On June 4-6, 2019, the National Information Technology and Networking Research and Development (NITRD) Program's Artificial Intelligence Research and Development (R&D) and Cyber Security and Information Assurance Interagency Working Groups (IWG), held a workshop to assess the research challenges and opportunities at the intersection of cybersecurity and artificial intelligence (AI). This document summarizes the workshop discussions.

As of 2023, about **** of the surveyed companies claim to take the steps of explaining how the artificial intelligence (AI) works, ensuring a human is involved in the process, and instituting an AI ethics management program to guarantee transparency and data security.

AI in Cybersecurity Market Outlook

The global AI in cybersecurity market size was valued at approximately USD 19.9 billion in 2023, and it is projected to reach around USD 82.3 billion by 2032, growing at a compound annual growth rate (CAGR) of 17.2% from 2024 to 2032. This remarkable growth is driven by the increasing sophistication of cyber-attacks and the consequent need for advanced cybersecurity solutions leveraging artificial intelligence (AI) to identify and mitigate threats proactively.

One of the key growth factors fueling this market is the expanding digital transformation across various industries. As organizations increasingly adopt digital tools and online platforms, the potential attack surface for cybercriminals expands, necessitating robust cybersecurity measures. AI-driven solutions offer unparalleled advantages, such as real-time threat detection, automated response mechanisms, and predictive analytics, which are essential in combating modern cyber threats. Furthermore, the rise in remote working trends post-COVID-19 has amplified the need for enhanced cybersecurity solutions to protect remote infrastructures and endpoints.

Another significant driver for the AI in cybersecurity market is the rapid advancements in machine learning (ML) and artificial intelligence technologies. These advancements enable the development of more sophisticated algorithms capable of analyzing vast amounts of data and recognizing patterns indicative of cyber threats. AI-powered systems can learn and evolve over time, continually improving their accuracy and efficiency in identifying and mitigating threats. This evolving capability is particularly crucial in an environment where cyber threats are becoming more complex and targeted.

The increasing regulatory requirements and compliance standards across various industries are also propelling the adoption of AI in cybersecurity. Governments and regulatory bodies worldwide are implementing stringent cybersecurity regulations to protect sensitive data and critical infrastructures. Compliance with these regulations often necessitates advanced security measures, driving organizations to invest in AI-driven cybersecurity solutions. Additionally, the growing awareness and understanding of the potential financial and reputational damage caused by cyber-attacks are motivating businesses to prioritize investments in advanced cybersecurity technologies.

The integration of AI in Defense and Security is becoming increasingly vital as nations strive to enhance their protective measures against evolving threats. AI technologies are being leveraged to improve surveillance, threat detection, and response capabilities, offering a strategic advantage in national defense. By analyzing vast amounts of data in real-time, AI systems can identify potential threats and anomalies that might be missed by traditional methods. This capability is crucial for maintaining national security and ensuring the safety of citizens. Furthermore, AI-driven solutions are being used to automate routine security tasks, allowing defense personnel to focus on more critical operations. As cyber threats become more sophisticated, the role of AI in defense and security is expected to grow, providing robust solutions to safeguard critical infrastructures and sensitive information.

Regionally, North America dominates the AI in cybersecurity market, attributed to the strong presence of major technology companies, high adoption rates of advanced technologies, and significant investments in cybersecurity infrastructure. The Asia Pacific region is expected to witness the highest growth rate during the forecast period, driven by the increasing digitalization, rising cyber threats, and growing investments in AI and cybersecurity by both public and private sectors. Europe follows closely, with stringent data protection regulations such as GDPR pushing organizations to adopt advanced cybersecurity solutions.

