“Global Cognitive Security Market to reach a market value of USD 117.84 Billion by 2031 growing at a CAGR of 31.3%”
The Global Cognitive Security Market size is expected to reach $117.84 billion by 2031, rising at a market growth of 31.3% CAGR during the forecast period.
Financial institutions are prime targets for phishing, identity theft, ransomware, and fraud attacks, necessitating the adoption of AI-powered threat intelligence, fraud detection, and automated compliance management solutions. Regulations such as GDPR, PCI-DSS, and SOX require banks and financial organizations to implement real-time monitoring, risk assessment, and AI-driven security automation to safeguard customer data. Hence, the BFSI segment procured nearly 1/4th revenue share in the market in 2023. The rapid shift towards digital banking, mobile payments, and fintech services has further accelerated the demand for cognitive security solutions to ensure secure transactions and prevent financial fraud.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2024, Trend Micro, Inc. announced a partnership with Nvidia, an American software company, to provide cybersecurity tools safeguarding private AI clouds, emphasizing data privacy, real-time analysis, and swift threat response. Additionally, In May, 2024, IBM Corporation announced the partnership with Palo Alto Networks, a cyber security company to deliver AI-powered security solutions. Palo Alto Networks integrate watsonx LLMs into Cortex XSIAM. IBM will provide security consulting services and train consultants on Palo Alto Networks' platforms, enhancing AI-driven cybersecurity innovation.
Based on the Analysis presented in the KBV Cardinal matrix; Amazon Web Services Inc. is the forerunner in the Cognitive Security Market. Companies such as Cisco Systems, Inc., IBM Corporation, Palo Alto Networks are some of the key innovators in Cognitive Security Market. In Oct, 2024, Palo Alto Networks (PANW) teamed up with NTT DATA, a software company to enhance cyber resilience by leveraging AI-driven security solutions. The collaboration introduces NTT DATA's Managed Extended Detection Response Service (MXDR), powered by Palo Alto Networks' Cortex XSIAM platform, offering proactive threat monitoring, detection, and response capabilities across networks and cloud environments.
As cyber criminals increasingly leverage AI for more sophisticated attacks, businesses and government entities must adopt AI-driven cybersecurity solutions to stay ahead. The continuous learning capabilities of AI models, combined with automated responses and real-time threat intelligence, make cognitive security an essential tool in modern cybersecurity strategies. By enhancing threat detection, minimizing false positives, and providing proactive defense mechanisms, AI and ML-powered security solutions offer a strong, adaptive, and intelligent approach to combating cyber threats in an ever-evolving digital landscape. Thus, these factors will drive the expansion of the market.
Cognitive security solutions offer behavioral analytics, automated threat intelligence, and predictive capabilities to strengthen cybersecurity defenses. These AI-driven systems reduce false positives, enhance incident response, and allow businesses to stay ahead of cybercriminals. Given the rising cost of cybercrime and data breaches, companies must invest in AI-powered cybersecurity to safeguard their networks, protect sensitive data, and minimize financial losses. The future of cybersecurity lies in real-time threat detection, automation, and proactive risk mitigation, making cognitive security an essential tool in combating today’s cyber threats. Hence, these factors will aid in the expansion of the market.
For small and medium-sized enterprises (SMEs), these costs can be prohibitively expensive, limiting their ability to adopt cognitive security technologies. Unlike large corporations with extensive IT budgets, SMEs often operate on tight financial margins and prioritize cost-effective cybersecurity measures. The expense of implementing AI-driven security solutions, including hardware investments, cloud-based services, and expert workforce recruitment, makes it challenging for SMEs to integrate cognitive security into their cybersecurity strategies. As a result, market penetration remains skewed toward large enterprises, slowing the widespread adoption of these advanced security solutions.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Free Valuable Insights: Global Cognitive Security Market size to reach USD 117.84 Billion by 2031
On the basis of deployment mode, the market is classified into on-premise and cloud. The cloud segment acquired 68% revenue share in the market in 2023. The shift towards remote work, digital transformation, and hybrid IT environments has accelerated the demand for cloud-driven AI-powered security solutions. Cloud-based cognitive security offers scalability, cost-effectiveness, and real-time threat intelligence, making it a preferred choice for businesses looking to protect their data across multi-cloud and hybrid cloud ecosystems.
Based on component, the market is bifurcated into solution and services. The services segment procured 38% revenue share in the market in 2023. The service segment is fueled by the increasing complexity of AI-driven cybersecurity solutions and the shortage of skilled cybersecurity professionals, prompting businesses to seek expert consulting, integration, and managed security services. Companies that lack in-house AI and cybersecurity expertise rely on third-party service providers to ensure effective deployment, monitoring, and maintenance of cognitive security systems. The rise of Security-as-a-Service (SECaaS) models has also contributed to market growth, allowing organizations to outsource security operations while focusing on their core business.
Based on solution type, the market is divided into real-time security analysis & visualization platform, unified log manager & data catalog, biometric recognition, and others. The real-time security analysis & visualization platform segment procured 30% revenue share in the market in 2023. As organizations increasingly digitize their operations, the volume and complexity of data have surged, making it challenging to detect threats manually. Real-time analysis and visualization platforms address this challenge by utilizing cognitive computing, machine learning, and artificial intelligence to analyze vast data sets in real time. These platforms are equipped to identify patterns, anomalies, and potential threats instantaneously, allowing security teams to respond promptly. Additionally, the visualization aspect enhances the comprehension of complex security data by presenting it in an intuitive graphical format, facilitating quicker decision-making.
