Anomaly Detection Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and it's growth?
Anomaly Detection Market Analysis
The anomaly detection market is expected to register a CAGR of 15.3% for the forecast period. The decision-making of all businesses depends on data. However, the data generated needs to be bigger, which could cause valuable information to be lost or misunderstood. Anomaly detection solutions help bridge this gap by using various techniques that enable the user to spot deviations from regular behavior.
- Anomaly detection is detecting anomalies that signify an unusual shift in operations or processes rather than following expected data or patterns. Anomaly detection has applications in fraud detection, system health monitoring, and intrusion detection, among others.
- With the number of connected devices increasing rapidly, data generated through these devices is massive, making handling information a critical task that could cause the loss of valuable information. Anomaly detection could help bridge this gap, thereby boosting the market's growth during the forecast period.
- For consumers, data breaches typically mean identity theft. Once compromised, fraudsters can make fraudulent purchases, manipulate listing information, create fake reviews, or change account information to divert payouts to their bank accounts.
- The increasing number of connected devices in the field of banking and financial sector, healthcare, manufacturing, IT and telecom, defense, and the government is expected to drive the anomaly detection market over the forecast period.
- The fundamental shift from physical cards, checks, and currency to digital payments continues to transform how consumers and businesses transfer value. Identity, security, and trust are fundamental requirements for payments, commerce, and finance, especially in a digitized economy.
- The advent of AI technologies, coupled with machine learning and its increased adoption, enables companies to understand better the factors responsible for sudden changes in consumer behavior. This is expected to boost market growth during the forecast period.
- Many firms have been compelled to switch from their usual working practices to remote working as a result of the COVID-19 outbreak, lockdown, and restrictions put in place. For distant employees to access firm data, the IT industry has relied on its data centers, cloud services, servers, and digital gadgets. Data leaks and cybercrime threats have both increased as a result, though. Security and risk managers must better protect their firms against cybercrime to maintain the sustainability of online services and digital platforms. Organizations are also using more anomaly-based intrusion detection systems to detect and stop hostile actions on computer networks. Therefore, organizations are employing anomaly detection to improve the security of their cloud-based data, which is fueling the growth of the anomaly detection market.
Anomaly Detection Industry Segmentation
Anomaly detection (also termed outlier detection) enables the user to identify rare events or observations, or it detects those data points that do not fit well with the rest of the data that raises suspicion.
The anomaly detection market is segmented by type (solutions and services), deployment (on-premise and cloud), end-user industry (BFSI, manufacturing, healthcare, IT, and telecom), and geography (North America (US, Canada), Europe (Germany, UK, France, and Rest of Europe), Asia-Pacific (India, China, Japan, and Rest of Asia-Pacific), and Rest of the World).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
|By End-user Industry|
|IT and Telecommunications|
|Other End-user Industries|
|Rest of the World|
Anomaly Detection Market Trends
This section covers the major market trends shaping the Anomaly Detection Market according to our research experts:
BFSI is Expected to Hold a Significant Part of the Market Share
- Owing to the extensive networking framework and critical data of a large customer base in the BFSI sector, it faces several data breaches and cyber-attacks. This made organizations in the industry look for alternative solutions, which is expected to boost the anomaly detection market during the forecast period.
- Banking operations include many periodic and aperiodic activities and transactions performed by employees, customers, and external agencies. The nature of such activities is quite complex. It requires constant monitoring to ensure that neither the bank nor its end customers are adversely affected by various malicious and random activities. This poses a tremendous opportunity for the companies offering solutions and services to prevent such anomalies.
- Furthermore, due to rising digitization, banking and financial institutions digitized banking services through online portals, which allowed them to serve customers better. This resulted in the generation of Big Data, making safe and secure handling of critical information imperative.
- Guidelines or regulations issued by regulatory bodies and agencies are expected to drive the market during the forecast period. For instance, it is required by The Federal Financial Institutions Examination Council (FFIEC) has a process in place that helps monitor potential anomalous behavior in online banking.
- Identity Theft Resource Center, a non-profit organization, states that it was founded to assist victims of identity theft in settling their cases and to increase public understanding of identity theft, data breaches, cybersecurity, scams/fraud, and privacy issues. The overall number of data compromises in the United States during the first half of the last year was 817. In the meantime, approximately 53 million people were impacted by data intrusions during the same period, including data breaches, data leaking, and data exposure. Even though these are three distinct events, they all share a similar trait. An unauthorized threat actor accesses the sensitive data as a result of all three instances.
To understand key trends, Download Sample Report
North America Holds the Largest Share in the Market
- The Federal Trade Commission states that identity thefts related to payment and the banking sector are prominent in the United States, which may boost the adoption of anomaly detection solutions and services.
