of science that allows machines, software, and systems to simulate human intelligence and behaviour through computer interactions. The use of advanced algorithms to understand information and automate different boring jobs is driving the widespread acceptance of AI systems. In terms of cyber security, AI is crucial. Artificial intelligence has made remarkable progress. AI has shown its usefulness in the fields of technology, healthcare, and pharmaceuticals. AI has shown to be a critical tool in lowering costs connected with a wide range of activities, including research, manufacture, automation, monitoring, and adaptation. With speech recognition technology, Facebook facial recognition software, and Google's search engine, Artificial Intelligence in Cyber Security allows experts to examine, investigate, and comprehend cyber-crime. Artificial intelligence is helping to develop cybersecurity technology and is being used to combat hackers. It is built in such a way that it can respond to cyber-attacks in milliseconds. The notion may be used in anti-fraud approaches, security and vulnerability management, and many other areas.

The primary driver of market expansion is technical development, which, in turn, raises the risk of cyber-attack. Other factors that contribute to market expansion include the expanding demand for IoT technology and the liability of Wi-Fi networks to security threats. There is an increase in the number of linked firms, devices, and apps as the need for IoT grows. These businesses are growing more vulnerable as they become more interconnected through technology. As a result, AI in security offers proactive security capabilities. Moreover, the market's bullish outlook was influenced by the rapidly increasing requirement for data protection. There are several constraints and hurdles that would limit the overall growth of Artificial Intelligence in the Cyber Security market. Concerns about artificial intelligence's capacity to defend against zero-day threats and the lack of skilled workers are predicted to stymie industry expansion.

COVID-19 IMPACT ON AI IN CYBER SECURITY MARKET

The COVID-19 epidemic had a detrimental influence on various economies and enterprises throughout the world. Governments all around the world were compelled to close manufacturing factories, retail establishments, and import-export activities, disrupting overall supply chains and affecting demand and supply balances. Several firms began implementing a work-from-home method of operation over their networks, resulting in an increase in data thefts, ransomware attacks, and data breaches. Organizations that rely on remote access systems are particularly exposed to DDOS and phishing threats. Many major companies began upgrading their cyber risk management strategies by assuring that their remote access networks were sufficiently resilient to resist cyber assaults. Organizations began focused on detecting abnormal logins in emails and active directories, assessing tactical actions, and adopting important security rules. In cybersecurity, artificial intelligence will play a crucial role in ensuring the safety and security of enterprises against cyberattacks.

MARKET DRIVERS: 

The growing need for advanced cybersecurity solutions is likely to fuel the market expansion

Endpoint devices are frequently used in modern sectors since they give firms optimum productivity and help them stay technologically fit to compete. However, the widespread use of these devices has resulted in additional issues including illegal access, data breaches, and cyber dangers. The need for artificial intelligence in cybersecurity has grown in response to the rising sense of security. With the rise of digital technologies such as the Internet of Things (IoT), industry verticals have been speeding up their digital transformation in today's linked world.

The growing susceptibility of Wi-Fi networks to security attacks is projected to be critical to the success of the industry

The growing vulnerability of Wi-Fi networks to security attacks is likely to drive the global Artificial Intelligence in the Cyber Security market. Another element promoting the rise of the revenue rate of the Artificial Intelligence in Cyber Security Market during the projected period is underlying possibilities for the industry. Moreover, increasing demand for cloud-based security solutions among small and medium-sized businesses, as well as increased use of social media for business operations, the greater number of connected devices, growing adoption of the Internet of things, and rising instances of cyber threats are some of the major growth-supporting factors for Artificial Intelligence in Cyber Security.

Increased incidence and complexity of cyber-attacks is a major factor driving market expansion

The nature of malware and the frequency of cyber-attacks are driving the use of AI-enabled cyber systems. The increasing number of cyber-attacks throughout the world has raised data security awareness among organisations. The motivations behind these cyber-criminals include political rivalry, rivals seeking financial gain by exploiting people's reputations, extremist religious group interests, and worldwide data theft. AI in cybersecurity ensures the security of technological innovations and critical infrastructure; enterprises are consistently increasing their budgets for AI cybersecurity, supporting business processes with cybersecurity agendas, and developing cyber alertness programmes for employees and customers.

