Delray Beach, Florida, October 7, 2026 / PRNewswire / -- According to MarketsandMarkets ™, the AI cybersecurity market is expected to grow from $31.25 billion in 2026 to $95.25 billion by 2031, with a compound annual growth rate of 25.0% during the forecast period.

Regarding " AI Cybersecurity Market – Global Forecast for 2031 ", this report covers 500 market data tables, 50 charts, and a detailed 400-page index.

AI Cybersecurity Market Size and Forecast:

• Available market size years: from 2022 to 2031
• Market size in 2025: $22.07 billion
• Market size in 2026: $31.25 billion
• Estimated market size in 2031: $95.25 billion
• Compound annual growth rate from 2026 to 2031: 25.0%

AI Trends and Insights in the Cybersecurity Market:

• As organizations adopt autonomous systems capable of performing alarm analysis, threat investigation, and response, proxy-based security operations are driving the demand for AI network security.
• Divided by security functions, the OT / IoT and network physical security niche markets are expected to record the highest compound annual growth rate during the forecast period, at 34.2%.
• By application, the sub-market of security automation and orchestration is expected to grow the fastest, with a compound annual growth rate of 36.1%.
• Divided by organizational size, small and medium-sized enterprises are expected to have the fastest growth rate, with a compound annual growth rate of 29.3%.
• North America will hold the highest share of the AI cybersecurity market in 2026, at 41.7%.

Market growth is driven by AI-enabled cyber threats, as threat actors increasingly utilize AI to accelerate phishing, reconnaissance, vulnerability discovery, malware development, and intrusion activities. In 2026, Microsoft stated that attackers are integrating AI throughout the entire attack lifecycle, thereby increasing the speed, frequency, accuracy, and scale of cyberattacks. This evolving threat environment is prompting organizations to adopt AI-powered detection, threat intelligence, and response technologies to identify and counter attacks that move at machine speed.

By application, the sub-markets of threat detection and anomaly detection are expected to maintain the largest market share during the forecast period.

By application, the sub-markets of threat detection and anomaly detection are expected to maintain the largest market share during the forecast period, due to the continuous growth in the quantity, speed, and complexity of security telemetry data in endpoints, networks, identities, cloud workloads, and applications. AI enables organizations to establish behavior baselines, identify deviations, correlate signals, and detect unknown threats that cannot be detected by traditional feature-based methods. The increasing adoption of machine learning, behavioral analysis, and AI-driven detection is helping security teams to identify suspicious activities earlier, while reducing manual analysis and alert fatigue. Microsoft emphasizes the use of AI, high-quality telemetry, and behavior-based detection to identify risks sooner, while Cisco focuses on AI-driven anomaly detection on large-scale security datasets. These capabilities are enhancing the demand for AI-enabled threat detection in enterprise network security environments.

Divided by organizational size, the small and medium-sized enterprise (SME) segment is expected to record the highest compound annual growth rate during the forecast period.

The segmented market for small and medium-sized enterprises (SMEs) is expected to record the highest compound annual growth rate. This is due to increasing cyber risks, limited internal security expertise, and the growing popularity of more affordable cloud-based cybersecurity solutions. According to data from the World Economic Forum, smaller organizations face a greater gap in cybersecurity capabilities; 46% of small organizations report a lack of cybersecurity skills, compared to 29% among larger organizations. Cybersecurity tools that are powered by advanced technologies can help SMEs automate threat detection, anomaly identification, alarm analysis, and response without the need for large security teams. The expansion of managed security services and cloud-driven security platforms has further lowered technical and operational barriers, enabling SMEs to access capabilities that were previously typically reserved for larger enterprises. As the adoption of these technologies becomes more widespread and cyber threats increasingly target smaller organizations, the demand for cybersecurity solutions driven by these technologies is expected to grow at an accelerated pace among SMEs.

By region, North America is expected to occupy the largest market share during the forecast period.

North America is expected to occupy the largest share of the AI cybersecurity market during the forecast period, thanks to major cybersecurity providers, hyperscale cloud service providers, advanced digital infrastructure, and strong adoption of AI by enterprises. The United States continues to increase its investment in AI-enabled network defense, with federal initiatives promoting government agencies, state and local authorities, as well as critical infrastructure operators to acquire AI-powered cybersecurity tools. Organizations in sectors such as BFSI, healthcare, government, technology, and critical infrastructure are increasingly using AI for threat detection, vulnerability identification, security analysis, and automated response. NIST is also advancing guidelines related to AI-enabled network defense, while U.S. cybersecurity agencies are utilizing AI for vulnerability discovery and defense actions. Canada is also strengthening its AI-enabled network resilience to cope with increasingly complex AI enhanced threats. These developments, combined with continued investment in cloud security, threat intelligence, automation, and AI innovation, are consolidating North America's position as a major center for the adoption and commercialization of AI-enabled cybersecurity.

