Artificial Intelligence in Cybersecurity Market Size By Component (Hardware, Software, and Services), By Deployment (Cloud-based, On-Premises), Organization Size (Small and Medium Enterprises & Large Enterprises), Technology (Machine Learning, Natural Language Processing (NLP) & Context-aware computing), Vertical (IT & Telecommunications, Banking, Financial Services and Insurance (BFSI), Retail, Healthcare, Defense & Government, Manufacturing, Energy and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2032

Market Perspective

The Artificial Intelligence (AI) in Cybersecurity Market size was worth around USD 19.34 billion in 2022 and is predicted to grow around USD 46.76 billion by 2032, with a compound annual growth rate of roughly 9.2% between 2023 and 2032. Artificial intelligence in cybersecurity is likely to boost during the forecast period due to the proliferation of 5G technology and increasing demand for cloud-based security solutions among businesses.

The market for artificial intelligence in cybersecurity is steadily expanding owing to the increasing number of customers who are anticipated to embrace security concerns and detect different types of attacks that can occur at any moment. AI-based technologies, like machine learning and natural language processing, are being used to protect identify, against, and react to threats. Furthermore, a growing increase in cyberattacks on government, defense, and high-tech firms has highlighted the demand for sophisticated artificial intelligence (AI) protection solutions.

The demand for Cyber AI is due to providing a firewall system with precise detection. For instance, the significant demand for AI to continuously authenticate users using behavioral biometrics. Industry players are prioritizing machine learning algorithms to take advantage of AI's ability to strengthen security intelligence.

The factors boosting the market growth include AI-based solutions in the banking sector, an increase in privacy concerns, and the frequency and complexity of cyber threats. The projected growth of AI-based cybersecurity solutions is expected to drive demand from startups and small and medium enterprises in the market over the forecast period. There are different types of artificial intelligence in cybersecurity such as network security, application security endpoint security, cloud security, mobile security, and a few others. The major players are focusing on the development of connected security solutions using AI-based platforms.

For instance, in January 2021, Fortinet launched an EDR solution, FortiXDR, powered by AI-enabled completely automated online cyber threat detection XDR solution to simplify the process and security operations.

Key Insights

• Based on the component, the software segment held the largest market share in 2022
• Based on deployment, the cloud-based segment dominated the market in 2022
• Based on organization size, the large enterprises segment is expected to register the largest share during the forecasted period
• On the basis of technology, the machine learning segment dominated the market in 2022
• Based on vertical, the BFSI segment is expected to dominate over the forecast period
• On the basis of region, Asia Pacific accounted largest market share in 2022

Surging Connected Enterprises and Applications is a Vital Trend Propelling Growth

Businesses are becoming susceptible to the increase of connected devices, enterprises, and their applications due to being connected with a large number of unrelated endpoints. Since proactive threat mitigation capabilities are required for constant supervision and adaptation to the variety of security vulnerabilities encountered by the contemporary digitalized economy, AI in security offers a compelling proposition. The industry is growing as a result of an increase in cyber-attacks on businesses.

Attackers frequently target networks, on-premises devices, cloud-based apps, endpoints, data, and other IT infrastructures. Data theft and network intrusion are the primary goals of attacks against targeted companies or organizations. The disruption of business-critical operations, financial loss, loss of intellectual property, and loss of confidential customer data are all negative effects of these targeted assaults on organizations.

Increasing Adoption of IoT and BYOD is Propelling the Market

The adoption rates of BYOD and IoT among businesses are impacting positively with the flow streamlined and providing real-time alerts. The benefits of having a BYOD policy, such as increased productivity, increased employee happiness, and reduced business costs, are leading to a rise in the adoption of cybersecurity. BYOD solutions support employees with flexible hours, working from home, or wanting to stay connected while traveling for business or commuting. Thus, BYOD policies are becoming common in businesses, which is propelling market growth.

Limited Skilled Workforce & Awareness is Hampering the Market Growth

Major industries are using AI, but are unable to implement their AI ideas due to the dearth of skilled workforce. Technical knowledge is required for the implementation of an AI system, which helps AI handle complicated machine reasoning, talent search with applications, and client model implementation. Recruitment and skill-upgrading problems are intertwined with the need to fill the AI talent gap. The biggest obstacle to the development of AI initiatives across industries is a lack of trained talent, followed by a lack of funding, and a lack of access to advanced technology. Therefore, the limited skilled workforce is hindering market growth.

Recent Development

March 2023- Palo Alto Networks launched the availability of their new software, Identity Threat Detection and Response (ITDR) module for Cortex XSIAM to implement cutting-edge AI technology, integrate user identification and behavior data, and quickly identify identity-driven cyberattacks. By combining various security operations skills into a single, AI-driven security operations center (SOC) platform, the module strengthens XSIAM's capacity.

