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UK AI in Cybersecurity Market

ID: MRFR/ICT/57012-HCR
200 Pages
Aarti Dhapte
October 2025

UK AI in Cybersecurity Market Research Report By Application (Intrusion Detection, Threat Intelligence, Fraud Detection, Security Analytics, Incident Response), By Deployment Mode (Cloud-Based, On-Premises, Hybrid), By End Use (BFSI, Healthcare, Government, Retail, IT and Telecom) and By Technology (Machine Learning, Natural Language Processing, Deep Learning, Neural Networks)- Forecast to 2035

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UK AI in Cybersecurity Market Summary

As per MRFR analysis, the UK AI in Cybersecurity Market Valuation was estimated at 1163.75 USD Million in 2024. The UK ai in-cybersecurity market is projected to grow from 1425.59 USD Million in 2025 to 10850.5 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 22.5% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The UK AI in-cybersecurity market is experiencing robust growth driven by technological advancements and increasing cyber threats.

  • The market is witnessing increased adoption of AI technologies across various sectors, enhancing threat detection and response capabilities.
  • Regulatory compliance is becoming a focal point, as organizations strive to meet evolving legal requirements in cybersecurity.
  • Collaboration between AI systems and human analysts is emerging as a critical strategy to improve overall security effectiveness.
  • The rising cyber threat landscape and growing demand for automation are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 1163.75 (USD Million)
2035 Market Size 10850.5 (USD Million)
CAGR (2025 - 2035) 22.5%

Major Players

CrowdStrike (US), Palo Alto Networks (US), Darktrace (GB), Fortinet (US), Check Point Software Technologies (IL), IBM (US), McAfee (US), Cisco Systems (US)

UK AI in Cybersecurity Market Trends

The AI in Cybersecurity Market is currently experiencing a transformative phase., driven by the increasing complexity of cyber threats and the growing reliance on digital infrastructure. Organizations are increasingly adopting artificial intelligence technologies to enhance their security measures, as traditional methods often fall short in addressing sophisticated attacks. This shift is evident in various sectors, including finance, healthcare, and government, where the need for robust cybersecurity solutions is paramount. The integration of AI not only streamlines threat detection but also improves response times, allowing organizations to mitigate risks more effectively. As the landscape evolves, regulatory frameworks are also adapting to ensure that AI applications in cybersecurity adhere to ethical standards and privacy concerns. Moreover, the demand for skilled professionals in The AI in Cybersecurity Market. is surging. Educational institutions and training programs are responding by developing specialized curricula aimed at equipping the workforce with necessary skills. This trend indicates a recognition of the importance of human expertise in conjunction with AI technologies. As organizations continue to invest in advanced cybersecurity solutions, the collaboration between AI systems and human analysts is likely to become a cornerstone of effective security strategies. The future of this market appears promising, with ongoing innovations and a commitment to enhancing security protocols across various industries.

Increased Adoption of AI Technologies

Organizations are increasingly integrating AI technologies into their cybersecurity frameworks. This trend is driven by the need for more effective threat detection and response capabilities. AI systems can analyze vast amounts of data in real-time, identifying patterns and anomalies that may indicate potential security breaches. As a result, businesses are likely to enhance their defenses against evolving cyber threats.

Focus on Regulatory Compliance

With the rise of AI in cybersecurity, there is a growing emphasis on regulatory compliance. Organizations must navigate complex legal frameworks to ensure that their AI applications adhere to privacy and ethical standards. This trend suggests that companies are prioritizing compliance as a critical component of their cybersecurity strategies, potentially influencing their technology adoption and implementation processes.

Collaboration Between AI and Human Analysts

The ai in-cybersecurity market is witnessing a trend towards collaboration between AI systems and human analysts. While AI can automate many processes, human expertise remains essential for interpreting results and making informed decisions. This partnership is likely to enhance overall security effectiveness, as organizations leverage the strengths of both AI technologies and skilled professionals.

