United States AI in Cybersecurity Market 2026 | Growth Drivers, Key Players & Investment Opportunities

Market Size and Growth

AI in Cybersecurity Market reached US$ 26.29 billion in 2024 and is expected to reach US$ 109.33 billion by 2032, growing with a CAGR of 19.50% during the forecast period 2025-2032.

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Key Development:

United States: Recent Industry Developments

✅ In January 2026, Upwind Security raised $250 million in Series B funding to expand its cloud‐cybersecurity platform powered by AI for faster threat detection and reduced false positives, driving global expansion and deeper partnerships with AWS, Azure, and Nvidia.

✅ In January 2026, CrowdStrike announced the acquisition of identity‐security startup SGNL for $740 million, enhancing AI‐driven identity threat defense integrated into the Falcon platform, aiming to strengthen protection against AI‐powered attacks and machine identities.

✅ In January 2026, WitnessAI secured $58 million in funding to develop enterprise AI security and governance tools for securing AI agents and autonomous systems, highlighting rising investor interest in next‐gen AI cybersecurity defense.

✅ In December 2025, ServiceNow agreed to acquire cybersecurity startup Armis for $7.75 billion to broaden its AI‐enhanced security capabilities across enterprises, reflecting strategic bets on securing complex digital and AI‐enabled environments.

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Japan: Recent Industry Developments

✅ In January 2026, Japanese ministries discussed significant government support for AI, chips, and cybersecurity R&D, including funding, tax incentives, and industry-university collaborations, to boost national innovation and competitive edge.

✅ In late 2025, the Japanese government's AI Security Committee continued meetings under the Cybersecurity Task Force to develop technical guidelines and measures against AI‐related cyber threats, indicating a coordinated national push for AI safety and secure deployment.

✅ In December 2025, cybersecurity M&A in the global sector included edge and security platform integrations that deeply affect how Japanese enterprise security partnerships and cross‐border investments adapt to AI‐enabled threat landscapes, underscoring broader strategic shifts.

✅ In November 2025, research like "AgenticCyber" showcased generative AI‐powered multi‐agent systems for threat detection and adaptive response, signaling innovative AI‐driven cybersecurity frameworks that Japanese enterprises and labs are aligning with.

Key Players:

=> NVIDIA, Amazon Web Services, Inc., Cylance Inc. (BlackBerry), Darktrace, Microsoft Corporation, Fortinet, Inc., IBM Corporation, Intel Corporation, LexisNexis, and Micron Technology, Inc.

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Key Segments:

By Security Type

Network Security leads with 35% share, driven by the increasing need to protect enterprise networks, cloud infrastructures, and critical IT assets from cyber threats. Endpoint Security accounts for 25%, supported by the rise of remote work, mobile devices, and IoT-connected endpoints. Application Security holds 20%, fueled by growing software deployment, web apps, and API-driven business operations. Hardware Security represents 10%, reflecting demand for secure devices and trusted computing platforms. Other security types make up 10%, including identity verification, blockchain security, and emerging cybersecurity technologies.

By Component

Solutions dominate with 50% share, driven by integrated cybersecurity platforms, AI-based threat detection systems, and enterprise-wide protection tools. Services account for 30%, supported by consulting, implementation, managed security services, and training offerings. Hardware holds 20%, reflecting firewalls, secure gateways, authentication devices, and security appliances.

By Deployment Type

Cloud-Based Deployment leads with 60% share, fueled by scalability, remote accessibility, lower upfront costs, and increasing adoption of cloud-native cybersecurity solutions. On-Premises Deployment accounts for 40%, driven by regulatory compliance, sensitive data protection, and large enterprises with existing IT infrastructure.

By Technology

Machine Learning (ML) dominates with 35% share, driven by AI-enabled threat detection, anomaly detection, and predictive cybersecurity analytics. Natural Language Processing (NLP) holds 20%, reflecting adoption in automated threat intelligence, phishing detection, and contextual analysis. Context-Aware Computing accounts for 15%, supported by adaptive cybersecurity solutions, real-time risk scoring, and dynamic access control. Other technologies make up 30%, including blockchain security, behavioral analytics, and next-generation AI-driven solutions.

By Application

Identity and Access Management (IAM) leads with 20% share, fueled by compliance requirements, enterprise access control, and zero-trust security adoption. Data Loss Prevention (DLP) accounts for 15%, supported by cloud adoption, regulatory mandates, and sensitive data protection. Unified Threat Management (UTM) holds 15%, reflecting demand for integrated security solutions. Fraud Detection/Anti-Fraud represents 12%, driven by banking, BFSI, and e-commerce sectors. Threat Intelligence accounts for 10%, fueled by proactive risk mitigation. Other applications make up 28%, including network monitoring, malware protection, email security, and advanced AI-driven defense systems.

By End-Use Industry

Banking, Financial Services, and Insurance (BFSI) leads with 30% share, driven by stringent regulations, increasing cybercrime, and high-value digital transactions. Government & Defense accounts for 15%, fueled by national security, critical infrastructure protection, and defense modernization. Retail represents 12%, supported by e-commerce security and customer data protection. Healthcare holds 10%, reflecting sensitive patient data and digital health adoption. Manufacturing, Automotive & Transportation, Enterprise, and Others make up 33%, driven by industrial IoT, smart mobility, and digital transformation initiatives across sectors.

By Region

North America - 40% Share
North America leads with 40%, driven by early cybersecurity adoption, strong IT infrastructure, cloud-native solutions, and regulatory mandates in the U.S. and Canada.

Europe - 25% Share
Europe holds 25%, supported by GDPR compliance, enterprise cybersecurity adoption, and government-led cyber initiatives in Germany, U.K., France, Italy, Spain, and surrounding countries.

Asia Pacific - 20% Share
Asia Pacific accounts for 20%, fueled by digital transformation, growing enterprise adoption, and cybersecurity investments in China, India, Japan, South Korea, and Southeast Asia.

Middle East & Africa - 10% Share
The Middle East & Africa represent 10%, supported by smart city initiatives, government cybersecurity projects, and energy sector protection.

Latin America - 5% Share
Latin America holds 5%, driven by banking, government, and enterprise cybersecurity adoption in Brazil, Mexico, and neighboring regions.

FAQ

What is the current size of the AI in Cybersecurity Market?

A: In 2024, the AI in Cybersecurity Market was valued at US$ 26.29 billion , reflecting its strong industry presence.

Q2: How large is the AI in Cybersecurity Market expected to be by 2032?

A: By 2032, industry forecasts suggest the AI in Cybersecurity Market will grow to around US$ 109.33 billion , demonstrating significant expansion.

Q3: What is the growth rate of the AI in Cybersecurity Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 19.50% during the forecast period from 2025 to 2032.

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