Security Analytics Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 19.40 Billion |
| Market Size (2030) | USD 48.89 Billion |
| Growth Rate (2025 - 2030) | 20.30% CAGR |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Security Analytics Market Analysis by Mordor Intelligence
The Security Analytics Market size is estimated at USD 19.40 billion in 2025, and is expected to reach USD 48.89 billion by 2030, at a CAGR of 20.30% during the forecast period (2025-2030).
Intensifying cyber-attack complexity, soaring data volumes, and hybrid multi-cloud adoption underpin this expansion. Vendors integrate artificial intelligence with established SIEM cores to enable real-time detection and automated response, providing enterprises with previously unavailable speed and accuracy. Commercial demand is further reinforced by strict compliance mandates that tighten breach-reporting timelines and levies, while managed service models lower entry barriers for organizations lacking deep in-house security skills. Competitive activity remains brisk as platform providers acquire AI-native specialists to accelerate feature roadmaps and address high customer expectations for unified threat visibility.
Key Report Takeaways
- By component, software platforms held 62.7% of the security analytics market share in 2024, whereas services are forecast to advance at a 22.3% CAGR to 2030.
- By deployment mode, cloud solutions accounted for 70.3% revenue share of the security analytics market in 2024 and continue to grow fastest at 23.1% CAGR.
- By application, network security analytics led with a 34.7% share in 2024; endpoint security analytics is expanding at a 22.7% CAGR through 2030.
- By end-user industry, BFSI captured 27.3% share of the security analytics market size in 2024, while healthcare is projected to post the strongest 18.6% CAGR.
- By organization size, large enterprises commanded a 58.8% share in 2024, yet SMEs are set to grow at a 21.2% CAGR to 2030.
- By geography, North America led with 36.06% share of the security analytics market in 2024; Asia-Pacific is on track for a 23.2% CAGR through 2030.
Global Security Analytics Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Escalating sophistication of cyber-attacks | +4.2% | Global, strongest in APAC and North America | Short term (≤ 2 years) |
| Surge in IoT and BYOD ecosystems | +3.8% | Global, notably North America and EU | Medium term (2-4 years) |
| Rapid migration of workloads to multi-cloud | +3.5% | Global, led by North America and APAC | Medium term (2-4 years) |
| Rising global and sector-specific mandates | +2.9% | EU and North America core, expanding to APAC | Long term (≥ 4 years) |
| AI-driven XDR convergence | +3.1% | North America and EU early, APAC following | Short term (≤ 2 years) |
| SOC-as-a-Service uptake | +2.5% | Global, strongest in North America and Europe | Medium term (2-4 years) |
Source: Mordor Intelligence
Escalating Sophistication of Cyber-Attacks
Global weekly cyber-attacks average 1,900 incidents, and projected cybercrime costs surpass USD 8 trillion, pushing organizations toward AI-powered analytics that identify unknown threat patterns. Signature-based systems miss stealthy campaigns, so behavioral algorithms now analyze user and entity activity to flag anomalies in real time. Edge devices are a preferred entry point for China-nexus actors, and phishing lures increasingly exploit generative content to bypass traditional filters. [1]Google Cloud, “2025 M-Trends Report,” cloud.google.com Continuous model retraining and threat-intelligence feeds help reduce dwell time, compelling security operations centers to modernize platforms quickly. This dynamic directly fuels spending momentum within the security analytics market.
Surge in IoT and BYOD Ecosystems
Enterprises face an explosion of unmanaged devices that extend the attack surface far beyond the datacenter. Healthcare illustrates the urgency, with 90% of providers expected to embed AI-based defenses for connected medical devices by 2025. [2]MSSP Alert, “AI Adoption For Cybersecurity Healthcare Poised For Surge,” msspalert.com Each sensor, tablet, and wearable produces telemetry that must be analyzed to isolate malicious activity without disrupting care delivery. Heterogeneous device profiles require platforms to baseline behavior per asset class, while automated quarantine workflows maintain business continuity. The resulting telemetry surge locks in demand for cloud-native analytics that elastically scale as device fleets grow, reinforcing expansion of the security analytics market.