The main companies in the cybersecurity market include: Microsoft, Palo Alto Networks, CrowdStrike, Cisco, Fortinet, Proofpoint, Darktrace, Check Point, Trend Micro, Google, Zscaler, IBM, SentinelOne, Sophos, Trellix, Abnormal AI, Arctic Wolf, ReliaQuest, Exabeam, Vectra AI, Cyera, Varonis, Recorded Future, Armis, Torq, Huntress, Dropzone AI, Anvilogic, Silverfort, Sublime Security, and Horizon3.ai.

AI Cybersecurity Market: Investment and Financing + Mergers and Acquisitions

Investment and Financing Background

As suppliers expand their capabilities in threat detection, security operations, autonomous investigation, and automated response driven by AI, the AI cybersecurity market is attracting substantial investment. Cyera completed a $400 million Series F financing in January 2026, bringing its total funding to over $1.7 billion, which will be used to expand its AI native data security platform globally. Torq received $140 million in Series D financing in January 2026, with a valuation of $1.2 billion, to expand its proxy-based AI security operations platform. Dropzone AI completed a $37 million Series B financing in July 2025 to accelerate the development of its autonomous AI SOC intelligents and to expand its global business. ReliaQuest raised over $500 million in March 2025 with a valuation of $3.4 billion to support innovation in proxy-based AI-driven cybersecurity automation and international expansion. Abnormal AI had previously completed a $250 million Series D financing to support the expansion of its AI native cybersecurity platform.

Background of Changes in Income Structure

The cybersecurity market is shifting from independent AI auxiliary tools to integrated platforms that embed AI into threat detection, security analysis, investigation, threat intelligence, and automated response. As organizations put AI into actual operation in their security environments, corporate spending is increasing, driving the demand for behavioral analysis, intelligent alarm prioritization, autonomous investigations, and machine-speed responses. Proxy-based AI is accelerating this transformation, enabling multi-step threat hunting, diversion, investigation, and remediation to be completed with less analyst intervention. Suppliers are realizing AI by providing unified security platforms, AI native SOC capabilities, managed security services, and autonomous agents, thereby expanding revenue opportunities in the field of enterprise cybersecurity. The latest advancements in Arctic Wolf, ReliaQuest, Torq, and Dropzone AI further confirm this trend.

Mergers and Acquisitions

Mergers and acquisitions in the cybersecurity market are increasingly focusing on enhancing security operations, cloud security, secure data management, autonomous detection and response, as well as proxy-based cybersecurity capabilities driven by AI. Recent transactions involving Palo Alto Networks, Google, and CrowdStrike highlight that industry consolidation is accelerating as cybersecurity providers expand their product portfolios to support threat detection, investigation, and response at machine speed enabled by AI.

AI Cybersecurity Market: Mergers and Acquisitions, January 2024 to September 2026

Company Revenue Share Details

The competition in the cybersecurity market is fierce, with leading technology and cybersecurity providers offering a wide range of products in areas such as threat detection, security analysis, endpoint and network protection, threat intelligence, security operations, automated investigation, and incident response, all driven by AI. The competitive landscape is dominated by companies like Microsoft, Palo Alto Networks, CrowdStrike, Cisco, and Fortinet, which are at the forefront due to their comprehensive cybersecurity platforms and the deep integration of machine learning, generative AI, and proxy-based capabilities into their security operations. Proofpoint, Darktrace, Check Point, Trend Micro, and Google further enhance the market through AI-powered email and endpoint security, threat detection, cloud security, threat intelligence, security analysis, and automated response. The remaining market is composed of specialized cybersecurity vendors and emerging companies that focus on autonomous security operations, AI-driven threat intelligence, behavioral analysis, identity protection, vulnerability management, and AI-enabled detection and response. This competitive structure reflects the widespread adoption of AI across various cybersecurity functions, as well as a coexistence of large tech companies, established cybersecurity firms, and specialized AI native providers.

Browse adjacent markets: Information Security Market Research Reports and Consulting

Relevant market reports:

• AI Security Operations Center ( SOC ) Market: By Software Platform ( AI Native, SOC, AI SOC Agents, Security Data Platform); Services ( AI Enhanced, MDR, AI SOC As a Service, Incident Response and Forensics); Applications; Industry Segmentation – Global Forecast for 2031
• Proxy-based AI Security Market: Divided by Security Features, Tools (including security tools, guardrail frameworks, AI penetration testing and red team tools, guardrail frameworks), and Deployment Layers – Global Forecast for 2032

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