Component Analysis

The AI in cybersecurity market can be segmented by component into software, hardware, and services. The software segment holds the largest market share and is expected to continue its dominance throughout the forecast period. This includes various AI-driven security software solutions such as threat intelligence platforms, security information and event management (SIEM) systems, and endpoint detection and response (EDR) solutions. The increasing sophistication of cyber threats necessitates advanced software solutions capable

Data Security Posture Management AI Market Outlook

According to our latest research, the global Data Security Posture Management AI market size reached USD 1.98 billion in 2024 and is expected to grow at a robust CAGR of 24.7% from 2025 to 2033, reaching an estimated USD 15.3 billion by 2033. This remarkable growth is primarily fueled by the escalating sophistication of cyber threats, the proliferation of data across hybrid and multi-cloud environments, and the increasing regulatory mandates for data privacy and security worldwide. Organizations across industries are rapidly integrating AI-driven data security posture management (DSPM) solutions to proactively identify, assess, and mitigate data security risks, ensuring robust compliance and operational resilience.

The primary growth factor driving the Data Security Posture Management AI market is the exponential increase in data generation and storage across distributed IT architectures. As organizations embrace digital transformation, cloud adoption, and remote work models, sensitive data is dispersed across a wide array of endpoints, applications, and cloud services. This expansion of the attack surface necessitates advanced, AI-powered DSPM solutions capable of real-time risk assessment, automated threat detection, and intelligent policy enforcement. The integration of machine learning and natural language processing in DSPM tools enables organizations to continuously monitor data flows, detect anomalous behaviors, and prioritize remediation efforts, thereby reducing the likelihood of data breaches and minimizing reputational and financial losses.

Another significant growth driver is the evolving regulatory landscape, with stringent data privacy laws such as GDPR, CCPA, and other regional frameworks compelling enterprises to enhance their data security posture. Compliance requirements now demand continuous visibility into data access, movement, and usage, as well as timely reporting of security incidents. AI-powered DSPM platforms offer comprehensive audit trails, automated compliance reporting, and predictive analytics, empowering organizations to meet regulatory obligations efficiently and avoid hefty penalties. Additionally, the rising frequency and complexity of ransomware attacks, insider threats, and supply chain vulnerabilities have underscored the importance of adopting proactive and adaptive security measures, further accelerating market adoption.

Furthermore, the growing recognition of the business value of data as a strategic asset is prompting organizations to prioritize data-centric security strategies. Enterprises are increasingly aware that traditional perimeter-based defenses are insufficient in the face of sophisticated cyber adversaries and insider risks. AI-driven DSPM solutions provide granular visibility into data assets, enable dynamic risk scoring, and facilitate context-aware security policies tailored to specific business needs. This shift towards data-centric security not only enhances protection but also fosters a culture of data stewardship and trust among stakeholders, driving sustained investment in advanced DSPM technologies.

From a regional perspective, North America continues to dominate the Data Security Posture Management AI market, accounting for the largest revenue share in 2024, followed by Europe and Asia Pacific. The region’s leadership is attributed to the high concentration of technology-driven enterprises, early adoption of AI and cloud technologies, and stringent regulatory frameworks. However, Asia Pacific is poised for the fastest growth during the forecast period, driven by rapid digitalization, increasing cybersecurity awareness, and government initiatives to bolster data protection. Latin America and the Middle East & Africa are also witnessing steady adoption, albeit at a slower pace, as organizations in these regions ramp up investments in cybersecurity infrastructure to address emerging threats and regulatory requirements.

Component Analysis

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Snapshot img

Artificial Intelligence In Security Market Size 2024-2028

The artificial intelligence in security market size is forecast to increase by USD 25.47 billion at a CAGR of 34.73% between 2023 and 2028.

Artificial Intelligence (AI) is revolutionizing the security industry with its ability to analyze vast amounts of data and identify patterns that humans may miss. The market for AI in security is experiencing significant growth due to several key trends. Machine learning algorithms enable proactive threat detection and response, while natural language processing and context-aware computing enhance threat intelligence. First, there is a rapid increase In the use of mobile and other connected devices, leading to an exponential growth in data. This data requires advanced security measures to protect against cyber threats. Second, there is an increasing demand for cloud-based applications, which require strong security solutions to ensure data privacy and protection. However, the development of AI technologies also presents challenges. Technical difficulties, such as data privacy concerns and the need for large amounts of data to train AI models, can hinder market growth. Despite these challenges, the potential benefits of AI in security are significant, making it a promising area for innovation and investment.