Rapid Migration of Workloads to Multi-Cloud
Eighty-one percent of enterprises already run at least two public clouds, creating blind spots that unified analytics must address. [3]Teradata, “Multi-Cloud and the Future of Analytics,” teradata.com Companies need cross-provider correlation to detect lateral movement and flag configuration drift. Cloud-native analytics aggregate logs, configuration data, and workload context from AWS, Azure, and Google Cloud into a single threat pane. Elastic processing ensures peak alert volumes do not overwhelm teams, while API-driven architectures integrate with provider security services for automated remediation. As hybrid estates expand, the security analytics market gains sustained growth momentum.
AI-Driven XDR Convergence Accelerating Analytics Refresh
Security teams juggle an average of 45 tools, prompting consolidation around extended detection and response platforms that unite endpoint, network, identity, and cloud telemetry. XDR applies machine learning to cut false positives and surface high-fidelity incidents for fast resolution. Cisco’s XDR engine already processes 400 billion events daily to deliver automated containment actions. [4]Cisco, “Cisco XDR – Extended Detection and Response,” cisco.com This convergence replaces legacy SIEM alone, driving a substantial upgrade cycle and enlarging the addressable security analytics market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Shortage of skilled cyber-analytics talent | –2.8% | Global, most acute in North America and Europe | Long term (≥ 4 years) |
| Legacy environment integration complexity | –2.1% | Global, particularly challenging in large enterprises | Medium term (2-4 years) |
| Telemetry-related data-privacy concerns | –1.4% | EU and other privacy-conscious regions | Short term (≤ 2 years) |
| Persistently high false-positive rates hurt ROI | –1.7% | Global, affecting all deployment models | Medium term (2-4 years) |
Source: Mordor Intelligence
Shortage of Skilled Cyber-Analytics Talent
Vacancies for analysts outpace qualified candidates worldwide, prompting heavier reliance on managed SOC services and automation. High remuneration expectations inflate budgets and delay platform rollouts. Mid-market firms especially struggle to compete for scarce expertise, often opting for SOC-as-a-Service offerings that promise around-the-clock monitoring without headcount burdens. Talent scarcity, therefore, moderates growth even as it increases per-seat value within the security analytics market.
Legacy Environment Integration Complexity
Traditional SIEM deployments, legacy log formats, and proprietary appliances complicate the adoption of AI-centric analytics. Enterprises must map decades of data sources into new data lakes while assuring continuous compliance reporting. Highly regulated sectors often operate parallel stacks for extended periods, escalating the total cost of ownership and elongating payback timelines. Integration hurdles slow uptake, tempering the otherwise rapid expansion trajectory of the security analytics market.
Segment Analysis
By Component: Services Drive Platform Monetization
Software retained 62.7% security analytics market share in 2024, reflecting broad demand for integrated detection suites. Services, however, are growing faster at 22.3% CAGR, showing that buyers value expertise and round-the-clock oversight to unlock technology benefits. Managed SOC, incident response retainer programs, and continuous tuning services form the revenue core, especially within sectors with limited internal teams. The security analytics market size for managed services is projected to widen sharply as mid-market adopters standardize on outsourced defense models. Vendors increasingly bundle technology and service subscriptions to stabilize cash flows and deepen customer intimacy. Only platforms that combine tools with human-led threat-hunting assistance will capture the full value pool.
By Deployment Mode: Cloud Dominance Accelerates
Cloud delivery captured 70.3% revenue share in 2024 and is rising at a 23.1% CAGR through 2030, positioning it as the dominant distribution channel across the security analytics market. Consumption-based pricing, elastic resource scaling, and immediate access to AI model updates give the cloud a decisive edge. On-premises installations persist in sectors with strict data-sovereignty mandates, yet hybrid designs blend edge collection appliances with cloud analytics back-ends. The security analytics market size tied to cloud deployments is forecast to grow at least twice as fast as on-premises equivalents, underscoring the strategic importance for vendors to perfect cloud reliability and cross-provider log integration.
By Application: Endpoint Analytics Surge Past Network Focus
Network analytics retained the top slot with a 34.7% share in 2024. Nonetheless, endpoint analytics is advancing fastest at 22.7% CAGR as remote work, IoT expansion, and sophisticated ransomware elevate endpoint risk profiles. The security analytics market increasingly favors solutions that correlate endpoint behavior with network traffic and user identity to reveal multi-stage intrusions. Vendors embed automated isolation flows that block lateral movement without halting business operations. Growth in web and application analytics further diversifies demand, yet endpoint focus remains the prime catalyst for expanding platform breadth across the security analytics industry.