UK AI in Cybersecurity Market Drivers

Evolving Regulatory Landscape

The evolving regulatory landscape in the UK is influencing The AI in Cybersecurity Market.. With regulations such as the General Data Protection Regulation (GDPR) and the Network and Information Systems (NIS) Directive, organizations are under pressure to enhance their cybersecurity measures. Compliance with these regulations often necessitates the implementation of AI-driven solutions that can ensure data protection and mitigate risks. As businesses strive to meet regulatory requirements, the demand for AI technologies that facilitate compliance is expected to grow. This trend suggests that The AI in Cybersecurity Market. will benefit from the increasing focus on regulatory adherence, driving innovation and investment in advanced security solutions.

Growing Demand for Automation

The growing demand for automation in cybersecurity processes is a key driver for The AI in Cybersecurity Market.. Organizations are increasingly seeking to automate repetitive tasks, such as threat monitoring and incident response, to improve efficiency and reduce human error. AI technologies can facilitate this automation by providing intelligent insights and predictive analytics, enabling security teams to focus on more complex challenges. According to industry reports, automation can reduce incident response times by up to 50%, underscoring its importance in the cybersecurity landscape. As the need for streamlined operations intensifies, The AI in Cybersecurity Market. is likely to expand, driven by the push for automated security solutions.

Rising Cyber Threat Landscape

The escalating cyber threat landscape in the UK is a primary driver for The AI in Cybersecurity Market.. With cybercrime costs projected to reach £10.5 billion annually, organizations are compelled to adopt advanced technologies to safeguard their assets. The sophistication of cyber attacks, including ransomware and phishing, necessitates the integration of AI solutions that can analyze vast amounts of data in real-time. This trend indicates a growing reliance on AI to enhance threat detection and response capabilities, thereby fostering market growth. As businesses increasingly recognize the need for proactive security measures, the demand for AI-driven cybersecurity solutions is likely to surge, positioning The AI in Cybersecurity Market. as a critical component of modern security strategies.

Investment in Cybersecurity Infrastructure

Investment in cybersecurity infrastructure is a significant driver for The AI in Cybersecurity Market.. The UK government has allocated £2.6 billion to bolster cybersecurity measures, reflecting a commitment to enhancing national security. This funding is expected to stimulate the adoption of AI technologies, as organizations seek to modernize their security frameworks. The integration of AI into existing systems can optimize threat detection and streamline incident response, making it a vital aspect of cybersecurity strategies. As businesses and public sector entities invest in advanced technologies, The AI in Cybersecurity Market. is poised for substantial growth, driven by the need for robust and adaptive security solutions.

Shift Towards Cloud-Based Security Solutions

The shift towards cloud-based security solutions is a notable driver for The AI in Cybersecurity Market.. As organizations migrate to cloud environments, the need for robust security measures becomes paramount. AI technologies can enhance cloud security by providing real-time threat detection and automated response capabilities. The UK cloud security market is projected to grow at a CAGR of 20% over the next five years, indicating a strong demand for AI-driven solutions. This transition to cloud-based infrastructures necessitates the integration of AI to address unique security challenges, thereby propelling the growth of the ai in-cybersecurity market. As businesses adapt to this new paradigm, the role of AI in ensuring cloud security will become increasingly critical.

Market Segment Insights

By Application: Intrusion Detection (Largest) vs. Threat Intelligence (Fastest-Growing)

The application segment in the UK ai in-cybersecurity market showcases a diverse distribution of market share across its key values. Intrusion Detection currently holds the largest share due to its foundational role in network security. Following closely are Threat Intelligence and Fraud Detection, both of which are becoming increasingly essential in combating sophisticated cyber threats. Security Analytics and Incident Response, while critical, hold relatively smaller shares, indicating an evolving landscape where businesses are prioritizing proactive threat management and detection. Growth trends within this segment are driven by the rising complexities of cyber threats, prompting organizations to adopt advanced solutions. Threat Intelligence, recognized as the fastest-growing segment, is gaining traction as firms seek predictive capabilities to preempt attacks. The demand for Fraud Detection solutions is also surging, emphasizing the need for defense against financial crimes. Overall, the increasing digital reliance is a strong catalyst for enhancing cybersecurity frameworks across applications.