MARKET RESTRAINTS:

Lack of awareness about the benefits of AI in Network security is inhibiting the adoption of the security system

People are oblivious to their gadgets' vulnerability and the danger of being hacked. By focusing primarily on external threats, organisations fail to see internal dangers and weaknesses, such as how workers are just a few clicks away from downloading possible ransomware, undetected malware, and threat techniques such as spear-phishing and botnet. Network security suppliers are developing unique and customised products for a wide variety of users, including individuals, SMEs, large enterprises, and government organisations, but the market's growth is being hampered by a lack of understanding about security as it relates to a certain business portfolio.

Cyber security solution implementation is time-consuming and costly; therefore, the market's growth is impeded by budget restrictions among businesses and the high cost of security solutions.

In an interconnected network, heterogeneous devices communicate with one another through a wide range of networking protocols in a dispersed environment. Security updates and alterations, such as security patches, firmware, and software upgrades, are time-consuming and costly. Furthermore, while employing IoT services, a great amount of data is created. Managing and maintaining such information would be a time-consuming and tedious task. This would raise the input cost even further. As a result, it acts as a deterrent to market expansion.

AI in CYBER SECURITY MARKET REPORT COVERAGE:

This research report on the AI in the cyber security market has been segmented and sub-segmented based on By Offering, By Deployment Model, By Technology, By Security Type, By Application and By Region.

AI IN CYBER SECURITY MARKET - BY OFFERINGS

• Hardware
• Software
• Services

Based on offerings, the AI in the cybersecurity market is segmented into Hardware, Software and Services. The software segment is expected to dominate artificial intelligence in the cybersecurity market by 2022.  To achieve cybersecurity applications, AI systems require several forms of software, including application programme interfaces, such as language, voice, vision, and sensor data, as well as machine learning techniques. The increasing number of data security issues, the growing need for AI platform solutions for security operations, and the growing demand for strong and cost-effective security solutions among corporate organisations to reinforce their cybersecurity infrastructure are all driving this industry. The hardware segment is also poised to contribute significantly to the market growth. The hardware segment is projected to expand at a CAGR of 12.5% over the forecast period.

AI IN CYBER SECURITY MARKET – BY DEPLOYMENT MODEL

• On-Premises
• Cloud

Based on the deployment model, the AI in the cybersecurity market is segmented into On-Premise and Cloud. The on-premises sector of artificial intelligence in the cybersecurity industry is projected to account for the highest proportion of the market by 2021 and account for over 25% of the overall market revenue. The growing need to improve internal processes and systems, security challenges associated with cloud-based deployments, and the expanding need for sophisticated security application software among industrial verticals are all factors contributing to this segment's substantial share. However, due to the growing number of major companies adopting cloud platforms for data repositories and the growing need to lower the capital expenditure necessary to install cybersecurity solutions, the cloud-based sector is expected to develop at the fastest rate throughout the projected period. Furthermore, as more businesses move their activities to the cloud, cybersecurity providers are developing cloud-based solutions.

AI IN CYBER SECURITY MARKET – BY TECHNOLOGY

• Context-Aware Computing
• Machine Learning
• Natural Language Processing

Based on technology, the AI in the cybersecurity market is segmented into Context-Aware Computing, Machine Learning and Natural Language Processing. Machine Learning (ML) has the biggest market share of all technologies, owing to its numerous benefits such as faster prediction, analysis, and processing of data from an infinite number of sources, which enable enterprises to analyse and comprehend user behaviour. Machine learning is extensively employed in cyber security systems alongside AI because of its potential to defend enterprises by effectively managing threat-identifying algorithms utilising a large quantity of data. Cyber security systems can use machine learning to recognise attack patterns and learn from them to fight such assaults and their dynamic behaviour. The capacity of machine learning to collect, interpret, and handle massive data from many sources aids enterprises in forecasting cyber dangers and analysing real-time user behaviour patterns to safeguard the network from potential cyber-attacks. Furthermore, rapid advances in machine learning, together with large R&D investments by both the government and major market participants, are projected to drive the fastest-growing demand for machine learning technology in the future years.

