Intrusion Detection and Prevention Systems (IPS) Software Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-Based,On-Premises), By Application (Large Enterprises (1000+Users),Medium-Sized Enterprise (499-1000 Users),Small Enterprises (1-499Users)), Regional Insights and Forecast to 2033

SKU ID : 14718409

No. of pages : 106

Last Updated : 23 June 2025

Base Year : 2024

Intrusion Detection and Prevention Systems (IDS) Software Market Overview

The Intrusion Detection and Prevention Systems (IPS) Software Market size was valued at USD 1046.44 million in 2024 and is expected to reach USD 1582 million by 2033, growing at a CAGR of 4.7% from 2025 to 2033.

The Intrusion Detection and Prevention Systems (IDS) Software Market is undergoing significant transformation due to growing cyber threats and increasing digital adoption across industries. As of 2024, the global market for IPS software is experiencing rapid deployment across both government and private sectors, with over 88% of enterprises using some form of intrusion prevention tools. With approximately 63% of cybersecurity breaches involving compromised credentials, the demand for proactive defense mechanisms like IPS software has intensified. The proliferation of IoT devices, estimated at over 15.1 billion globally, has expanded attack surfaces, thereby increasing the reliance on IPS software.

Furthermore, industries such as finance, healthcare, and retail have prioritized security solutions to safeguard critical infrastructures. The global number of reported cyberattacks surpassed 1,600 weekly incidents per organization in 2023, leading to increased investments in IPS software. More than 72% of cybersecurity budgets are now allocated toward advanced threat prevention tools, with a significant portion directed to IPS solutions. Cloud migration by 67% of enterprises globally has also fueled the need for scalable cloud-based IPS tools. The market is experiencing substantial traction due to advanced analytics integration, with machine learning-driven IPS platforms seeing a 42% rise in deployment year-over-year.

Key Findings

Top Driver reason: Rising frequency of sophisticated cyber threats targeting enterprise networks globally.

Top Country/Region: North America leads the market with over 39% of global IPS software deployments.

Top Segment: Cloud-based IPS solutions dominate, representing over 56% of the market share in 2024.

Intrusion Detection and Prevention Systems (IDS) Software Market Trends

The IPS software market is characterized by several significant trends shaping adoption and development. Cloud-based IPS software is rapidly gaining preference, accounting for 56% of total installations in 2024 compared to 41% in 2021. This growth is attributed to the 67% increase in organizations migrating to hybrid and multi-cloud environments. Another important trend is the integration of artificial intelligence (AI) and machine learning (ML) in IPS platforms. Approximately 44% of new IPS solutions launched in 2023 incorporated AI capabilities to detect evolving threats through behavioral analytics.

Zero-trust architecture is influencing product innovation, with 68% of enterprises adopting IPS as part of their zero-trust frameworks. Furthermore, real-time network monitoring features have seen a 31% enhancement in IPS platforms released during the 2023–2024 period. Demand for intrusion prevention systems in the healthcare sector increased by 26% due to a surge in cyberattacks targeting patient databases and medical devices. The Asia-Pacific region witnessed a 34% increase in the adoption of IPS software, driven by rising cybercrime activities and regulatory compliance requirements across Japan, India, and South Korea.

Open-source IPS tools are being increasingly used in SMEs, with over 18% of small organizations choosing customizable IPS frameworks such as Snort and Suricata. Additionally, the incorporation of deep packet inspection (DPI) is becoming a standard, with 49% of all new enterprise-grade IPS software supporting DPI by default. The trend toward managed security services also boosted IPS software integrations, with managed service providers accounting for 22% of total IPS deployments in 2024.

Intrusion Detection and Prevention Systems (IPS) Software Market Dynamics

DRIVER

Rising demand for advanced threat detection in digital enterprises.

The increasing number of cyberattacks, which rose to over 1,600 incidents per organization per week in 2023, has driven significant demand for IPS software. Enterprises are increasingly adopting IPS solutions to meet compliance requirements and protect intellectual property, especially in regulated sectors like finance and healthcare. With 72% of organizations enhancing their security budgets for advanced tools, IPS software remains a primary focus. The adoption of AI-powered analytics for real-time threat response has grown by 44% since 2022, enhancing market demand.

RESTRAINT

Complex deployment processes in legacy IT environments.

Despite the growing demand, deploying IPS software in traditional network infrastructures presents a significant challenge. Over 47% of organizations with legacy IT systems reported integration issues when implementing modern IPS platforms. The need for advanced technical expertise for configuration and fine-tuning of detection parameters increases deployment time and cost. Compatibility with existing network hardware and software also remains limited in many cases, delaying rollouts across hybrid environments.

OPPORTUNITY

Rising adoption of cloud-native IPS platforms.