Intrusion Detection (Dominant) vs. Incident Response (Emerging)

Intrusion Detection remains the dominant force in the application segment, characterized by its extensive deployment across industries to detect unauthorized access attempts swiftly. It leverages machine learning algorithms to enhance decision-making processes, ensuring a robust defense against intrusions. On the other hand, Incident Response is emerging as a vital component in cyber defense strategies, focusing on managing and mitigating the aftermath of cyber incidents. This segment emphasizes timely response and recovery solutions, reflecting a shift towards not only preventing breaches but also efficiently handling them when they occur. Both segments are vital for a holistic cybersecurity approach, addressing both prevention and recovery needs in today's threat landscape.

By Deployment Mode: Cloud-Based (Largest) vs. Hybrid (Fastest-Growing)

In the UK ai in-cybersecurity market, the distribution of market share among deployment modes reveals a clear leader in cloud-based solutions. This segment holds the lion's share, driven by the increasing demand for scalable and flexible cybersecurity solutions that can be easily deployed across various platforms. On-premises solutions, while still significant, show a slower adoption rate as organizations lean towards more integrated and responsive cloud offerings. The growth trends in the deployment mode segment are being largely influenced by advancements in technology and changing organizational needs. Cloud-based solutions are experiencing rapid uptake due to their cost-effectiveness and accessibility. In contrast, the hybrid deployment mode is emerging as the fastest-growing, appealing to organizations that require both on-premises security and cloud flexibility to meet compliance demands and enhance their cybersecurity posture.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

Cloud-based solutions have established themselves as the dominant force in the UK ai in-cybersecurity market, offering unparalleled agility and scalability that meet the diverse needs of businesses today. Organizations are increasingly adopting these solutions to streamline operations and enhance protection against evolving cyber threats. Meanwhile, on-premises solutions are regarded as an emerging alternative, particularly in sectors where data sovereignty and regulatory compliance are paramount. While they offer robust security controls, their slower deployment pace may hinder growth compared to the rapidly evolving capabilities of cloud-based offerings. Those leveraging hybrid models are also seeing advancements, as businesses seek to optimize both the security benefits of on-premises systems and the flexibility presented by cloud solutions.

By End Use: BFSI (Largest) vs. IT and Telecom (Fastest-Growing)

The market distribution for the end-use segments in the UK ai in-cybersecurity market is primarily led by the BFSI sector, which commands a significant share due to its high demand for secure transactions and data protection. Following BFSI, sectors such as Government and Healthcare also exhibit substantial market presence, as they require robust cybersecurity measures to protect sensitive information and maintain operational integrity. Retail is evolving within this space to enhance customer trust and safeguard transaction data, indicating various levels of market engagement among these sectors. Growth trends demonstrate that the IT and Telecom sector is rapidly becoming a vital player as it embraces AI-driven solutions to enhance cybersecurity frameworks. Factors contributing to this growth include the increasing sophistication of cyber threat landscapes and the necessity for real-time data protection strategies across industries. Meanwhile, BFSI remains dominant due to consistent investment in cybersecurity infrastructure, driven by regulatory compliance and the need for consumer confidence, establishing it as a critical player in the UK ai in-cybersecurity market.

BFSI (Dominant) vs. IT and Telecom (Emerging)

The BFSI sector is characterized by its rigorous security protocols and compliance with financial regulations, making it a stable frontrunner in the UK ai in-cybersecurity market. This segment invests heavily in advanced cybersecurity solutions to protect sensitive financial data and maintain customer trust, thereby ensuring its market dominance. Conversely, the IT and Telecom sector is emerging with innovative AI solutions designed to combat sophisticated cyber threats. Its rapid adoption of AI-driven technologies reflects a growing awareness of cybersecurity's importance in network infrastructure and services. As this sector continues to expand its capabilities, it is positioning itself as a crucial player, potentially rivalling established segments like BFSI in the coming years.