- North America is a pioneer in the bring-your-own-device (BYOD) culture, which has resulted in its wide-scale adoption. This shift has made organizations look for solutions and services that enable them to ensure the safety of sensitive business information, which, in turn, could boost the anomaly detection market in the region.
- The regional companies are focused on providing their customers with a significant breadth of offerings in the anomaly detection field and provide enhanced features and functionalities.
- One such company is Cisco Systems Inc., an American multinational technology conglomerate headquartered in San Jose, California. Some of the products offered by the company are NetFlow, which allows the user to identify anomalies by producing detailed accounts of traffic flows and provides a high level of diagnostics to classify and identify network anomalies.
- The country is also under constant cyberattacks; for instance, In June 2022, a significant data breach at Flagstar Bank, one of the biggest financial institutions in the United States, allowed the Social Security numbers of about 1.5 million clients to get out. The hack marks the second similar attack on the Michigan-based internet banking behemoth in as many years. The bank withheld information on how hackers breached the network, although preliminary investigations suggested that the incident might have occurred as early as December 2021.
To understand geography trends, Download Sample Report
Anomaly Detection Industry Overview
The competition in the anomaly detection market is governed by some key players, such as Cisco Systems Inc., WSO2 Inc., Microsoft Corporation, etc. Overall, the competitive rivalry within the industry is relatively high. Through strategic partnerships, mergers, and acquisitions, the companies in the market can maintain their foothold to provide better solutions and products to their customers.
- September 2022 - Falkonry launched an automated anomaly detection application called Falkonry Insight. This application operates on high-speed sensor time series data and enables operations teams to virtually inspect every electrical and mechanical data point to detect new and emerging hotspots automatically. This application leverages NVIDIA GPU-powered accelerated computing and the NVIDIA AI platform to process terabytes of data at plant scale to surface machine and process anomalies without needing manual intervention.
- September 2022 - MindBridge, a cloud-first AI financial risk discovery and anomaly detection software, launched a new API, greater AI transparency through custom risk segmentation, and the expansion of platform localization and service for advanced risk analytics. The MindBridge API will help organizations supercharge next-gen innovation by automating MindBridge input and output for audit and financial professionals.
Anomaly Detection Market Leaders
Cisco Systems Inc.
Verint Systems Inc.
Broadcom Inc. (Symantec Corporation)
*Disclaimer: Major Players sorted in no particular order
Anomaly Detection Market News
- February 2022 - Google Cloud launched Timeseries Insights API, a highly efficient and scalable system enabling businesses and developers to quickly gather insights from streamed time series. The Timeseries Insights API is fully integrated with Google Cloud Storage and Google Cloud PubSub and can handle datasets as large as trillions of events.
- January 2022 - Amazon OpenSearch Service launched machine learning-based anomaly detection for historical data to identify trends, patterns, and seasonality in the past data. Anomaly detection for historical data enables customers to derive valuable insights from past data and take appropriate actions to improve the overall efficiency of their applications.
Anomaly Detection Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Number of Cyber Crimes
4.2.2 Increasing Adoption of Anomaly Detection Solutions in Software Testing
4.3 Market Restraints
4.3.1 Open Source Alternatives Pose as a Threat
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.2 By End-user Industry
5.2.4 IT and Telecommunications
5.2.5 Other End-user Industries
5.3 By Deployment
5.4.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia-Pacific
5.4.4 Rest of the World
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 Verint Systems Inc.
6.1.2 Broadcom Inc. (Symantec Corporation)
6.1.3 WSO2 Inc.
6.1.4 Microsoft Corporation
6.1.5 Cisco Systems Inc.
6.1.6 IBM Corporation
6.1.7 Wipro Limited
6.1.8 Trend Micro Incorporated
6.1.9 SAS Institute Inc.
6.1.10 Happiest Minds Technologies Pvt. Ltd
6.1.11 Guardian Analytics Inc.
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Anomaly Detection Market Research FAQs
What is the study period of this market?
The Anomaly Detection Market market is studied from 2018 - 2028.
What is the growth rate of Anomaly Detection Market?
The Anomaly Detection Market is growing at a CAGR of 15.3% over the next 5 years.
Which region has highest growth rate in Anomaly Detection Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Anomaly Detection Market?
North America holds highest share in 2022.
Who are the key players in Anomaly Detection Market?
Cisco Systems Inc., Microsoft Corporation, WSO2 Inc., Verint Systems Inc., Broadcom Inc. (Symantec Corporation) are the major companies operating in Anomaly Detection Market.
Anomaly Detection Industry Report
Statistics for the 2023 Anomaly Detection market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Anomaly Detection analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.