Security Analytics Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and 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 security analytics market size has grown rapidly in recent years. It will grow from $17 billion in 2024 to $19.74 billion in 2025 at a compound annual growth rate (CAGR) of 16.1%. The growth in the historic period can be attributed to increasing cyber threats, regulatory compliance requirements, big data and iot growth, data breaches and incidents, skills gap in cybersecurity, and cloud adoption.

The security analytics market size is expected to see rapid growth in the next few years. It will grow to $35.8 billion in 2029 at a compound annual growth rate (CAGR) of 16.1%. The growth in the forecast period can be attributed to ai and machine learning advancements, zero trust architecture adoption, extended detection and response (XDR), 5G and IoT security challenges, and cloud security challenges. Major trends in the forecast period include ai and machine learning integration, behavioral analytics, cloud security analytics, and zero trust security market.

The rising demand for cloud-based solutions is expected to drive the growth of the security analytics market. Cloud-based solutions, which involve hosting and delivering services, applications, or resources over the Internet rather than on local servers, are gaining popularity due to their scalability, flexibility, and cost-effectiveness. Security analytics, which requires processing large data volumes from various sources, benefits from the scalability that cloud solutions provide, allowing organizations to adjust resources based on demand without the limitations of on-premises infrastructure. For example, in April 2024, Eurostat, a Luxembourg-based government agency, reported that 42.5% of enterprises in the EU used cloud computing services in 2023, primarily for email, file storage, and office software - a 4.2 percentage point increase from 2021. Consequently, the increasing demand for cloud-based solutions is driving the expansion of the security analytics market.

Major companies operating in the security analytics market are innovating new technological platforms, such as next-gen XDR and AI capabilities platforms, to gain profitability in the market. The platform's XDR capabilities include the widest range of native security sensors to provide thorough security protection at different tiers, such as network, server, cloud, and IoT. For instance, in June 2023, Trend Micro Inc., a Japan-based IT security company, launched Trend Vision One, a next-gen XDR (extended detection and response) and AI (artificial intelligence) capabilities platform. It provides companion AI and generative AI driven by AI to enhance security operations, increase efficiency, and quicken threat detection, response, and cyber risk management. With its cutting-edge capabilities, the platform is intended to offer a unified and integrated approach to threat detection, investigation, and response, revolutionizing cyber resilience.

In November 2022, Splunk, a US-based software company, acquired TwinWave Security LLC for an undisclosed amount. With this acquisition, Splunk aimed to bolster its position in the security analytics market and provide security analysts with automated threat analysis that is cloud-native. Through the acquisition, Splunk's security leadership was strengthened, and vital new capabilities were added to help better assess and address security threats. TwinWave Security LLC is a US-based threat analysis company that offers security analytics services.

Major companies operating in the security analytics market are The International Business Machines Corporation, Cisco Systems Inc., Palo Alto Networks Inc., Fortinet, Akamai Technologies, Nortonlock life, F5 Networks Inc., Micro Focus International PLC, Check Point Software Technologies, CrowdStrike, FireEye, RSA Security, Rapid7, Forcepoint, Darktrace, SentinelOne, LogRhythm, Trustwave, Alert Logic Inc., Exabeam, CyberArk, Arbor Networks Inc., Securonix, Splunk, Darktrace Limited.

North America was the largest region in the security analytics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the security analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the security analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The security analytics market includes revenues earned by entities by providing services such as log management and analysis, behavioral analytics, threat intelligence, network traffic analysis, vulnerability management, and incident response and forensics security analytics. 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).

Security analytics refers to a method of analyzing various data sources within an organization's IT infrastructure to help identify and address risks to cyber security. It is used to help organizations proactively detect, respond to, and mitigate cyber security threats, improving their overall security stance and lowering the possibility of cyberattacks and data breaches.

The main components of security analytics are platform, service, and professional services. A platform refers to a comprehensive and integrated software solution that provides various capabilities for detecting, analyzing, and responding to cyber security threats, its applications include web security analytics, network security analytics, endpoint security analytics, application security analytics, and others, and it used in banking, financial services, and insurance (BFSI), retail and e-commerce, media and entertainment, travel and hospitality, telecom and information technology, healthcare, and others verticals.

The main components of security analytics are platform, service, and professional services. A platform refers to a comprehensive and integrated software solution that provides various capabilities for detecting, analyzing, and responding to cyber security threats, its applications include web security analytics, network security analytics, endpoint security analytics, application security analytics, and others, and it used in banking, financial services, and insurance (BFSI), retail and e-commerce, media and entertainment, travel and hospitality, telecom and information technology, healthcare, and others verticals.

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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