Security Analytics Market by Component (Solution and Services), Deployment Mode (Cloud and On-premises), and Application (Web Security Analytics, Network Security Analytics, Endpoint Security Analytics, Application Security Analytics, and Others), by Vertical (BFSI, Retail and eCommerce, Media and Entertainment, Travel and Hospitality, Telecom and IT, Healthcare, and Others), and by Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America), Global Forecast 2021 to 2031

Market analysis and insights 

In 2022, the market for security analytics was estimated to be worth USD 10.75 billion. It is anticipated to grow at a CAGR of 14.5% during the forecast period, reaching USD 34.95 billion by 2031.

The increasing use of web and cloud-based business applications, the prioritization of network-based threats with actionable intelligence to prevent data losses, the rising demand to detect real-time advanced persistent threats, the increased focus on maintaining regulatory compliance, the rising demand to discover patterns, and the prevention of onward intrusion are some of the most significant and important factors.

Security Analytics Market Scope :

Market Definition 

The term ""security analytics"" refers to the procedure of gathering, examining, and interpreting data pertaining to security in order to spot and address possible security risks and breaches.

It includes mining massive volumes of security data for useful insights using advanced analytics techniques like machine learning, artificial intelligence, and big data analytics.
Security analytics' main objective is to promptly and proactively identify and remediate security events. Security analytics seeks to find abnormalities, trends, and signs of compromise that may point to a security breach or malicious activity by examining security logs, network traffic analytics, system events, user behavior, and other pertinent data sources.
Key players profiled Cisco, LogRhythm, FireEye, HPE, Splunk, Juniper Networks, Broadcom, RSA Security, McAfee, IBM, and Huntsman Security

Key market segmentation

Insights on Components

Security Analytics Solutions Adoption to Drive Market Growth

The market is divided into solutions and services based on components. Among these, the solution category is anticipated to hold a disproportionately large market share throughout the duration of the forecast. Solutions including Cisco's Stealthwatch and Rapid Threat Containment, IBM Corporation's QRadar, and McAfee's Mvision EDR endpoint threat detection are offered by market participants. Utilizing field observations, businesses can employ these tools to gain visibility into potential risks and identify suspicious behavior. The market's growth will likely be fueled by the increasing end-user adoption of these options.

Insights on Deployment Mode

Growing Market Size Due to increasing demand for cloud-based deployment modes
Cloud and on-premise deployment modes are further split into categories. Cloud-based security measures are expected to grow more rapidly during the course of the predicted timeframe. Cloud-based management of security solutions is now available because of new technologies like AI, massive amounts of data, and IoT, among others. Organizations can replace their on-premise security management infrastructure with cloud-based security management, which also lowers maintenance expenses. Business organizations are therefore likely to favor cloud-based threat intelligence solutions. The manual security procedures are combined with on-premise technologies. The inability of manual security operations to adapt to the constantly shifting needs of the company

Insights on Application

The Network Security Segment Valued for the Highest Share

With a market share of 53.9% in 2019, the network security analytics category was the market leader. The industry is being driven by an increase in demand for behaviorally-based security analytics to track network telemetry and firewall logs and adhere to corporate standards. Additionally, the risk of malware that hides in network layers and encrypts network traffic is growing, which is pushing businesses to implement solutions.
Insights on Vertical

The BFSI Segment Valued for the Highest Share

The BFSI segment held the greatest proportion (21.09%) in 2019 when looking at the industrial vertical. The increase in phishing assaults and payment integration fraud by third parties, the hazards associated with using mobile banking applications, and the increasing need to meet regulatory requirements are all factors contributing to the segment's rise. Banking and financial service providers are exposed to a number of security threats and data breaches due to the rising usage of cloud-based technology to supply shared banking services to third-party vendors, networks, and customers.

Insights on the Region

The North American region accounted for the highest share.

North America, especially the US and Canada, is among the most significant regions for the acceptance and growth of new technologies due to its pro-innovation government policies, substantial industrial base, and high buying power. For security analytics across several businesses, the US represents a substantial market. Most developers of security analytics platforms are from this country. More malware assaults, sophisticated persistent threats, and data breaches occur in North America. Due to this, the security analytics market is expanding in North America. The requirement for security compliance management systems and the development of investments in cybersecurity solutions both have an impact on North America's adoption of security analytics.

Key Company Profiles

Some key players in the global market are Cisco, LogRhythm, FireEye, HPE, Splunk, Juniper Networks, Broadcom, RSA Security, McAfee, IBM, and Huntsman. Security 

COVID-19 Impact and Market Status

As malicious actors take advantage of flaws in key infrastructure, healthcare systems, and distant working settings, the pandemic has seen an increase in cyberattacks and security breaches.

