The anomaly detection market is expected to register a CAGR of 15.3% and surpass USD 5 billion market size by the end of the forecast period (2020-2025). The decision making of all businesses depends on data, but the data generated is too massive which could often cause the valuable information to be lost or misunderstood. Anomaly detection solutions help to bridge this gap by using various techniques that enable the user to spot the deviation from regular behavior.
- The increasing number of connected devices in the field of banking and financial sector, healthcare, manufacturing, IT and telecom, defense and government is expected to drive the anomaly detection market over the forecast period. These sectors handle important data on a regular basis making them prone to getting exposed to serious frauds, thefts, and hacking that allows the criminals to gain control over the firm's infrastructure.
- For instance, in March 2019, Microsoft broadened its availability of anomaly detector with Microsoft Azure anomaly detector which easily embeds anomaly detection capabilities into user's apps so they can quickly identify unusual, rare, or irregular data patterns that might signal problems.
- The advent of AI technologies coupled with machine learning is enabling the companies to better understand the factors responsible for the sudden change in behavior. For instance, in April 2019, Verint strengthened its digital CX capabilities with AI-powered anomaly detection that enabled the company to understand the key parameters and causes for a change in NPS (Net Promoter Score), customer satisfaction and other drivers.
Scope of the Report
Anomaly detection (also termed as outlier detection) enables the user to identify rare events or observations or detects those data points that do not fit well with the rest of the data that raises suspicion. This report segments the market by Type (Solutions, Service), Deployment (On-Premise, Cloud), End-user Industry (BFSI, Manufacturing, Healthcare, Government and Defense, IT and Telecom) and Geography.
Key Market Trends
BFSI is Expected to Hold a Significant Component of Market Share
- 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 make sure that neither the bank nor its end customers are adversely affected by various malicious and random activities. This poses a great potential opportunity for the companies offering solutions and services to prevent such anomalies.
- For instance, CSI's fraud anomaly detection software for banks that updates the institution about suspicious activity by generating automated alerts allowing them to maintain diligence and compliance.
- The various guidelines or regulations issued by the regulatory bodies and agencies are expected to drive the market for the forecast period. For instance, as a financial, it is required by The Federal Financial Institutions Examination Council (FFIEC) to have a process in place that helps in the monitoring of potential anomalous behavior within online banking.
North America Holds the Largest Share
- Federal Trade Commission states that identity thefts related to payment and banking sector are prominent in the United States, which would boost the adoption of Anomaly Detection solutions and services.
- North America is a pioneer when it comes to bring-your-own-device (BYOD) culture which has resulted in its wide-scale adoption. This shift has made the organizations to look for the 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 companies in the region are focused on providing their customers with a significant breadth of offerings in the anomaly detection arena and provide enhanced features and functionalities.
- For instance, Cisco Systems, Inc. American multinational technology conglomerate headquartered in San Jose, California. Some of the products offered by the company are NetFlow that allows the user to identify anomalies by producing detailed accounts of traffic flows and it provides high-level of diagnostics to classify and identify network anomalies.
The competition in the anomaly detection market is governed by the presence of some key players Cisco Systems Inc., WSO2 Inc., Microsoft Corporation and many more. Overall the competitive rivalry within the industry is relatively high. The companies through strategic partnerships and mergers and acquisitions are able to maintain their foothold in the market with the view of providing better solutions and products to its customers.
- April 2019 - the market leader in real-time behavioral analytics and machine learning solutions for banking payment fraud detection and enterprise B2B portal fraud announced Real-time Wire Fraud Detection Webinar Series.
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