By Technology: Machine Learning (Largest) vs. Deep Learning (Fastest-Growing)

The UK ai in-cybersecurity market shows a diverse segmentation in technology, with Machine Learning commanding the largest market share due to its extensive integration into various cybersecurity applications. This technology plays a crucial role in threat detection and response, making it indispensable for businesses aiming to enhance their security posture. Meanwhile, Deep Learning is emerging as a fast-growing segment, driven by its advanced capabilities in analyzing vast amounts of data and identifying complex threats that traditional methods may overlook. Growth trends in the technology segment are primarily influenced by the increasing frequency of cyber threats and the need for more sophisticated security measures. The adoption of Machine Learning technologies is fueled by ongoing advancements in data analytics and increased investments in cybersecurity infrastructure. Furthermore, Deep Learning is gaining traction as organizations seek to leverage its unmatched predictive accuracy and efficiency in detecting new vulnerabilities, highlighting its significance in the evolving landscape of cybersecurity.

Technology: Machine Learning (Dominant) vs. Deep Learning (Emerging)

Machine Learning remains the dominant technology in the UK ai in-cybersecurity market, characterized by its robust algorithms and ability to learn from data patterns to enhance security measures. This dominance is reflected in its widespread application across various sectors, where it effectively addresses challenges such as fraud detection and anomaly recognition. In contrast, Deep Learning is an emerging technology that utilizes neural networks to process data more effectively, enabling it to recognize hidden patterns and make decisions based on vast datasets. While still gaining traction, Deep Learning is set to disrupt traditional approaches, offering significant advantages in predictive capabilities and operational efficiency, positioning itself as a vital component of future cybersecurity strategies.

Get more detailed insights about UK AI in Cybersecurity Market

Key Players and Competitive Insights

The ai in-cybersecurity market is currently characterized by intense competition and rapid innovation, driven by the increasing sophistication of cyber threats and the growing demand for advanced security solutions. Key players such as Darktrace (GB), CrowdStrike (US), and Palo Alto Networks (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Darktrace (GB) focuses on self-learning AI technology, which autonomously detects and responds to threats, thereby emphasizing innovation as a core component of its operational strategy. Meanwhile, CrowdStrike (US) leverages its cloud-native platform to provide comprehensive endpoint protection, indicating a strong commitment to digital transformation and scalability. Palo Alto Networks (US) is also notable for its aggressive expansion into cloud security, suggesting a strategic pivot towards addressing the complexities of hybrid environments.

The business tactics employed by these companies reflect a moderately fragmented market structure, where localized strategies and supply chain optimization play crucial roles. The collective influence of these key players shapes a competitive landscape that is increasingly reliant on technological advancements and strategic partnerships. For instance, companies are localizing their operations to better serve regional markets, which not only enhances customer engagement but also streamlines supply chains, thereby improving overall efficiency.

In October 2025, Darktrace (GB) announced a partnership with a leading telecommunications provider to integrate its AI-driven cybersecurity solutions into the provider's infrastructure. This strategic move is significant as it not only expands Darktrace's market reach but also enhances the security posture of the telecommunications sector, which is increasingly targeted by cyber threats. Such collaborations are indicative of a broader trend towards integrated security solutions that leverage AI capabilities.

In September 2025, CrowdStrike (US) launched a new feature within its Falcon platform that utilizes machine learning to predict potential vulnerabilities before they can be exploited. This proactive approach to cybersecurity is crucial in an environment where threats evolve rapidly. By focusing on predictive analytics, CrowdStrike positions itself as a leader in preemptive security measures, which could redefine industry standards for threat detection and response.

In August 2025, Palo Alto Networks (US) completed the acquisition of a prominent AI startup specializing in threat intelligence. This acquisition is likely to bolster Palo Alto's capabilities in AI-driven security analytics, enhancing its competitive edge in the market. The integration of advanced threat intelligence into its existing offerings may provide a more comprehensive security solution, appealing to enterprises seeking robust defenses against sophisticated cyber threats.

As of November 2025, the competitive trends in the ai in-cybersecurity market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in enhancing their service offerings. Looking ahead, it appears that competitive differentiation will increasingly hinge on innovation and technological prowess rather than merely price. The shift towards reliable supply chains and cutting-edge technology solutions suggests that companies prioritizing these aspects will likely emerge as leaders in the evolving landscape.

Key Companies in the UK AI in Cybersecurity Market market include

Industry Developments

In September 2023, Microsoft announced enhanced AI-driven cybersecurity tools aimed at helping organizations proactively defend against threats, reflecting the growing demand for sophisticated security solutions.

