Anomaly Detection Market Report 2025

This Anomaly Detection market report covers market characteristics, size & growth, segmentation, regional & country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The anomaly detection market size has grown rapidly in recent years. It will grow from $5.5 billion in 2024 to $6.2 billion in 2025 at a compound annual growth rate (CAGR) of 12.7%. The growth in the historic period can be attributed to customer experience and service optimization, regulatory compliance, industrial and manufacturing process monitoring, healthcare and medical diagnostics, financial fraud prevention, IoT and sensor data.

The anomaly detection market size is expected to see rapid growth in the next few years. It will grow to $12.04 billion in 2029 at a compound annual growth rate (CAGR) of 18.1%. The growth in the forecast period can be attributed to customer experience enhancement, compliance and regulatory requirements, industrial and manufacturing process optimization, rapidly growing data complexity, cybersecurity threat evolution, advancements in ai and machine learning. Major trends in the forecast period include advanced ai and machine learning techniques, real-time anomaly detection, explainable ai in anomaly detection, unsupervised and semi-supervised learning, interdisciplinary applications.

The rising number of connected devices is anticipated to drive the growth of the anomaly detection market in the future. Connected devices are smart physical devices that can connect to each other via the internet to share data and information within an organization. Anomaly detection is frequently utilized on connected devices to monitor those linked to a network and safeguard data traffic within an organization or household. For example, in February 2024, an article published by DataProt, a US-based website focused on providing information about cybersecurity products, stated that in 2021, there were over 10 billion active connected devices worldwide, and this number is expected to exceed 25 billion by 2030. Consequently, the increasing number of connected devices is fueling the growth of the anomaly detection market.

The upsurge in cyberattacks is also anticipated to fuel the growth of the anomaly detection market. Conventional security measures often prove inadequate in identifying and mitigating these evolving cyber threats. Anomaly detection systems offer real-time monitoring and alerts for detecting unusual activities, enabling early threat identification and response. Its functionalities aid in preventing data breaches, minimizing false positives, securing IoT and connected devices, ensuring compliance with regulations, and detecting insider threats. For instance, as reported by the Australian Cyber Security Centre in February 2023, cybercrime reports in 2022 amounted to 76,000, marking an increase of almost 13% from the previous financial year. This surge in cyberattacks serves as a driving force behind the growth of the anomaly detection market.

Technological advancement is a prominent trend in the anomaly detection market. Major companies in this sector are concentrating on developing technologically sophisticated products to enhance their market presence. For example, in June 2022, International Business Machine Corporation (IBM), a US-based technology company, announced IBM Cloud Pak for Watson AIOps V3.4. This solution utilizes AI and machine learning to monitor IT environments in real-time for unusual patterns that may indicate potential threats or issues. It integrates with existing IT management tools and provides predictive analytics that enable organizations to anticipate disruptions and optimize operational performance. These improvements are essential for businesses adopting new technologies such as cloud computing and edge devices.

Prominent players within the anomaly detection market are actively pursuing the development of innovative anomaly detection engines, exemplified by the KaizenInsights Anomaly Detection Engine, to establish a competitive edge. This sophisticated solution aims to swiftly identify data outliers within operational datasets, anticipating issues such as fraud, customer attrition, revenue loss, and other financially impactful challenges. For instance, in June 2022, Kaizen Analytix LLC, a US-based technology solutions firm, introduced the Anomaly Detection Engine, revolutionizing the identification of concealed insights within a company's data. This automated solution streamlines the process of sifting through diverse data sources, systematically scanning all segments of an organization's data to pinpoint and quantify anomalies. Its capabilities facilitate immediate issue identification, preserving value within the dataset. With applicability across various industries, the product effectively detects anomalies associated with procurement, margins, customer behavior, transit times, equipment downtime, and more.

In March 2022, Microsoft Corporation, a US-based technology firm, acquired Minit for an undisclosed sum. Following this acquisition, Microsoft intends to improve its cloud services by integrating advanced anomaly detection features into its existing platforms. Minit is a Netherlands-based software company that specializes in Process Mining Software.

Major companies operating in the anomaly detection market include SAS Institute Inc., Cisco Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise Company, Symantec Corporation, Trend Micro Incorporated, Splunk Inc., Wipro Limited, Securonix Inc., Gurucul Solutions LLC, Guardian Analytics Inc., Happiest Minds Technologies Pvt Ltd, International Business Machines Corporation, Verint Systems Inc., Anodot Ltd., Microsoft Corporation, Flowmon Networks a. s., LogRhythm Inc, Rapid7 Inc., Trustwave Holdings Inc., Varonis Systems Inc, WSO2 Inc., Datadog Inc., Darktrace Limited, Sumo Logic Inc., ExtraHop Networks Inc., McAfee Corp., Exabeam Inc., Vectra AI Inc., Fortinet Inc., Plixer International Inc., SolarWinds Worldwide LLC, Fair Isaac Corporation, RapidMiner Inc., TIBCO Software Inc., Veriato Inc., LogicMonitor Inc., Cybereason Inc., Uptycs Inc., Awake Security Inc., ThreatConnect Inc., New Relic Inc.

Anomaly detection, also known as outlier detection, involves identifying unexpected occurrences, observations, or objects that significantly deviate from the norm. Anomalies can manifest as standard deviations, outliers, noise, novelty, or exceptions within data.

The main components of anomaly detection include services and solutions. Anomaly detection solutions encompass a range of activities related to the development and sales of tools designed to identify and address anomalies within an organization. These solutions are software commonly utilized by firms managing large databases to ensure the smooth functioning of business operations. Anomaly detection can be deployed on cloud, on-premises, and hybrid models, leveraging technologies such as big data analytics, data mining, business intelligence, machine learning, and artificial intelligence. Various applications of anomaly detection include intrusion detection, fraud detection, defect detection, and system health monitoring. This technology finds applications across multiple industry verticals, including banking, financial services, and insurance (BFSI), retail, manufacturing, IT and telecom, government, aerospace, defense, healthcare, and others.

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North America was the largest region in the anomaly detection market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the anomaly detection market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the anomaly detection market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The anomaly detection market includes revenues earned by entities by providing detection techniques assisting the chaotic engineering monitoring effort by spotting outliers and alerting the appropriate parties to take action. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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