AI in Cybersecurity Global Market Opportunities and Strategies to 2033

This report describes and explains the AI in cybersecurity market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global AI in cybersecurity market reached a value of nearly $20 billion in 2023, having grown at a compound annual growth rate (CAGR) of 25.6% since 2018. The market is expected to grow from $20 billion in 2023 to $64 billion in 2028 at a rate of 26.2%. The market is then expected to grow at a CAGR of 27.2% from 2028 and reach $213.2 billion in 2033.

Growth in the historic period resulted from the rising adoption of cloud-based solutions, increase in cyberattacks and rising investments in artificial intelligence (AI) by governments. Factors that negatively affected growth in the historic period were limited availability of skilled personnel and technical expertise.

Going forward, increasing number of mobile phone users, increasing use of internet of things (IoT) devices, rising deployment of 5g networks, rapidly growing volume of data and rising demand for connected cars will drive the growth. Factor that could hinder the growth of the AI in cybersecurity market in the future include growing concerns about data security.

The AI in cybersecurity market is segmented by offering into hardware, software and services. The software market was the largest segment of the AI in cybersecurity market segmented by offering, accounting for 58.6% or $11.7 billion of the total in 2023. Going forward, the services segment is expected to be the fastest growing segment in the AI in cybersecurity market segmented by offering, at a CAGR of 31.2% during 2023-2028.

The AI in cybersecurity market is segmented by application into antivirus or antimalware, data loss prevention, fraud detection or anti-fraud, identity and access management, intrusion detection or prevention system, risk and compliance management, security and vulnerability management and other applications. The fraud detection or anti-fraud market was the largest segment of the AI in cybersecurity market segmented by application, accounting for 23.3% or $4.7 billion of the total in 2023. Going forward, the risk and compliance management segment is expected to be the fastest growing segment in the AI in cybersecurity market segmented by application, at a CAGR of 32.3% during 2023-2028.

The AI in cybersecurity market is segmented by end-user into end users into banking, financial services and insurance (BFSI), enterprise, retail, government and defense, manufacturing, healthcare, automotive and transportation and other end users. The enterprise market was the largest segment of the AI in cybersecurity market segmented by end-user, accounting for 22.9% or $4.6 billion of the total in 2023. Going forward, the retail segment is expected to be the fastest growing segment in the AI in cybersecurity market segmented by end-user, at a CAGR of 34.7% during 2023-2028.

The AI in cybersecurity market is segmented by deployment mode into cloud and on-premise. The cloud market was the largest segment of the AI in cybersecurity market segmented by deployment mode, accounting for 66.1% or $13.2 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the AI in cybersecurity market segmented by deployment mode, at a CAGR of 26.6% during 2023-2028.

The AI in cybersecurity market is segmented by technology into machine learning, natural language processing (NLP) and context aware computing. The machine learning market was the largest segment of the AI in cybersecurity market segmented by technology, accounting for 64.3% or $12.8 billion of the total in 2023. Going forward, the natural language processing (NLP) segment is expected to be the fastest growing segment in the AI in cybersecurity market segmented by technology, at a CAGR of 29.4% during 2023-2028.

North America was the largest region in the AI in cybersecurity market, accounting for 37.6% or $7.5 billion of the total in 2023. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the AI in cybersecurity market will be Asia Pacific and Eastern Europe where growth will be at CAGRs of 28.2% and 26% respectively. These will be followed by North America and Western Europe where the markets are expected to grow at CAGRs of 26% and 25.5% respectively.

The global AI in cybersecurity market is concentrated, with a few large players operating in the market. The top ten competitors in the market made up to 40.8% of the total market in 2022. The market concentration can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. Palo Alto Networks Inc. was the largest competitor with a 8.7% share of the market, followed by Fortinet Inc. with 7.4%, Check Point Software with 5.1%, CrowdStrike Holdings Inc. with 4.9%, Cisco Systems Inc. with 4.8%, Darktrace PLC with 3.4%, Microsoft Corporation with 2.5%, SAP SE with 1.9%, SentinelOne with 1.2% and Vectra AI with 0.8%.

The top opportunities in the AI in cybersecurity market segmented by offering will arise in the software segment, which will gain $26.1 billion of global annual sales by 2028. The top opportunities in the AI in cybersecurity market segmented by application will arise in the fraud detection or anti-fraud segment, which will gain $10.5 billion of global annual sales by 2028. The top opportunities in the AI in cybersecurity market segmented by end-user will arise in the retail segment, which will gain $11.6 billion of global annual sales by 2028. The top opportunities in the AI in cybersecurity market segmented by technology will arise in the machine learning segment, which will gain $27.8 million of global annual sales by 2028. The top opportunities in the AI in cybersecurity market segmented by deployment method will arise in the cloud segment, which will gain $29.7 billion of global annual sales by 2028. The AI in cybersecurity market size will gain the most in the USA at $14.4 billion.

Market-trend-based strategies for the AI in cybersecurity market include increasing development of ai-driven cybersecurity platforms to automate complex security processes, innovative AI solutions revolutionize the cybersecurity landscape, focus on AI-powered assistants for cybersecurity professionals, transforming cybersecurity operations with AI-based threat detection and response services and technological advancements to drive innovation in cybersecurity solutions.

Player-adopted strategies in the AI in cybersecurity market include strengthening business through strategic acquisition, expanding business through new product developments and focus on strategic partnership and collaboration to expand business and develop the business expertise.

To take advantage of the opportunities, the analyst recommends AI in cybersecurity companies to focus on developing ai-driven cybersecurity platforms, focus on launching innovative ai-based cybersecurity solutions, focus on developing ai-powered cybersecurity assistants, focus on ai-based threat detection and response services, focus on technological advancements for innovative solutions, focus on machine learning and natural language processing (NLP) segments, focus on cloud deployment segment for growth, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions, focus on fraud detection and risk & compliance management application segments and focus on retail and banking, financial services and insurance (BFSI) segments.