AI In Cybersecurity Market Size, Share & Trends Analysis Report By Type (Network Security, Cloud Security), By Offering, By Technology, By Application, By Vertical, By Region, And Segment Forecasts, 2023 - 2030

AI In Cybersecurity Market Size & Trends

The global AI in cybersecurity market size was estimated at USD 16.48 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 24.3% from 2023 to 2030. Increasing artificial intelligence (AI) technologies, such as natural language processing (NLP) and machine learning(ML), have gained traction to protect, detect and respond to threats. Furthermore, an exponential rise in cyberattacks on high-tech companies, defense, and government agencies has underscored the need for advanced AI in cybersecurity. Cyber AI has become sought-after to offer a proactive mechanism of protection with detection accuracy.

For instance, AI has witnessed a strong demand to do a relentless verification of a user in terms of behavioral biometrics. Industry participants are expected to prioritize ML algorithms to leverage the power of AI to bolster security intelligence. The rise in privacy concerns the importance of AI-based cybersecurity solutions in the banking industry, and the frequency and complexity of cyber threats are factors augmenting market growth. Moreover, it is anticipated that over the next few years, this market will expand in response to increasing demand for AI-based cybersecurity solutions from small- and medium-sized enterprises (SMEs).

Vertical Insights

The enterprise segment held the leading revenue share of 23.7% in 2022. However, the BFSI sector could emerge as a major market for cyber-AI to prevent data leaks, resist cyberattacks, and bolster security. The wave of innovations and technological advances has brought a paradigm shift in making payments, purchases, applying for loans, and withdrawals to crowdfunding. Furthermore, banks and financial institutions are likely to count on the zero-trust model on the hardware to boost threat intelligence-based actions. Industry participants expect the adoption of AI in the fintech sector to boost market share. The robust forecast is mainly due to the penetration of AI-based solutions to prevent and identify financial crimes & fraud.

Furthermore, rampant distributed denial of service (DDoS) attacks across banks and fintech sectors have furthered the demand for AI. Moreover, artificial neural networks (ANN) will also receive impetus to anticipate hackers’ behavior, enabling banks to respond to attacks in real-time. The government & defense sector has exhibited an increased inclination toward AI following the surge in cyber incidents. The Center for Strategic and International Studies (CSIS) stated that March 2022 witnessed a slew of Israeli government websites being taken offline against the backdrop of a DDoS attack targeting a major Israeli telecommunication provider.

In January 2022, a cyberattack reportedly targeted 90 websites of the Ukrainian government and deployed malicious software, taking a toll on dozens of government agencies’ computers. Accordingly, governments are poised to bank on Cloud Security and zero-trust architecture to keep cyber incidents at bay. The media & entertainment industry is expected to witness substantial growth. Vendors are focusing on data enrichment, automated reporting, analyzing, metadata insights, etc. for improved customer experience and operations. Moreover, a rising number of client dealings outside of the branch through various channels including mobile, web, chat, and social media is expected to drive the adoption of corporate metadata management tools.

Type Insights

The network security segment is anticipated to account for a substantial revenue share of 37% in 2022 owing to the high prominence of ML algorithms and AI. Businesses are leveraging cybersecurity to protect and prevent cyber-attacks. Hardware could be a major growth enabler to boost business efficiency and scalability of operations. Prominently, the zero-trust model-needing all users to be authorized and authenticated-has gained ground. For instance, in June 2022, Cisco revealed its plans to foster a secure hardware strategy through Cisco Security Hardware. The company has prioritized zero trust and is rolling out less intrusive methods for risk-based authentication.

The AI-based endpoint security will receive drive across organizations for continuous monitoring, risk-based application control, and automated classification. Prominently, endpoint security solutions automatically create an allow list based on known goodware and a deny list based on known malware. With endpoint attacks becoming prevalent, AI-based real-time authentication and behavioral analytics could be pursued to underpin security solutions. Moreover, the rising use of connected devices has prompted companies to apply AI-powered endpoint security technologies to detect suspicious activities and at-risk information.

Regional Insights

North America accounted for a major revenue share of 35.1% in 2022 due to the surge in network-connected devices with the growing footfall of Internet of Things (IoT), 5G, and Wi-Fi 6. Organizations across the automotive, healthcare, government, energy, and mining sectors have propelled 5G network expansion, providing a possible entry point for hackers. Leading organizations are likely to infuse funds into ML platforms, advanced analytics, and asset mapping and visualization platforms for a real-time assessment. North America is slated to be the prominent adopter of NLP, ML, and neural networks to deter attacks and spot strange user behavior and other abnormal patterns.

Rising penetration of mobile devices, including smartwatches, tablets, and phones, are also likely to augment the need for AI solutions and services for increased security. According to CUJO AI’s security data, nearly 60% of threats to mobile device security emanate from browsing activities. Stakeholders across North America are likely to seek AI algorithms to overcome cybersecurity concerns. Europe is likely to provide lucrative growth opportunities in the wake of strong government policies and growing cyber cases across the automotive, healthcare, government, and IT & telecommunication sectors.

For instance, in November 2020, the UK announced pouring £16.5 billion (USD 21.8 billion) into AI and sensor-laden connected hardware over four years. The government remains optimistic that the defense spending will solidify its position in Europe amidst efforts to respond to cyber threats from Russia and other belligerent states. Stakeholders expect the UK, France, Germany, and Russia to augment investments in detecting anomalous activity and threats on their networks, prompting cybersecurity solution providers to boost their AI portfolios.

