AI in Cyber Security Market Research Report: By Offering (Hardware, Software, Services), Deployment Type (Cloud, On-Premises), Technology (Machine Learning, Natural Language Processing, Context-Aware Computing), Security Type (Network Security, Data Security, Identity and Access Security, Cloud Security), Application (Identity & Access Management, Risk & Compliance Management, Data Loss Prevention, Unified Threat Management, Security & Vulnerability Management, Antivirus/Antimalware, Fraud Detection/Anti-Fraud, IDS/IPS, Threat Intelligence), End User (BFSI, Retail, IT and Telecom, Healthcare, Manufacturing, Government & Defense, Automotive & Transportation) - Global Industry Analysis and Growth Forecast to 2030

Global Artificial Intelligence (AI) In Cyber Security Market Overview

The global artificial intelligence (AI) in cyber security market size in 2019 was $8.6 billion, which is expected to witness positive growth of 25.7% during the forecast period (2020–2030), reaching $101.8 billion in 2030. The rising digitization rate of various industries, increasing mobile internet penetration, shift from traditional banking to digital banking, and rising investments by government, IT, and financial institutions in the AI technology are the key factors contributing to the growth of the industry, globally.

To study the COVID-19 impact on the AI in cyber security market size, the effects of various factors, such as the increase in data usage, lockdown imposed by the government of major countries around the world, and increasing dependence on home networks for internet access, have been taken into account. Due to the work-from-home model implemented across organizations of all sizes, owing to the coronavirus disease (COVID-19), the number of cyberattacks has seen a sudden rise during the lockdown period. Cyber criminals have quickly seized the opportunity to exploit the crisis, by adapting their modes of operation and developing new cyber-related attacks related to COVID-19, which has raised the demand for AI-integrated cyber security solutions.

Segmentation Analysis

Software Category to Witness Fastest Growth in Industry

The software category is projected to witness the fastest growth during the forecast period in AI in cyber security market, on the basis of offering. Different types of software are required in AI systems, which include application program interfaces (APIs), such as language, speech, sensor data, and vision, in addition to machine learning (ML) algorithms, in order to understand the cyber security applications. Such factors will benefit the growth of the category in the industry.

The hardware category dominated the market during the historical period (2014–2019), and it is further projected to continue its domination during the forecast period.

Cloud-Based Deployment To Grow at Higher Rate during Forecast Period

Cloud-based AI solutions are projected to witness the faster growth in AI in cyber security market during the forecast period, on the basis of deployment type. Cyberattackers continue to disrupt the way of life with innovative approaches to seeding malware and stealing unauthorized data. While dealing with this, predictive security in the cloud has innovated security in a manner that will frustrate cyber spies in the years to come. This technology collects and analyzes unfiltered endpoint data, using the power of the cloud, to make predictions about and protect users against future cyberattacks.

ML Category Dominated Market during Historical Period

The ML category held the largest share in the AI in cyber security market in 2019, among all technologies. The largest revenue share of ML is mainly attributed to its ability to better manage threat learning algorithms, using voluminous data, to protect businesses. With ML, cyber security systems can analyze patterns and learn from them, to help prevent similar attacks and respond to the changing behavior. It can help cyber security teams be more proactive in preventing threats and responding to active attacks in real time.

Network Security Category Held Largest Market Share in 2019

The network security category accounted for the largest revenue share in the AI in cyber security market in 2019, on the basis of security type. The growth of the network security category is predominantly driven by the upsurge in the adoption of wireless networks and their susceptibilities, as establishments nowadays are increasingly depending on wireless networks for data transfer. Having a better network security system reduces the risk of cyber threats and data sabotage. Owing to such factors, the category is further expected to continue its domination during the forecast period.

Data Loss Prevention (DLP) Category To Attain Fastest Growth

The DLP category is projected to witness the fastest growth in the AI in cyber security market during the forecast period, among all applications. This can be attributed to the important role of DLP technology in identifying, monitoring, and protecting the data in storage as well as in motion over the network. Specific data security policies are framed in every organization, and IT personnel are mandated to strictly follow them.

The fraud detection/anti-fraud category held the largest share in 2019, and it is set to generate the highest revenue in 2030 as well.

