Extended Detection and Response Market Size & Strategy | 2030

The extended detection and response market size is expected to grow from US$ 1.62 billion in 2022 to US$ 8.21 billion by 2030. The extended detection and response market is estimated to record a CAGR of 22.4% from 2022 to 2030.

Extended Detection and Response Market Analyst Perspective:

The extended detection and response market size is growing rapidly due to the increasing complexity of business processes, rising number of cyberattacks, and enhanced visibility and awareness of security threats provided by XDR solutions. The demand for extended detection and response solutions is also driven by the increasing usage of cloud solutions and services, rising number of digital transformation projects, and upsurging need to improve the cybersecurity landscape. The COVID-19 pandemic caused many firms to switch from on-premise to cloud computing, which propelled the demand for extended detection and response solutions.

Digitization, and automation in threat detection and security monitoring would provide lucrative opportunities for the extended detection and response market growth during the forecast period. The extended detection and response market trends include integration with advanced technologies such as ML and AI. Furthermore, increasing adoption of managed XDR is also emerging as extended detection and response market trends.

Extended Detection and Response Market Overview:

Extended detection and response (XDR) is a relatively new approach to threat detection and response, which provides comprehensive protection against cyberattacks, illegal access, and misuse. Extended detection and response solution gathers and automatically correlates data from various security layers such as email, endpoints, servers, cloud workloads, and networks. This enables quicker threat identification and better investigation and reaction times. Evolving from its predecessor, endpoint detection and response (EDR), XDR is a comprehensive and integrated approach to threat detection, response, and mitigation. XDR solutions provide various benefits such as broad visibility and contextual understanding, data retention, internal and external traffic analysis, integrated threat intelligence, customizable detection, and ML–based detection.

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Extended Detection and Response Market: Strategic Insights

Market Size Value in	US$ 1.62 billion in 2022
Market Size Value by	US$ 8.21 billion by 2030
Growth rate	CAGR of 22.4% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Extended Detection and Response Market Driver:

Increasing Complexity of Business Processes to Fuel Growth of Extended Detection and Response Market During Forecast Period

Business complexity refers to forming a large, interconnected network of technologies, products or services, data, and people within an organization. The larger the company, the more complex the business will be. Nowadays, businesses have to manage an increasing number of tools and data, making them more complex. At the same time, market conditions and working environments are changing faster than ever, making it necessary for businesses to react and make decisions quickly. In order to react to change effectively, companies need a clear understanding of their processes, tools, and data.

Organizations are under tremendous pressure to adapt to this mix of accelerated change and greater complexity. In order to stay competitive in the market, organizations need a way to clarify business complexity. Many firms now face a higher level of complexity due to the COVID-19 pandemic than they did a few years ago. The pandemic accelerated the change in business processes, requiring enterprises to adapt to a new market quickly, provide new tools to support a remote workforce, and step up their attempts to undergo digital transformation. The focus on digitization remains a priority for organizations nowadays. All these factors increase the complexity of business processes within an organization. With the use of more systems and complexity in an organization, malicious actors can access data or cause disruptive attacks that significantly harm business operations, reputation, and finances. Thus, organizations increasingly focus on adopting cybersecurity solutions.

Extended detection and response (XDR) have proven to be a useful cybersecurity technology that monitors and mitigates cyber security threats across multiple sources and layers of defense. Thus, the increasing complexity of business processes drives the extended detection and response market growth.

Extended Detection and Response Market Report Segmentation and Scope:

The extended detection and response market is segmented on the basis of component, deployment, enterprise size, industry vertical, and geography. Based on component, the extended detection and response market is bifurcated into software and services. By deployment, the market is bifurcated into cloud and on-premises. Based on enterprise size, the market is segmented into large enterprises and SMEs. Based on industry vertical, the market is segmented into IT & telecom, BFSI, manufacturing, retail and eCommerce, healthcare, and others. The market, based on region, is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Extended Detection and Response Market Segmental Analysis:

Based on enterprise size, large enterprises and SMEs has been considered in the extended detection and response market forecast study. The large enterprises segment hold the highest extended detection and response market share in the enterprise size segment. Extended detection and response plays a major role in safeguarding large enterprises by offering a comprehensive cybersecurity solution. An XDR solution brings various components of threat detection, response, and prevention into a unified system. It provides centralized visibility by collecting and analyzing data from different parts of the enterprise infrastructure such as networks, endpoints, and cloud environments. This enables security teams of large enterprises to identify and respond to complex threats that may traverse multiple areas in an enterprise security environment.

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Extended Detection and Response Market Key Player Analysis:

The extended detection and response market analysis consists of players such as Broadcom Inc.; Bitdefender; Cybereason; Cynet Security, LTD.; Microsoft; Palo Alto Networks; SentinelOne; Sophos Ltd; Cisco Systems, Inc.; and Trend Micro Incorporated. These are among the key players profiled in the extended detection and response market report.

Extended Detection and Response Market Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies to mark their position in the extended detection and response market share. The extended detection and response market forecast can help stakeholders in this marketplace plan their growth strategies. A few recent key developments in the extended detection and response market analysis are listed below:

• In November 2023, Kaspersky announced the launch of a new comprehensive security XDR solution—Open XDR. The new solution combines multiple security options in a unified platform, including log collection and correlation, case and asset management, response playbooks, and investigation capabilities. The new product is available to early adopters who can assess its functionality and compatibility with the existing infrastructure in a test environment.

• In August 2023, EY announced the launch of its Intelligent Extended Detection Response (IXDR) solution, supported by Secureworks, to help organizations combat cyber threats. IXDR is a service providing 24x7 threat monitoring, detection, and response on an open XDR platform that leverages threat intelligence research, artificial intelligence (AI), machine learning (ML) algorithms, and modern data pipelines to help organizations drastically reduce the response time to cyber threats.

• In April 2023, Cisco announced the launch of an extended detection and response SaaS package. Cisco XDR simplifies investigating incidents and enables security operations centers (SOCs) to remediate threats immediately.

• In July 2023, BlueVoyant announced the launch of managed extended detection & response (MXDR) for Splunk. The new service integrates Splunk SIEM (Security Information and Event Management) capabilities with supported EDR (Endpoint Detection and Response) partner expertise to provide a cloud-native, fully integrated security solution enabling risk illumination, alert validation through multiple sources, and remediation across multiple platforms such as endpoint, IoT, cloud workloads, and networks.