The accelerating digitization of industries, surging mobile internet penetration, soaring investments by governments, information technology (IT) companies, and financial institutions in the artificial intelligence (AI) technology, and the increasing shift toward digital banking from traditional banking will drive the AI in cyber security market at a CAGR of 25.7% during the forecast period (2020–2030). The market was valued at $8.6 billion in 2019, and it is projected to reach $101.8 billion in 2030.
The escalating number of malicious attacks and cyber frauds will facilitate the AI in cyber security market progress in the foreseeable future. Cyber frauds, including payment card and identity thefts, account for nearly 55% of all cybercrimes, and result in major financial and data losses to organizations, if not countered rapidly. AI-enabled solutions counter cyber fraud by detecting threats, curtailing response time, and improving techniques for different attacks that need immediate attention.
Moreover, the rising proliferation of the bring-your-own-device (BYOD) policy is supporting the AI in cyber security market growth worldwide. Enterprises are implementing it as it enhances productivity and increases employee satisfaction. However, it has numerous risks attached to it because it makes the corporate data vulnerable to cybercrimes. The devices of employees have extended capabilities, and IT departments may lack the ability and resources to completely evaluate, qualify, and approve each one. Due to this limitation, confidential data comes under immense risk, which can be dealt with through AI-enabled solutions.
Additionally, the growing penetration of internet of things (IoT)-powered connected devices has had a positive impact on the AI in cyber security market. Recent developments in the AI technology and the rising need for real-time communication and extensive connectivity have resulted in the development of efficient IoT-enabled devices. In the coming years, there will be a high demand for these devices, which will lead to a substantial rise in the number of cyberattack incidents. This will be due to the immense amount of data produced by these devices, which serves as the fodder for cybercriminals.
The deployment type segment is bifurcated into cloud and on-premises. Of these, the cloud category is expected to witness the faster growth during the forecast period. Cybercriminals continue to innovate new approaches to seed malware and steal unauthorized data. To deal with this issue, predictive security in the cloud is being equipped with innovative features that will annoy cyberspies. In the coming years, new advancements will strengthen the security of this platform. The cloud technology collects and evaluates unfiltered endpoint data to predict potential threats and protect systems from attacks.
During the forecast period, the Asia-Pacific AI in cyber security market will exhibit the fastest growth due to the mounting incidence of cybercrime in the region. APAC records a large number of identity theft, financial fraud, and data breach cases. As a result, organizations across the region are expanding their security expenditure to reduce the losses and combat more-advanced cyberattacks. Moreover, the governments of several countries of the region are investing heavily in cybersecurity to deal with threats.
Thus, the booming cases of cyberattacks and burgeoning demand for IoT-enabled connected devices act as the major driving forces for the integration of AI in cybersecurity.
