Anomaly Detection Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Anomaly Detection Market is Segmented by Type (Solutions, Service), Deployment (On-premise, Cloud), End-user Industry (BFSI, Manufacturing, Healthcare, IT and Telecom), and Geography.

Market Snapshot

anomaly detection market
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 15.3 %

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Market Overview

The anomaly detection market is expected to register a CAGR of 15.3% and surpass USD 5 billion, by the end of the forecast period (2021 - 2026). The decision making of all businesses depends on data. However, the data generated is too massive, which could often cause the valuable information to be lost or misunderstood. Anomaly detection solutions help bridge this gap by using various techniques that enable the user to spot the deviation from regular behavior.

  • 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. These sectors handle important data on a regular basis, making them prone to getting exposed to serious frauds, thefts, and hacking, which allows criminals to gain control over the firm's infrastructure.
  • For instance, in March 2019, Microsoft broadened its availability of anomaly detector with the launch of Microsoft Azure anomaly detector, which easily embeds anomaly detection capabilities into user's apps so they can quickly identify unusual, rare, or irregular data patterns that may signal problems.
  • The advent of AI technologies, coupled with machine learning, is enabling the companies to better understand the factors responsible for the sudden change in behavior. For instance, in April 2019, Verint strengthened its digital CX capabilities with AI-powered anomaly detection, which enabled the company to understand the key parameters and causes for a change in NPS (Net Promoter Score), customer satisfaction, and other drivers.

Scope of the Report

Anomaly detection (also termed as 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 report segments the market by type, deployment, end-user industry, and geography.

By Type
Solutions
Service
By End-user Industry
BFSI
Manufacturing
Healthcare
IT and Telecommunications
Other End-user Industry
By Deployment
On-premise
Cloud
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia-Pacific
Australia
Japan
India
Rest of Asia-Pacific
Rest of the World
Latin America
Middle-East & Africa

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Key Market Trends

BFSI is Expected to Hold a Significant Part of the Market Share

  • 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 and requires constant monitoring to make sure that neither the bank nor its end customers are adversely affected by various malicious and random activities. This poses a great potential opportunity for the companies offering solutions and services to prevent such anomalies.
  • For instance, CSI's fraud anomaly detection software for banks updates the institution about suspicious activity by generating automated alerts, allowing them to maintain diligence and compliance.      
  • The various guidelines or regulations issued by the regulatory bodies and agencies are expected to drive the market during the forecast period. For instance, as a financial, it is required by the Federal Financial Institutions Examination Council (FFIEC) to have a process in place that helps in the monitoring of potential anomalous behavior within online banking. 
anomaly detection market

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 the organizations to 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 companies in the region 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.
anomaly detection market

Competitive Landscape

The competition in the anomaly detection market is governed by the presence of some key players, such as Cisco Systems Inc., WSO2 Inc., Microsoft Corporation, etc. Overall, the competitive rivalry within the industry is relatively high. The companies, through strategic partnerships and mergers and acquisitions, are able to maintain their foothold in the market, with the view of providing better solutions and products to their customers.

  • April 2019 - Guardian Analytics Inc., a market leader in real-time behavioral analytics and machine learning solutions for banking payment fraud detection and enterprise B2B portal fraud, announced Real-time Wire Fraud Detection Webinar Series.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing Number of Cyber Crimes

      2. 4.2.2 Increasing Adoption of Anomaly Detection Solutions in Software Testing

    3. 4.3 Market Restraints

      1. 4.3.1 Open Source Alternatives Pose as a Threat

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Solutions

      2. 5.1.2 Service

    2. 5.2 By End-user Industry

      1. 5.2.1 BFSI

      2. 5.2.2 Manufacturing

      3. 5.2.3 Healthcare

      4. 5.2.4 IT and Telecommunications

      5. 5.2.5 Other End-user Industry

    3. 5.3 By Deployment

      1. 5.3.1 On-premise

      2. 5.3.2 Cloud

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

      2. 5.4.2 Europe

        1. 5.4.2.1 United Kingdom

        2. 5.4.2.2 Germany

        3. 5.4.2.3 France

        4. 5.4.2.4 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 Australia

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. 5.4.4.1 Latin America

        2. 5.4.4.2 Middle-East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Verint Systems Inc.

      2. 6.1.2 Broadcom Inc. (Symantec Corporation)

      3. 6.1.3 WSO2 Inc.

      4. 6.1.4 Microsoft Corporation

      5. 6.1.5 Cisco Systems Inc.

      6. 6.1.6 IBM Corporation

      7. 6.1.7 Wipro Limited

      8. 6.1.8 Trend Micro Incorporated

      9. 6.1.9 SAS Institute Inc.

      10. 6.1.10 Happiest Minds Technologies Pvt Ltd

      11. 6.1.11 Guardian Analytics Inc.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Anomaly Detection Market market is studied from 2018 - 2026.

The Anomaly Detection Market is growing at a CAGR of 15.3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Cisco Systems Inc., Microsoft Corporation, WSO2 Inc., Verint Systems Inc., Broadcom Inc. (Symantec Corporation) are the major companies operating in Anomaly Detection Market.

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