What will be the Size of the Artificial Intelligence In Security Market During the Forecast Period?

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The artificial intelligence (AI) in security market is experiencing significant growth due to the increasing prevalence of cyber threats and the need for advanced security solutions. This market encompasses various sectors, including network security, application security, and cloud security. AI and machine learning (ML) technologies are increasingly being adopted for professional, managed, on-premises, and cloud-based security solutions. Government and defense sectors, as well as businesses, are investing in AI-driven security solutions to mitigate cyber dangers from cybercriminals, political rivalry, monetary gain, reputational harm, radical religious organizations, and other malicious actors. The market is witnessing a shift towards cloud-based products and services, as organizations seek to leverage AI for smart data utilization and automation trends in security solutions.
Digital transformation initiatives are also driving the adoption of AI in security, as businesses seek to modernize their security posture and stay ahead of evolving threats. Overall, the AI in security market is expected to continue growing, as organizations prioritize the protection of their networks, applications, and data from a diverse range of cyber threats.

How is this Artificial Intelligence In Security Industry segmented and which is the largest segment?

The artificial intelligence in security industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Deployment

  On-premise
  Cloud


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Deployment Insights

The on-premise segment is estimated to witness significant growth during the forecast period.

Artificial Intelligence (AI) is revolutionizing the security market, particularly in areas such as Network Security, Application Security, Cloud Security, and Threat Detection. AI-powered systems are increasingly being used to mitigate malicious activities, including cyberattacks, breaches, and vulnerabilities. AI is also transforming industries like Healthcare, Manufacturing, and the Automotive and Transportation sectors, securing electronic health records, medical imaging data, wearable device data, and cloud-based services. AI solutions provide advanced analytics, neural networks, and continuous monitoring to strengthen cybersecurity posture and protect against cyber dangers.

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The on-premise segment was valued at USD 2.75 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 32% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The AI in security market in North America is experiencing significant growth due to the increasing number of cyberattacks and the subsequent demand for advanced security solutions. Key industries, including retail, BFSI, manufacturing, and healthcare, are major contributors to this market

Dataset

This dataset was created by SaraAlhatem

Released under Apache 2.0

Contents

The size of the Artificial Intelligence (AI) in Cyber Security market was valued at USD 18750 million in 2024 and is projected to reach USD 96122.43 million by 2033, with an expected CAGR of 26.3% during the forecast period.

The global Artificial Intelligence (AI) in Cyber Security market is estimated to be valued at USD 94.06 billion in 2025 and is projected to grow at a CAGR of 25.7% from 2025 to 2033. The increasing adoption of AI-powered security solutions by organizations across various industries to enhance their cybersecurity posture is driving market growth. AI technologies such as machine learning and natural language processing enable advanced threat detection, automated response, and improved situational awareness, making them indispensable tools for organizations facing sophisticated cyberattacks. Key market trends include the growing demand for AI-based security solutions in the BFSI, government, and healthcare sectors, the rise of managed security services, and the increasing adoption of AI in cloud security and 5G network security. The market is dominated by established players such as BAE Systems, Cisco, Fortinet, FireEye, Check Point, IBM, RSA Security, Symantec, Juniper Network, and Palo Alto Networks. However, new entrants are emerging with innovative AI-based security offerings, fostering competition and driving market growth. Furthermore, the increasing government regulations and compliance mandates related to cybersecurity are expected to further fuel market demand over the forecast period. Size and Growth: The global Artificial Intelligence (AI) in Cyber Security market is valued at USD 20 billion in 2023 and is projected to reach USD 60 billion by 2028, exhibiting a CAGR of 20% during the forecast period.

The AI for Security market is booming, projected to reach $100 billion by 2033, driven by increasing cyber threats and the adoption of cloud computing and IoT. Learn about market trends, key players (Amazon, Google, IBM, etc.), and growth opportunities in this comprehensive analysis.

Global Artificial Intelligence (AI) in Cyber Security Market size valued at $23.21 Bn in 2023, set to reach $136.90 Bn by 2032, at CAGR of 21.8% from 2024-2032.