IT and Telecom Category Led Market in 2019 among all End Users

The IT and telecom category held the largest share in 2019 in the AI in cyber security market, on the basis of end user. This can be attributed to the rapid technological advancements in the internet of things (IoT), cloud, and telecom spaces. The healthcare category is expected to witness the fastest growth during the forecast period, owing to the increasing number of data breaches and compromised electronic health records (EHR).

Geographical Outlook

North America – Highest Revenue Generator

Geographically, North America held the largest share in the AI in cyber security market in 2019. The dominance can be ascribed to enterprises deploying cyber security solutions, as the number of cyberattacks is rapidly increasing throughout the region. The incidence of cybercrimes, such as ransomware, is growing at an exorbitant pace, causing business interruption and financial losses at a huge scale. The governments of the U.S. and Canada are witnessing a 12–17% rise in cybercrimes on a yearly basis. Canada is also witnessing a swift increase in phishing emails and network breaches, which clearly depicts a plethora of opportunities for the artificial intelligence in cyber security industry.

Other factors contributing to the region’s growth are the high digitization rate, due to a large number of companies offering digital solutions, as well as the presence of established players in its AI in cyber security market.

Asia-Pacific (APAC) Holds Lucrative Opportunities for Market Players

The AI in cyber security market in the APAC region is expected to witness the fastest growth during the forecast period, on account of the rising number of cybercrimes across the region, which include identity thefts, data breaches, and financial frauds. Due to these factors, organizations are increasing their security spending, to deal with the costs and consequences of more advanced cyberattacks. This can be well understood from the fact that the average cost of cybercrimes for an organization increased by $1.4 million from 2018 and reached $13.0 million in 2019.

Furthermore, various countries in the region are investing significantly in cyber security to deal with advanced threats. For instance, in March 2020, the Ministry of Defense (MoD) of Japan confirmed that it would invest $237.12 million (over JPY 25.6 billion) to develop AI-based tools, to counter cyberattacks. Such factors are resulting in the growth of the AI in cyber security market in the APAC region.

Trends & Drivers

Rising Adoption of Chatbots to Combat Cyberattacks is Key Trend Witnessed in Industry

The rising adoption of chatbots to combat cyberattacks is a key trend being observed in the AI in cyber security market. With advancements in technology, a wide range of intelligent bots are gaining traction, to ease the routine tasks. Chatbots are being widely deployed on messaging platforms, such as Facebook Messenger, Slack, Kik, and WhatsApp, to engage directly and frequently with customers, to gain their trust. The disruption in technology brings new security concerns, and chatbots are expected to overcome major cybercrimes.

The adoption of core AI technologies, such as natural language processing (NLP) and ML, coupled with thousands of learning iterations, will enable chatbots to combat cyber threats and other malicious attacks in the years to come. Advanced chatbots can reduce the vulnerability of systems, by funneling communications through highly secure protocols, prevent email phishing attacks, and alert individuals about these attacks.

Increasing Number of Cyber Frauds and Malicious Attacks To Drive Industry Growth

With the rising incidence of cybercrimes, artificial intelligence in cyber security is playing a vital role in combating such miscreants. Cyber frauds, such as identity and payment card thefts, account for over 55% of all cybercrimes, and they cause major losses to organizations, if not countered quickly. AI-driven solutions combat cyber fraud by identifying threats, reducing response time, and refining techniques to distinguish attacks that require immediate attention. In August 2019, the U.S. Government Accountability Office (GAO) stated that despite taking actions to combat cyber incidents, the cases are growing on a yearly basis. Such factors are boosting the growth of the AI in cyber security market.

Adoption of Bring-Your-Own-Device (BYOD) Policy Is Propelling Acceptance of AI in Cyber Security

The implementation of the BYOD policy is driving the AI in cyber security market. The implementation of the BYOD policy in organizations is witnessing significant growth, as it increases productivity and enhances employee satisfaction. However, BYOD poses a major challenge, by making corporate data vulnerable to cyberattacks. Employees’ devices have wide-ranging capabilities, and IT departments may not be able to fully evaluate, qualify, and approve each and every device, which may pose a high security threat to confidential data. AI offers advanced protection through the ML technology and thus provides complete endpoint security, which can largely mitigate security threats and prevent attacks.

