Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market - Industry Analysis, Market Size, Share, Trends, Growth And Forecast 2020 – 2025
According to IndustryARC, the global Intrusion Detection System or Intrusion Prevention System (IDS or IPS) market, which was valued at about $5 billion in 2018, is expected to grow at a CAGR of 12% during the forecast period 2019-2025. Rising security threats to computer networks and consistently changing regulatory landscapes have resulted in the rapid development of IDS/IPS. Cyber attacks on enterprises through ransom ware, malware and Denial of Service (DOS) are capable of compromising the existing security systems. Moreover, these security breaches cause long-lasting damage to enterprises, in terms of regaining customer trust. According to the Verizon Data Breach Investigations Report (DBIR), there were more than 53,000 security incidents across the globe in 2018. It was also reported that more than 30% of security incidents were successfully negotiated by the network within a few minutes, and over 60% of security incidents occurred due to inefficiencies in the existing security system. Growing threat from cyber incidents to enterprises, coupled with an increase in the number of connected devices within enterprises, is analyzed to be one of the major factors driving the adoption of IDS/IPS during 2019-2025.
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The report: “Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market
Forecast (2019-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the IDS/IPS Market.
The major driving factor in the Intrusion Detection/Prevention System market is increasing deployment of cloud computing across various industries such as BFSI, IT and Telecom, and Healthcare. The cloud computing and hosting market is forecast to grow from $86.01 billion in 2016 to $155.9 billion in 2020, which will reflect significant growth in the IDS/IPS system market.
The host based IDS/IPS Systems analyze the activities on servers and provide real-time visibility into the overall system. Ongoing developments by major players and launch of new products are the major strategies being adopted by market players. For instance, HIDS introduced by HP, named HP-UX HIDS, provides enhanced security with better configuration.
North America is the largest market for IDS/IPS systems, and registered a share of around 34.5%, in 2018, owing to growing digital adoption of technologies such as IoT, cloud computing by various industries such as BFSI, healthcare, and retail among others. In addition, accelerated growth in the North American retail market will simultaneously increase demand for IDS/IPS systems to secure the digital systems adopted by the industries.
Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market Segment Analysis - By Technology
The Host IDS/IPS System is gaining traction at a very rapid pace in the market owing to its capabilities for detection and prevention in multiple computers simultaneously. The Unified Security Management (USM) solution introduced by Alien Vault in 2017 eases security analysis and combines host-based IDS along with network- and cloud-based IDS with essential security capabilities in a single, unified security environment. This USM platform is designed to centralize threat detection and respond to incidents occurring within cloud platforms. Developments such as this, combined with the enhanced version of host based IDS/IPS, will augment market revenue. In 2018, Hewlett-Packard HIDS performed enhancements for local host-level security to automatically monitor each configured host system within the network for possible signs of unwanted and potentially damaging intrusions. Similar developments in IDS/IPS is set to drive the adoption of these systems in the future.
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Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market Segment Analysis - By End-User
The BFSI sector for the IDS/IPS market is expected to grow at a CAGR of 15% during the forecast year owing to rapid growth of the Internet, and increasing incidences of computer attacks and intrusions in recent years. Intrusion Detection and Prevention Systems have been proposed as an efficient solution to protect the BFSI sector against intrusions and attacks. The number of malicious applications targeting internet banking transactions has increased severely in recent years. In 2019, Bank of Valletta plc, a Malta-based banking firm was attacked by hackers, leading to a shutdown of all their IT systems while funds amounting to about $14.7m were reportedly stolen from its reserves. The growing incidences of electronic frauds targeting banks negatively impacts the bank’s reputation, owing to which financial institutions are planning to invest significantly on cyber security systems. According to global cyber security company Kaspersky, financial institutions are under significant pressure to ramp up security. In 2017, more than 64% of institutions reported that they would invest on improving their IT security regardless of the return-on-investment in the next couple of years. Such investments are analyzed to be major driving factors for the IDS/IPS market.
Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market Segment Analysis - By Geography
Cloud Computing is the preferred choice of network and server solution for every IT organization, since it provides flexible and pay-per-use services to users. However, security and privacy is a major hurdle, owing to the cloud’s open and distributed architecture that is vulnerable to intrusions. Intrusion Detection System (IDS) is the most commonly used mechanism to detect attacks on the cloud. Information technology company Cisco found that by the end of 2019, 83% of all global data center traffic will come from cloud services. This is anticipated to bring a revolutionary change to the data sector with many organizations investing on cloud services. The increasing deployment of IDS and IPS system in such organizations for data protection and privacy will further propel the market.
