Global Cognitive Security Market Size, Share & Trends Analysis Report By Deployment Mode, By Component, By Enterprise Size, By Application, By Industry Vertical, By Regional Outlook and Forecast, 2024 - 2031

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.

Market Growth Factors

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.

Market Restraining Factors

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.

Deployment Mode Outlook

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.

Component Outlook

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.

Solution Type Outlook

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.

Services Type Outlook

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.

Enterprise Size Outlook

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.

Application Outlook

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.

Industry Vertical Outlook

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.

Regional Outlook

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.

Recent Strategies Deployed in the Market

• Aug-2024: IBM Corporation unveiled a generative AI-powered Cybersecurity Assistant to enhance threat detection and response. Built on watsonx, it accelerates investigations, automates operational tasks, and improves security analysts' efficiency. Features include historical threat analysis, AI-driven recommendations, and a conversational engine, reducing alert investigation time and strengthening security operations for enterprises.
• Jun-2024: Cisco Systems, Inc. announced the establishment of a Cybersecurity Center of Excellence in Tokyo to enhance Japan's cybersecurity resilience. The center will focus on appointing a National Cybersecurity Advisor, deploying Cisco Talos Intelligence experts, and training 100,000 IT and cybersecurity professionals over the next five years to strengthen digital security across Japan.
• May-2024: IBM Corporation teamed up with Salesforce, a software company to integrate IBM watsonx AI with Salesforce Einstein 1, enabling flexible AI models, bidirectional data integration, and industry-specific AI tools. This collaboration enhances trusted AI deployment, data security, and customer engagement while supporting open AI innovation through Salesforce’s AI Alliance membership.
• May-2024: Palo Alto Networks teamed up with IBM Corporation, a technology company to integrate AI-powered security solutions. IBM will adopt Palo Alto Networks' cybersecurity platforms and enhance its offerings with AI, while both companies collaborate on training, joint ventures, and expanding the DevSecOps market.
• Mar-2024: Cisco Systems Inc. took over Splunk Inc., boosting security and observability through a unified digital perspective. This merger ensures improved security, observability, networking, AI, and economic benefits, delivering transformative solutions for customers across diverse industries.

List of Key Companies Profiled

• 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.

Global Cognitive Security Market Report Segmentation

By Deployment Mode

• Cloud
• On-premise

By Component

• Solution
• Real-Time Security Analytics & Visualization Platform
• Unified Log Manager & Data Catalog
• Biometric Recognition
• Other Solution Type
• Services
• Managed Service
• Professional Service

By Enterprise Size

• Large Enterprises
• Small & Medium-Sized Enterprises (SMEs)

By Application

• Anomaly Detection & Risk Mitigation
• Threat Intelligence
• Automated Compliance Management
• Fraud Detection & Prevention
• Other Application

By Industry Vertical

• BFSI
• Government & Defense
• IT & Telecom
• Healthcare & Lifesciences
• Retail & eCommerce
• Energy & Utilities
• Manufacturing
• Other Industry Vertical

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA