Managed Detection and Response (MDR) Market Research Report Information By Security Type (Endpoint Security, Network Security, Cloud Security, and Other Security Types), Deployment Mode (On-premises and Cloud), Organization Size (Large Enterprises and SMEs), Vertical (BFSI, IT and ITeS, Government, Energy and Utilities, Manufacturing, Healthcare, Retail, and Other Verticals), And By Region (North America, Europe, Asia-Pacific, And Rest of The World) –Market Forecast Till 2032

Managed Detection and Response (MDR) Market Overview

The Managed Detection and Response (MDR) Market size is projected to grow from USD 5.2 billion in 2024 to USD 24.81 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.50% during the forecast period (2024 - 2032). Additionally, the market size for Managed Detection and Response (MDR) was valued at USD 4.3 billion in 2023.

The rising sophistication of cyber threats and the imperative for businesses to uphold strong, real-time security without substantial investment in internal resources are expected to be significant market drivers for the Managed Detection and Response (MDR) Market. 

Figure1: Managed Detection and Response (MDR) Market, 2018 - 2032 (USD Billion)

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

Managed Detection and Response (MDR) Market Trends

Market CAGR for Managed Detection and Response (MDR) is driven by the Escalating sophistication of cyber threats and Stringent Regulatory Compliance Requirements. The Managed Detection and Response (MDR) market is driven by increasingly sophisticated cyber threats, with attackers using advanced techniques such as ransomware and phishing to breach organizational defenses. The average cost of a cyber breach in 2022 was $4.35 million, highlighting the significant financial impact of such incidents. Cybercrime is estimated to have cost the global economy approximately $7 trillion in 2022, a figure projected to rise to $10.5 trillion by 2025. The proliferation of social media has also expanded the attack surface for cybercriminals, with Meta uncovering over 400 malicious iOS and Android apps in 2022 designed to steal Facebook login credentials from mobile users. Governments worldwide are responding with stricter data protection regulations like the General Data Protection Regulation (GDPR) to safeguard personally identifiable information from cyberattacks and other security breaches.

Non-compliance with these regulations can result in severe legal penalties, including fines of up to 4% of a company's annual revenue. However, achieving compliance can be complex due to overlapping industry standards and requirements. As a result, many organizations are turning to MDR services to help identify security threats while meeting regulatory mandates. MDR services provide real-time, 24/7 threat detection capabilities, enabling organizations to promptly detect and respond to suspicious activities and data breaches. For instance, in November 2023, Vectra AI, Inc., a provider of investigation, hybrid attack detection, and response solutions, enhanced its Vectra AI Platform by launching Cloud Detection and Response for AWS. This new capability empowers Security Operations Center (SOC) teams with real-time, integrated signals to detect hybrid attacks across cloud, network, and identity domains. As a result, it is anticipated that throughout the projection period, demand for the market will increase due to the Escalating sophistication of cyber threats, as well as Stringent Regulatory Compliance Requirements. Thus, driving the Managed Detection and Response (MDR) Market revenue.

Managed Detection and Response (MDR) Market Segment Insights

Managed Detection and Response (MDR) Market Security Type Insights

The Managed Detection and Response (MDR) Market segmentation, based on Security Type, includes Endpoint Security, Network Security, Cloud Security, and Other Security Types. The Cloud Security segment dominated the market, accounting for 58% of market revenue. The mainstream adoption of Software as a Service (SaaS) and Platform as a Service (PaaS) models allows organizations to deploy applications and develop software without managing the underlying infrastructure. While these services offer efficiency and convenience, they also introduce new security challenges. Managed Detection and Response services specializing in cloud security are adept at monitoring and safeguarding these SaaS and PaaS environments, ensuring swift identification and mitigation of vulnerabilities and threats.

Figure 2: Managed Detection and Response (MDR) Market by Security Type, 2023 & 2032 (USD Billion)

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

Managed Detection and Response (MDR) Market Deployment Mode Insights

The Managed Detection and Response (MDR) Market segmentation, based on Deployment Mode, includes On-premises and Cloud. The Cloud segment dominated the market, accounting for 58% of market revenue. Cloud-based MDR solutions offer unmatched scalability and flexibility compared to traditional on-premises deployments. Organizations can effortlessly adjust their cloud resources according to their requirements, free from the constraints of physical infrastructure. This scalability proves especially advantageous in dynamic environments where rapid growth or fluctuating workloads are commonplace.

