PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887060
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887060
The global artificial intelligence in cybersecurity market is witnessing rapid expansion, driven by the surge in cyber threats, increasing sophistication of attacks, and the shift toward automation-powered security ecosystems. According to the latest industry assessment, the global market was valued at USD 26.55 billion in 2024, reflecting the strong demand for AI-enabled security tools across sectors such as BFSI, IT & telecom, healthcare, retail, manufacturing, and government. The market is projected to grow further to USD 34.10 billion in 2025, driven by rising adoption of generative AI, behavioral analytics, and AI-powered SOC modernization initiatives. By 2032, the market is expected to reach USD 234.64 billion, supported by an impressive 31.70% CAGR from 2025 to 2032.
In 2024, North America dominated the industry with a 36.31% market share, valued at USD 9.64 billion. The region benefits from advanced technologies, availability of high-tech enterprises, strong cybersecurity funding, and the presence of global leaders including CrowdStrike, Fortinet, IBM, Check Point, Darktrace, and BlackBerry.
Market Dynamics
Rising Social Engineering Attacks Fuel AI Security Adoption
The increasing complexity of social engineering attacks such as phishing, smishing, whaling, and spear phishing represents a major market driver. According to Verizon's DBIR 2023 report, 74% of data breaches involve human error, highlighting the growing vulnerability of users to psychological manipulation. With 8% of users responsible for nearly 80% of security incidents, enterprises rely heavily on AI-based behavioral analytics to detect anomalies, reduce successful attacks, and strengthen authentication workflows.
Generative AI Transforms Cybersecurity Operations
Generative AI is becoming a cornerstone of modern cyber defense. As per industry insights, three in five employees consider AI essential for efficient threat response, while 60% of organizations view generative AI as a long-term cybersecurity enhancer. GenAI can summarize threat activity, recommend remediation steps, automate SOC workflows, and enhance analyst productivity. This ability to detect emerging threats and reduce response times contributes significantly to the market's upward trajectory.
AI-Driven Patch Management Gains Prominence
AI-enabled patch management systems have become critical as 47% of data breaches result from unpatched vulnerabilities, according to the 2023 State of Vulnerability Remediation Report. With 56% of organizations still performing patching manually, automated detection, prioritization, and remediation using AI unlock operational efficiency and reduce exploitable security gaps. Real-time threat intelligence and predictive analytics further strengthen enterprise defense posture.
Segmental Insights
By Security Type
In 2024, network security dominated with a 31% share, supported by investments in AI-based intrusion detection, secure browsers, SASE integration, and threat analytics.
The cloud security segment is forecast to grow at the highest rate as enterprises adopt cloud-native infrastructure and multi-cloud environments requiring AI-powered protection.
By Enterprise Type
SMEs will experience the highest CAGR of 34.20%, driven by the need to close cybersecurity skill gaps using AI-enhanced tools.
Large enterprises will hold 64% of the 2025 share, fueled by their large-scale data volumes, hybrid ecosystems, and increasing exposure to ransomware and data breaches.
By Application
Fraud detection led in 2024 due to AI's ability to detect fraud in milliseconds while reducing false positives. This segment will represent 29% of the 2025 market.
Unified threat management will record the fastest growth, driven by integrated security frameworks, passwordless authentication, and automated incident response.
By Industry
Retail & e-commerce will witness the highest CAGR at 36.90%, with digital transactions and omnichannel commerce increasing exposure to cyber threats.
The IT & telecom sector held the largest 2024 share due to massive data flows and persistent cyberattacks requiring AI-led detection and prevention.
North America
The market reached USD 9.64 billion in 2024, maintaining leadership due to advanced digital infrastructure and significant government spending, including USD 12.72 billion allocated for cybersecurity initiatives in 2024.
Europe
With USD 9.14 billion in 2024, Europe is the second-fastest-growing region, driven by regulatory frameworks such as the EU AI Act and rising attacks across BFSI, healthcare, and government sectors.
Asia Pacific
Estimated at USD 7.30 billion in 2025, the region is set to grow fastest through 2032, supported by rising AI adoption in China, Japan, India, and Australia.
Middle East & Africa
Projected at USD 3.63 billion in 2025, the region benefits from increasing government mandates for cybersecurity compliance.
Conclusion
With the market rising from USD 26.55 billion in 2024 to USD 234.64 billion by 2032, artificial intelligence in cybersecurity represents one of the fastest-growing global technology sectors. Growing cyberattacks, generative AI adoption, cloud migration, and real-time threat intelligence capabilities will continue to drive exponential expansion through the next decade.
Segmentation By Security Type
By Enterprise Type
By Application
By Industry
By Region
Companies Profiled in the Report Fortinet, Inc. (U.S.), Check Point Software Technologies Ltd. (Israel), Sophos Ltd. (U.K.), Tessian Limited (U.K.), Acalvio Technologies, Inc. (U.S.), Cylance Inc. (BlackBerry), Darktrace Holdings Limited (U.K.), CrowdStrike (U.S.), LexisNexis Risk Solutions (U.S.), IBM Corporation (U.S.), Micron Technology, Inc. (U.S.), Cybereason (U.S.), etc.