Intrusion Detection and Prevention Systems Market Size [2031]

Report Description

Intrusion Detection and Prevention Systems Market Outlook 2031

The global intrusion detection and prevention systems market size was USD 5.6 Billion in 2022 and is likely to reach USD 16.5 Billion by 2031, expanding at a CAGR of 12.7% during 2023–2031. The market is driven by the rising data breaches and cyber threats in various end-user industries.

Increasing intrusion threats to enterprise networks are leading to the rapid adoption of intrusion detection and prevention systems (IDPS). The rise of digitization across various verticals is changing the way businesses operate and serve their customers. Enterprises are increasing their reach, productivity, and customer base through 24/7 connected digital solutions. Network security is of high importance for the efficient running of these tools. The rise of cybersecurity incidents in different sectors is resulting in high demand for various security tools that detect and prevent network attacks in real-time. These factors are expected to propel the market during the assessment period.

• According to the Cost of Data Breach Report 2023 by IBM, the worldwide average cost related to data breaches reached USD 4.45 million in 2023, which is a 15% increase over the last three years. The report reveals that as a response to data breaches, about 51% of surveyed organizations were planning to raise their investment in security solutions, including incident response (IR), threat detection & response tools, and employee training.

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The research report finds that the COVID-19 pandemic fueled the intrusion detection and prevention systems market. The challenges presented by the pandemic and the lockdowns caused the widespread adoption of digital solutions by companies around the world, as a business continuity plan. This, in turn, increased the demand for intrusion detection and prevention systems (IDPS), to secure private networks from hackers.

Cyber threats have skyrocketed and evolved during the pandemic period, which boosted the demand for IDPS. Post the normalization of the pandemic, trends such as hybrid work mode, work-from-home approach, and Bring Your Own Devices (BYOD), are driving the use of IDPS across small & medium enterprises as well as in large enterprises.

Impact of Artificial Intelligence (AI) on Intrusion Detection and Prevention Systems Market

Advances in AI are likely to offer several benefits for the development and improvement of intrusion detection and prevention systems. This, as a result, is expected to boost the market, due to the significant demand for AI-powered upgraded cybersecurity solutions. AI-based IDPS are expected to offer real-time network monitoring and detection of threats/malicious activities, improvements in accuracy, and enhancement in the overall efficiency of security mechanisms.

AI enhances the automation of network security threat detection and response based on analytics-driven insights. These systems are capable of learning from past data to improve their abilities, hence, they are likely to bring significant improvements to the security of enterprise networks.

• The Cost of Data Breach Report 2023 by IBM reveals that enterprises that have implemented security AI and automation widely were able to save USD 1.76 million, compared to the ones that have not integrated AI in their security infrastructure.

Intrusion Detection and Prevention Systems Market Dynamics

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Major Drivers

Surging cyber-attacks and data breaches are driving the market. Criminal activities over the internet have multiplied in recent years, leading to repetitive attacks on enterprise networks. These networks are widely accessible, hence, the threats originate from local to international cyber criminals.

The rise of geopolitical conflicts has further increased politically motivated and deliberate attacks on governments and private enterprise networks by foreign factors. The concerns over data loss and compromise of sensitive information about company assets are driving the integration of IDPS from worldwide companies.

Increasing financial activities using digital solutions are leading to high demand for IDPS. Enterprises are adopting advanced network security solutions to facilitate convenience and security for customers/clients during digital transactions. These systems are responsible for adding resilient and robust security infrastructure for the client enterprises, which promptly identify potential threats and respond before any damage occurs.

• A survey-based article published by Forbes in March 2023 reveals that 34.5% of executive participants reported that their company’s financial and accounting services data was targeted by hackers during the prior 12 months. Among these participants, 22% observed one such kind of event, while 12.5% witnessed this more than once. Almost 50% of the C-suite and other executive participants are expecting similar targeting from cyber criminals to increase in the coming years.

Existing Restraints

Low budget allocation for cybersecurity by SMEs is expected to limit the market in the coming years. The emergence and rise of the digital ecosystem in recent years is benefitting all size organizations, by expanding their reach and customer base. However, unlike large enterprises, network security cost allocation is significantly low among SMEs.

The technology investments from these companies are substantial, and adding recurring costs for cybersecurity is often challenging, due to budgetary concerns. Therefore, the high cost of quality cybersecurity solutions and limited security budgets by SMEs is expected to affect the demand in the market.

Emerging Opportunities

Growing adoption of the BYOD model at workplaces is expected to widen opportunities in the market. This policy allows employees and other authorized users to use their personal devices, such as smartphones, laptops, tablets, and other devices, to access corporate data for work-related matters. Companies are likely to expand the subscription of intrusion detection and prevention systems to safeguard these devices from hackers while giving remote access to business networks.

