What Has Been The Evolution of the Extended Detection And Response Market in Recent Years?
The extended detection and response market has seen considerable growth due to a variety of factors.
• The market size of extended detection and response has seen exponential growth lately. It is projected to rise from $2.12 billion in 2024 to $2.81 billion in 2025, with a compound annual growth rate (CAGR) of 32.3%.
Factors contributing to this growth include an increasing demand for unified security platforms, a surge in remote work, regulatory compliance necessities, a focus on proactive threat hunting and incident response skills, the growing implementation of MXDR solutions among small and medium businesses and the expansion of large companies that need advance security solutions.
How Will the Extended Detection And Response Market?
The extended detection and response market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of extended detection and response is predicted to experience dynamic expansion in the upcoming years, reaching $8.32 billion by 2029, with a compound annual growth rate (CAGR) of 31.2%.
This expected growth can be linked to factors such as the amplified adoption of cloud-based security solutions, the rise in cyber threats and complicated attacks, application of AI and machine learning in threat detection, the growing IoT devices landscape, and an increased requirement for XDR solutions. Noteworthy advancements in AI and machine learning, augmented usage of MXDR solutions, incorporation of artificial intelligence and machine learning, the fusion of security technologies, and technological innovation are seen as major trends during the forecast period.
Which Factors Are Boosting Growth In The Extended Detection And Response Market?
Growth in the extended detection and response market is anticipated to be driven by escalating cyber threats and complex attacks. The term cyber threats refers to harmful activities targeted at computer systems, networks and confidential information. Sophisticated attacks are organized by highly proficient attackers who exploit system vulnerabilities and harness advanced techniques to execute their motives. The escalation in these cyber threats and attacks is a result of rapidly evolving technologies which surpass security defenses. Extended detection and response solutions tackle the issues posed by these threats by providing a centralized overview of security telemetry from multiple sources. This allows organizations to achieve an all-encompassing understanding of their security scenario. For example, in 2022, the Department for Science, Innovation, and Technology, a governmental organization in the UK, reported that cybercrime impacted 11% of businesses and 8% of charities during the preceding year. Moreover, these statistics rose to 26% for medium-sized businesses, 37% for large corporations, and 25% for high-income charities in 2023. Consequently, the augmentation in cyber threats and complicated attacks are propelling the growth of the extended detection and response market.
What Key Areas Define The Segmentation Of The Global Extended Detection And Response Market?
The extended detection and response market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Deployment Mode: On-Premises, Cloud-Based, Hybrid
3) By Organization Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By Vertical: Banking, Financial Services And Insurance (BFSI), Government, Manufacturing, Energy And Utilization, Healthcare, Information Technology (IT) And Telecommunication, Retail And Commerce, Other Verticals
Subsegments:
1) By Solutions: Endpoint Detection And Response (EDR), Network Detection And Response (NDR), Cloud Detection And Response (CDR), Data Loss Prevention (DLP), Threat Intelligence
2) By Services: Managed Detection And Response (MDR), Consulting Services, Integration Services, Training And Support Services
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How Are Emerging Trends Reshaping The Dynamics Of The Extended Detection And Response Market?
Major firms in the extended detection and response market are concentrating on the creation of cutting-edge solutions like the Trend Vision One platform to boost cyber resilience. This platform infuses next-gen extended detection and response features that enable prompt identification and quick response to cyber threats in various settings like email, network, server, cloud, and IoT. In June 2023, UK-based cybersecurity software organization, Trend Micro Inc., rolled out the Trend Vision One platform, which possesses advanced extended detection and response and AI functionalities. The platform has a suite of advanced XDR features, amalgamating a wide scope of native security sensors for all-inclusive and cross-domain protection against threats. It paves the way for the next iteration of extended detection and response in the market by merging data procured from internal and external sources and utilizing superior AI and machine learning analytics.
Who Are the Key Players In The Extended Detection And Response Market?
Major companies operating in the extended detection and response market are:
• Microsoft Corporation
• Accenture PLC
• Cisco Systems Inc.
• Ernst & Young Global Limited
• Oracle Corporation
• Broadcom Inc.
• Tata Consultancy Services Limited
• VMware LLC
• Atos SE
• Palo Alto Networks Inc.
• Fortinet Inc.
• McAfee LLC
• Trend Micro Inc.
• Elasticsearch B.V.
• Kaspersky Lab Italia Srl
• BlackBerry Limited
• Cybereason Inc.
• Sophos LTD.
• Sentinel Labs Inc.
• Cynet Security LTD.
• Fidelis Cybersecurity Inc.
• Red Piranha Limited
• Bitdefender SRL
• Musarubra US LLC
• Optiv Security Inc.
What Is The Most Dominant Region In The Extended Detection And Response Market?
North America was the largest region in the extended detection and response market in 2024. The regions covered in the extended detection and response market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