Managed Detection and Response (MDR) Market Organization Size Insights

The Managed Detection and Response (MDR) Market segmentation, based on Organization Size, includes Large Enterprises and SMEs. The SME segment dominated the market, accounting for 60% of market revenue. The rapid adoption of remote and hybrid working, accelerated by recent global events such as the pandemic, has significantly heightened cybersecurity concerns for SMEs. Consequently, securing remote access and devices has become critical. For example, in January 2024, ESET introduced ESET MDR, a solution designed specifically to address current cybersecurity challenges faced by small and medium-sized businesses. This launch expanded ESET's portfolio of security services, offering another MDR solution tailored to meet the evolving needs of SMEs.

Managed Detection and Response (MDR) Market Vertical Insights

The Managed Detection and Response (MDR) Market segmentation, based on Vertical, includes BFSI, IT and ITeS, Government, Energy and Utilities, Manufacturing, Healthcare, Retail, and Other Verticals. The BFSI segment dominated the market, accounting for 60% of market revenue. Banks and financial institutions operate intricate IT infrastructures encompassing legacy systems, numerous branches, ATMs, online banking platforms, mobile apps, and third-party integrations. Securing these diverse environments poses significant challenges. Cloud-based MDR solutions streamline this complexity by providing centralized monitoring and management capabilities. This unified oversight spans across various systems, offering a comprehensive view of security threats and incidents. Such a holistic approach is crucial for maintaining robust security throughout the BFSI ecosystem.

Managed Detection and Response (MDR) Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Managed Detection and Response (MDR) market in North America can be attributed to several key factors. The issuance of security patches by companies such as Apple in response to zero-day vulnerabilities has highlighted the critical importance of proactive threat detection and response measures. Additionally, a warning from the US Federal Trade Commission regarding sextortion schemes targeting the LGBTQ+ community through online dating apps has heightened awareness about online threats, underscoring the increasing significance of cybersecurity measures. Furthermore, the Biden administration's announcement of sanctions on cryptocurrency exchanges involved in ransomware activities has emphasized the necessity for robust detection and response capabilities, thereby accelerating the adoption of Managed Detection and Response (MDR) services in North America. Ransomware poses a severe security threat, with statistics showing that 60% of US organizations have experienced successful ransomware attacks resulting in data encryption. The costs associated with remedying these attacks averaged $1.08 million in 2021, marking a 49% decrease from 2020, when the average cost was $2.09 million.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.

Figure 3: Managed Detection and Response (MDR) Market Share By Region 2023 (USD Billion)

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

Europe Managed Detection and Response (MDR) Market accounts for the second-largest market share as Europe is confronting an increasing array of cyber threats impacting organizations across diverse sectors such as finance, healthcare, government, and manufacturing. Ransomware, which results in more than 10 terabytes of data stolen monthly, stands out as a significant menace within the EU. The global cost of cybercrime surged to an estimated €5.5 trillion by the close of 2020, doubling from the 2015 figure. These threats encompass ransomware attacks, data breaches, insider threats, and sophisticated cyber espionage. MDR services play a crucial role in mitigating these risks by providing proactive threat detection, swift incident response, and effective remediation to minimize the repercussions of cyber incidents. Further, the German Managed Detection and Response (MDR) Market held the largest market share, and the UK Managed Detection and Response (MDR) Market was the fastest-growing market in the European region.

The Asia-Pacific Managed Detection and Response (MDR) Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia Pacific region is confronted with a dynamic and evolving cyber threat landscape encompassing ransomware attacks, data breaches, phishing scams, and state-sponsored cyber espionage. In 2021, 14.02 lakh cybersecurity incidents were reported, following 11.58 lakh reported to CERT-In in 2020. Nearly 60% of healthcare organizations in India experienced cyberattacks within the past year. By 2023, India documented an average of 2,138 weekly cyberattacks per organization, marking a 15% increase from 2022. As economies in the region undergo digital transformation and interconnectedness expands, cybercriminals target organizations across sectors such as finance, healthcare, government, and telecommunications. Managed Detection and Response (MDR) services play a crucial role in promptly detecting and mitigating these sophisticated threats, thereby safeguarding sensitive data and ensuring operational resilience. Moreover, China’s Managed Detection and Response (MDR) Market held the largest market share, and the Indian Managed Detection and Response (MDR) Market was the fastest-growing market in the Asia-Pacific region.

