US Applied AI in Cybersecurity Market Research Report By Organization Size (SMEs, Large Enterprise) and By Security Type (Network Security, Endpoint Security, Application Security, Cloud Security, ICS Security, IoT Security, Identity and Access Management, Risk and Compliance Management, Data Loss Prevention, Unified Threat Management, Security and Vulnerability Management, Antivirus/Antimalware, Fraud Detection, Intrusion Detection/Prevention System, Threat Intelligence, Others) - Forecast to 2035

US Applied AI in Cybersecurity Market Overview

As per MRFR analysis, the US Applied AI in Cybersecurity Market Size was estimated at 657.02 (USD Million) in 2023. The US Applied AI in Cybersecurity Market Industry is expected to grow from 818.12(USD Million) in 2024 to 10,045 (USD Million) by 2035. The US Applied AI in Cybersecurity Market CAGR (growth rate) is expected to be around 25.606% during the forecast period (2025 - 2035).

Key US Applied AI in Cybersecurity Market Trends Highlighted

The US Applied AI in Cybersecurity Market is rapidly evolving due to pervasive market drivers. The adoption of sophisticated AI solutions is motivated principally by escalating cyber attacks targeting both business and government entities. Given the amount of data being created and processed, as well as shared online, cybersecurity frameworks need to adapt accordingly. The US government’s persistent initiatives to strengthen the nation’s cybersecurity framework has necessitated new organizational investments in AI technologies which improve threat detection and response times–further widening the gap between investment and technological readiness. In light of all these, there are Parts where improvements can still be made.

These challenges have spurred businesses to search for comprehensive Cyber Security solutions incorporating Predictive Analytics techniques that help identify issues before they arise. Organizational agility enabled by AI empowers firms not only to address emerging threats but also positions them favorably within an ever-changing landscape shaped by continuous innovation and adaptive strategies. Moreover, the urgency generated by demand for advanced solutions is unlocking synergistic collaboration between technology and cybersecurity sectors designed towards advancement based on mutual trust. 

Following a recent trend, more focus is directed towards implementing automated mitigation incident systems driven by AI enabling immediate attack response capabilities. They’re accompanied by heightened movements pushing for policies addressing compliance gaps within information regulation prompted by protective measures requested from customers aimed at improved monitoring protocols and privacy safeguard services.

This trend is consistent with the efforts of the US government to advance cybersecurity practices in every industry. Along with market evolution, the combination of legislation, innovation, and the increasing acceptance of AI in cybersecurity is changing business security policies in the United States.

US Applied AI in Cybersecurity Market Drivers

Escalating Cyber Threats

The growing complexity and frequency of cyber threats in the United States is a significant driver for the US Applied AI in Cybersecurity Market Industry. In 2022, it was reported that cybercrime losses exceeded 6 trillion USD globally, with the Federal Bureau of Investigation noting a rapid increase in ransomware attacks, highlighting a 300% rise in reported incidents from 2019 to 2021. With established organizations like Microsoft and Palo Alto Networks investing heavily in artificial intelligence technologies for threat detection and response, the urgency to protect sensitive data becomes paramount.

This indicates a substantial need for AI-driven cybersecurity solutions to mitigate risks and secure digital infrastructures across various sectors in the US, driving market growth considerably.

Increased Regulatory Compliance

In the US, regulatory compliance mandates related to data protection and privacy are becoming increasingly stringent, contributing to the market growth of applied artificial intelligence in cybersecurity. The implementation of the California Consumer Privacy Act, along with various federal mandates, placed a strong emphasis on safeguarding user data. Research indicates that over 80% of US corporations are investing in advanced cybersecurity measures to ensure compliance with these regulations.

The involvement of organizations such as the National Institute of Standards and Technology, which continuously updates cybersecurity frameworks, underlines the growing necessity for AI-enhanced solutions to meet compliance requirements effectively.

Expansion of IoT Devices

The proliferation of Internet of Things (IoT) devices in the United States is substantially driving the US Applied AI in Cybersecurity Market Industry. As per the US Department of Commerce, the number of connected IoT devices is projected to reach 30 billion by 2025. This dramatic increase presents new vulnerabilities that cybercriminals can exploit. Major technology firms like Cisco and IBM are actively developing AI-based cybersecurity applications to protect these devices.

