AI-Based Security Operations Market

AI-Based Security Operations Market Overview

The global AI-Based Security Operations Market size was valued at USD 28.24 billion in 2024 and is predicted to reach USD 82.45 billion by 2030 with a CAGR of 19.2% from 2025-2030.

Some of the factors that spur the AI-based security operations market are boosting corporate investment in AI, surging digitalisation all over the globe, and mounting incidence of cyberattacks. Additional factors include strategies undertaken by important players such as Palo Alto Networks, Inc., and International Business Machines Corporation while maintaining their dominance in the markets through collaboration as well as releasing new products and services. A significant restraint the market faces remains data security as well as private concerns. On the other hand, integration of fully integrated blockchain with cyber threat detection is expected to create ample future opportunities.

Boosting Corporate Financing in AI Propels the AI-Based Security Operations Market Growth

Increasing global corporate investment in AI drives the AI-based security operations market expansion by fuelling advancements in AI technologies and expanding their applications in cybersecurity. 

According to report published by the U.S. Bureau of Labor Statistics 2024, the global corporate investment in artificial intelligence (AI) increased from USD 109.46 billion in 2019 to USD 217.54 billion in 2022 reflecting a change of 98.7% within a time span of just 3 years. 

As businesses allocate significant resources to AI development, more sophisticated algorithms and tools are created, enabling better threat detection, predictive analytics, and automated responses. Such innovations make AI-based security solutions more effective driving the market growth. 

Surging Digitalisation Boost the AI-Based Security Operations Market Demand

The rising adoption of digitalised services due to rapidly increasing internet users drives the market by significantly increasing the digital footprint, leading to a higher volume of online activities and data generation. 

Our World in Data reported in 2025, global share of population in the world rose from 64.4% in 2022 to 67.4% in 2023 showing a percentage change of 3%. With this expansion, the surface area increases, making networks and systems more vulnerable to cyber-attacks, necessitating AI-based security solutions for real-time detection, analysis, and mitigation of cybersecurity threats.

Increasing Cyberattacks Fuels Market Growth

The world is witnessing a high level of cyberattacks and this necessitates the AI-based security operations since the requirement for sophisticated mechanisms in threat detection and prevention continues to rise. This growing complexity necessitates AI-driven security systems that analyze vast datasets, detect anomalies, and respond to threats in real-time, thereby, boosting the industry growth. 

As per the World Bank, approximately USD 5.2 trillion in global value of loss is estimated to be in risk from cyberattacks from 2019-2023, also the number of records lost or stolen every month is estimated to be 10.5 million with 438,000 occurring every hour.

High Implementation Cost Hinder Market Growth

There is high implementation cost related to the adoption of AI-based security operations due to the usage of specialized servers, cloud storage, and computing power to process and analyze vast amounts of security data in real-time that restricts small and medium-sized enterprises to adopt hindering the growth of market.

Integration of Fully Integrated Blockchain Creates Future Opportunities

Integration of fully integrated blockchain with AI-based security operations is anticipated to create significant future opportunities. Such developments aim to enhance data integrity, privacy, and transparency by fostering decentralized and transparent threat intelligence sharing.

Market Segmentations and Scope of the Study 

The AI-based security operations industry is grouped into security components, security type, security technology, deployment, services, applications, end-user industry, and region. On the basis of security components, the market is classified into services, hardware, and solutions. Based on hardware, the market is further divided into network, memory, and processors. Based on software, the market is grouped into solutions that contains antivirus, encryption, network security, and identity access management. On the basis of security type, the market is divided into network security, application security, hardware security, and cloud security. On the basis of security technology, the market is classified into machine learning, natural language processing, deep learning, and context-aware computing. Based on deep learning, the market is further divided into convolutional neural network (CNN) and generative adversarial market (GAN).On the basis of deployment, the market is divided into on-premise deployment and cloud deployment. On the basis of services, the market is grouped professional services and managed services. On the basis of applications, the market is further divided into identity and access management (IAM), data loss prevention, (DLP) unified threat management (UTM), fraud detection, threat intelligence, and others. On the basis of end-users, the market is grouped into government and defence, retail, BFSI, manufacturing, healthcare, automotive and transportation, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America region dominates the AI-based security operations market share and is expected to continue its dominance during the forecast period due to increasing investment by the private firms in AI that enables them to build advanced threat detection and response technologies as counter measure against threat. 

According to the report published by the U.S. Bureau of Labor Statistics 2024, private investment in AI rose from USD 37.87 billion in 2020 to USD 59.78 billion in 2023 and reflects a change of 57.8% in just 3 years. Such investments foster innovation, scalability, and integration capabilities that encourages greater adoption of AI-driven security solution, thus boosting the market. 

