According to a MarketsandMarkets report released on August 25, 2025, the Generative AI Cybersecurity Market is projected to grow from USD 8.65 billion in 2025 to USD 35.50 billion by 2031, achieving a compound annual growth rate (CAGR) of 26.5%. This growth is driven by the rapid adoption of AI models, increasing attack surfaces, and the integration of generative AI into security platforms. North America is expected to hold the largest market share in 2025, fueled by technological leadership and regulatory momentum.
Market Size: $8.65B in 2025, projected to reach $35.50B by 2031.
CAGR: 26.5% (2025–2031).
Key Segments: Application security, network security, finance, healthcare, government.
Leading Region: North America, driven by vendors like Palo Alto Networks, CrowdStrike, Microsoft.
Drivers: AI adoption, regulatory frameworks (EU AI Act, NIST), rising threats like prompt injection.
Report Details: 210 tables, 75 figures, 420 pages, available at marketsandmarkets.com.
The rapid enterprise adoption of AI, including large language models (LLMs) and automation, is expanding digital ecosystems, increasing vulnerabilities like adversarial manipulation and data poisoning. Industries handling sensitive data—finance, healthcare, and government—face high stakes, with breaches costing an average of $4.88 million globally in 2024, per IBM. The integration of generative AI into security platforms enhances threat detection, enabling real-time anomaly analysis and automated incident response. Companies like Palo Alto Networks and CrowdStrike are leveraging AI for SOC modernization and adaptive defenses.
Application Security: Expected to dominate in 2025 due to the proliferation of GenAI-powered applications like chatbots and copilots, which are vulnerable to prompt injection and data leakage. Regulatory frameworks like the EU AI Act emphasize application-layer safeguards.
Network Security: Projected to hold the largest share by security type in 2025, driven by cloud connectivity and IoT growth. AI-enhanced intrusion detection and zero trust network access (ZTNA) address expanding attack surfaces.
Regional Leadership: North America leads due to early AI adoption, regulatory support (e.g., NIST AI Risk Management Framework), and major vendors like Microsoft and SentinelOne.
The report aligns with trends in AI-driven cybersecurity, as seen in recent developments like Gong’s appointment of a Chief Trust Officer to prioritize data security and Appian’s leadership in AI process automation. Posts on X highlight growing concerns about AI-related cyber threats, with CrowdStrike noting $35M+ in losses from AI-exploiting hackers. The market’s growth is further supported by a projected $10.5 trillion in global cybercrime costs by 2025, emphasizing the need for advanced defenses.
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