Offering Insights

The services segment is anticipated to hold a prominent revenue share of 35.1% in 2022. This segment is expected to contribute notably to the global AI in cybersecurity market growth. Robust demand for application program interfaces, such as ML algorithms, sensor data, speech, and vision will fuel industry growth. The software has the distinctive ability to detect abnormal activities with a high degree of accuracy. With the trend for hardware operations, the software platform will gain ground to augment the security portfolio. Industry participants are likely to emphasize state-of-the-art cybersecurity solutions and could inject funds into the software platform For instance, in July 2023, The Wipro ai360 was launched, a comprehensive, AI-first innovation ecosystem, that builds on Wipro's 10-year investments in AI to amalgamate AI into every tool, platform, and solution used internally and provided to clients.

Wipro Limited is a leading provider of technology services and consulting. Wipro announced the launch of Wipro ai360 along with a $1 billion investment over the following three years to advance AI capabilities. The hardware-based AI in cybersecurity will gain ground with the rising prominence of networking solutions, processors, and memory solutions globally. AI hardware is expected to be sought to expedite and boost AI-related operations. The hardware applications will receive impetus from the growing footfall of neural networks and processors. With the evolution of cyberattacks globally, neural networks have become instrumental in fraud detection. Furthermore, the deep learning (DL) technique has garnered popularity in predicting credit card fraud detection, auguring well for market growth.

Technology Insights

The ML segment led with a revenue share of 46.7% in 2022. ML technology will witness profound growth against the backdrop of rising use of DL across end-use industries. Leading companies, such as Google and IBM, have been using ML to filter emails and threat detection. Organizations are cashing in on the power of ML and DL to boost cybersecurity practices. For instance, DL has set the trend for image recognition across applications, including medical diagnoses and autonomous vehicles. In addition, ML platforms have gained popularity in automating the monitoring process, spotting deviation from the norm, and sifting through the massive volume of data produced by security tools.

The NLP segment will have a significant growth during the forecast period. The trend is mainly due to the high prominence of sentiment analysis, natural language inference, text summarization, and question-answering systems (QAS). Moreover, NLP has become sought-after to identify overlaps in data, frameworks, and standards and detect vulnerabilities in the security infrastructure. NLP could make significant strides and expand AI applications in cybersecurity over the next few years through automation and customization.

Application Insights

The fraud detection/anti-fraud segment accounted for 21% of the global revenue share in 2022. AI in cybersecurity will receive impetus for fraud detection and anti-fraud as upfront prevention controls. Machine learning has emerged as a viable tool for bolstering governments’ and other end-users ability to deter fraudulent activities amidst a rise in fraud cases. In in February 2022, the Federal Trade Commission (FTC) data suggested that it received 2.8 million fraud reports from consumers in the preceding year. Accordingly, AI tools could gain ground to prevent fraud, email phishing, and fake records.

Enterprises have exhibited increased traction for unified threat management (UTM) to protect their digital assets against threats, such as spyware-infected files, phishing attacks, unapproved website access, and trojans. UTM approach is expected to gain ground to provide multiple security functions, including business virtual private network (VPN), intrusion detection & prevention, network firewalls, gateway anti-virus, and web content filtering. Organizations are likely to prioritize UTM software tools to detect advanced threats quickly with increased accuracy. UTM tools are expected to gain traction for scalable hardware-based monitoring and prevent the attack before it enters the network.

Key Companies & Market Share Insights

Well-established players and new entrants are slated to invest in ML, neural networks, and NLP to help end-users leverage the power of AI and gain insights. Lately, hackers and other cyber criminals have exploited AI to make their attacks more lethal. Leading players are expected to upgrade their cyber defenses with AI. Key players’ significant initiatives for AI in some regions are augmenting the market growth. For instance, in October 2023, The European Sovereign Cloud AWS, an autonomous cloud for Europe, was launched by AWS. Its purpose is to assist customers in the public sector and highly regulated industries in meeting the strictest operational and regulatory requirements for data residency.

With the same performance, security, and availability, as current AWS Regions, the AWS European Sovereign Cloud will be situated and run within Europe. This will give customers more options to meet their requirements for operational autonomy, resiliency, and data residency while maintaining a physical and conceptual separation from current AWS Regions. Industry participants engage in organic and inorganic growth strategies to bolster expertise in AI cybersecurity. For instance, in August 2022, Microsoft announced the general availability of Microsoft Defender Experts for Hunting to hunt threats proactively.

Microsoft Security claims to have blocked over 35.7 billion phishing and malicious emails and more than 9.6 billion malware threats in 2021. On the other hand, in November 2021, NVIDIA created a zero-trust cybersecurity platform enabling the cybersecurity industry players to underpin security and defend customer data centers in real time. In August 2022, it was reported that Thoma Bravo was contemplating acquiring Darktrace. Meanwhile, Darktrace asserted the discussions were at a preliminary stage about a possible takeover for a cash offer.

AI In Cybersecurity Market Report Scope

Global AI In Cybersecurity Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the artificial intelligence in cybersecurity market report based on type, offering, technology, application, vertical, and region:

• Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Network Security

  • Endpoint Security

  • Application Security

  • Cloud Security

• Offering Outlook (Revenue, USD Billion, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Technology Outlook (Revenue, USD Billion, 2017 - 2030)

  • Machine Learning (ML)

  • Natural Language Processing (NLP)

  • Context-aware Computing

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Identity And Access Management

  • Risk And Compliance Management

  • Data Loss Prevention

  • Unified Threat Management

  • Fraud Detection/Anti-Fraud

  • Threat Intelligence

  • Others

• Vertical Outlook (Revenue, USD Billion, 2017 - 2030)

  • BFSI

  • Retail

  • Government & Defense

  • Manufacturing

  • Enterprise

  • Healthcare

  • Automotive & Transportation

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • South America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE