Generative AI Cybersecurity Market Set to Quadruple by 2031, MarketsandMarkets Report Finds

The generative AI cybersecurity market is entering a period of strong expansion, according to a new report from MarketsandMarkets, with its value expected to surge from USD 8.65 billion in 2025 to USD 35.50 billion by 2031, growing at a CAGR of 26.5%. One of the key forces driving this growth is the rise of task-executing AI agents that can autonomously perform actions, requiring strong safeguards to prevent misuse and unintended harm.

The report highlights that breaches of AI models and applications are already a growing concern. IBM’s 2025 Cost of a Data Breach Report revealed that 13% of organizations worldwide experienced such breaches, with 60% resulting in compromised data and 31% causing operational disruption. Companies using unsanctioned “shadow AI” tools faced an average added cost of USD 670,000 per breach.

MarketsandMarkets notes that demand for advanced AI-native security tools is rising as threats become more complex.

In the Asia Pacific region, the market is projected to record the highest growth rate, fueled by rapid adoption of AI-driven cybersecurity in finance, healthcare, and government. Governments are increasingly deploying AI measures to protect public services and critical infrastructure, while businesses are investing in AI to strengthen compliance, data protection, and customer trust.

Vendors are investing in AI-driven penetration testing, automated vulnerability assessments, and real-time anomaly detection to help organizations bridge gaps between security operations and decision-making.

At the same time, risks such as prompt injection, model manipulation, and indirect prompt leaks are emerging as critical challenges. In high-stakes sectors such as healthcare, financial services, and secure communications, these exploits could compromise the integrity of decision-making and regulatory compliance. Vendors are therefore moving toward fine-tuning guardrails, layered prompt filtering, and adversarial training to counter these evolving attack vectors.

Overall, the report concludes that the convergence of generative AI with advanced cybersecurity analytics will play a decisive role in helping organizations build resilience, protect sensitive data, and maintain operational trust in an increasingly hostile digital environment.