The continued sophistication of cyber-attacks, security threats and hacking attempts:
An enterprise network contains a number of internetworking devices and uses multiple networks. For large multinational enterprises with huge networks, the implementation of real-time defense methods is necessitated to protect the business network against potential threats that may impede or paralyze the system. Various cyber defense mechanism were opted for by organizations in the form of intrusion detection and prevention systems to protect themselves, but there are still a few security breaches which go undetected due to human negligence, lack of employee education on cyber attacks and so on. Hence, these types of security threats pose a severe challenge to intrusion detection and prevention system market growth.
Market Landscape
By Type: Host-Based IDS/IPS, Network-Based IDS/IPS, Wireless IDS/IPS
By Component And Deployment Model: Hardware, Software, Services, Consulting, Training and Education, Managed Services, Design and Integration, Deployment Models, On-Premise Deployment, Cloud Deployment
By Industry Vertical: BFSI, Healthcare and Life Sciences, Retail, Aerospace, Defense And Intelligence, IT and Telecomm transportation, Government (Excluding Defense) and Public Utilities, Others
By Geography: North America, South America, Europe, APAC, RoW
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Key Takeaways
The five key players have helped the market grow with strategies such as partnerships and acquisitions, along with product development and up gradation in 2018. Major players in the IDS/IPS system market include Cisco Systems, Inc., IBM Corp, FireEye, Inc., McAfee, LLC, Check Point Software Technologies Ltd., Juniper Networks, Inc., Trend Micro Incorporated, NSFocus Inc, AhnLab, Inc., Huawei Technologies Co., Ltd., Hillstone Networks Inc., SecureWorks, Inc., Palo Alto Networks, Inc., Fortinet, Inc., and Symantec Corporation, among others.
By Component And Deployment Model: Hardware, Software, Services, Consulting, Training and Education, Managed Services, Design and Integration, Deployment Models, On-Premise Deployment, Cloud Deployment
By Industry Vertical: BFSI, Healthcare and Life Sciences, Retail, Aerospace, Defense And Intelligence, IT and Telecomm transportation, Government (Excluding Defense) and Public Utilities, Others
By Geography: North America, South America, Europe, APAC, RoW
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The five key players have helped the market grow with strategies such as partnerships and acquisitions, along with product development and up gradation in 2018. Major players in the IDS/IPS system market include Cisco Systems, Inc., IBM Corp, FireEye, Inc., McAfee, LLC, Check Point Software Technologies Ltd., Juniper Networks, Inc., Trend Micro Incorporated, NSFocus Inc, AhnLab, Inc., Huawei Technologies Co., Ltd., Hillstone Networks Inc., SecureWorks, Inc., Palo Alto Networks, Inc., Fortinet, Inc., and Symantec Corporation, among others.
The major driving factor in the Intrusion Detection/Prevention System market is increasing deployment of cloud computing across various industries such as BFSI, IT and Telecom, and Healthcare. The cloud computing and hosting market is forecast to grow from $86.01 billion in 2016 to $155.9 billion in 2020, which will reflect significant growth in the IDS/IPS system market.
The host based IDS/IPS Systems analyze the activities on servers and provide real-time visibility into the overall system. Ongoing developments by major players and launch of new products are the major strategies being adopted by market players. For instance, HIDS introduced by HP, named HP-UX HIDS, provides enhanced security with better configuration.
North America is the largest market for IDS/IPS systems, and registered a share of around 34.5%, in 2018, owing to growing digital adoption of technologies such as IoT, cloud computing by various industries such as BFSI, healthcare, and retail among others. In addition, accelerated growth in the North American retail market will simultaneously increase demand for IDS/IPS systems to secure the digital systems adopted by the industries.
Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market Segment Analysis - By Technology
The Host IDS/IPS System is gaining traction at a very rapid pace in the market owing to its capabilities for detection and prevention in multiple computers simultaneously. The Unified Security Management (USM) solution introduced by Alien Vault in 2017 eases security analysis and combines host-based IDS along with network- and cloud-based IDS with essential security capabilities in a single, unified security environment. This USM platform is designed to centralize threat detection and respond to incidents occurring within cloud platforms. Developments such as this, combined with the enhanced version of host based IDS/IPS, will augment market revenue. In 2018, Hewlett-Packard HIDS performed enhancements for local host-level security to automatically monitor each configured host system within the network for possible signs of unwanted and potentially damaging intrusions. Similar developments in IDS/IPS is set to drive the adoption of these systems in the future.
