PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2164992
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2164992
The AI cybersecurity market is projected to grow from USD 31.25 billion in 2026 to USD 95.25 billion by 2031 at a CAGR of 25.0% during the forecast period. The cybersecurity skills shortage is driving the AI cybersecurity market growth, as organizations face rising security workloads alongside persistent gaps in specialized talent.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2022-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Million/USD Billion) |
| Segments | Offering, Security Function, Application, Deployment Mode, Organization Size, Vertical, and Region |
| Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, Latin America |
The World Economic Forum reports that 46% of small organizations cite insufficient cybersecurity skills, while 54% of organizations identify limited knowledge and skills as a key barrier to deploying AI for cybersecurity. AI-enabled tools can augment analysts by automating alert triage, log analysis, threat detection, investigation, and other repetitive tasks, enabling security teams to improve operational capacity and respond faster to evolving threats.

"By service, the managed security services segment is expected to witness the highest CAGR during the forecast period."
The managed security services segment is expected to witness the highest CAGR, driven by rising demand for continuous threat monitoring, AI-enabled detection and response, threat hunting, and security operations delivered by specialized providers. Organizations are increasingly outsourcing security operations to address talent shortages, escalating attack complexity, and the need for 24/7 protection without building extensive in-house capabilities. AI is strengthening managed services by automating alert triage, threat analysis, and response while enabling providers to manage larger security environments efficiently. Growing adoption of MDR and AI-powered managed security offerings across enterprises is further supporting segment expansion.
"By organization size, the large enterprises segment is projected to hold the largest market share in 2026."
The large enterprises segment is projected to hold the largest market share, supported by higher cybersecurity budgets, extensive digital infrastructures, large security-data volumes, and greater capacity to deploy advanced AI technologies. The WEF reports that larger organizations are emerging as early leaders in AI-driven threat detection and automation, with companies having stronger financial capacity reporting higher AI adoption rates. Large enterprises also face complex, distributed attack surfaces spanning cloud, endpoints, identities, networks, and applications, increasing the need for AI-enabled detection, analytics, threat intelligence, and automated response. Their greater access to skilled personnel, security infrastructure, and technology investments further enables integration of AI across cybersecurity operations.
"By vertical, the transportation & logistics segment is expected to grow at the highest CAGR during the forecast period."
The transportation & logistics segment is expected to grow at the highest CAGR in the AI cybersecurity market, driven by increasing digitalization, connected transportation systems, autonomous technologies, and expanding cyber-physical attack surfaces. Transportation organizations are increasingly applying AI to automated security operations, threat detection, anomaly identification, and incident response. The WEF reports that 59% of organizations in the manufacturing, supply chain, and transportation sector using AI for cybersecurity prioritize automated security operations, highlighting growing reliance on AI-driven defense. The increasing connectivity of aircraft, rail systems, logistics platforms, ports, and other transportation infrastructure is further expanding the volume and complexity of security data requiring continuous monitoring. CISA has also identified increasing connectivity across transportation systems as a factor expanding cyber risks. These factors are supporting rapid adoption of AI-enabled cybersecurity across the sector.
Breakdown of Primaries
Major vendors in the AI cybersecurity market include Microsoft (US), Palo Alto Networks (US), CrowdStrike (US), Cisco (US), Fortinet (US), Proofpoint (US), Darktrace (UK), Check Point (Israel), Trend Micro (Japan), Google (US), Zscaler (US), IBM (US), SentinelOne (US), Sophos (UK), Trellix (US), Abnormal AI (US), Arctic Wolf (US), ReliaQuest (US), Exabeam (US), Vectra AI (US), Cyera (US), Varonis (US), Recorded Future (US), Armis (US), Torq (US), Huntress (US), Dropzone AI (US), Anvilogic (US), Silverfort (US), Sublime Security (US), and Horizon3.ai (US).
The study includes an in-depth competitive analysis of the key players in the AI cybersecurity market, their company profiles, recent developments, and key market strategies.
Research Coverage
The report segments the AI cybersecurity market and forecasts its size based on offerings (software & platforms, services [professional services {consulting & advisory, deployment & integration, training & education}, managed security services]), security function (security operations & incident response, endpoint security, network security, cloud security, identity security and access management, data security, application security, email & collaboration security, exposure & vulnerability management, threat intelligence, OT/IoT & cyber-physical security, other security functions [includes deception, digital risk protection, browser security, human-risk management, and other niche security functions]), application (threat detection & anomaly detection, threat intelligence & prediction, security monitoring, alert triage & correlation, threat hunting & investigation, incident response & remediation, vulnerability & exposure prioritization, malware detection & analysis, phishing/BEC detection, identity risk & behavioral analytics, security automation & orchestration, security copilot & analyst assistance, other applications [includes digital forensics, compliance analysis, security reporting, attack-path analysis, and other specialized applications]), deployment mode (cloud, on-premises, hybrid), organization size (large enterprises, SMEs), vertical (BFSI, government & defense, healthcare & life sciences, IT & ITeS, telecommunications, retail & consumer goods, manufacturing, energy & utilities, transportation & logistics, media & entertainment, other verticals [includes education, professional services, legal, hospitality, real estate & construction, agriculture, and other industries]), and region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
The study also includes an in-depth competitive analysis of the market's key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report will help market leaders/new entrants with information on the closest approximations of revenue numbers for the overall AI cybersecurity market and its subsegments. This report will help stakeholders understand the competitive landscape and gain valuable insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.