AI Security Market Outlook

According to our latest research, the AI Security market size achieved a noteworthy valuation of USD 20.4 billion globally in 2024. The market is set to expand at a robust CAGR of 22.7% during the forecast period, with projections indicating it will reach approximately USD 156.3 billion by 2033. This remarkable growth is driven by the increasing sophistication of cyber threats and the urgent need for advanced, adaptive security solutions that can keep pace with evolving attack vectors. The integration of artificial intelligence into security frameworks is revolutionizing the way organizations detect, prevent, and respond to cyber incidents, making AI security a pivotal component of modern digital infrastructure.

One of the primary growth factors fueling the AI Security market is the exponential rise in cyberattacks, data breaches, and ransomware incidents targeting organizations across all sectors. As digital transformation accelerates and businesses migrate operations to the cloud, traditional security measures are proving inadequate against sophisticated adversaries leveraging AI-driven attack techniques. AI-powered security solutions offer real-time threat detection, automated response, and predictive analytics, enabling organizations to proactively address vulnerabilities and minimize risk. The ability of AI to process vast datasets, identify patterns, and adapt to new threats makes it indispensable in the current cyber landscape, driving widespread adoption in both the private and public sectors.

Another significant driver is the increasing regulatory pressure and compliance requirements imposed by governments and industry bodies worldwide. Regulations such as GDPR in Europe, CCPA in California, and various national cybersecurity frameworks demand stringent data protection and incident response protocols. AI security solutions facilitate compliance by automating monitoring, reporting, and risk assessment processes, thereby reducing the burden on IT teams and ensuring continuous adherence to evolving standards. Furthermore, the integration of AI in security operations centers (SOCs) enhances the efficiency and effectiveness of security analysts, allowing organizations to maintain robust security postures amid growing regulatory complexity.

The widespread adoption of Internet of Things (IoT) devices, cloud computing, and remote work models has dramatically expanded the attack surface for enterprises, further accelerating the demand for AI Security solutions. Organizations are increasingly investing in AI-driven network security, endpoint protection, and identity management to safeguard distributed environments and prevent unauthorized access. The convergence of AI with machine learning, big data analytics, and automation is enabling the development of adaptive security architectures that can dynamically respond to emerging threats. This trend is particularly pronounced in sectors such as BFSI, healthcare, and government, where the cost of a security breach can be catastrophic.

From a regional perspective, North America continues to dominate the AI Security market due to its mature technology ecosystem, significant cybersecurity investments, and the presence of leading AI security vendors. However, the Asia Pacific region is witnessing the fastest growth, driven by rapid digitalization, rising cybercrime, and government initiatives to enhance national cybersecurity infrastructure. Europe remains a key market, propelled by stringent data protection regulations and strong demand from the financial and healthcare sectors. Meanwhile, Latin America and the Middle East & Africa are gradually increasing their adoption of AI security solutions, albeit at a slower pace, as awareness and infrastructure maturity improve.

Component Analysis

The Component segment of the AI Security market is categorized into software, hardware, and services, each playing a pivotal role in shaping the overall landscape. &l

The Global Artificial Intelligence (AI) in Cyber Security Market is projected to grow at a CAGR of around 22.60% during 2022-2027, says MarkNtel Advisors.

The AI Cybersecurity Solutions Market Report is Segmented by Offering (Solutions and Services), Deployment Mode (On-Premise and Cloud), Organization Size (Large Enterprises and Small and Medium-Sized Enterprises), End-User Industry (BFSI, IT and Telecom, Healthcare, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

According to a 2023 survey of cybersecurity professionals, nearly ** percent of respondents worldwide considered improved threat detection as the most significant benefit of incorporating artificial intelligence into their cybersecurity operations. Improved vulnerability management ranked second, according to ** percent of respondents. Overall, over one-third of respondents saw the automation applications of AI as a way to ease talent shortage issues in cybersecurity operations. Generative AI is everywhere As a phenomenon that has taken the internet by storm, generative AI is increasingly being tested for business functions, including cybersecurity. Generative AI-powered solutions can search through vast amounts of data to identify abnormal behavior and detect malicious activity. Consequently, CEOs and IT professionals alike expect generative AI to be increasingly used to bolster cybersecurity, offering greater speed, accuracy, and cost-effectiveness. The other side of the coin Despite the security benefits of generative AI, there is the other side of the coin to account for, as the same advantages can also benefit hostile actors’ capabilities, such as phishing, malware development, and deepfakes. Looking forward, companies will have to adapt and stay up to speed so that generative AI does not end providing overall cyber advantage to attackers.

