Extended Detection and Response Market Size and Growth 2031

Extended Detection and Response Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software and Services), Deployment (Cloud and On-Premises), Enterprise Size (Large Enterprises and SMEs), and End User (IT and Telecom, BFSI, Healthcare, Manufacturing, Retail and E-Commerce, and Others), and Geography

  • Report Code : TIPRE00038950
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 193
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Extended Detection and Response Market Report (2021-2031)

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The extended detection and response market size is expected to reach US$ 8.21 billion by 2031 from US$ 1.62 billion in 2023. The market is estimated to record a CAGR of 22.4% from 2023 to 2031. Integration of extended detection and response solutions with advanced technologies such as machine learning and artificial intelligence is likely to remain a key market trend.

Extended Detection and Response Market Analysis

The extended detection and response market is growing rapidly due to the increasing complexity of business processes, the 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 use of cloud solutions and services, the rising number of digital transformation projects, and the growing need to improve the cybersecurity landscape. The COVID-19 pandemic has led to a surge in remote work models, which, in turn, increases the need for deep visibility and comprehensive detection and response. This results in XDR solutions becoming more popular as organizations look for ways to secure their networks and data in a distributed work environment. The COVID-19 pandemic also caused many firms to switch from on-premise to cloud computing, which propelled the requirement for extended detection and response solutions.

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

Extended Detection and Response Market

  • CAGR (2023 - 2031)
    22.4%
  • Market Size 2023
    US$ 1.62 Billion
  • Market Size 2031
    US$ 8.21 Billion

Market Dynamics

GROWTH DRIVERS
  • Increasing Number of Cyberattacks
  • Growing Need to Shift from Endpoint Detection and Response to Extended Detection and Response
  • Increasing Complexity of Business Processes
FUTURE TRENDS
  • Integration with Advanced Technologies such as Machine Learning and Artificial Intelligence
OPPORTUNITIES
  • Increasing Adoption of Managed XDR

Key Players

  • Broadcom Inc
  • Palo Alto Networks Inc
  • SentinelOne Inc
  • Microsoft Corp
  • Sophos Ltd.
  • Cisco Systems Inc
  • International Business Machines Corp
  • Check Point Software Technologies Ltd
  • Fortinet Inc
  • Cybereason Inc

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Component
  • Software
  • Services
Deployment
  • Cloud
  • On-Premises
Enterprise Size
  • Large Enterprises
  • SMEs
End User
  • IT and Telecom
  • BFSI
  • Healthcare
  • Manufacturing
  • Retail and Ecommerce
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Extended Detection and Response Market Drivers and Opportunities

Increasing Number of Cyberattacks

Cyberattacks were considered the fifth top-rated risk in 2020, and cases continue to rise with technological advancements. Computer malware, data breaches, and denial of service (DoS) are a few examples of cyberattacks. During the COVID-19 pandemic, cybercriminals took advantage of misaligned networks as businesses were shifting to remote working environments. According to OneLogin, cybercrime costs more than US$ 1 trillion worldwide, as 37% of organizations were affected by ransomware and 61% were affected by malware attacks in 2020. Between 2019 and 2020, cyberattacks in the US increased by 139% as the country registered 145.2 million cases in Q3 2020. Malware attacks increased by 358% in 2020 compared to 2019. Similarly, according to the Clusit Report, cyberattacks across the globe increased by 10% in 2021 compared to the previous year. For instance, according to AAG, the UK had the highest number of cybercrime victims per million internet users (4,783 users) in 2022, an increase of 40% over 2020 figures. The average cost of a cyber breach was US$ 3 trillion in 2015, and it is predicted that this value is expected to reach US$ 10.5 trillion by 2025.

Cyber threats are considered a major concern as various organizations continue to operate in a digital environment. They have severe consequences for individuals, corporations, and governments. The rise in the number of cyberattacks has increased the importance of cybersecurity in safeguarding critical infrastructures and ensuring the safety of individuals and organizations. Organizations are increasingly becoming aware of the need to safeguard their critical assets from unauthorized access and potential breaches. Extended detection and response has emerged as an important solution that companies can adopt to defend against online attacks. Thus, the increasing number of cyberattacks across enterprises drives the extended detection and response market.

Increasing Adoption of Managed XDR

Managed XDR refers to a service model that provides a subscription-based XDR capability delivered by a third-party provider. Organizations looking to add XDR value to their current security teams and solutions find managed XDR solutions appealing. Organizations using managed XDR (MXDR) solutions can benefit from lower complexity, cost, and risk associated with outsourcing in addition to the advantages of XDR, such as enhanced visibility, detection, and reaction. In order to improve security results, managed XDR solutions will also give users access to professional advice, best practices, and threat intelligence. In addition, key companies in the market are increasingly engaging themselves in various strategic decisions such as product launches and partnerships. For instance, in May 2024, Sekuro launched a managed extended detection and response (XDR) platform, offering sovereign architecture and adaptive intelligence. In May 2024, Noventiq achieved Microsoft-verified MXDR solution status. By achieving this status, Noventiq has proven its robust MXDR services, including a security operations center (SOC) with 24/7/365 proactive hunting, monitoring, and response capabilities, all built on tight integrations with the Microsoft Security platform. Similarly, in June 2023, Critical Start announced the launch of its new managed XDR offering, which unifies Critical Start's award-winning MDR service with a cloud-delivered collection, storage, and search platform for security-relevant log sources. In December 2023, BlackBerry Limited announced an update to its BlackBerry Guard MDR service to deliver MXDR service. Thus, the increasing adoption of MXDR is expected to provide lucrative opportunities for the players operating in the extended detection and response market growth in the coming years.