Scope of the Intrusion Detection and Prevention Systems Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Intrusion Detection and Prevention Systems Market Segment Insights

Component Analysis

Based on component, the intrusion detection and prevention systems market is divided into solutions and services. The solutions segment is subdivided into software and hardware. Similarly, the services segment is further classified as integration and support & maintenance.

The solutions segment is projected to expand at a major growth rate during the projection period, owing to the growing adoption of IDPS software and hardware tools from global enterprises.

The rise of digitization is boosting internet-based commercial activities. Customers and business clients are connecting with enterprises through websites and applications. This, in turn, has boosted the need for robust network protection systems from malicious activities of cybercriminals. The IDPS software and hardware are designed to easily integrate with existing security infrastructure, thereby allowing for quick adoption and providing efficient detection and prevention of suspicious usage of private networks.

• In October 2022, Moxa Inc., a Taiwan-based major networking solution provider, launched industrial IDS/IPS on its EDR-G9010 series secure routers, along with the MXsecurity industrial security management software.

The services segment is anticipated to register rapid growth over the forecast period, due to the growing preference for quality IDPS solution integration and maintenance. In many cases, these services are offered by the developers along with the IDPS. This aids organizations in quick implementation and quality maintenance of the network security infrastructure. The services offered by network safety retailers help companies invest in the right direction for network security and cyber risk management, and facilitate timely upgradation based on evolving cybersecurity needs.

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System Type Analysis

On the basis of system type, the global market is segregated into wireless-based, network-based, host-based, and network behavior analysis. The network-based segment is projected to expand at a major growth rate in the coming years, owing to its ability to work in real-time mode on tracking live traffic and flagging issues. The response of NIDS is much faster than the host-based IDPS. The network-based IDPS are easy to install on an enterprise network.

The host-based segment is projected to expand at a considerable CAGR during the forecast period, due to its capability to detect network attacks that cannot be deciphered by network-based systems. These systems are capable of operating in an encrypted network traffic environment. They are capable of monitoring computers as well as the same endpoints.

Deployment Analysis

On the basis of deployment, the intrusion detection and prevention systems market is bifurcated into cloud and on-premises. The cloud segment is expected to register robust growth during the projection period, due to advantages such as cost efficiency, speed, flexibility, and scalability. Cloud computing network security solutions are becoming popular, as they are easy to adopt and are efficient in detecting threats to network security.

Software as a Service (SaaS) tools are highly preferred by small and medium enterprises, as they require lower budget allocation as compared to on-premises solutions. Emergence of AI-powered cloud-intrusion protection software is expected to propel the segment in the coming years.

Vertical Analysis

On the basis of vertical, the global market is segregated into BFSI, information technology & telecom, government & defense, manufacturing, retail, eCommerce, media & entertainment, and others. The Banking, Financial Services and Insurance (BFSI) segment is projected to expand at a considerable CAGR during the forecast period, owing to the rising threats posed by cybercrimes to financial institutions.

The rise of digital transactions and the need to secure sensitive data about customers has propelled the adoption of IDPS in this sector. Growing popularity of mobile wallets and digital banking has boosted the need for network security, thereby, creating opportunities for the market players.

The government & defense segment is expected to register rapid growth in demand for IDPS, owing to the rise of geo-political conflicts and threats rising from foreign factors to government online platforms. Various governments across the world are widening and easing governance with website and mobile applications. Government sectors, along with creating highly efficient websites, are focusing on adding multilayered network security to detect and prevent data breach attempts in real-time.

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Regional Outlook

In terms of region, the global intrusion detection and prevention systems market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to increasing spending by enterprises on strengthening cybersecurity. Cybercrimes are a major and growing concern in this region for private sectors and governments.

The rising initiatives by various governments to promote digital ecosystems and develop efficient cybersecurity solutions are expected to boost opportunities in the regional market. The high-scale adoption of digital tools across industries and the major presence of key players in the US and Canada are expected to boost the market in this region.

• A survey in 2021 revealed that almost 60 percent of online users in the US experienced cyberattacks, ranking 3^rd in terms of cybercrimes across nations. Data violation incidents affected about 294 million online individuals. Of these incidents, network intrusion was identified as the most common type of cybercrimes.

The market in Asia Pacific is anticipated to expand at the fastest growth rate during the forecast period, owing to the rising digitization across various industries coupled with the growing need for robust network security solutions. The surging use of artificial intelligence, machine learning, robotics, and the Internet of Things (IoT) solutions by key industries necessitates efficient mechanisms against network intrusions.

Several nations in this region, such as India and China, are registering high use of digital tools, which has fueled the occurrence of cyberattacks. Companies are steadily increasing their budget and focusing on implementing advanced digital security tools, which is likely to boost opportunities for the players in the market.

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