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The BFSI sector for the IDS/IPS market is expected to grow at a CAGR of 15% during the forecast year owing to rapid growth of the Internet, and increasing incidences of computer attacks and intrusions in recent years. Intrusion Detection and Prevention Systems have been proposed as an efficient solution to protect the BFSI sector against intrusions and attacks. The number of malicious applications targeting internet banking transactions has increased severely in recent years. In 2019, Bank of Valletta plc, a Malta-based banking firm was attacked by hackers, leading to a shutdown of all their IT systems while funds amounting to about $14.7m were reportedly stolen from its reserves. The growing incidences of electronic frauds targeting banks negatively impacts the bank’s reputation, owing to which financial institutions are planning to invest significantly on cyber security systems. According to global cyber security company Kaspersky, financial institutions are under significant pressure to ramp up security. In 2017, more than 64% of institutions reported that they would invest on improving their IT security regardless of the return-on-investment in the next couple of years. Such investments are analyzed to be major driving factors for the IDS/IPS market.
Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market Segment Analysis - By Geography
The intrusion prevention and intrusion detection systems market in North America held the largest share of 34.5% in 2018. Implementation of IoT-based smart technologies in the North American region is improving work efficiency and providing high levels of security to enterprises. Security vulnerabilities within IoT-based systems give rise to security threats which affect the organization. The size of the IoT consumer electronics market in the North American region is expected to grow from $89.96 billion in 2017 to $179.89 billion in 2022. Hence, increasing use of IoT and cloud-based devices in this region will boost the IDS/IPS market.
The BFSI sector in North America is one of the fastest growing industries, with the U.S. prioritizing cyber security and allocating a much bigger budget to deal with threats. As per IndustryARC, the average annualized cost of cyber-attacks on companies in the U.S. was $21.39m in 2017, which is expected to grow in the coming years. The IDS/IPS is going to play a massive role in this industry.
The Middle East IDS/IPS market is also set to witness significant growth during the forecast period owing to increasing government initiatives aimed towards developing sectors aside of oil and gas, such as IT and manufacturing. The UAE’s non-oil sector is expected to accelerate with a growth rate of 2.1% in 2019, an increase from the 1.3% growth rate it maintained in 2018. This is set to grow demand for IDS/IPS systems. Apart from this, the oil and gas companies in this region are also opting for digitalization solutions in their plants for reducing operating expenses. The governments of Middle East and Africa are going to invest $1 trillion over the next five years to boost upstream oil and gas output. Digitalization in the oil and gas sector is currently witnessing a significant challenge owing to cyber security concerns. However, these challenges are being currently addressed by major companies operating in this space such as Siemens, GE, ABB and so on. These key players are investing significantly to strengthen their industrial cyber security portfolio through product up gradations, product launches, acquisitions and collaborations. Increasing investments into both non-oil and oil sectors is set to drive the IDS/IPS market during the forecast period.
Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market Drivers
The BFSI sector in North America is one of the fastest growing industries, with the U.S. prioritizing cyber security and allocating a much bigger budget to deal with threats. As per IndustryARC, the average annualized cost of cyber-attacks on companies in the U.S. was $21.39m in 2017, which is expected to grow in the coming years. The IDS/IPS is going to play a massive role in this industry.
The Middle East IDS/IPS market is also set to witness significant growth during the forecast period owing to increasing government initiatives aimed towards developing sectors aside of oil and gas, such as IT and manufacturing. The UAE’s non-oil sector is expected to accelerate with a growth rate of 2.1% in 2019, an increase from the 1.3% growth rate it maintained in 2018. This is set to grow demand for IDS/IPS systems. Apart from this, the oil and gas companies in this region are also opting for digitalization solutions in their plants for reducing operating expenses. The governments of Middle East and Africa are going to invest $1 trillion over the next five years to boost upstream oil and gas output. Digitalization in the oil and gas sector is currently witnessing a significant challenge owing to cyber security concerns. However, these challenges are being currently addressed by major companies operating in this space such as Siemens, GE, ABB and so on. These key players are investing significantly to strengthen their industrial cyber security portfolio through product up gradations, product launches, acquisitions and collaborations. Increasing investments into both non-oil and oil sectors is set to drive the IDS/IPS market during the forecast period.
Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market Drivers
Increasing use of Cloud Computing:
Cloud Computing is the preferred choice of network and server solution for every IT organization, since it provides flexible and pay-per-use services to users. However, security and privacy is a major hurdle, owing to the cloud’s open and distributed architecture that is vulnerable to intrusions. Intrusion Detection System (IDS) is the most commonly used mechanism to detect attacks on the cloud. Information technology company Cisco found that by the end of 2019, 83% of all global data center traffic will come from cloud services. This is anticipated to bring a revolutionary change to the data sector with many organizations investing on cloud services. The increasing deployment of IDS and IPS system in such organizations for data protection and privacy will further propel the market.