Apart from this, an increase in cyberattacks propels the market as it leads to a higher demand for strong, adaptive, and efficient cyber security measures. The more intense cyber-attacks, the more difficult they are for the traditional approaches to handle in appropriate responses, and organizations start seeking AI-driven solutions that will let them detect, analyze, and mitigate such threats in real time, thus uplifting the industry. 

The increase in the number of cyber security incidents that took place in Canada among experienced cases from 58% in 2020 to 70% in 2022, registering a 12% point increase, according to the report of the Canadian Survey of Cyber Security and Cybercrime. 

On the other hand, the Europe region holds a stable growth of the AI-based security operations industry within the forecast period due to increase in the adoption of digitalization by the users. 

As reported by the International Telecommunication Union, people in Europe, in general, saw a jump from 81.3% of users using the internet in 2019 to 88.1% of people in 2022, indicating an increase of 6.8%. Growth generates a digital footprint that incites cyber-attacks hence requires advance security solutions thereby growing the industry. 

More than that, growing military spending drives the AI-based security operations industry due to enabling investment in more advanced technologies in protecting sensitive data and critical infrastructure from advanced cyber threats. 

According to the NATO 2024 report, defence spending by the U.K. increased from USD 63,500 million in 2020 to USD 82,107 million in 2024, corresponding to a percentage change of 29.3%. The increased defence budget supports AI-assisted security solutions, improving abilities to detect threats, automate response, and track vulnerabilities in real-time. 

Competitive Landscape

Various key players operating in the AI-based security operations industry are Sentinel Labs, Inc, Exabeam, Inc, Palo Alto Networks, Inc, Fortinet, Inc, CrowdStrike Holdings, Inc, Deep Instinct, Ltd, Tessian Ltd, Musarubra US LLC, Zscaler, Inc, Vectra AI, Inc, Darktrace Holdings Limited, International Business Machines Corporation, Protect AI, Inc, Cisco Systems, Inc, Securiti, Inc, and others. These market players are adopting strategies such as product launches and collaboration to maintain their dominance in the market.

For instance, in September 2024, Palo Alto Networks, Inc acquired IBM’s QRadar Software as a Service (SaaS) asset to strengthen joint AI security solutions. This acquisition aims to simplify security operations, threat detection services and prevent cyber threats at scale.

Moreover, in August 2024, International Business Machines Corporation redeveloped and launched the Consulting Cybersecurity Assistant with generative AI capabilities featuring accelerated and improved identification, investigation and response to critical security threats. This aims to improve overall security posture for clients.

Also, in May 2024, Palo Alto Networks, Inc launched Precision AI that integrates machine learning (ML), and deep learning (DL) with generative AI to combat AI-generated threats and enhance the security of AI systems. This product launch focuses on operational efficiency and address emerging cybersecurity challenges.

Key Benefits

• The report provides quantitative analysis and estimations of the market from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future AI-based security operations market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the AI-based security operations industry is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

AI-Based Security Operations Market Key Segments

By Security Components

• Services

• Hardware

  • Network

  • Memory

  • Processor

• Software

  • Solutions

    • Antivirus 

    • Encryption 

    • Network Security

    • Identity Access Management

By Security Type

• Network Security

• Application Security

• Hardware Security

• Cloud Security

By Technology

• Machine Learning

• Natural Language Processing

• Deep Learning

  • Convolutional Neural Network (CNN)

  • Generative Adversarial Network (GAN)

• Context-Aware Computing

By Deployment

• On-Premise Deployment

• Cloud Deployment 

By Services 

• Professional Services

• Managed Services

By Applications 

• Identity and Access Management (IAM)

• Data Loss Prevention (DLP)

• Unified Threat Management (UTM)

• Fraud Detection

• Threat Intelligence

• Others

By End-Users Industry

• Government and Defense

• Retail

• BFSI

• Manufacturing

• Healthcare

• Automotive and Transportation

• Others 

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• RoW

  • Latin America

  • Middle East 

  • Africa

Key Players

• SentinelOne, Inc

• Exabeam, Inc

• Palo Alto Networks, Inc

• Fortinet, Inc

• CrowdStrike Holdings, Inc

• Deep Instinct, Ltd

• Tessian Ltd

• Musarubra US LLC

• Zscaler, Inc

• Vectra AI, Inc

• Darktrace Holdings Limited

• International Business Machines Corporation

• Protect AI, Inc

• Cisco Systems, Inc

• Securiti, Inc

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 28.24 billion
Revenue Forecast in 2030	USD 82.45 billion
Growth Rate	CAGR of 19.2% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Increasing corporate investment in AI drives the AI-based security operations industry growth. Growing cyber-attacks globally boosts the market growth. The rising adoption of internet users drives the growth of the market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.