Managed Detection and Response (MDR) Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Managed Detection and Response (MDR) 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, the Managed Detection and Response (MDR) 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 Managed Detection and Response (MDR) industry to benefit clients and increase the market sector. In recent years, the Managed Detection and Response (MDR) industry has offered some of the most significant advantages to the cybersecurity landscape. Major players in the Managed Detection and Response (MDR) Market, including CrowdStrike (US), Rapid7 (US), Red Canary (US), Arctic Wolf (US), Kudelski Security (Switzerland), SentinelOne (US), Proficio (US), Expel (US), Secureworks (US), Alert Logic (US) are attempting to increase market demand by investing in research and development operations.

Rapid7 Inc. provides data security and analytics solutions, offering a range of products such as InsightVM, Nexpose, Metasploit, AppSpider, InsightAppSec, and InsightIDR. The company's service offerings include advisory services, penetration testing, IoT security testing, vulnerability management, and incident detection and response services. Rapid7 also delivers solutions in vulnerability management, penetration testing, web application security testing, user behavior analytics (UBA), SIEM, and other related services. Its clientele spans industries including energy, financial services, government, education, retail, and healthcare. Operating across North America, Europe, and Asia Pacific, Rapid7 is headquartered in Boston, Massachusetts, USA.

Arctic Wolf specializes in cybersecurity platforms aimed at safeguarding valuable business data. The company offers cloud-native security operations technology to mitigate cyber risks effectively. Their solutions encompass Managed Detection and Response, Managed Risk, and Managed Cloud Monitoring, all supported by a unique concierge security team. Arctic Wolf’s concierge security engineers function as an extension of clients' internal teams, delivering tailored threat detection, response, and ongoing risk management services to protect business data. In May 2022, Arctic Wolf (US) introduced Arctic Wolf Labs, a new division focused on research to drive innovation in security operations. Arctic Wolf Labs aims to develop cutting-edge technology and tools that bolster the company’s mission to mitigate cyber risks comprehensively. This initiative also aims to enhance security intelligence for Arctic Wolf’s customer base and the broader security community.

Key companies in the Managed Detection and Response (MDR) Market include

• CrowdStrike (US)


• Rapid7 (US)


• Red Canary (US)


• Arctic Wolf (US)


• Kudelski Security (Switzerland)


• SentinelOne (US)


• Proficio (US)


• Expel (US)


• Secureworks (US)


• Alert Logic (US)

Managed Detection and Response (MDR) Industry Developments

March 2023: Rapid7 (US) expanded its MDR capabilities by acquiring Minerva Labs, Ltd., a leading provider of anti-evasion and ransomware prevention technologies. This acquisition enhances Rapid7's ability to orchestrate advanced ransomware prevention measures.

January 2022: Red Canary (US) partnered with Microsoft (US) to integrate with Microsoft Sentinel and Microsoft Defender for Cloud. This integration enables Red Canary to detect and swiftly halt attacks for Microsoft clients, enhancing defense against identity-based threats and broadening coverage for cloud security while operationalizing Microsoft's security capabilities.

Managed Detection and Response (MDR) Market Segmentation

Managed Detection and Response (MDR) Market Security Type Outlook

• Endpoint Security


• Network Security


• Cloud Security


• Other Security Types

Managed Detection and Response (MDR) Market Deployment Mode Outlook

• On-premises


• Cloud

Managed Detection and Response (MDR) Market Organization Size Outlook

• Large Enterprises


• SMES

Managed Detection and Response (MDR) Market Vertical Outlook

• BFSI


• IT and ITeS


• Government


• Energy and Utilities


• Manufacturing


• Healthcare


• Retail


• Other Verticals

Managed Detection and Response (MDR) Market Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America