Intrusion Detection System / Intrusion Prevention System Market Analysis

Intrusion Detection System / Intrusion Prevention System (IDS / IPS) Market Analysis

Based on deployment model, the market is divided into on-premises, cloud and hybrid. In 2024, on-premises segment held a market share of over 40% and is expected to cross USD 4 billion by 2034.
 

• Regulated sectors such as government, finacial institutes, banking and healthcare favor on-premise IDS/IPS system. On-premise help them in mitigating third-party breach risks, ensure compliance with GDPR, HIPAA, and PCI DSS, and maintain full control over sensitive data.
   
• Industries such as energy, aerospace, and defense benefit greatly from tailored detection rules and policies offered by on-premise IDS/IPS solutions. As a company expands and deals with more traffic and threats, solutions such as on-premise IDS/IPS tools offer security in control and ease of customization. Moreover, these are critical for companies that specialize in IT and have sophisticated architecture such as a network infrastructure.
   

Based on application, the intrusion detection system / intrusion prevention system (IDS / IPS) market is categorized into BFSI, aerospace & defense, healthcare, IT & telecom, government, manufacturing, transporation & logistics, retail and others. The BFSI segment held a market share of around 23% in 2024.
 

• With the increase in online transactions using e-commerce, mobile payments, and digital banking technologies, cybercrime opportunities grow equally. The GMI report estimates that the digital banking market will reach USD 10.9 trillion in 2023 and is expected to grow at a CAGR of around 3% until it reaches approximately USD 15.4 trillion USD in 2032. In light of these developments, the BFSI industry is investing in IDS/IPS technologies to increase trust in customers and their operations.
   
• As cybercrime continues to grow, hackers use several techniques to target the weak points of the payment systems and banking networks that are more effective. As a consequence, more and more sophisticated IDS/IPS systems are being employed due to their tremendous performance. These systems are also capable of preventing phishing and scams before they happen and finding vulnerabilities within the payment gateways, thus ensuring customer safety.
   
• The compliance of the BFSI industry with PCI DSS and GDPR directives confirms the necessity for strong security policies in order to reduce risks. These regulations are made to help fight against unwanted access, inappropriate utilization of floor data, and possible cyber crimes and demonstrate clearly the need for the use of intrusion prevention and detection tools.
   

Based on solution, the intrusion detection system / intrusion prevention system (IDS / IPS) market is segmented into solution and services. The solution segment dominated the market accounting for over USD 3.5 billion in 2024.
 

• While computer threats are becoming increasingly more advanced, conventional methods for detecting attacks are still employed and do not seem to work especially for zero-day attacks and advanced persistent threats. Instead, firms are starting to utilize AI and ML powered IDS/IPS systems that assess unusual behavior so as to result in lesser false alarms and increased speed in responding to threats.
   
• AI & ML enhanced intrusion detection and protection systems are able to lessen the effect of cyberattacks and also enable businessmen to defend themselves from data breaches by modifying their strategies in real time based on past attack patterns with AI & ML.
   
• The combination of IDS/IPS solutions with firewalls and SIEM systems turns the security into a more complex one, and consequently the end-users have more viable options for countering security threats due to this complexity converged security enhances responses to security challenges.
   

Based on solution architecture, the intrusion detection system / intrusion prevention system (IDS / IPS) market is segmented into host-based IDS/IPS, wireless-based IDS/IPS and network-based IDS/IPS. The network-based IDS/IPS segment held a market share of around 55% in 2024.
 

• An organization’s external and internal communication is forever at risk, and in order to protect it network based IDS/IPS systems are utilized. These systems prevent unauthorized access to data, data theft DDoS attacks and more by monitoring data traffic. With business monitoring growing in popularity especially in hybrid and multi-cloud setting network security has become much more important and this only solidifies the importance of these systems.
   
• APT and zero day attacks have only become more common and difficult to deal with, and that’s precisely why there is an increasing demand for modern network based IDS IPS systems. Such technologies identify AI assisted and behavioral analysis of the network intrusions which older generation systems wouldn’t pick up on.
   
• Banking, healthcare, and IT sectors, among others, require IDS/IPS systems to safeguard essential data and provide business reliability. Their capacity for interoperability with other instruments, such as firewalls and SIEM solutions, aids in strengthening their effectiveness and acceptance.
   

North America dominated the global intrusion detection system / intrusion prevention system (IDS / IPS) market with a major share of around 40% in 2024 and U.S. leads the market in the region.
 

• Many cybercriminals are hunting America, and their methods include breaking networks, hacking emails, breaking into important accounts, and leaking secret information. Statista indicates that in 2023, 51% of the cybercrimes targeting enterprises in the US were network intrusions, and Business Email compromise followed with 26%. Modern Cybercriminals, Using more intricate layers in their strategies today, are increasing the demand for strong IDS/IPS. Such systems, for instance, are indispensable in protecting important areas for the state such as government, healthcare, and financial entities.
   
• Given the evolving threat landscape, organizations are increasingly deploying IDS/IPS systems to safeguard data and counteract attacks in real-time. In the USA, many enterprises undergoing digital transformation faced targeted cyber-attacks, especially on their cloud services.
   

The IDS/IPS market UK is expected to experience significant and promising growth from 2025 to 2034.
 

• UK businesses are investing heavily in IDS/IPS solutions to bolster their security. These technologies help businesses respond to attacks in an agile manner, which is vital for protecting important information stored in the cloud.
   
• To tackle assaults on cyberspace, the United Kingdom is investing money into the National Centre for Cyber Security. Businesses are encouraged to follow the GDPR regulations and are crucial in understanding the need for the compliance era.
   

The IDS/IPS market in China is anticipated to witness lucrative growth between 2025 – 2034.
 

• Aggravated by its swift digitization in conjunction with an enhanced focus on industries such as telecom, energy and finance, China is now more vulnerable to cyber attacks than ever. To fill in the gap for industrial security in China, measures need to be taken in the form of robust data protection systems such as IDS and IPS to mitigate threats of espionage and cyber warfare.
   
• Compliance with China’s cybersecurity regulations is becoming increasingly prominent due to the statutory requirements of the Cybersecurity Law and Data Security Law. With this said, companies are devoting more resources into cutting-edge intrusion detection and prevention systems.
   
• With China accelerating the use of e-commerce and cloud services, cyber attacks like ransomware and phishing attempts are becoming more common. To ensure the protection of data and business continuity, enterprises are now turning to more versatile IDSIPS solutions.
   

The intrusion detection system / intrusion prevention system (IDS / IPS) market in Brazil is expected to experience significant and promising growth from 2025 to 2034.
 

• Due to the LGPD regulations in Brazil, fines for data infringements tend to be hefty and this motivates Brazilian firms to use intrusion detection and Prevention systems to secure client information.
   
• Artificial intelligence and machine learning are now being incorporated in IDS and IPS systems by organizations to assist with managing security events, while potentially helping to decrease false positives and enhance response to issues in real time.