Given that 70% of IoT devices are estimated to have weak security, the demand for robust AI-driven cybersecurity solutions to secure these networks will spur further market growth.

US Applied AI in Cybersecurity Market Segment Insights

Applied AI in Cybersecurity Market Organization Size Insights

The US Applied AI in Cybersecurity Market is seeing progressive segmentation based on Organization Size, which comprises both small and medium enterprises (SMEs) and large enterprises. This division plays a pivotal role in understanding how different sizes of organizations allocate resources toward cybersecurity strategies. SMEs often adopt Applied AI solutions to enhance their existing infrastructure without incurring significant costs, enabling them to fend off cyber threats that could jeopardize their operational continuity. This is particularly important as SMEs face increasing cyber risks but typically have less budget flexibility compared to larger organizations.

On the other hand, large enterprises are often characterized by their substantial IT budgets and infrastructure, which allows for the integration of advanced AI technologies into their cybersecurity protocols effectively. This empowers them to not only respond to threats more swiftly but also to proactively mitigate risks through predictive analytics. The rising threat landscape in the US is compelling both segment types to invest in sophisticated AI-driven cybersecurity solutions to protect sensitive data and maintain regulatory compliance. Furthermore, the trend of digital transformation across various industries is increasing the demand for Applied AI solutions, resulting in a competitive edge for organizations that embrace these technologies.

Investments made by large enterprises in robust AI capabilities can lead to significant market growth and contribute to developing comprehensive cybersecurity frameworks. Overall, with the focus on Organization Size, businesses in the US are realizing the importance of tailored cybersecurity measures that align with their size, risk profile, and operational capabilities, leading to a more secure and resilient digital ecosystem.

Applied AI in Cybersecurity Market Security Type Insights

The US Applied AI in Cybersecurity Market, specifically within the Security Type segment, reflects a strong emphasis on safeguarding various digital infrastructures across multiple industries. This segment comprises several key areas including Network Security, which plays a critical role in protecting a nation's internet backbone against unauthorized access and attacks, while Endpoint Security focuses on securing endpoints such as laptops and mobile devices, which are increasingly vulnerable to cybersecurity threats. Application Security ensures that software applications are equipped to resist attacks, especially given the rise of cloud computing and the need for Cloud Security solutions to protect data stored remotely.

The significance of IoT Security is also growing rapidly as smart devices proliferate, necessitating measures to manage their vulnerabilities. Identity and Access Management systems are vital for ensuring that only authorized personnel can access sensitive information, thereby reducing risk and compliance challenges. Moreover, Data Loss Prevention and Unified Threat Management frameworks are essential for businesses in maintaining data integrity against breaches. Finally, sectors like Fraud Detection and Threat Intelligence provide crucial intelligence that aids organizations in preempting cyber threats, showcasing the diverse functionalities encompassed within the US Applied AI in Cybersecurity Market statistics.

Collectively, these components illustrate the market's robust growth trajectory driven by increasing cyber threats and the need for resilient security solutions across the US landscape.

US Applied AI in Cybersecurity Market Key Players and Competitive Insights

The US Applied AI in Cybersecurity Market is a rapidly evolving landscape characterized by the integration of advanced artificial intelligence technologies to enhance cybersecurity measures across various industries. As cyber threats become increasingly sophisticated, organizations are turning to AI-driven solutions to bolster their defense mechanisms, prevent data breaches, and safeguard sensitive information. The competitive environment is marked by a diverse array of players, from established technology firms to innovative startups, each striving to carve out a niche by leveraging machine learning, automation, and predictive analytics. This confluence of AI with cybersecurity not only improves threat detection and response times but also optimizes operational efficiencies for security teams, presenting abundant opportunities for growth and innovation in the sector.

In the context of the US Applied AI in Cybersecurity Market, Proofpoint has established itself as a formidable contender with its strong focus on threat detection and data protection solutions. The company's advanced AI capabilities enable it to deliver sophisticated phishing detection and email security services tailored to the unique challenges of modern cyber threats. Proofpoint’s strengths lie in its user-centric approach, focusing on creating solutions that enhance user awareness and reduce the risk of human error, which is often a weak link in cybersecurity strategies. Its extensive market presence is bolstered by strategic partnerships and ongoing investments in machine learning technology, allowing Proofpoint to maintain a competitive edge in a crowded marketplace. Furthermore, the company’s commitment to innovation and continuous improvement ensures that it remains a trusted provider for organizations looking to leverage AI in safeguarding their digital assets in the US.