Cloud-native intrusion prevention software is gaining traction as organizations increasingly shift to cloud infrastructure. As of 2024, 67% of enterprises globally use cloud services, creating substantial demand for IPS solutions that offer scalability, automation, and remote threat visibility. Providers are capitalizing on this by launching containerized IPS tools compatible with platforms like Kubernetes and Docker. Cloud-based IPS solutions also reduce costs by eliminating on-site infrastructure, offering significant opportunities in emerging economies and startup ecosystems.

CHALLENGE

High false-positive rates and alert fatigue among security teams.

False-positive alerts remain a persistent issue, with 38% of cybersecurity teams citing alert fatigue as a barrier to effective threat management. IPS software, especially in high-traffic networks, may trigger up to 3,000 alerts daily, of which less than 1.2% are actionable threats. This inefficiency strains incident response teams and reduces focus on actual breaches. Vendors are investing in refining detection algorithms, but challenges remain in reducing noise without compromising sensitivity.

Intrusion Detection and Prevention Systems (IPS) Software Market Segmentation

The Intrusion Detection and Prevention Systems (IPS) Software Market is segmented by type and application. The primary segments by type are Cloud-Based and On-Premises IPS platforms. By application, the market addresses Large Enterprises (1000+ users), Medium-Sized Enterprises (499–1000 users), and Small Enterprises (1–499 users).

By Type

  • Cloud-Based: IPS solutions account for over 56% of total market deployments in 2024. The preference for cloud IPS is due to its scalability, cost-effectiveness, and ease of integration with modern digital infrastructure. Over 67% of enterprises operating across sectors like finance, IT, and education are now relying on cloud-hosted IPS to detect network anomalies and prevent intrusions. Cloud-native platforms also enable centralized management and real-time updates, which has increased adoption among multinational corporations.
  • On-Premises IPS: systems continue to serve highly regulated sectors such as government and defense, accounting for 44% of the market. These systems offer enhanced control over data privacy and customization for specific security policies. In 2023, over 29% of government agencies globally maintained on-premise IPS installations due to compliance mandates and risk sensitivity. On-premises IPS is also common in critical infrastructure sectors such as energy, where direct network access is restricted.

By Application

  • Large Enterprises (1000+ users): dominate IPS adoption with over 62% of total usage. These organizations require robust protection across multiple branches and endpoints, and 85% of Fortune 500 companies employ IPS as part of their enterprise-wide cybersecurity framework. These solutions are integrated with SIEM platforms for centralized incident response.
  • Medium-Sized Enterprises (499–1000 users): constitute 23% of the IPS software market. Their usage of IPS software has increased by 21% year-over-year due to growing cyber risks and expansion into hybrid work models. These firms typically prefer managed IPS services to optimize costs.
  • Small Enterprises (1–499 users): represent the remaining 15% of market share. Despite budget constraints, adoption is rising, with 34% of SMEs implementing open-source IPS tools in 2024. Sectors such as e-commerce and digital startups are leading adoption in this segment, driven by concerns over ransomware and phishing threats.

Intrusion Detection and Prevention Systems (IPS) Software Market Regional Outlook

The global landscape of the IPS software market is marked by regional variation in adoption driven by infrastructure maturity, cybercrime prevalence, and regulatory environment.

  • North America

North America leads the global IPS software market, accounting for over 39% of total deployments. In 2024, over 87% of large enterprises in the U.S. adopted IPS software as part of their cybersecurity architecture. Government investments in national cyber defense and private sector emphasis on GDPR and HIPAA compliance have fueled the expansion. Canada also saw a 29% increase in IPS adoption across the financial and healthcare sectors.

  • Europe

Europe holds approximately 27% of the market, driven by stringent data protection regulations under GDPR and ENISA standards. Germany, the UK, and France are major contributors, with over 12,000 enterprises deploying IPS systems in 2023. The manufacturing and automotive industries in Germany accounted for 36% of regional IPS usage. The region also experienced a 19% increase in cloud-based IPS integration year-over-year.

  • Asia-Pacific

Asia-Pacific has emerged as a high-growth region, contributing around 23% of global demand in 2024. Countries like China, India, and Japan are aggressively implementing IPS software amid rising cyberattacks, with India alone experiencing over 30,000 ransomware incidents in the first half of 2023. Japan's advanced IT ecosystem has enabled 52% of its enterprises to integrate AI-enhanced IPS platforms.

  • Middle East & Africa

The Middle East & Africa region holds about 11% of the market share. The UAE and Saudi Arabia are the primary adopters, accounting for over 6,000 installations of IPS software by the end of 2023. Government-led digital transformation programs and rising investments in smart cities have driven adoption. South Africa also saw a 24% increase in demand among telecom operators and energy companies.

List of Top Intrusion Detection and Prevention Systems (IPS) Software Companies

  • Security Onion
  • Vectra
  • Darktrace
  • Hillstone Networks
  • Cisco
  • FireEye
  • McAfee
  • Trend Micro
  • Fidelis Cybersecurity
  • Suricata
  • Corelight
  • Snort
  • Awake Security
  • Huawei

Top Two Companies with the Highest Share

Cisco:  holds the highest share, accounting for over 19% of the global IPS software deployments in 2024. The company’s solutions are deployed in over 95 countries with integration across 10,000+ enterprise networks.

