Global Intrusion Detection System Market Size (2024 - 2030)

The global market for Intrusion Detection Systems (IDS) achieved a valuation of USD 4.94 billion in 2023 and is anticipated to attain USD 7.43 billion by 2030, with a compound annual growth rate (CAGR) of 6% during the forecast period spanning from 2024 to 2030.

Overview of the Industry

An Intrusion Detection System (IDS) refers to either a device or a set of software applications designed to identify any attempts by unauthorized individuals to infiltrate a network or system. The proliferation and utilization of the Internet have raised concerns regarding the secure transmission and storage of digital data. Intrusions pose significant challenges for businesses, trade operations, and governments globally, underscoring the increasing importance of detection systems capable of promptly alerting administrators to potential breaches. IDS functions by monitoring networks or systems for malicious activities or policy violations, subsequently notifying network administrators or consolidating data through a Security Information and Event Management (SIEM) system. SIEM integrates data from various sources and utilizes alarm filtering algorithms to differentiate between genuine threats and false alerts.

IDS solutions come in diverse forms, ranging from antivirus software to hierarchical systems overseeing the traffic of an entire backbone network. The categorization approach is based on the method of activity analysis or detection. Activity analysis encompasses Network Intrusion Detection Systems (NIDS) and Host-Based Intrusion Detection Systems (HIDS). NIDS identifies intrusions by analyzing network traffic and monitoring multiple hosts connected to a hub or network switch with port mirroring functionality enabled. Conversely, HIDS employs an agent installed on a host to detect intrusions by scrutinizing system calls, application logs, and file system modifications. The detection methodology includes signature-based detection, which utilizes predefined patterns to identify malicious code, and anomaly detection, which aims to detect abnormal activity within the system.

Intrusion Prevention Systems (IPS) enhance IDS capabilities by not only detecting but also preventing attacks. Intrusion Detection and Prevention Systems (IDPS) primarily focus on identifying potential incidents, logging data, attempting to thwart them, and reporting to security administrators. The proliferation of diverse computer networks and the potential misuse of privileges by authorized users present significant challenges in the realm of intrusion detection.

The market is poised for growth due to the increased adoption of new technologies across commercial and industrial sectors. Advancements in semiconductor technology, such as LED and photodiode, have facilitated biometric authentication methods like fingerprint, palm vein, facial recognition, iris recognition, DNA, and retina scanning. Integrating detection systems with authentication mechanisms caters to the high-security requirements of various sectors, thereby fostering market growth in the near term.

Impact of COVID-19 on the Industry

Amid the COVID-19 pandemic, numerous governments and regulatory bodies have mandated both public and commercial entities to embrace remote work strategies while adhering to social distancing guidelines. Consequently, digital business practices have emerged as the new norm for many organizations' business continuity plans (BCP). With the escalating usage of mobile devices and widespread internet connectivity, entities are increasingly turning to digital solutions such as IDPS to fortify themselves against cyber threats.

Organizations are embracing concepts like Bring Your Own Device (BYOD) and Work From Home (WFH) to modernize their operational frameworks. IDPS solutions aid enterprises in ensuring business continuity by leveraging IDPS software to shield against cybercrime and malicious threat actors. Many companies are actively investing in research and development endeavors to develop analytics software aimed at tracking the spread of COVID-19.

Market Drivers

Rise in security breaches and cyberattacks

Instances of significant cyberattacks worldwide, involving orchestrated assaults on endpoints, networks, data, and other IT infrastructures via the internet, have resulted in data compromises for individuals, enterprises, and governments. The escalating prevalence of cybercrime is attributed to the substantial growth in digital transactions across various sectors. The upsurge in business data breaches and data leaks is propelling the demand for intrusion detection and prevention systems.

Swift expansion of BYOD and CYOD trends

As technology related to Bring Your Own Device (BYOD) evolves, organizations are increasingly deploying their workforce under BYOD schemes. Subsequently, organizations are subscribing to security services to safeguard devices such as smartphones, tablets, desktops, and laptops from cyber threats as part of the BYOD paradigm. With the burgeoning adoption of BYOD, businesses must secure devices not only within the premises but also those accessing the corporate network remotely. This factor has significantly bolstered the acceptance of IDPS solutions, thereby fueling the growth of the IDPS market.

