Incident Response Market

The market is segmented by service offering type into managed incident response, professional incident response, incident response consulting, and incident response training. Among these segments, managed incident response is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth of the segment is attributed to the increasing adoption of managed security services by organizations to enhance their security posture and reduce the risk of cyberattacks. Professional incident response is another significant segment and is expected to grow at a stable growth rate throughout the forecast period.

This segment encompasses services such as incident investigation, containment, and eradication, which are essential for organizations to detect, analyze, and respond to cyberattacks.

The Incident Response Market is segmented by deployment model comprising on-premises, cloud-based, and hybrid. Owing to the increasing adoption of cloud computing services in many businesses, the cloud-based segment is anticipated to dominate the market in 2023. The on-premises segment is projected to hold a considerable market share, as several businesses prefer to have their incident response system on-premises to better manage security issues. The hybrid segment is anticipated to grow at a significant rate as businesses continue to adopt their incident response in containers. The market will have realized a revenue of $23.83 billion in 2023.

This market growth is primarily driven by the increased number of cyberattacks. Businesses are required to shield their data and systems from these threats, thus contributing to the growth of the market.

The Incident Response Market is segmented into various industry applications, including manufacturing, healthcare, finance, retail, government, and education. The manufacturing sector held a significant market share in 2023 and is expected to maintain its dominance throughout the forecast period. Expanding adoption of automation and the growing complexity of manufacturing processes are driving the demand for incident response solutions in this sector. The Healthcare segment is another major contributor to the market revenue, with the rising need for data protection and compliance in the healthcare industry.

The finance sector is also witnessing a growing demand for incident response solutions due to the increasing number of cyberattacks targeting financial institutions. The retail segment is expected to experience significant growth in the coming years, as retailers face challenges related to omnichannel operations and supply chain disruptions. The Government and Education sectors are also investing in incident response solutions to protect their critical infrastructure and sensitive data.

The Incident Response Market is segmented by response time into four categories: immediate (15 minutes or less), within 4 hours, within 12 hours, and within 24 hours. The immediate (15 minutes or less) segment is the fastest-growing segment of the market, as businesses recognize the importance of a rapid response to cyberattacks. This segment is expected to reach USD 10.45 billion by 2024, with a CAGR of 12.5%.

The within 4 hours segment is also expected to experience strong growth, as businesses seek to minimize the impact of cyberattacks. This segment is expected to reach USD 8.92 billion by 2024, with a CAGR of 11.9%. The within 12 hours and within 24 hours segments are expected to experience more moderate growth, as businesses seek to balance the need for a rapid response with the cost of incident response services. These segments are expected to reach USD 6.54 billion and USD 4.51 billion by 2024, respectively.

The incident severity segment plays a crucial role in shaping the Incident Response Market landscape. Critical incidents, characterized by immediate threats to life, property, or critical business functions, account for a significant portion of the market revenue. In 2023, the critical incident severity segment held a dominant market share of approximately 45%, translating to a revenue of around USD 10.7 billion. High-severity incidents, involving major disruptions or potential data breaches, follow closely with a market share of 30%, representing a revenue of approximately USD 7 billion.

Medium-severity incidents, which require prompt attention but pose less immediate risk, account for around 20% of the market share, generating revenue of approximately USD 4.6 billion. Low-severity incidents, typically involving minor disruptions or system errors, account for the remaining 5% of the market share, contributing revenue of around USD 1.15 billion. The market growth for incident response services is expected to remain steady in the coming years, driven by the increasing adoption of cloud computing, the proliferation of connected devices, and the growing threat landscape.