Meanwhile, in August 2023, Palo Alto Networks reported a major upgrade to its AI capabilities, effectively enhancing threat detection and response times.

Merger and acquisition activities have also been notable, with Check Point Software Technologies acquiring a startup specializing in AI-based threat detection in July 2023, which is expected to bolster its cybersecurity portfolio. Additionally, Fortinet experienced a steady growth valuation, indicating strong market confidence as demand for AI-enhanced security solutions continues to rise.

Over the past few years, the UK government has prioritized securing the digital landscape, leading to significant investments in AI technologies to combat cyber threats. These trends collectively demonstrate a proactive shift towards integrating AI technologies within the cybersecurity landscape, aiming to safeguard businesses and critical infrastructure effectively.

 

Future Outlook

UK AI in Cybersecurity Market Future Outlook

The ai in-cybersecurity market is projected to grow at a 22.5% CAGR from 2024 to 2035, driven by increasing cyber threats and demand for advanced security solutions.

New opportunities lie in:

  • Development of AI-driven threat detection platforms for real-time response.
  • Integration of AI in compliance automation tools for regulatory adherence.
  • Creation of AI-based predictive analytics for risk assessment and management.

By 2035, the market is expected to be robust, driven by innovation and heightened security needs.

Market Segmentation

UK AI in Cybersecurity Market End Use Outlook

  • BFSI
  • Healthcare
  • Government
  • Retail
  • IT and Telecom

UK AI in Cybersecurity Market Technology Outlook

  • Machine Learning
  • Natural Language Processing
  • Deep Learning
  • Neural Networks

UK AI in Cybersecurity Market Application Outlook

  • Intrusion Detection
  • Threat Intelligence
  • Fraud Detection
  • Security Analytics
  • Incident Response

UK AI in Cybersecurity Market Deployment Mode Outlook

  • Cloud-Based
  • On-Premises
  • Hybrid

Report Scope

MARKET SIZE 2024 1163.75(USD Million)
MARKET SIZE 2025 1425.59(USD Million)
MARKET SIZE 2035 10850.5(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 22.5% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled CrowdStrike (US), Palo Alto Networks (US), Darktrace (GB), Fortinet (US), Check Point Software Technologies (IL), IBM (US), McAfee (US), Cisco Systems (US)
Segments Covered Application, Deployment Mode, End Use, Technology
Key Market Opportunities Integration of advanced machine learning algorithms enhances threat detection in the ai in-cybersecurity market.
Key Market Dynamics Rising demand for advanced threat detection drives innovation in the ai in-cybersecurity market.
Countries Covered UK

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FAQs

What is the expected market size of the UK AI in Cybersecurity Market in 2024?

The UK AI in Cybersecurity Market is expected to be valued at 556.5 USD Million in 2024.

What will be the projected value of the UK AI in Cybersecurity Market by 2035?

By 2035, the UK AI in Cybersecurity Market is projected to reach a value of 6670.0 USD Million.

What is the expected compound annual growth rate (CAGR) for the UK AI in Cybersecurity Market from 2025 to 2035?

The expected CAGR for the UK AI in Cybersecurity Market from 2025 to 2035 is 25.331%.

Which application segment is expected to have the largest market value in 2035?

The Intrusion Detection segment is expected to have the largest market value at 1200.0 USD Million in 2035.

What is the market value of the Threat Intelligence application in 2024?

The Threat Intelligence application is valued at 150.0 USD Million in 2024.

Who are the key players in the UK AI in Cybersecurity Market?

Key players in the market include BT Group, Cisco, Trend Micro, Microsoft, and IBM.

What is the expected market value for Fraud Detection by 2035?

The market value for Fraud Detection is expected to reach 1000.0 USD Million by 2035.

How much will the Security Analytics segment be valued at in 2035?

The Security Analytics segment is projected to be valued at 1300.0 USD Million in 2035.

What is the market value of Incident Response in 2024?

In 2024, the Incident Response application is valued at 120.0 USD Million.

What opportunities exist for growth in the UK AI in Cybersecurity Market?

Key growth opportunities in the market arise from increased demand for advanced threat detection and prevention solutions.

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