On the basis of services type, the market is bifurcated into managed service and professional service. The managed service segment acquired 58% revenue share in the market in 2023. Organizations are increasingly outsourcing their security operations to managed service providers (MSPs) to reduce operational complexity and leverage advanced technologies without the need for in-house expertise. The increasing frequency of cyber-attacks, coupled with the shortage of skilled cybersecurity professionals, has accelerated the adoption of managed services. Additionally, businesses prefer managed services for proactive threat monitoring, real-time analysis, and rapid incident response, which help mitigate risks efficiently while optimizing costs.
Based on enterprise size, the market is segmented into large enterprises and SMEs. The large enterprises segment procured 67% revenue share in the market in 2023. The large enterprises segment is driven by the increasing complexity of cyber threats, the necessity for robust AI-powered security frameworks, and the growing regulatory compliance requirements. Cyberattacks, including ransomware, phishing, and insider threats, are more likely to target large corporations due to their handling of substantial quantities of sensitive data. To mitigate these risks, they invest heavily in cognitive security solutions that provide real-time threat intelligence, automated compliance management, and advanced anomaly detection.
By application, the market is divided into threat intelligence, anomaly detection & risk mitigation, automated compliance management, fraud detection & prevention, and others. The threat intelligence segment witnessed 25% revenue share in the market in 2023. Organizations across industries, especially in banking, finance, healthcare, and IT, heavily invest in AI-powered threat intelligence solutions to identify, analyze, and mitigate cyber risks before they escalate. The rise in advanced persistent threats (APTs), ransomware, and state-sponsored cyberattacks has heightened the demand for real-time, AI-driven threat intelligence platforms. These solutions enable organizations to remain abreast of the evolving cyber threats by analyzing large volumes of security data, detecting attack patterns, and providing predictive insights.
By industry vertical, the market is segmented into government & defense, BFSI, IT & telecom, healthcare & lifesciences, retail & eCommerce, manufacturing, energy & utilities, and others. The retail & eCommerce segment witnessed 10% revenue share in the market in 2023. This growth is primarily driven by the rapid digital transformation within the retail sector, where businesses are increasingly adopting e-commerce platforms to enhance customer engagement and expand their market presence. As the volume of online transactions continues to rise, so does the risk of cyber-attacks, including data breaches, payment fraud, and identity theft. Cognitive security solutions, equipped with advanced threat detection, fraud analytics, and real-time monitoring, are being extensively deployed to safeguard sensitive customer information, payment gateways, and digital infrastructure.
The cognitive security market is experiencing intense competition due to advancements in AI-driven threat intelligence, machine learning-based anomaly detection, and real-time cybersecurity automation. Innovations in natural language processing (NLP) and deep learning are enhancing the ability to detect, analyze, and respond to sophisticated cyber threats. The integration of cognitive computing with security operations is improving automated threat hunting, behavioral analytics, and adaptive risk assessment. Additionally, advancements in quantum-safe encryption and AI-powered incident response are strengthening cybersecurity frameworks. As cyber threats evolve, competition is driving continuous innovation in proactive threat mitigation, real-time monitoring, and autonomous security decision-making.
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered 37% revenue share in the market in 2023. Ransomware attacks, data breaches, and state-sponsored cyber threats are particularly prevalent in the region, which is home to prominent technology titans and financial institutions. Organizations across industries, particularly in BFSI, IT & telecom, government, and healthcare, invest heavily in AI-powered cybersecurity solutions to combat evolving threats. Additionally, stringent data protection laws such as the California Consumer Privacy Act (CCPA) and cybersecurity mandates from federal agencies have accelerated the adoption of cognitive security solutions in the region. The rapid deployment of 5G networks, cloud adoption, and increasing reliance on IoT devices further fuel market growth in North America.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 13.98 Billion |
| Market size forecast in 2031 | USD 117.84 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 31.3% from 2024 to 2031 |
| Number of Pages | 508 |
| Number of Tables | 754 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Deployment Mode, Component, Enterprise Size, Application, Industry Vertical, Region |
| Country scope |
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| Companies Included | Trend Micro, Inc., IBM Corporation, DXC Technology Company, Fortinet, Inc., SentinelOne, Inc., Check Point Software Technologies Ltd., Cisco Systems, Inc., Amazon Web Services, Inc. (Amazon.com, Inc.), Palo Alto Networks, McAfee Corp. |
By Deployment Mode
By Component
By Enterprise Size
By Application
By Industry Vertical
By Geography
This Market size is expected to reach $117.84 billion by 2031.
Rising Cyber Threats & Advanced Attacks are driving the Market in coming years, however, Substantially High Implementation Costs restraints the growth of the Market.
Trend Micro, Inc., IBM Corporation, DXC Technology Company, Fortinet, Inc., SentinelOne, Inc., Check Point Software Technologies Ltd., Cisco Systems, Inc., Amazon Web Services, Inc. (Amazon.com, Inc.), Palo Alto Networks, McAfee Corp.
The expected CAGR of this Market is 31.3% from 2023 to 2031.
The Anomaly Detection & Risk Mitigation segment is leading the Market by Application in 2023; thereby, achieving a market value of $32.07 billion by 2031.
The North America region dominated the Market by Region in 2023; thereby, achieving a market value of $42.13 billion by 2031.
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