Market Restraints

Limited security budgets for Small and Medium-sized Enterprises (SMEs)

Numerous enterprises, particularly SMEs, face constraints regarding cybersecurity expenditure. While large corporations possess substantial financial resources to establish robust information security frameworks, SMEs find it challenging to allocate significant funds to cybersecurity amid substantial investments in other IT infrastructure areas. The research and development costs required for developing cutting-edge cybersecurity solutions are substantial, consequently contributing to the high costs associated with security solutions. The incapacity of cybersecurity professionals to effectively execute their IT security duties remains a significant concern.

Global Intrusion Detection System Market- By Components

• Solutions
• Hardware
• Software
• Services
• Integration
• Support and Maintenance

Furthermore, post-sales services and maintenance are anticipated to play crucial roles in future growth. Advancements in artificial intelligence might lead to an enhanced threat monitoring system, offering proactive threat detection and thereby driving the demand for detection systems. The increased adoption of intuitive touch-based intrusion detection systems (IDS) and the evolution of video-based IDS are also poised to propel industry demand. Additionally, the rising necessity within the BFSI sector to secure stored assets such as money, lockers, and gold ornaments presents fresh opportunities.

Global Intrusion Detection System Market- By Deployment Mode

• Cloud
• On-premises

The global intrusion detection system market is segmented into cloud and on-premises based on deployment mode. The on-premises segment is forecasted to hold dominance in terms of deployment methods.

Global Intrusion Detection System Market- By Verticals

• Banking, Financial Services, and Insurance (BFSI)
• Government and Defense
• Healthcare
• Information Technology (IT) and Telecom
• Retail and eCommerce
• Manufacturing
• Others (EDUCATION, Media and Entertainment, and Transportation and Logistics)

Regarding usage, BFSI applications oversee a variety of functions including aviation, security, transportation, and medical services. An intrusion detection system (IDS) serves as an effective option for safeguarding online financial systems against intrusions and attacks, thereby bolstering the international intrusion detection system market share.

Global Intrusion Detection System Market- By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

North America boasts a robust and well-established economy, enabling significant engagement in R&D activities, thereby contributing to the advancement of new technology in IDIDPs. The presence of a majority of key competitors is expected to be a major driver for the growth of the North American IDPS market. Key companies such as Cisco Systems (US), IBM (US), McAfee (US), Palo Alto Networks (US), FireEye (US), and Fortinet (US), along with several startups in the region, cater to customer needs by offering superior IDPS solutions and services.

Global Intrusion Detection System Market- By Companies

1. Cisco Systems, Inc.
2. IBM Corporation
3. McAfee Corp.
4. Trend Micro Inc.
5. Palo Alto Networks, Inc.
6. AT&T Cybersecurity
7. Darktrace
8. FireEye
9. Alert Logic
10. Fortinet

KEY EVENTS IN THE GLOBAL INTRUSION DETECTION MARKET IN RECENT YEARS:

Merger & Acquisition: - In 2022, Cisco Acquired Opsani. Opsani, headquartered in Redwood City, California, is a privately held enterprise software company. This acquisition will enable Cisco AppDynamics to enhance its product and engineering teams, expand the platform's capabilities for better observation of enterprise-scale, cloud-native environments, and accelerate the delivery of performance and optimization required by customers. The Opsani acquisition builds upon previous acquisitions of Epsagon and reflex, demonstrating Cisco's commitment to its Full-Stack Observability strategy.

Merger & Acquisition: - In 2022, McAfee Corp. (NASDAQ: MCFE, "McAfee"), a global leader in online security, finalized its acquisition by an investor group led by Advent International Corporation ("Advent") and funds advised by Permira, Crosspoint Capital Partners L.P. ("Crosspoint"), Canada Pension Plan Investment Board ("CPP Investments"), GIC Private Limited ("GIC"), and an Abu Dhabi Investment Authority ("ADIA") (collectively, "the Investor Group").

Merger & Acquisition: - In 2021, Cisco acquired Replex. Replex, a privately held German corporate software company, will aid AppDynamics in expanding its product and technical teams to accelerate and enhance product features that observe enterprise-scale, cloud-native environments. Replex's expertise in Kubernetes, real-time data extraction, and analytics will augment AppDynamics' world-class product and engineering team, facilitating the expedited delivery of Cisco's Full-Stack Observability objective.