Extended Detection Response Market Analysis

Extended Detection and Response Market Overview

Extended Detection and Response Market Size was valued at USD 1.6 Billion in 2022. The Extended Detection and Response market industry is projected to grow from USD 2.2 Billion in 2023 to USD 31.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 39.20% during the forecast period (2023 - 2032). Growing attack surfaces, regulatory compliance, a lack of skilled workers, integration of security tools, cloud adoption, and effective incident response are the key market drivers enhancing the market growth.

Source Fig. 1: Secondary Research, Primary Research, MRFR Database and Analyst Review

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Extended Detection and Response Market Trends

The adoption of cutting-edge security solutions like Extended Detection and Response (XDR) is strongly motivated by the rising number of cybersecurity threats. Organizations today deal with a flood of cyber threats that are both more frequent and more complicated than ever before. Advanced persistent threats (APTs), malware, ransomware, phishing assaults, and zero-day vulnerabilities are just a few of the criminal actions that these threats cover. Organizations are turning to XDR as a crucial part of their cybersecurity strategy to efficiently battle these emerging threats.

The sheer size and variety of these threats is one of the main factors driving XDR adoption, along with the rise in cybersecurity risks. The sophistication of cybercriminals is increasing, and they are using a variety of TTPs to breach and compromise enterprise networks. Even though they are necessary, traditional security solutions sometimes work in isolation, resulting in fragmented security postures that find it difficult to keep up with the continually changing threat landscape.

By offering a centralized and integrated approach to threat detection and response, XDR addresses this difficulty. It gathers information from a variety of security technologies and sources, including endpoints, networks, email, and cloud environments, enabling security teams to correlate and analyze data holistically. XDR can detect sophisticated attack patterns that may span several vectors and stages of the cyber death chain thanks to the correlation of data throughout the whole organization's infrastructure.

Additionally, XDR's automation and orchestration capabilities are crucial for minimizing the effects of growing cybersecurity threats. Security teams frequently have little time to react to these threats because of how quickly they spread. In order to detect anomalies and potential threats in real-time, XDR uses artificial intelligence (AI) and machine learning (ML) algorithms. This drastically decreases the amount of time bad actors spend inside a network of a company. Automated responses may be launched quickly, containing problems before they worsen and isolating affected systems. Thus, driving the Extended Detection and Response market revenue.

Extended Detection and Response Market Segment Insights

Extended Detection and Response Offering Insights

The Extended Detection and Response Market segmentation, based on offering includes Solutions, Services. The solutions segment dominated the market, accounting for 35.45% of market revenue. Because XDR solutions provide full security capabilities, such as threat detection, incident response, and endpoint protection, they have the largest market size in the XDR market throughout the anticipated time. Through the incorporation of numerous security solutions into a single platform, they successfully counter the growing sophistication of cyber attacks and streamline security operations.

Figure 2: Extended Detection and Response Market, by Offering, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Extended Detection and Response Deployment Mode Insights

The Extended Detection and Response Market segmentation, based on deployment mode, includes on-premises, cloud. The on-premises category generated the most income. Since they have complete control of the updates and solutions, businesses with required IT infrastructure opt to implement extended detection and response systems on their own premises. On-premise XDR systems are preferred by many large businesses and organizations that deal with sensitive corporate data because they offer the highest level of data protection and physical access controls.

Extended Detection and Response Organization Size Insights

The Extended Detection and Response Market segmentation, based on organization size, includes large enterprises, SMEs. The large enterprises category generated the most income. The XDR market is dominated by large companies because of their extensive funding and resources. They can make large investments in cybersecurity and set aside a sizable sum of money for cutting-edge technologies like XDR. They can effectively protect their sophisticated networks and data if they have the resources to hire qualified personnel and put in place reliable infrastructure.

Extended Detection and Response Vertical Insights

The Extended Detection and Response Market segmentation, based on Vertical, includes BFSI, Government, Manufacturing, Energy and Utilities, Healthcare, Retail and eCommerce, IT and ITes, Other Verticals. The BFSI sector produced the greatest revenue. The BFSI industry is a target for cyberattacks due to the volume of sensitive financial and customer data it handles. Financial fraud and data breaches are serious issues. XDR technologies assist in continuously monitoring and defending against threats to this priceless data.

