Artificial Intelligence in Security Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

AI In Security Market Analysis

The AI In Security Market size is estimated at USD 25.22 billion in 2024, and is expected to reach USD 60.24 billion by 2029, growing at a CAGR of 19.02% during the forecast period (2024-2029).

Artificial intelligence plays a crucial role in the security market by enhancing threat detection, automating responses to cyberattacks, analyzing vast amounts of data for anomalies, and improving overall cybersecurity posture. AI-powered systems can identify patterns indicative of malicious activities, adapt to evolving threats, and provide real-time insights to security professionals, helping them stay ahead of potential breaches.

• With the rise in connected enterprises, devices, and applications, businesses are becoming more vulnerable as they are connected to a mass of independent endpoints. Therefore, AI in security provides an enticing proposition with its proactive threat mitigation capabilities, which are needed for constant supervision and adaptation to the multifaceted security vulnerabilities faced by the modern digitalized economy.
• Atos and Ooredoo partnered to provide key cybersecurity threat detection and response services to Qatar Smart Program "TASMU," which is a smart city program in the country driven by the Ministry of Transport and Communication (MOTC). It also supports Qatar National Vision 2030. Atos and Ooredoo's solution integrates cloud-native, intelligent security analytics and AI capability from the Atos Alsaac platform to secure TASMU's infrastructure and applications.
• The number of cyberattacks is steadily increasing on a global scale. Cybercriminals attack endpoints, networks, data, and other IT resources. Infrastructure is costly for citizens, companies, and governments. Cybercriminals' primary motivations are political rivalry, monetary gain, reputational harm, global competitiveness, and the interest of radical religious organizations. The majority of cyberattacks try to make money. WannaCry, Petya, NotPetya, and BadRabbit are significant ransomware that have severely harmed businesses and government organizations.
• Implementing machine learning with AI enables threats and malware to be proactively prevented rather than only detected. This is expected to help create a vast market opportunity for artificial intelligence in the security market during the forecast period.
• About 97% of Indian organizations have begun investing in AI/ML, while 84% are investing in infrastructure around cloud technology, according to the Data Security Council of India. The intersection of AI with cybersecurity is poised to drive a significant increase in investments in the sector. Also, the nation expects a few investment opportunities in AI and cyber security governance areas. Dallas Venture Capital (DVC) claimed that AI technologies, such as machine learning (ML) and behavioral analytics, are game changers in cybersecurity.
• The rising frequency and sophistication of cyber threats have made traditional security measures insufficient. AI offers advanced capabilities to detect and respond to evolving threats in real time. For instance, South Korea's ICT ministry spent KRW 670 billion (USD 607 million) in 2023 to bolster the country's cybersecurity capabilities to respond to growing new digital threats. The government plans to develop infrastructure to quickly respond to cybersecurity threats by collaborating with central cloud and data center companies to collect threat information in real time, compared to the current system that relies on individual reports.
• The need for more skilled AI professionals and the lack of awareness are expected to restrain the market during the forecast period. According to a report by IBM Security, artificial intelligence (AI), when fully deployed, provided the most significant cost mitigation, up to USD 3.05 million less, at organizations with AI than organizations without AI. The average cost of a data breach increased by 2.6% from USD 4.24 million in 2021 to USD 4.35 million in 2022.
• The Russia-Ukraine war significantly impacted the AI security market. Increased tensions led to heightened cybersecurity concerns, prompting governments and businesses to invest more in AI-driven security solutions to protect against cyber threats, including espionage and hacking attacks. Additionally, geopolitical instability could disrupt supply chains for AI hardware and software components, affecting the availability and pricing of AI security products.

AI In Security Market Trends

The Healthcare Sector is Significantly Driving Market Growth

AI In Security Industry Segmentation

AI for security solutions involves integrating endpoint data and analytics to gain threat intelligence, which aids in detecting and exposing an attack in a particular environment. With the growth in online transactions and a surge in NEFT, RTGS, and mobile commerce, the demand for security solutions is increasing. The banking sector noticed a significant rise in adopting artificial intelligence-based security solutions, which helped improve banking services. 

The market is segmented by security type (network security, application security, and cloud security), service (professional and managed), deployment (on-premises and cloud), end-user industry (government and defense, retail, BFSI, manufacturing, healthcare, automotive and transportation, and other end-user industries), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.