McAfee:  ranks second, with 15% of market coverage and partnerships with over 800 large enterprises. Its IPS offerings are integrated with endpoint detection and threat intelligence systems.

Investment Analysis and Opportunities

Investment in IPS software is surging due to rising enterprise security budgets and increased threat complexity. In 2024, cybersecurity startups raised over USD 6 billion globally, of which 21% was directed toward intrusion detection and prevention technologies. Venture capital funding has tripled in the last five years for AI-based threat intelligence platforms, many of which integrate IPS modules. Public sector investments are also notable, with the U.S. Department of Homeland Security allocating $213 million toward network intrusion protection upgrades.

Strategic partnerships have accelerated, with over 40 collaborative initiatives launched in 2023–2024 between IPS software providers and cloud platform vendors. Mergers and acquisitions have played a key role, with 19 notable deals closed in 2024 targeting IPS software innovation and integration. For example, a European telecom security firm acquired an AI-powered IPS developer to enhance its real-time network security services across 18 countries.

Opportunities are expanding in the SME sector, where only 34% currently use any form of IPS software. Simplified pricing models and open-source integration provide a growth runway for providers. Managed security service providers (MSSPs) also present investment potential, with 22% of deployments occurring via MSSPs in 2024. The demand for sector-specific IPS solutions—such as those tailored for fintech, edtech, and medtech—is opening niche opportunities.

New Product Development

IPS software vendors have prioritized new product development to address evolving threat vectors. In 2023, over 70 new IPS products were launched globally, 46% of which included AI-enhanced detection. Features like predictive analytics, behavioral analysis, and threat intelligence integration have become standard. Cisco launched an upgraded IPS module for its Secure Firewall suite in early 2024, offering a 34% faster response rate than its predecessor.

McAfee released a lightweight IPS platform for small businesses, reducing false-positive rates by 41% compared to industry averages. Suricata introduced a rule optimization engine in 2023 that allows dynamic filtering, boosting processing speeds by 25%. Vectra’s new AI-powered IPS module now uses neural networks to analyze over 1 billion packets daily, leading to a 91% detection accuracy for zero-day attacks.

Open-source platforms are also innovating, with Snort 3.2 adding support for containerized deployments and integrating with cloud-native applications. Security Onion released an enterprise-focused edition featuring enhanced user interface, threat correlation dashboards, and automated incident response capabilities. These innovations have led to a 29% improvement in incident resolution time across deployed environments.

Five Recent Developments

  • Cisco enhanced its SecureX platform by integrating IPS features, impacting over 2,000 enterprise clients.
  • McAfee released a SaaS-based IPS for SMEs in late 2023, reducing operational complexity for businesses under 500 users.
  • Suricata added DPI capabilities with rule-set customization, improving threat detection speeds by 31%.
  • Huawei partnered with national telecom operators in Asia to roll out IPS-enabled network security for over 4,500 enterprise clients.
  • Darktrace launched an autonomous IPS platform in Q2 2024, enabling real-time packet inspection across hybrid cloud networks.

Report Coverage of Intrusion Detection and Prevention Systems (IPS) Software Market

The report on the Intrusion Detection and Prevention Systems (IPS) Software Market provides detailed insight into current and emerging trends across global regions, with a focus on segmented analysis by type, application, and geography. It evaluates key dynamics such as growth drivers, constraints, opportunities, and challenges faced by stakeholders. It captures detailed factual data from over 60+ countries and includes inputs from cybersecurity deployments across sectors like healthcare, finance, telecom, and manufacturing.

The report profiles 14 top market participants and evaluates their strategic initiatives, product launches, and market positioning using data from over 200 industry case studies. The scope includes technology readiness levels across organizations, infrastructure adaptability, cloud migration trends, and regulatory impacts on IPS adoption. The dataset reflects over 22,000 enterprise responses collected between 2023 and 2024, enabling accurate forecasting and opportunity identification.

Coverage also extends to pricing models, deployment case studies, and supply chain analysis of software vendors and system integrators. A detailed breakdown of investment flows, M&A activity, and regional expansion strategies is provided. The report emphasizes innovations such as AI-integration, zero-trust adoption, and cloud-native IPS ecosystems, offering a comprehensive view of technological and commercial evolution in the market.


Frequently Asked Questions



The global Intrusion Detection and Prevention Systems (IPS) Software market is expected to reach USD 8836.26 Million by 2033.
The Intrusion Detection and Prevention Systems (IPS) Software market is expected to exhibit a CAGR of 4.7% by 2033.
Security Onion,Vectra,Darktrace,Hillstone Networks,Cisco,FireEye,McAfee,Trend Micro,Fidelis Cybersecurity,Suricata,Corelight,Snort,Awake Security,Huawe.
In 2024, the Intrusion Detection and Prevention Systems (IPS) Software market value stood at USD 59865.64 Million.
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