AI IN CYBER SECURITY MARKET – BY SECURITY TYPE

• Network Security
• Endpoint Security
• Application Security
• Cloud Security

Based on security type, the AI in the cybersecurity market is segmented into Network Security, Endpoint Security, Application Security and Cloud Security. Network security is projected to account for the greatest part of the entire artificial intelligence in the cybersecurity market over the forecast period. The implementation of the Bring Your Own Device (BYOD) trend, the increasing incidence of APTs, malware, and phishing assaults, the growing requirement for secure data transfer, the expanding need for network security solutions, and mounting privacy concerns are all contributing to this segment's big share. However, due to the increased adoption of Internet of Things (IoT) devices, the massive rise in cloud solution implementation, the advent of remote work and collaboration, and the growing preference for comprehensive and cost-effective security services, the cloud security segment is anticipated to grow at the fastest rate during the forecast period.

AI IN CYBER SECURITY MARKET – BY APPLICATION

• Anti-Virus/Anti Malware
• Identity and Access Management
• Data Loss Prevention
• Fraud Detection / Anti-Fraud
• Intrusion Detection/ Prevention System
• Security and Vulnerability Management
• Unified Threat Management
• Others

Based on application, the AI in the cybersecurity market is segmented into Anti-Virus/Anti Malware, Identity and Access Management, Data Loss Prevention, Fraud Detection / Anti-Fraud, Intrusion Detection/ Prevention System, Security and Vulnerability Management and Unified Threat Management among others. The identity and access management sector is anticipated to dominated the artificial intelligence in the cybersecurity market in 2021. The growing requirement for integrity and safety of secret information across industrial verticals, as well as the expanding emphasis on compliance management, are all factors contributing to this segment's size. However, due to increasing regulatory and compliance requirements and the growing need to address data-related threats, such as the risks of accidental data loss and the exposure of sensitive data in organisations, the data loss prevention segment is expected to grow at the fastest rate during the forecast period.

AI IN CYBER SECURITY MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East 
• Africa

Based on region, the AI in the cyber security market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. Attributed to reasons such as the increased implementation of Artificial Intelligence in Cyber Security solutions, the North American region has a significant proportion of the market. Moreover, increased issues associated with cyber threats, as well as the rise of innovative technologies used to manage the cyber security landscape, all contribute to market growth. During the predicted period, the North American area is likely to maintain its dominance. Europe is second only to North America in terms of artificial intelligence market share in cyber security. The market in Europe is being driven by rising disposable income and increased use of smartphones, computers, and other electronic devices. The Asia Pacific area is also predicted to see the increased market development as a result of rising internet penetration and a trend toward digitalization of internal operations, which is driving demand for AI in the cyber security industry. In the future years, Latin America and the Middle East and Africa are likely to have tremendous development.

AI IN CYBER SECURITY MARKET - BY COMPANIES

As a result of the increase in cyber assaults over the years, artificial intelligence in the security industry is extremely competitive and fragmented. Artificial intelligence (AI) is a fast-evolving technology that is attracting the interest of commercial investors, defence experts, legislators, and foreign rivals. Some of the prominent players operating in the AI in the cyber security market are:

• NVIDIA Corporation  
• Intel Corporation  
• Xilinx Inc.  
• Samsung Electronics Co.
• Ltd (South Korea)
• Micron Technology, Inc.  
• IBM Corporation  
• Amazon Web Services, Inc.  
• Darktrace (UK)
• Cylance Inc.  
• Vectra AI, Inc.  
• Threat Metrix Inc.  
• Securonix Inc.  
• Sift Science  
• Acalvio Technologies  
• Spark Cognition Inc.  
• Palo Alto Networks Inc.  
• Symantec Corporation  

NOTABLE HAPPENING IN THE AI IN CYBER SECURITY MARKET

PRODUCT LAUNCH- Symantec has introduced new data loss prevention features that will make it easier for clients to secure personal data from hostile, data-stealing applications while also assisting with regulatory compliance.

COLLABORATION- Darktrace and Endace have established a strategic alliance that will enable enterprises to detect in-progress assaults anywhere on the digital infrastructure using Darktrace's Artificial Intelligence.

ACQUISITION - Sqrrl, a security start-up with NSA ties, was bought by Amazon's cloud company. The company's purchase is targeted at obtaining business from US intelligence agencies.