Extended Detection and Response Market Report Segmentation Analysis

Key segments that contributed to the derivation of the extended detection and response market analysis are component, deployment, enterprise size, and end user.

  • Based on component, the extended detection and response market is bifurcated into software and services. The software segment dominated the market in 2023.
  • By deployment, the market is bifurcated into cloud and on-premises. The cloud segment dominated the market in 2023.
  • Based on enterprise size, the market is segmented into large enterprises and SMEs. The large enterprises segment dominated the market in 2023.
  • Based on end user, the market is segmented into IT & telecom, BFSI, manufacturing, retail and eCommerce, healthcare, and others. The IT & telecom segment dominated the market in 2023.

Extended Detection and Response Market Share Analysis by Geography

  • The extended detection and response market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC.
  • The North America extended detection and response market is segmented into the US, Canada, and Mexico. North America is one of the fastest-growing regions in terms of technological innovations and advanced technology adoption. In the past three years, the region has witnessed huge adoption of emerging technologies such as blockchain, artificial intelligence (AI), and machine learning (ML) across all major industry verticals. The North America extended detection and response market trends include the increasing penetration of digitization in various industries and a rising number of cyberattacks.

Extended Detection and Response Market Report Scope

Report Attribute Details
Market size in 2023 US$ 1.62 Billion
Market Size by 2031 US$ 8.21 Billion
Global CAGR (2023 - 2031) 22.4%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Component
  • Software
  • Services
By Deployment
  • Cloud
  • On-Premises
By Enterprise Size
  • Large Enterprises
  • SMEs
By End User
  • IT and Telecom
  • BFSI
  • Healthcare
  • Manufacturing
  • Retail and Ecommerce
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Broadcom Inc
  • Palo Alto Networks Inc
  • SentinelOne Inc
  • Microsoft Corp
  • Sophos Ltd.
  • Cisco Systems Inc
  • International Business Machines Corp
  • Check Point Software Technologies Ltd
  • Fortinet Inc
  • Cybereason Inc
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Extended Detection and Response Market News and Recent Developments

    The extended detection and response market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the extended detection and response market are listed below:

    • Broadcom Inc. announced its accelerate program, delivered through sole-provider distribution agreements. An expansion of the Broadcom Global Cybersecurity Aggregator Program, the Accelerate Program is aimed at providing enhanced service levels for more Broadcom software solutions delivered to a broader range of Broadcom customers across multiple geographies.

    (Source: Broadcom Inc, Press Release, March 2024)

    • Palo Alto Networks announced the ability for customers to integrate their custom machine learning models, seamlessly integrating third-party EDR data and leveraging cloud detection and response capabilities. Cortex XSIAM now offers Palo Alto Networks customers the flexibility and customization to create a security solution that aligns perfectly with their organization's goals. The integration of SOC capabilities, such as SIEM, XDR, SOAR, and ASM, into a single platform is a game changer for security operations. With Cortex XSIAM, organizations get dramatically better security and turbocharged SOC performance.

    (Source: Palo Alto Networks, Press Release, May 2024)

    Extended Detection and Response Market Report Coverage and Deliverables

    The "Extended Detection and Response Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

    • Extended detection and response market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • Extended detection and response market trends as well as market dynamics such as drivers, restraints, and key opportunities
    • Detailed PEST and SWOT analysis
    • Extended detection and response market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the extended detection and response market
    • Detailed company profiles
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Component, Enterprise Size, and Industry Vertical

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    Frequently Asked Questions


    Which are the key players holding the major market share of extended detection and response market?

    The key players, holding majority shares, in extended detection and response market includes Microsoft; Cisco Systems, Inc.; Palo Alto Networks; SentinelOne; and Broadcom Inc.

    Which is the fastest growing regional market?

    Asia Pacific is anticipated to grow with the highest CAGR over the forecast period 2024-2031.

    Which region is holding the major market share of global extended detection and response market?

    The North America held the largest market share in 2023, followed by Europe and Asia Pacific.

    What is the estimated global market size for the extended detection and response market in 2023?

    The extended detection and response market was valued at US$ 1.62 billion in 2023 and is projected to reach US$ 8.21 billion by 2031; it is expected to grow at a CAGR of 22.4% during 2023–2031.

    What are the driving factors impacting the extended detection and response market?

    Increasing number of cyberattacks, growing need to shift from endpoint detection and response to extended detection and response, and increasing complexity of business processes are the driving factors impacting the extended detection and response market.

    What are the future trends of the extended detection and response market?

    Integration with advanced technologies such as machine learning and artificial intelligence is the future trends of the extended detection and response market.

    The List of Companies - Extended Detection and Response Market

    • Broadcom Inc
    • Palo Alto Networks Inc
    • SentinelOne Inc
    • Microsoft Corp
    • Sophos Ltd.
    • Cisco Systems Inc
    • International Business Machines Corp
    • Check Point Software Technologies Ltd
    • Fortinet Inc
    • Cybereason Inc

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