Global Artificial Intelligence based Security Market Size By Type (Network Security, Endpoint Security), By Application (Government, Defense), By Region, And Segment Forecasts, 2023 to 2032

The Global Artificial Intelligence (AI)-based Security Market was valued at USD 14.8 billion in 2023 and is projected to reach USD 45.3 billion by 2031, growing at a compound annual growth rate (CAGR) of 14.7% during the forecast period. This market growth is driven by the increasing adoption of AI technologies to combat evolving cyber threats, enhance security measures, and automate threat detection and response processes. With the proliferation of IoT devices, cloud computing, and connected ecosystems, AI-based security solutions have become indispensable for modern cybersecurity strategies.

Drivers:

Increasing Cyber Threats and Sophistication: The rise in complex cyberattacks, including ransomware and Advanced Persistent Threats (APTs), is driving the demand for AI-enabled security systems capable of detecting and mitigating threats in real-time.

Adoption of IoT and Connected Devices: The expanding IoT ecosystem necessitates robust and scalable AI-based solutions to secure connected devices and networks.

Growing Need for Automation in Security: AI-powered security solutions reduce response time and human intervention by automating threat analysis, prioritization, and mitigation.

Restraints:

High Implementation Costs: The deployment of advanced AI-based security systems involves significant costs, including infrastructure upgrades and skilled labor.

Data Privacy Concerns: AI systems require access to large datasets, which raises concerns about data security and compliance with privacy regulations like GDPR and CCPA.

Opportunities:

Emerging Markets and SMEs: Small and medium-sized enterprises (SMEs) in emerging markets present untapped potential for AI-based security solutions due to increasing digitization and cybersecurity awareness.

Advancements in AI and Machine Learning: The continuous evolution of AI and ML technologies offers opportunities to enhance the accuracy and efficiency of security systems, including predictive analytics and anomaly detection.

Market by System Type Insights:

The Threat Intelligence and Response Management segment emerged as the largest revenue contributor in 2023. This segment is expected to maintain its dominance owing to the growing adoption of AI for real-time threat detection and rapid response across industries.

Market by End-use Insights:

The Banking, Financial Services, and Insurance (BFSI) sector accounted for the largest market share in 2023. With the increasing frequency of cyberattacks targeting financial institutions, the BFSI sector continues to invest heavily in advanced AI-based security solutions.

Market by Regional Insights:

North America led the market in 2023, driven by the region's advanced technological infrastructure and the presence of key market players.

Asia-Pacific is expected to witness the highest growth rate during the forecast period due to rapid digitization, increasing cyber threats, and government initiatives to strengthen cybersecurity infrastructure in countries like India, China, and Japan.

Competitive Scenario:

Key players in the Global AI-based Security Market include IBM Corporation, Cisco Systems, Inc., Palo Alto Networks, Inc., Darktrace, Symantec Corporation (now part of Broadcom), Fortinet, Inc., and Check Point Software Technologies. These companies focus on developing advanced AI algorithms, expanding their product portfolios, and collaborating with organizations to strengthen their market presence.

Scope of Work – Global AI-based Security Market

Key Market Developments:

2023: IBM launched its AI-driven security orchestration platform to streamline incident response processes for enterprises.

2024: Palo Alto Networks introduced a predictive AI model to enhance threat intelligence capabilities.

2025: Cisco unveiled an AI-powered endpoint protection solution aimed at mitigating advanced cyber threats.

FAQs:

What is the current market size of the Global AI-based Security Market? The market was valued at USD 14.8 billion in 2023.

What is the major growth driver of the Global AI-based Security Market? Increasing sophistication of cyber threats and the need for automated threat detection are the primary growth drivers.

Which is the largest region during the forecast period in the Global AI-based Security Market? North America holds the largest market share, with Asia-Pacific expected to exhibit the highest growth rate.

Which segment accounted for the largest market share in the Global AI-based Security Market? The Threat Intelligence and Response Management segment dominated in 2023.

Who are the key market players in the Global AI-based Security Market? IBM, Cisco, Palo Alto Networks, Darktrace, and Fortinet are among the leading players.