The AI in Security market is experiencing robust growth, projected to reach $25.22 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 19.02% from 2025 to 2033. This expansion is fueled by the increasing sophistication of cyber threats, the rising adoption of cloud computing and digital transformation initiatives across various industries, and the inherent ability of AI to analyze vast datasets and identify anomalies indicative of security breaches far quicker than traditional methods. The market's segmentation reflects the diverse applications of AI in security, with Network Security, Application Security, and Cloud Security commanding significant shares, driven by the need for comprehensive protection across various IT infrastructures. Professional and Managed Services further contribute to market growth, as organizations increasingly outsource security management to specialized providers leveraging AI capabilities. The strongest regional demand is currently witnessed in North America, followed by Europe and Asia Pacific, reflecting the high concentration of technology-driven businesses and advanced cybersecurity infrastructure in these regions. However, significant growth potential also exists in other regions as digitalization accelerates globally. Growth within specific end-user industries like BFSI (Banking, Financial Services, and Insurance), Government & Defense, and Healthcare, is particularly pronounced, driven by stringent regulatory compliance and the immense value of protecting sensitive data. The projected market size for 2033 can be estimated by applying the CAGR. While the exact historical data (2019-2024) isn't provided, assuming a consistent growth pattern, applying a 19.02% CAGR to the 2025 market size allows for projections extending into 2033. This would reveal a significant market expansion, driven by factors such as the ongoing development of more sophisticated AI algorithms, improved integration with existing security systems, and the growing awareness of AI’s potential to proactively address threats. Different segments and regions will naturally experience variations in growth rates, reflecting specific market dynamics and adoption patterns. For example, Cloud Security is expected to grow more rapidly than On-premise solutions as cloud adoption continues its upward trajectory. Similarly, the Asia-Pacific region is predicted to experience faster growth than North America due to its rapidly expanding digital economy. Recent developments include: May 2024: Palo Alto Networks introduced new security solutions to help enterprises thwart AI-generated attacks and effectively secure AI by design. Leveraging Precision AI, the new proprietary innovation that combines the best of machine learning (ML) and deep learning (DL) with the accessibility of generative AI (GenAI) in real time, the international cybersecurity player is expected to deliver AI-powered security that can outpace adversaries and more proactively protect networks and infrastructure., April 2024: G42, the UAE-based artificial intelligence (AI) technology holding company, and Microsoft Corp. announced a USD 1.5 billion strategic investment by Microsoft in G42. The investment will strengthen the two companies' collaboration on bringing the latest Microsoft AI technologies and skilling initiatives to the UAE and other countries worldwide. This expanded collaboration will empower organizations of all sizes in new markets to Microsoft's benefits of AI and the cloud while ensuring they adopt AI that adheres to world-leading standards and security.. Key drivers for this market are: Increasing Number of Security Frauds and Technology Penetration, Increasing Number of Malware Attacks (Ransomware) Across Cloud Computing Ecosystem. Potential restraints include: Lack of Skilled AI Professionals. Notable trends are: The Healthcare Sector is Significantly Driving Market Growth.

In a July 2022 survey on cyber security conducted at companies across Asia, around ** percent of companies used artificial intelligence and machine learning to analyze collected data. In contrast, ** percent of the surveyed companies stated not to use AI or ML for cyber security measures at their company.