By End-user Industry: Healthcare Disrupts BFSI Leadership
BFSI held a 27.3% share in 2024, anchored by stringent data-protection laws and high-value transaction data. Healthcare, however, is growing at 18.6% CAGR, propelled by connected medical devices and new regulatory imperatives that classify hospitals as critical infrastructure. The security analytics market size for healthcare deployments will expand rapidly as patient-safety considerations elevate security spending. Energy, telecom, and retail also show healthy adoption curves, each driven by sector-specific threat vectors and compliance regimes.
Note: Segment shares of all individual segments available upon report purchase
By Organization Size: SMEs Challenge Enterprise Dominance
Large enterprises contributed 58.8% of 2024 revenue, leveraging complex toolchains and sizeable budgets. SMEs, though, are scaling adoption faster at 21.2% CAGR, benefiting from subscription-based cloud platforms that remove capital barriers. Simplified onboarding workflows and prescriptive analytics dashboards allow smaller teams to act swiftly on prioritized alerts. As vendors adapt feature sets and pricing to mid-market needs, the security analytics market is likely to experience wider geographic and vertical diffusion, enhancing overall market resilience.
Geography Analysis
North America led the security analytics market with 36.06% share in 2024, supported by stringent breach-notification laws, concentrated technology vendors, and federal investment programs. Large banks, healthcare chains, and cloud hyperscalers drive demand for high-throughput analytics that ingest petabyte-scale log data daily. Public-private threat-sharing initiatives further catalyze platform enhancements and reinforce regional leadership.
Asia-Pacific is the fastest-growing region with a 23.2% CAGR projection through 2030. Reported cyber incidents topped 30,000 in 2024, an 80% jump year on year, prompting corporations and governments to tighten defensive postures. India advances national guidelines for financial services resilience, while Japan raises minimum security baselines for critical infrastructure. Regional cloud adoption and widespread mobile payment usage compound data-protection urgency, sustaining robust demand across the security analytics market.
Europe remains a significant buyer base, driven by GDPR’s strict data-incident reporting rules that require demonstrable real-time alerting and audit trails. Enterprises in Germany, the United Kingdom, and France allocate rising budgets to analytics engines capable of pseudonymization and encryption while maintaining detection efficacy. Although growth rates trail APAC, steady institutional spending and a mature regulatory environment guarantee continued expansion across the continental security analytics market.
Competitive Landscape
The security analytics market exhibits moderate concentration. Large platform vendors compete aggressively while numerous AI-native specialists capture niche use cases. Microsoft, Palo Alto Networks, Cisco, and IBM accelerate road maps via targeted acquisitions and XDR integration, aiming to reduce tool sprawl for customers. Zscaler’s purchase of Avalor added real-time AI telemetry enrichment to its Zero Trust Exchange, improving time-to-detect benchmarks.
Traditional SIEM incumbents refresh offerings to retain relevance. Splunk’s cloud ARR surpassed USD 2.186 billion in 2024, highlighting buyer migration to SaaS delivery. Palo Alto Networks integrated QRadar SaaS technology to bolster its XSIAM platform, positioning for enterprise SIEM displacement.
Specialized challengers focus on automated model governance, verticalized threat intelligence, and lightweight sensor footprints. Protect AI partnered with Databricks to embed model security across data intelligence pipelines. Bitdefender, Secureworks, and Exabeam strengthen APAC presence through distributor tie-ups, reflecting the region’s outsized growth prospects. Differentiation now hinges on holistic visibility, low-code orchestration, and demonstrable ROI as buyers consolidate vendor rosters across the security analytics market.
Security Analytics Industry Leaders
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Alert Logic Inc.
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Arbor Networks Inc.
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Broadcom Inc. (Symantec Corporation)
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Cisco Systems Inc.
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RSA Security LLC
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: Secureworks broadened its APAC reach through a NEXTGEN distribution agreement for Taegis XDR.
- March 2025: The Japanese market projected a 15% CAGR for web-application vulnerability management, spurred by new e-commerce site mandates.