March 2023- Dell Technologies collaborated with CrowdStrike to boost managed detection and response (MDR) tools with MDR Pro Plus to improve security controls across networks, endpoints, and clouds.

November 2022- Micron Technology expanded IoT Security, Authenta Technology, for the improvement of cybersecurity to help businesses scale and deploy trust-based security.

October 2022- BlackBerry strengthened its AI-based cybersecurity portfolio that will enable customers to improve workflows and ensure business resilience and overall security posture to prevent sophisticated cyber threats.

April 2021- NVIDIA launched the cloud-based framework, Morpheus, which enables customers to develop AI solutions that can detect and prevent detect cyber breaches.

Segmentation Analysis

On the basis of deployment, the market is bifurcated into cloud-based and on-premises. The cloud-based segment is expected to dominate the market owing to increased user and resource mobility, ongoing cloud migration, and the introduction of advanced threats. The hybrid deployment approach is being deployed in several industries such as BFSI, healthcare, and government that place a high priority on compliance, security, and user experience.

Based on the technology, the market is categorized into machine learning, natural language processing (NLP) & context-aware computing. The machine learning segment holds the largest market owing to the increasing usage of machine learning technology backed up by deep learning is gaining traction across industries. Leading businesses have been using machine learning for threat identification and email filtering, including Google and IBM. Companies are leveraging machine learning and deep learning to improve safety procedures.

For instance, deep learning has established the standard for image recognition across applications, such as autonomous vehicles and medical diagnosis. Additionally, machine learning platforms are implemented for automating monitoring, identifying outliers, and sorting through large amounts of data generation.

Based on the vertical, the market is divided into IT & Telecommunications and Others. The Banking, Financial Services, and Insurance (BFSI) segment is expected to dominate the market owing to the demand for security solutions increasing as a result of the rise in internet transactions, a surge in RTGS, and NEFT and mobile transactions. As a result, the banking industry has seen a substantial rise in the implementation rate of security solutions based on artificial intelligence, which has aided in the improvement of banking services.

Regional Landscape

North America is the Dominating Region Owing to the Adoption of Advanced Technologies

North America is the dominating region in 2022 owing to the increase in network-connected devices backed by the adoption of 5G, IoT, and Wi-Fi 6 is driving the market growth. Several industries, including healthcare, automotive, energy, government, and mining, have been responsible for driving the growth of the 5G network. In order to take advantage of this growth, leading companies are expected to invest in advanced analytical tools such as machine learning, visualization, and asset mapping for real-time monitoring and evaluation. In North America, the use of natural language processing, machine learning, and neural networks is expected to become widespread in order to prevent attacks, identify malicious user behavior, and detect abnormal patterns.

Asia Pacific is Expected to Growth at the Fastest Rate Owing to the Increasing Cyberattacks

Asia Pacific market is expected to grow at the fastest rate owing to the increasing cyber-attacks among companies that are propelling the region forward. The acceptance of cloud-based services has been influenced by the expansion of internet usage as internal processes move towards digitization. As per Cisco's report, in September 2021, almost 75% of SMBs experienced cyberattacks, resulting in damages exceeding USD 500,000. This highlights the criticality of robust cybersecurity measures to safeguard businesses from such attacks and protect against potential financial losses. 

Competitive Landscape

• AO Kaspersky Lab
• BlackBerry Limited
• Cisco Systems, Inc.
• CrowdStrike
• FireEye, Inc
• Fortinet, Inc.
• IBM Corporation
• Imperva
• LexisNexis
• Micron Technology, Inc.
• Microsoft
• Musarubra US LLC (Trellix)
• NVIDIA Corporation
• Palo Alto Networks

The global artificial intelligence in cybersecurity market is segmented as:

By Component

• Hardware
• Software
  • Unified Threat Management (UTM)
  • Data Loss Prevention (DLP)
  • Identity & Access Management (IAM)
  • Security Information and Event Management (SIEM)
  • Endpoint Detection and Response (EDR)
  • Distributed Denial of Service (DDoS)
  • Risk and Compliance Management
  • Others
• Services
  • Professional Services
  • Managed Services

By Deployment

• Cloud-based
• On-Premises

By Organization Size

• Small and Medium Enterprises
• Large Enterprises

By Technology

• Machine Learning
• Natural Language Processing (NLP)
• Context-aware computing

By Vertical

• IT & Telecommunications
• Banking, Financial Services, and Insurance (BFSI)
• Retail
• Healthcare
• Defense & Government
• Manufacturing
• Energy
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America