The global data security market, valued at $28.88 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 18.78% from 2025 to 2033. This significant expansion is driven by several key factors. The increasing sophistication and frequency of cyberattacks targeting businesses and individuals necessitate robust security measures. The rising adoption of cloud computing and the Internet of Things (IoT) expands the attack surface, further fueling demand for advanced data security solutions. Furthermore, stringent government regulations regarding data privacy, such as GDPR and CCPA, compel organizations to invest heavily in compliance-driven security infrastructure. Leading players like IBM, Cisco, Microsoft, and others are actively innovating and expanding their product portfolios to cater to this escalating demand, resulting in a highly competitive yet dynamic market landscape. The market's growth trajectory is further influenced by evolving threat landscapes. Advanced persistent threats (APTs), ransomware attacks, and data breaches are becoming increasingly complex and challenging to mitigate. This necessitates continuous investment in advanced security technologies like artificial intelligence (AI) and machine learning (ML) for threat detection and response. While the market faces restraints such as the high cost of implementation and the shortage of skilled cybersecurity professionals, the overall growth prospects remain exceptionally positive, driven by the fundamental need to safeguard sensitive data in an increasingly interconnected world. Market segmentation, while not explicitly provided, likely includes solutions categorized by type (endpoint security, cloud security, network security, data loss prevention), deployment model (on-premise, cloud-based), and industry vertical (finance, healthcare, government). The forecast period of 2025-2033 indicates significant future market expansion based on current growth trends. Recent developments include: July 2022 - Trellix has achieved Amazon Web Services (AWS) Security Competency status in the Data security and protection category by developing a solution that identifies and responds to millions of malicious objects and URLs daily. This designation honors Trellix's extensive technical expertise and proven success in assisting customers in enhancing their security, especially in the cloud sector., June 2022 - Comforte AG, an enterprise data security provider, and M² Business Consulting GmbH have launched a new relationship to help large enterprises in the DACH region adapt to new and emerging IT more rapidly and securely. This partnership enables digital innovation in organizations looking to apply data analytics securely and adopt data privacy standards to protect crucial data, thus ensuring growth in the data security market.. Key drivers for this market are: Rise in Digitization Trends and Digital Data Production, Increase in Data Security Technologies. Potential restraints include: Rise in Digitization Trends and Digital Data Production, Increase in Data Security Technologies. Notable trends are: Data Security Technologies As the Greatest Asset.

Synthetic Data for Security AI Market Outlook

According to our latest research, the global synthetic data for security AI market size reached USD 1.32 billion in 2024, demonstrating robust momentum driven by the escalating demand for advanced cybersecurity solutions. The market is expected to grow at a CAGR of 36.5% from 2025 to 2033, reaching a forecasted market size of USD 21.08 billion by 2033. This rapid expansion is primarily fueled by the increasing sophistication of cyber threats, the urgent need for privacy-preserving data, and the widespread adoption of artificial intelligence in security operations. As enterprises across diverse sectors recognize the value of synthetic data in enhancing AI-driven security frameworks, the market is poised for sustained growth throughout the forecast period.

The primary growth factor propelling the synthetic data for security AI market is the rising complexity and volume of cyberattacks targeting critical infrastructure and sensitive data assets. Organizations are under mounting pressure to fortify their security postures while complying with stringent data privacy regulations such as GDPR and CCPA. Synthetic data, which is artificially generated and mimics real-world data without exposing actual sensitive information, has emerged as a crucial enabler for training and testing AI security models safely and effectively. This approach allows security teams to simulate a wide range of threat scenarios, helping them proactively identify vulnerabilities and improve incident response capabilities without risking data breaches or privacy violations. The integration of synthetic data into security AI workflows is thus becoming a best practice among leading enterprises and government agencies.

Another significant driver is the increasing adoption of AI and machine learning technologies across industries such as BFSI, healthcare, government, and telecommunications. As these sectors digitize their operations and store more data in cloud environments, the attack surface for malicious actors expands considerably. Synthetic data provides a scalable, cost-effective solution for generating diverse datasets required to train robust AI security systems capable of detecting fraud, preventing intrusions, and managing access controls. Furthermore, synthetic data helps organizations overcome challenges related to data scarcity and imbalance, which are common hurdles in developing effective AI security models. The ability to generate large volumes of high-quality, representative data accelerates the deployment of AI-driven security tools, enhancing their accuracy and adaptability in real-world conditions.