AI in Cyber Security Market Report Coverage

Report Attribute	Details
Historical Years	2014-2019
Forecast Years	2020-2030
Base Year (2019) Market Size	$8.6 Billion
Forecast Period CAGR	25.7%
Report Coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategic Developments, Product Benchmarking, Company Profiling
Market Size by Segments	Offering, Development Type, Technology, Security Type, Application, End User, Geography
Market Size of Geographies	U.S., Canada, Germany, France, U.K., Italy, Spain, Netherlands, Japan, China, India, Australia, South Korea, Brazil, Mexico, U.A.E, Turkey, Saudi Arabia, South Africa
Secondary Sources and References (Partial List)	Artificial General Intelligence, Automation Industry Association (AIA), British Computer Society Specialist Group on Artificial Intelligence, Center for Internet Security, China–Britain Artificial Intelligence Association (CBAIA), Chinese Association for Artificial Intelligence, Commercial Remote Sensing Regulatory Affairs, European Association for Artificial Intelligence (EurAI), European Cyber Security Organisation

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Growing Adoption of IoT and Increasing Number of Connected Devices Boosting Market Growth

Advances in AI, coupled with the rising need for ubiquitous connectivity and real-time communication, are enabling the exponential growth in the efficiency of IoT-powered devices. The number of IoT-connected devices is expected to witness healthy growth in the coming years. According to a report by International Data Corporation (IDC), there will be around 41 billion IoT-connected devices, generating 79.4 Zettabytes (ZB) of data, by 2025. This can be well understood from the data presented by Cisco Systems Inc., which estimates that every second, 127 devices are being connected to the internet. Thus, the growing adoption of IoT and increasing number of connected devices are boosting the AI in cyber security market growth.

Market Players Are Involved in Mergers and Acquisitions to Gain Competitive Edge

The global AI in cyber security market is fragmented in nature, with the presence of industry players such as International Business Machines (IBM) Corporation, Cisco Systems Inc., BAE Systems Plc, RSA Security LLC, Palo Alto Networks Inc., Fortinet Inc., FireEye Inc., Check Point Software Technologies Ltd., Juniper Networks Inc., NVIDIA Corporation, Cylance Inc., and Acalvio Technologies.

In the recent past, acquisitions and mergers have been the major activities in the AI in cyber security industry. For instance:

• In March 2020, Palo Alto Networks Inc. entered into a definitive agreement to acquire CloudGenix Inc., a provider of software-defined wide area networks (WANs), for $420 million in cash. Palo Alto Networks Inc. stated that the acquisition will be used to accelerate the intelligent onboarding of remote branches and retail stores into its Prisma Access product, a Secure Access Secure Edge platform, delivering a global cloud network with cloud-delivered security for all users.
• In March 2020, Watchguard Technologies Inc., a network security and intelligence company, entered into a definitive agreement to acquire Panda Security, a provider of endpoint security located in Madrid, Spain. This acquisition will extend the former company’s network offerings.
• In January 2020, F5 Networks Inc., an application delivery networking company, completed the acquisition of Shape Security Inc., an AI-powered cyber security, fraud, and abuse protection solution provider, for an estimated $1 billion. The acquisition will significantly advance the former company’s plans to offer AI-enhanced services to customers, for better visibility, management, and orchestration across their applications.

Some of the Key Players included in AI in Cyber Security Market Report Are:

AI in Cyber Security Market Size Breakdown by Segment

The AI in cyber security market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Offering

• Hardware
• Software
• Services

Based on Deployment Type

• Cloud
• On-Premises

Based on Technology

• Machine Learning (ML)
• Natural Language Processing (NLP)
• Context-Aware Computing

Based on Security Type

• Network Security
• Data Security
• Identity and Access Security
• Cloud Security

Based on Application

• Identity & Access Management (IAM)
• Risk & Compliance Management
• Data Loss Prevention (DLP)
• Unified Threat Management (UTM)
• Security & Vulnerability Management
• Antivirus/Antimalware
• Fraud Detection/Anti-Fraud
• Intrusion Detection/Prevention System (IDS/IPS)
• Threat Intelligence

Based on End User

• Banking, Financial Services, and Insurance (BFSI)
• Retail
• IT and Telecom
• Healthcare
• Manufacturing
• Government & Defense
• Automotive & Transportation

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Netherlands
• APAC (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • U.A.E
  • Turkey
  • Saudi Arabia
  • South Africa