The need for security analytics solutions to identify, evaluate, and address these risks has risen as a result of the expanded threat landscape.

Initiatives for digital transformation have been pushed by the epidemic, leading to a quick uptake of cloud services, solutions for remote work, and online collaboration tools by businesses. Security analytics is now more important than ever to monitor and safeguard these digital environments, spot any security holes, and guarantee the integrity and confidentiality of critical data.

The attack surface for cyber threats has grown due to the increased use of remote work arrangements. To keep an eye on distant endpoints, identify unusual user behavior, and guard against unauthorized access attempts, businesses have invested in security analytics technologies. In order to identify possible security issues coming from remote worker devices and to ensure safe access to corporate networks, security analytics have been important.

Latest Trends 

1. The main goal of behavioral analytics is to track and examine user behavior in order to spot irregularities and potential security risks. By incorporating contextual data about things like people, devices, and apps with behavioral analytics, User Entity Behavior Analytics (UEBA) goes one step further. With the use of this method, it is possible to spot unusual behavior patterns that might be signs of insider threats, compromised accounts, or unauthorized access attempts.

2. Artificial intelligence (AI) and machine learning (ML) play a crucial role in security analytics by enabling the automated examination of massive amounts of security data. AI and ML systems are better able to recognize trends, spot abnormalities, and properly categorize security occurrences. Additionally, these technologies support predictive analytics, allowing businesses to proactively discover new dangers and take preventative measures.

3. Solutions for security analytics are progressively connecting with platforms and external threat intelligence streams. Through this interface, businesses may get real-time security intelligence, such as details on fresh vulnerabilities, malware signatures, and threat actors. Security analytics solutions can improve threat detection and response capabilities by using this knowledge.

4. Security analytics solutions are developing in response to the particular difficulties of cloud-based architectures as businesses use cloud services and hybrid environments. By giving organizations access to cloud workloads, apps, and network traffic, cloud-native security analytics technologies help them efficiently monitor and safeguard their cloud deployments.

Significant Growth Factors

The need for advanced security analytics solutions is being driven by the continuously changing and complex nature of cyber threats.

To identify and respond to sophisticated assaults like malware, ransomware, insider threats, and advanced persistent threats (APTs), organizations are looking for comprehensive analytics capabilities.

Effective security analytics is now more important than ever because of the proliferation of data protection laws like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Organizations are required to monitor and analyze security incidents and occurrences, as well as identify and prevent possible data breaches, in order to show compliance.

The amount of security data has grown exponentially as a result of the widespread use of cloud services, digital platforms, and linked devices. By utilizing cutting-edge analytics approaches to find trends, anomalies, and possible security risks, security analytics solutions assist organizations in making sense of this enormous volume of data.

Restraining Factors 

Security analytics systems must be implemented and managed by qualified cybersecurity experts who are proficient in data analysis, threat detection, and incident response.
Organizations trying to use security analytics efficiently face a huge barrier due to the lack of competent workers in the cybersecurity sector. Solutions for security analytics sometimes require large infrastructure, software, and hardware expenditures upfront. The overall expenditures may also increase as a result of continuing maintenance, upgrades, and staffing requirements.

Budget restrictions might make it difficult for small and medium-sized businesses to implement security analytics. It may be challenging to integrate security analytics with current security architecture and tools, particularly when working with a variety of technologies, platforms, and data sources. Achieving smooth data interchange and ensuring system compatibility may be difficult, which might reduce the effectiveness of security analytics installations.

Numerous security data sets, including those containing personally identifiable information (PII), are gathered and analyzed as part of security analytics. To adhere to privacy laws and safeguard people's rights, organizations must handle and manage sensitive data with the utmost caution. It might be difficult to strike a compromise between good security analytics and privacy issues.

Recent Developments in the Global Security Analytics Market: A Snapshot

• By entering into a new strategic partnership with TD Synnex in June 2022, Alert Logic will increase the distribution of its market-leading managed detection and response solution on a global scale. This partnership will make Alert Logic the go-to company for a network of technology partners looking to provide customers with comprehensive MDR. A midrange multifunctional firewall appliance with a new architecture created for hybrid operations, the Secure Firewall 3100 Series was introduced by Cisco in April 2022. This series provides excellent performance and adaptability to enable firewall administrators and hybrid employees to control their cloud and hybrid firewalls from anywhere.