User & Entity Behavior Analytics Market

User & Entity Behavior Analytics Market Outlook 2032

The global user & entity behavior analytics market size was USD 1.67 Billion in 2023 and is projected to reach USD 17.19 Billion by 2032, expanding at a CAGR of 33.6% during 2024–2032. The market growth is attributed to the increasing demand for advanced cybersecurity solutions and rising importance of detecting insider threats and cyber-attacks.

Rising concerns over cybersecurity threats have propelled the demand for user & entity behavior analytics (UEBA) solutions market. Organizations increasingly recognize the importance of proactive threat detection and turn to UEBA tools to bolster their security defenses. UEBA solutions empower organizations to detect and respond to strange behavior patterns, by leveraging advanced analytics and machine learning algorithms. It helps organizations to mitigate the risks of insider threats, data breaches, and other security incidents.

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Increasing regulatory requirements and compliance standards are driving the market. Organizations are under pressure to enhance their security posture and ensure compliance with privacy laws, as data protection regulations become stringent globally. UEBA solutions offer valuable insights into user activities and access patterns, aiding organizations in meeting regulatory obligations and safeguarding sensitive information. The escalating regulatory scrutiny is anticipated to fuel the demand for UEBA solutions among industries managing sensitive data.

• In August 2023, the European Union (EU) implemented the Digital Services Act (DSA) and Digital Markets Act (DMA) to govern online platforms, placing a strong emphasis on transparency and safeguarding user interests. The DSA encompasses all platforms, with prior enforcement targeting entities exceeding 45 million users within the EU as of August 2023. Ensuring compliance necessitates the adoption of robust cybersecurity measures, such as user & entity behavior analytics solutions.

Impact of Artificial Intelligence (AI) in User & Entity Behavior Analytics Market

Artificial Intelligence (AI) has revolutionized user & entity behavior analytics (UEBA), significantly enhancing its capabilities in detecting and mitigating security threats. UEBA solutions analyze vast amounts of user and entity data and identify patterns and anomalies indicative of suspicious behavior by using AI algorithms. This advanced analytics enables organizations to detect insider threats, data breaches, and other security incidents effectively, empowering them to respond swiftly and mitigate risks before they escalate.

• On February 12, 2024, DTEX Systems announces Ai³, the first AI-powered risk assistant for insider investigations. Leveraging generative AI, Ai³ provides rapid insights into insider risk and intent, empowering analysts to ask focused questions while safeguarding employee privacy.

AI-powered UEBA solutions enable organizations to gain deep insights into user behaviors and access patterns, facilitating proactive and targeted security measures. AI-driven UEBA tools help organizations predict and prevent potential security breaches, by understanding normal user behaviors and identifying deviations from the norm. Moreover, AI enhances the scalability and efficiency of UEBA solutions, allowing organizations to analyze large volumes of data across diverse environments with minimal human intervention.

User & Entity Behavior Analytics Market Dynamics

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Major Drivers

Increasing adoption of cloud-based solutions in cybersecurity is driving the market. Rising need for advanced threat detection and insider threat prevention capabilities provided by UEBA platforms, as organizations migrate their IT infrastructure to the cloud is fueling the UEBA market, as cloud environments become prevalent across industries. For instance,

• In August 2022, Gurucul introduced enhanced multi-cloud deployments, supporting cross-cloud environments and poly-cloud architectures, offering correlation and behavior baselines across various cloud stacks.

Surging demand for data protection is propelling the market. Organizations are under pressure to ensure compliance and protect customer information from unauthorized access or misuse, with stringent data privacy regulations such as GDPR and CCPA. UEBA tools provide continuous monitoring and auditing capabilities, enabling businesses to maintain regulatory compliance and address evolving cybersecurity threats effectively. Rising focus on compliance is expected to propel the UEBA market globally.

Existing Restraints

Security and privacy concerns are projected to hamper the market. Organizations hesitate to implement UEBA platforms due to fears of potential data breaches or unauthorized access to sensitive information. The collection and analysis of user data by UEBA tools raise privacy issues in regions with strict data protection regulations. These concerns hinder the widespread adoption of UEBA technology, limiting the market.

Complexity of implementation and integration processes is anticipated to restrain the deployment of UEBA solutions. Integrating UEBA platforms with existing IT infrastructure and security systems is challenging and time-consuming for organizations, requiring significant investments in resources and expertise. Moreover, customizing UEBA tools to align with specific business needs and regulatory requirements further impedes the market.

Emerging Opportunities

­Rising demand for advanced threat detection capabilities is expected to create lucrative opportunities in the market during the forecast period. Growing need for UEBA platforms that identify and mitigate insider threats, external attacks, and anomalous behavior patterns, as organizations face increasingly sophisticated cyber threats. UEBA tools leverage machine learning algorithms and behavioral analytics to detect and respond to security incidents in real-time, enhancing overall cybersecurity posture. Rising demand for robust threat detection capabilities is projected to fuel the market. For instance,

• In March 2023, Palo Alto Networks unveiled new identity and threat detection solutions, leveraging AI and ML for rapid attack detection and prevention, enhancing security measures in seconds.

Increasing regulatory compliance requirements are anticipated to create new avenues for the market. Organizations face pressure to bolster security measures and comply with regulatory standards, driven by the enforcement of stringent data protection regulations such as GDPR, CCPA, and HIPAA. UEBA platforms offer advanced monitoring and auditing capabilities, enabling organizations to track user activities, detect policy violations, and demonstrate compliance with regulatory mandates.