Extended Detection and Response Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Extended Detection and Response Market dominated this market in 2022 (45.80%). The cyber threat landscape in North America, and particularly the United States, is extremely advanced and dynamic. A number of cyberattacks, including those sponsored by states, ransomware campaigns, and financial fraud, target the area frequently. The demand for cutting-edge security solutions like XDR is driven by the ongoing evolution of threats. Further, the U.S. Extended Detection and Response market held the largest market share, and the Canada Extended Detection and Response market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: EXTENDED DETECTION AND RESPONSE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Extended Detection and Response market accounts for the second-largest market share. The General Data Protection Regulation (GDPR) of the European Union mandates stringent obligations for data protection and breach notification. European businesses use XDR to guarantee compliance and protect client data. Further, the German Extended Detection and Response market held the largest market share, and the UK Extended Detection and Response market was the fastest growing market in the European region

The Asia-Pacific Extended Detection and Response Market is expected to grow at the fastest CAGR from 2023 to 2032. The usage of cloud computing, IoT, and mobile technologies is increasing, and the Asia-Pacific region is going through a rapid digital transformation. This growth in digital technology increases the attack surface, making XDR necessary to protect these changing environments. Moreover, China’s Extended Detection and Response market held the largest market share, and the Indian Extended Detection and Response market was the fastest growing market in the Asia-Pacific region.

Extended Detection and Response Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Extended Detection and Response market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Extended Detection and Response industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Extended Detection and Response industry to benefit clients and increase the market sector. In recent years, the Extended Detection and Response industry has offered some of the most significant advantages to medicine. Major players in the Extended Detection and Response market, including Bitdefender, Broadcom, Cybereason, Cynet, Fidelis Cybersecurity, McAfee, LLC, Microsoft, Palo Alto Networks, Red Piranha Limited, SentinelOne, and Sophos Ltd, and others, are attempting to increase market demand by investing in research and development operations.

A technology business called Broadcom Inc. (Broadcom) creates, develops, and provides a variety of semiconductor products and infrastructure software solutions. Storage adapters, controllers, and ICs, as well as wireless, wired, and optical products, are all part of the company's product line. Additionally, it provides cybersecurity software geared toward automation, enterprise, systematic cybersecurity, and factory automation, as well as mainframe and enterprise software. The business uses a network of distributors, contract manufacturers, original equipment manufacturers, and direct sales representatives to distribute its goods. Africa, the Middle East, Asia, Europe, and North America are all places where it conducts business. San Jose, California, in the US, serves as the home base for Broadcom.

Computer security software is offered by the technology business Cybereason Inc. (Cybereason). The business provides threat detection for cyber security. It offers a platform for cyber security that includes full endpoint protection, detection and response, endpoint prevention, breach response, and defense against malware and ransomware attacks. Cybereason locates an attack component, connects it to other data, and locates the full campaign. It benefits business, professionals, and enterprises. The business offers small, medium, and big businesses a subscription model. It has regional offices in Tokyo, Japan; Tel Aviv, Israel; and London, United Kingdom. The US state of Massachusetts' Boston is home to Cybereason's headquarters.

Key Companies in the Extended Detection and Response market include

• Bitdefender


• Broadcom


• Cybereason


• Cynet


• Fidelis Cybersecurity


• McAfee, LLC


• Microsoft


• Palo Alto Networks


• Red Piranha Limited


• SentinelOne


• Sophos Ltd

Extended Detection and Response Industry Developments

July 2021: With a USD 275 Million investment, Cybereason increased its position as the industry leader in extended detection and response (XDR). The XDR, EDR, and EPP solutions are validated by this investment.

Extended Detection and Response Market Segmentation

Extended Detection and Response Offering Outlook

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  Solutions

  
  


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  Services

  
  

Extended Detection and Response Deployment Mode Outlook

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  On-premises

  
  


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  Cloud

  
  

Extended Detection and Response Organization Size Outlook

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  Large Enterprises

  
  


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  SMEs

  
  

Extended Detection and Response Vertical Outlook

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  BFSI

  
  


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  Government

  
  


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  Manufacturing

  
  


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  Energy and Utilities

  
  


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  Healthcare

  
  


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  Retail and eCommerce

  
  


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  IT and ITes

  
  


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  Other Verticals

  
  

Extended Detection and Response Regional Outlook