The market is also benefiting from advancements in synthetic data generation technologies and increased collaboration between cybersecurity vendors, AI specialists, and regulatory bodies. Innovations in generative adversarial networks (GANs), data augmentation techniques, and privacy-enhancing technologies are making it easier to create synthetic datasets that closely resemble real-world data while maintaining strict compliance with data protection laws. Partnerships between technology providers and industry stakeholders are fostering the development of standardized frameworks and best practices for synthetic data usage in security AI applications. These collaborative efforts are not only expanding the market’s reach but also building trust among end-users regarding the efficacy and safety of synthetic data-driven security solutions.

From a regional perspective, North America continues to dominate the synthetic data for security AI market, accounting for the largest share in 2024 due to its mature cybersecurity ecosystem, high investment in AI research, and proactive regulatory environment. Europe follows closely, driven by its rigorous data privacy mandates and increasing focus on digital transformation in public and private sectors. The Asia Pacific region is emerging as a high-growth market, propelled by rapid digitalization, rising cybercrime rates, and growing awareness of advanced security technologies among enterprises. Latin America and the Middle East & Africa, while currently representing smaller market shares, are expected to witness accelerated adoption as digital infrastructure and cybersecurity frameworks mature over the forecast period.

Component Analysis

The component segment of the synthetic data for security AI market is bifurcated into software and services, each

Snapshot img

Artificial Intelligence-Based Cybersecurity Market Size 2024-2028

The artificial intelligence-based cybersecurity market size is forecast to increase by USD 58.22 billion at a CAGR of 31.89% between 2023 and 2028.

The market is experiencing vital growth, driven by several key factors. A significant contributor is the rapid proliferation of mobile and connected devices, which has created an expansive attack surface for cyber threats. Moreover, stringent regulatory compliance requirements are compelling organizations to invest in advanced cybersecurity solutions powered by artificial intelligence (AI) to protect sensitive data and ensure regulatory adherence.
Rising demand for cloud-based applications highlights the need for AI-driven cybersecurity solutions to protect cloud environments from advanced cyberattacks. This market trends and analysis report explores key drivers, trends, and challenges, along with a market forecast supported by historical data from 2018 to 2022.

Artificial Intelligence-Based Cybersecurity Market Analysis

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How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  BFSI
  Government
  ICT
  Healthcare
  Others


Deployment

  Cloud
  On-premises


Geography

  APAC

    China
    Japan


  North America

    US


  Europe

    Germany
    UK


  South America



  Middle East and Africa

By End-user Insights

The BFSI segment is estimated to witness significant growth during the forecast period.In the financial services sector, safeguarding customer data is of utmost importance. With the rise of digital transactions, the risk of cyberattacks has grown significantly. To mitigate these threats, BFSI companies are turning to Artificial Intelligence (AI) technology for advanced cybersecurity solutions. AI-based systems can effectively identify and respond to potential threats in real-time, enhancing the overall security of company assets, which include both physical data and electronic devices. The Internet of Things (IoT) and IT systems in the BFSI sector generate vast amounts of data through data communication and interchange. AI solutions, such as Machine Learning (ML) and Deep Learning (DL), can analyze this data to detect anomalies and potential threats, ensuring the security of digital assets.

Endpoint solutions, which use AI to secure individual devices, are also gaining popularity in the sector. Regulations like the Sarbanes-Oxley Act of 2002 mandate financial organizations to implement cybersecurity measures to prevent data breaches. AI-based cybersecurity solutions are becoming essential for compliance, as they can provide real-time threat detection and response. Furthermore, the adoption of industrial communication protocols like MTConnect, EtherCAT, and MDIS in the BFSI sector necessitates advanced cybersecurity solutions to secure data interchange between systems. In conclusion, the BFSI sector's increasing reliance on digital transactions and data interchange necessitates advanced cybersecurity measures. AI-based cybersecurity solutions offer real-time threat detection and response, ensuring the confidentiality and integrity of customer data. Regulatory compliance and the need for secure data interchange further highlight the importance of investing in these solutions.