Scope of the User & Entity Behavior Analytics Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Regional Outlook

In terms of region, the global user & entity behavior analytics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major market share in 2023, due to its robust adoption of advanced cybersecurity solutions, driven by stringent regulatory mandates and increasing cyber threats. The developed IT infrastructure, extensive investments in cybersecurity, and a high awareness of the importance of proactive threat detection and response are boosting the market in the region.

The market in Asia Pacific is projected to grow at a significant pace in the forecast period, owing to the expanding digitalization initiatives, rising cybercrime incidents, and increasing adoption of cloud-based technologies. High need for effective user & entity behavior analytics solutions to protect sensitive data and mitigate cybersecurity risks is expected to drive the market in the region, as businesses across various industries embrace digital transformation. Additionally, government initiatives aimed at enhancing cybersecurity frameworks and regulations further fuel the market.

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User & Entity Behavior Analytics Market Segment Insights

Deployment Mode Segment Analysis

Based on deployment mode, the user & entity behavior analytics market is divided into on-premises and cloud-based. The on-premises segment held a major share of the market in 2023, owing to the preference of certain organizations in highly regulated industries such as banking and healthcare, for maintaining control over their data within their infrastructure. Additionally, concerns about data privacy and security lead organizations to opt for on-premises solutions.

The cloud-based segment is expected to expand at a significant pace in the coming years, due to the increasing adoption of cloud computing and the scalability and flexibility. Organizations are increasingly embracing cloud-based technologies to streamline operations, reduce IT infrastructure costs, and enable remote access to analytics platforms. Moreover, cloud-based UEBA solutions provide fast deployment times and easy integration with other cloud-based applications, enhancing the segment. For instance,

• In February 2021, DTEX Systems launched InTERCEPT 6.5, integrating UEBA, endpoint DLP, digital forensics, and insider threat management into a cloud-native platform, enhancing data and IP loss prevention.

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Component Segment Analysis

On the basis of component, the global market is bifurcated into solutions and services. The solutions segment held the largest market share in 2023, attributed to the increasing demand for advanced analytics tools and software platforms capable of detecting anomalies and patterns in user and entity behavior. Organizations are investing in UEBA solutions to strengthen their cybersecurity posture and mitigate insider threats, thus driving the segment.

The services segment is anticipated to expand at a substantial CAGR during the projected period, due to the rising need for professional and managed services to support the implementation, integration, and maintenance of UEBA solutions. The demand for specialized services, such as consulting, training, and support, is expected to increase, as organizations continue to face evolving cyber threats and regulatory requirements.

Organization Size Segment Analysis

Based on organization size, the user & entity behavior analytics market is segregated into small & medium-sized enterprises (SMEs) and large enterprises. The SMEs segment led the market in terms of revenue in 2023, owing to the increasing adoption of UEBA solutions among small organizations to enhance their cybersecurity posture and detect insider threats. SMEs are recognizing the importance of proactive security measures boosting the segment.

The large enterprises segment is projected to register a robust growth during the assessment years, driven by the growing complexity of cyber threats and the need for advanced security measures among large organizations. These enterprises have extensive networks and high volumes of sensitive data, making them prime targets for cyber-attacks. As a result, these organizations are investing in UEBA solutions to strengthen their security defenses and protect against insider threats, fueling the segment.

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End-user Segment Analysis

On the basis of end-user, the market is divided into BFSI, healthcare, IT & telecom, government &  defense, retail, manufacturing, and others. The BFSI segment generated a major revenue share of the market in 2023, attributed to the increasing focus on cybersecurity within the banking and financial services industry. Rising frequency of cyber threats and data breaches compels BFSI organizations to invest in user entity behavior analytics solutions to detect and prevent fraudulent activities.

The healthcare segment is projected to register a robust growth pace during the assessment years, fueled by the growing adoption of digital technologies and electronic health records (EHRs) in the healthcare industry. Healthcare organizations face increased cybersecurity risks, including insider threats and unauthorized access to patient data, as they digitize their operations. To address these challenges, healthcare providers are deploying UEBA solutions to monitor user behavior and detect anomalies, further fueling the segment.

Segments

The user & entity behavior analytics market has been segmented based on

Deployment Mode

• On-premises
• Cloud-based

Component

• Solutions
• Services

Organization Size

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

End-user

• BFSI
• Healthcare
• IT & Telecom
• Government & Defense
• Retail
• Manufacturing
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Bay Dynamics
• Dtex Systems
• Exabeam Inc.
• Forcepoint
• Gurucul Solutions Pvt. Ltd.
• Rapid7 LLC
• Securonix
• Securonix Inc.
• Splunk Inc.
• Varonis Systems Inc.

Competitive Landscape

Key players competing in the global user & entity behavior analytics market are Bay Dynamics; Dtex Systems; Exabeam Inc.; Forcepoint; Gurucul Solutions Pvt. Ltd.; Rapid7 LLC; Securonix; Securonix Inc.; Splunk Inc.; and Varonis Systems Inc.

• On March 5, 2024, Alphabet's CapitalG invests USD 50 Million in DTEX Systems to bolster insider threat protection. DTEX, a leader in insider risk management, secures funding to expand global operations. Utilizing AI and machine learning, DTEX's InTERCEPT platform enables proactive risk management while preserving privacy. DTEX emphasizes the need to focus on the human element to shift to proactive security measures.

• In February 2023, LogRhythm partnered with ABPSecurite, a cybersecurity distributor in Singapore, to distribute its SIEM, UEBA, and Axon solutions, expanding its reach.