Microsoft, a giant in the technology sector, has made significant strides in the US Applied AI in Cybersecurity Market through its comprehensive suite of products and services designed to combat cyber threats. Notably, the Microsoft Defender platform uses AI-driven analytics to provide threat detection, prevention, and response services across various environments, including cloud, on-premises, and hybrid infrastructures. The company boasts a robust market presence strengthened by its continuous investment in cybersecurity technologies, including machine learning algorithms and behavior analytics to enhance threat intelligence capabilities. Moreover, Microsoft’s acquisition strategy has been instrumental in expanding its cybersecurity portfolio, incorporating cutting-edge innovations and talent that enhance its offerings. These strategic mergers not only broaden the functionality and reach of its solutions but also reinforce Microsoft’s position as a leading provider of AI-driven cybersecurity solutions in the US market. The combination of a strong brand reputation, comprehensive product ecosystem, and commitment to innovation positions Microsoft as a key player in addressing the cybersecurity challenges of today’s digital landscape.

Key Companies in the US Applied AI in Cybersecurity Market Include:

• Proofpoint


• Microsoft


• Check Point Software Technologies


• Fortinet


• Splunk


• Cisco Systems


• Tenable


• Palo Alto Networks


• IBM


• Darktrace


• McAfee


• CrowdStrike


• Rapid7


• FireEye


• SentinelOne

US Applied AI in Cybersecurity Market Industry Developments

In July 2023, Proofpoint announced its AI-powered email security enhancements, aimed at combating the ever-growing threat of phishing attacks, reflecting a trend towards intelligent threat-hunting capabilities across the industry.

Meanwhile, in August 2023, Microsoft reported substantial growth in its cybersecurity offerings, emphasizing AI integration for improved security response times, which has become essential given the rising cyber threats. Notably, in September 2023, Cisco Systems made headlines by acquiring a small AI startup to expand its cybersecurity capabilities, further indicating a consolidation trend among key players in the market. The valuation of market leaders like Check Point Software Technologies and Fortinet has increased, driven by heightened demand for advanced cybersecurity solutions amidst numerous high-profile data breaches.

Over the past two years, the market has expanded significantly due to increasing cyberattack frequency and the growing need for sophisticated AI technologies to address these challenges effectively. This ongoing evolution highlights an urgent need for robust, responsive, and innovative security measures in the US.

Applied Ai In Cybersecurity Market Segmentation Insights

Applied AI in Cybersecurity Market Organization Size Outlook

• SMEs


• Large Enterprise

Applied AI in Cybersecurity Market Security Type Outlook

• Network Security


• Endpoint Security


• Application Security


• Cloud Security


• ICS Security


• IoT Security


• Identity and Access Management


• Risk and Compliance Management


• Data Loss Prevention


• Unified Threat Management


• Security and Vulnerability Management


• Antivirus/Antimalware


• Fraud Detection


• Intrusion Detection/Prevention System


• Threat Intelligence


• Others

Report Attribute/Metric	Details
Market Size 2023	657.02 (USD Million)
Market Size 2024	818.12 (USD Million)
Market Size 2035	10045.0 (USD Million)
Compound Annual Growth Rate (CAGR)	25.606% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Million
Key Companies Profiled	Proofpoint, Microsoft, Check Point Software Technologies, Fortinet, Splunk, Cisco Systems, Tenable, Palo Alto Networks, IBM, Darktrace, McAfee, CrowdStrike, Rapid7, FireEye, SentinelOne
Segments Covered	Organization Size, Security Type
Key Market Opportunities	Automated threat detection systems, Predictive analytics for breaches, Enhanced incident response solutions, AI-driven vulnerability management, Real-time network monitoring tools
Key Market Dynamics	increase in cyber threats, demand for automation, regulatory compliance pressures, investment in advanced technologies, need for real-time data analysis
Countries Covered	US