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The BFSI segment was valued at USD 3.15 billion in 2018 and showed a gradual increase during the forecast period.

Will APAC become the largest contributor to the Artificial Intelligence-Based Cybersecurity Market?-

APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market for cybersecurity solutions utilizing Artificial Intelligence (AI) and Machine Learning (ML) in the Asia Pacific (APAC) region is projected to expand at a significant pace. This growth can be attributed to the burgeoning IT sector, particularly in countries such as China, Japan, and South Korea. In China, the increasing number of startups, supportive government initiatives, and expansion of the government and financial services sector (BFSI) are driving the adoption of AI-based cybersecurity solutions. With a population of nearly 1.4 billion people, China represents a vast market for AI cybersecurity providers. Japan and South Korea also contribute significantly to the market due to their advanced IT infrastructure and emphasis on security.

M

On-Device AI Security Chip Market Outlook

According to our latest research, the global On-Device AI Security Chip market size reached USD 5.42 billion in 2024, driven by the rapid integration of artificial intelligence into edge devices and a mounting emphasis on data privacy. The market is experiencing robust momentum, with a compound annual growth rate (CAGR) of 18.7% projected from 2025 to 2033. By the end of 2033, the On-Device AI Security Chip market is forecasted to attain USD 27.2 billion, reflecting a transformative shift in how security is embedded directly within AI-enabled hardware. Growth is primarily fueled by escalating security threats, regulatory mandates for data protection, and the proliferation of connected devices across consumer and industrial sectors.

Several core factors are contributing to the accelerated growth of the On-Device AI Security Chip market. First and foremost, the exponential rise in smart devices—ranging from smartphones and wearables to IoT endpoints—has intensified the demand for robust, real-time security solutions that do not compromise performance or user experience. On-device AI security chips enable localized data processing, ensuring sensitive information remains within the device, thereby reducing vulnerabilities associated with cloud-based architectures. This approach not only enhances privacy but also minimizes latency, making it highly desirable for applications where instantaneous decision-making is critical, such as autonomous vehicles and health monitoring systems.

Another significant growth driver is the evolution of regulatory frameworks and industry standards related to data privacy and cybersecurity. Governments and international bodies are increasingly mandating that manufacturers implement advanced security mechanisms to protect user data against sophisticated cyber threats. On-device AI security chips, with capabilities such as encryption, secure boot, and biometric authentication, have become essential components in meeting these stringent requirements. Furthermore, the adoption of AI-driven security measures is expanding beyond traditional consumer electronics into sectors like automotive, industrial automation, and healthcare, where the stakes for data breaches are even higher.

The ongoing technological advancements in chip design and manufacturing are also propelling market expansion. Innovations in chip architectures—such as the integration of AI accelerators within system-on-chips (SoCs) and the development of application-specific integrated circuits (ASICs) tailored for security—are enabling more efficient and powerful on-device AI security solutions. The convergence of AI and hardware security is fostering a new generation of chips that can not only detect and mitigate threats in real time but also adapt to emerging attack vectors through machine learning. This technological synergy is attracting significant investments from both established semiconductor giants and innovative startups, further catalyzing market growth.

Regionally, Asia Pacific is emerging as the frontrunner in the On-Device AI Security Chip market, owing to its large manufacturing base, rapid digitalization, and government-led initiatives supporting AI and IoT adoption. North America and Europe follow closely, driven by early technology adoption and strong regulatory oversight. Meanwhile, Latin America and the Middle East & Africa are witnessing growing interest, particularly in sectors like smart cities and connected infrastructure. The global competitive landscape is marked by strategic alliances, mergers, and acquisitions, as companies vie for technological leadership in this rapidly evolving market.

Chip Type Analysis

The On-Device AI Security Chip market is segmented by chip type into ASIC, FPGA, SoC, GPU, and others, each contributing uniquely to the overall ecosystem. Application-Specific Integrated Circuits (ASICs) are increasingly favored for their efficiency and tailored security functionalities. ASICs offer high performance and low power consu