Anomaly Detection Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Anomaly Detection Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The anomaly detection market is expected to register a CAGR of 15.3% for the forecast period (2022-2027). The decision-making of all businesses depends on data. However, the data generated is too massive, which could often cause valuable information to be lost or misunderstood. Anomaly detection solutions help bridge this gap by using various techniques that enable the user to spot deviations from regular behavior.

Key Highlights

• Anomaly detection is detecting anomalies that signify an unusual shift in operations or processes rather than following expected data or patterns. Anomaly detection has applications in fraud detection, system health monitoring, and intrusion detection, among others.
• With the number of connected devices increasing rapidly, data generated through these devices is massive, making handling information a critical task that could cause the loss of valuable information. Anomaly detection could help bridge this gap, thereby boosting the market's growth during the forecast period.
• For consumers, data breaches typically mean identity theft. Once compromised, fraudsters can make fraudulent purchases, manipulate listing information, create fake reviews, or change account information to divert payouts to their bank accounts.
• The increasing number of connected devices in the field of banking and financial sector, healthcare, manufacturing, IT and telecom, defense, and the government is expected to drive the anomaly detection market over the forecast period.
• The fundamental shift from physical cards, checks, and currency to digital payments continues to transform how consumers and businesses transfer value. Identity, security, and trust are fundamental requirements for payments, commerce, and finance, especially in a digitized economy.
• The advent of AI technologies, coupled with machine learning and its increased adoption, enables companies to understand better the factors responsible for sudden changes in consumer behavior. This is expected to boost market growth during the forecast period.

Key Market TrendsBFSI is Expected to Hold a Significant Part of the Market Share

• Owing to the extensive networking framework and critical data of a large customer base in the BFSI sector, it faces several data breaches and cyber-attacks. This made organizations in the industry look for alternative solutions, which is expected to boost the anomaly detection market during the forecast period.
• Banking operations include many periodic and aperiodic activities and transactions performed by employees, customers, and external agencies. The nature of such activities is quite complex and requires constant monitoring to ensure that neither the bank nor its end customers are adversely affected by various malicious and random activities. This poses a tremendous opportunity for the companies offering solutions and services to prevent such anomalies.
• Further, due to rising digitization, banking and financial institutions digitized banking services through online portals, which allowed them to serve customers better. This resulted in the generation of Big Data, making safe and secure handling of critical information imperative.
• Guidelines or regulations issued by regulatory bodies and agencies are expected to drive the market during the forecast period. For instance, it is required by The Federal Financial Institutions Examination Council (FFIEC) has a process in place that helps monitor potential anomalous behavior in online banking.
• In March 2021, Chicago-based independent insurance brokerage, RBN Insurance Services, partnered with RealCISO.io, a self-service cybersecurity risk assessment platform, and security services marketplace. Through this partnership, RBN customers can conduct their cybersecurity risk assessments, understand and prioritize their gaps, and find services and products to fulfill their needs.

North America Holds the Largest Share in the Market

• The Federal Trade Commission states that identity thefts related to payment and the banking sector are prominent in the United States, which may boost the adoption of anomaly detection solutions and services.
• North America is a pioneer in the bring-your-own-device (BYOD) culture, which has resulted in its wide-scale adoption. This shift has made organizations look for solutions and services that enable them to ensure the safety of sensitive business information, which, in turn, could boost the anomaly detection market in the region.
• The regional companies are focused on providing their customers with a significant breadth of offerings in the anomaly detection field and provide enhanced features and functionalities.
• One such company is Cisco Systems Inc., an American multinational technology conglomerate headquartered in San Jose, California. Some of the products offered by the company are NetFlow, which allows the user to identify anomalies by producing detailed accounts of traffic flows and provides a high level of diagnostics to classify and identify network anomalies.

Competitive Landscape

The competition in the anomaly detection market is governed by some key players, such as Cisco Systems Inc., WSO2 Inc., Microsoft Corporation, etc. Overall, the competitive rivalry within the industry is relatively high. Through strategic partnerships, mergers, and acquisitions, the companies in the market can maintain their foothold to provide better solutions and products to their customers.

• September 2022 - Falkonry has launched an automated anomaly detection application called Falkonry Insight. This application operates on high-speed sensor time series data and enables operations teams to virtually inspect every electrical and mechanical data point to detect new and emerging hotspots automatically. This application leverages NVIDIA GPU-powered accelerated computing and the NVIDIA AI platform to process terabytes of data at plant scale to surface machine and process anomalies without needing manual intervention.
• September 2022 - MindBridge, a cloud-first AI financial risk discovery and anomaly detection software, has launched a new API, greater AI transparency through custom risk segmentation, and the expansion of platform localization and service for advanced risk analytics. The MindBridge API will help organizations supercharge next-gen innovation by automating MindBridge input and output for audit and financial professionals.

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• The market estimate (ME) sheet in Excel format
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