- February 2025: Protect AI became a validated Databricks partner, extending security across AI development lifecycles.
- February 2025: AhnLab showcased next-generation analytics at industry events, highlighting innovation momentum.
- November 2024: Palo Alto Networks posted 15% revenue growth for Q3 2025, reaching USD 2.3 billion.
Global Security Analytics Market Report Scope
Security analytics uses tools to collect, combine, and analyze data to keep an eye on security and find threats.Security analytics data can be collected in several ways, including network traffic. Endpoint and user behavior data. With the increasing use of the internet in both developed and developing countries, security analytic solutions should become more widely adopted because the internet is now connected to every technology in the modern world, giving cybercriminals easier access to data.
The security analytics market is segmented by application (network security analytics, application security analytics, web security analytics, and endpoint security analytics), end-user industry (healthcare, defense and security, banking and financial services, telecom and IT), and geography (North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa). The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
| By Component | Software Platforms | |||
| Services | ||||
| By Deployment Mode | Cloud | |||
| On-Premise | ||||
| By Application | Network Security Analytics | |||
| Endpoint Security Analytics | ||||
| Application Security Analytics | ||||
| Web Security Analytics | ||||
| By End-user Industry | BFSI | |||
| Defense and Aerospace | ||||
| Healthcare | ||||
| Telecom and IT | ||||
| Retail and E-commerce | ||||
| Energy and Utilities | ||||
| Other End-user Industries | ||||
| By Organization Size | Large Enterprises | |||
| Small and Mid-sized Enterprises | ||||
| By Geography | North America | United States | ||
| Canada | ||||
| Mexico | ||||
| South America | Brazil | |||
| Argentina | ||||
| Chile | ||||
| Rest of South America | ||||
| Europe | Germany | |||
| United Kingdom | ||||
| France | ||||
| Italy | ||||
| Spain | ||||
| Russia | ||||
| Rest of Europe | ||||
| Asia-Pacific | China | |||
| India | ||||
| Japan | ||||
| South Korea | ||||
| Malaysia | ||||
| Singapore | ||||
| Australia | ||||
| Rest of Asia-Pacific | ||||
| Middle East and Africa | Middle East | United Arab Emirates | ||
| Saudi Arabia | ||||
| Turkey | ||||
| Rest of Middle East | ||||
| Africa | South Africa | |||
| Nigeria | ||||
| Egypt | ||||
| Rest of Africa | ||||
| Software Platforms |
| Services |
| Cloud |
| On-Premise |
| Network Security Analytics |
| Endpoint Security Analytics |
| Application Security Analytics |
| Web Security Analytics |
| BFSI |
| Defense and Aerospace |
| Healthcare |
| Telecom and IT |
| Retail and E-commerce |
| Energy and Utilities |
| Other End-user Industries |
| Large Enterprises |
| Small and Mid-sized Enterprises |
| North America | United States | ||
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Chile | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| India | |||
| Japan | |||
| South Korea | |||
| Malaysia | |||
| Singapore | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | United Arab Emirates | |
| Saudi Arabia | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Egypt | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is driving the rapid growth of the security analytics market?
Growth stems from AI integration, multi-cloud expansion, stricter compliance mandates, and rising attack sophistication that require real-time visibility and automated response.
Which deployment model ranks highest in the security analytics market?
Cloud deployments held 70.3% share in 2024 and continue to outpace on-premises alternatives at a 23.1% CAGR to 2030.
Why is healthcare the fastest-growing vertical?
Healthcare’s 18.6% CAGR reflects connected medical-device proliferation and regulatory designation of hospitals as critical infrastructure, elevating security spending.
How does talent scarcity influence purchasing decisions?
A shortage of skilled analysts pushes organizations toward managed SOC services and platforms with higher automation, tempering growth but increasing per-deployment value.
Which region will add the most new security analytics spending by 2030?
Asia-Pacific, advancing at 23.2% CAGR, will contribute the largest incremental revenue due to escalating cyber incidents and national digital-transformation programs.
How are vendors addressing tool sprawl within enterprises?
Vendors converge SIEM, XDR, and SOAR functions into unified platforms, reducing the average of 45 disparate tools and improving operational efficiency.