The continued sophistication of cyber-attacks, security threats and hacking attempts:
Data thefts and intrusions through networks continue to persist in organizations. In recent years, various organizations such as critical infrastructure, large private corporations and smaller ones, and educational institutions witnessed digital assaults. Numerous cyber-attacks are occurring using AI, which easily enables injection of trojans and creation of interference in the network, which help hackers steal precious data. It is necessary to use emerging technologies such as AI with IDS/IPS security systems to prevent these types of threats. This is likely to create huge opportunities for the IDS/IPS system market.
Intrusion Detection System/Intrusion Prevention System (IDS/IPS) Market Challenges
Security concern in large enterprises
Security concern in large enterprises
An enterprise network contains a number of internetworking devices and uses multiple networks. For large multinational enterprises with huge networks, the implementation of real-time defense methods is necessitated to protect the business network against potential threats that may impede or paralyze the system. Various cyber defense mechanism were opted for by organizations in the form of intrusion detection and prevention systems to protect themselves, but there are still a few security breaches which go undetected due to human negligence, lack of employee education on cyber attacks and so on. Hence, these types of security threats pose a severe challenge to intrusion detection and prevention system market growth.
Market Landscape
Partnerships and acquisitions along with product development and up gradation are the key strategies adopted by top players in the IDS/IPS System market in 2018. The major players in the IDS/IPS market include Cisco Systems, Inc., IBM Corp, FireEye, Inc., McAfee, LLC, Check Point Software Technologies Ltd., Juniper Networks, Trend Micro Incorporated, NSFocus Inc, AhnLab, Inc., Huawei Technologies Co., Ltd., Hillstone Networks Inc, SecureWorks, Inc., Palo Alto Networks, Inc., Fortinet, Inc., and Symantec Corporation among others.
Partnerships/Mergers/Acquisitions
In 2019, cyber security company Tend Micro and designers and engineers Luxoft announced their partnership to introduce and deploy Intrusion Detection System and Intrusion Prevention System (IDPS). This IDPS solution was developed specifically for cars and will be enhanced with machine learning techniques.
In 2018, cyber security company ADT acquired internet security firm Secure Designs, Inc. ADT and SDI will provide real-time insights on Internet risks and behaviors, coupled with bundled solutions aimed at helping protect small business networks from cyber threats.
R&D Investments/Funding
In 2017, the U.S.-based cyber security solutions company Bricata received investments of $8m for research and development, and to accelerate market expansion. The key offering of this company is an intrusion detection and prevention solution, which ensures double the throughput and detection performance.
In 2019, U.S.-based startup Vectra, specializing in AI-based intrusion detection at the network level, received $100m as Series E investment for development of its AI-driven network security from TCV.
In 2018, startup Vectra AI, Inc., a leader in AI-driven threat detection and response, raised $36m to expand its R&D and business development. This funding helped them build an AI-based approach for cybersecurity intrusion detection.
Intrusion Detection System / Intrusion Prevention System Market Research Scope:
Partnerships/Mergers/Acquisitions
In 2019, cyber security company Tend Micro and designers and engineers Luxoft announced their partnership to introduce and deploy Intrusion Detection System and Intrusion Prevention System (IDPS). This IDPS solution was developed specifically for cars and will be enhanced with machine learning techniques.
In 2018, cyber security company ADT acquired internet security firm Secure Designs, Inc. ADT and SDI will provide real-time insights on Internet risks and behaviors, coupled with bundled solutions aimed at helping protect small business networks from cyber threats.
R&D Investments/Funding
In 2017, the U.S.-based cyber security solutions company Bricata received investments of $8m for research and development, and to accelerate market expansion. The key offering of this company is an intrusion detection and prevention solution, which ensures double the throughput and detection performance.
In 2019, U.S.-based startup Vectra, specializing in AI-based intrusion detection at the network level, received $100m as Series E investment for development of its AI-driven network security from TCV.
In 2018, startup Vectra AI, Inc., a leader in AI-driven threat detection and response, raised $36m to expand its R&D and business development. This funding helped them build an AI-based approach for cybersecurity intrusion detection.
Intrusion Detection System / Intrusion Prevention System Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. These provide the key market participants with the necessary business intelligence and help them understand the future of the IDS/IPS System market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the type, component and deployment, geography in IDS/IPS system market, and their industry vertical such as BFSI, retail, healthcare, Transportation and so on.
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