Extended Detection and Response (XDR) Market - By Component (Solution, Service), By Deployment Mode (Cloud, On-premise), By Organization Size (Small and Medium Enterprise (SME), Large Enterprise), By End-user & Global Forecast, 2023 - 2032

Extended Detection and Response Market size surpassed USD 700 million in 2022 and is poised to grow at a CAGR of over 15% CAGR from 2023 to 2032. Cyber threats are becoming more advanced with the increasing use of technologies including IoT and cloud, leading to new challenges in protecting critical data. Organizations frequently implement several security solutions, resulting in a high number of warnings that make it challenging to detect, respond to, and mitigate cyber threats across several control points. Therefore, there is a growing need for comprehensive solutions that extend the capabilities of endpoint detection to cover incidents across several security control points. XDR solutions become pertinent here, offering a more comprehensive approach to threat detection & response.
 

Organizations are increasingly adopting security solutions that can detect & investigate advanced threats in real-time. To address this need, extended detection and response market are implemented to extend threat detection capabilities across multiple security control points such as emails, servers, networks, and cloud. XDR solutions leverage behavioral & telemetry analyses across several security layers, providing a comprehensive view of the security posture of an organization. This enables security analysts to visualize multiple threats and take proactive measures to mitigate them. Moreover, XDR tools offer tailored incident responses, thereby reducing the downtime on critical servers.
 

There are significant opportunities for next-generation cybersecurity services that integrate advanced technologies such as Machine Learning (ML) and behavioral analytics. Next-generation XDR services use advanced technology concepts, such as ML and Artificial Intelligence (AI), to proactively identify the root cause of threats and protect sensitive information across networks, endpoints & application layers. With its AI capabilities, XDR can identify & remediate sophisticated endpoint or other security threats in real-time. By integrating these advanced technologies, next-generation XDR services offer a more comprehensive approach to cybersecurity.
 

The extended detection and response market from the services segment expected to register the highest CAGR between 2023 and 2032, driven by the increasing cyber-threat risks across organizational security perimeters. Moreover, the demand for managed XDR vendors is rising as organizations require the real-time assessment of their IT infrastructure to detect & mitigate advanced threats. Additionally, the services segment is being driven by the growing demand for implementation & training services as organizations seek to ensure that their employees have the necessary skills & knowledge to effectively use XDR solutions.
 

Based on deployment type, the XDR market from the cloud deployment mode, hosting & maintenance requirements are handled by third-party service providers, thereby offering flexibility & scalability to organizations. Organizations deploying the cloud mode need to ensure compliance with the market regulations and verify that their service providers comply with the industry standards & regulations. As data is also shared with service providers, security is lower and the data is at a higher risk.
 

Rapid growth in the adoption of cloud computing by enterprises

The extended detection and response market from large enterprises segment accounted for the largest revenue share in 2022, as huge businesses frequently have complex networks with multiple devices & systems, making it more difficult to monitor & protect these assets. XDR solutions are beneficial for large enterprises as they provide a comprehensive view of an organization's security posture and enable the identification & response to threats across the entire network. Additionally, large enterprises have significant amounts of sensitive data including financial & customer information that should be protected from cyber threats. XDR solutions can ensure that this data is secure as well as provide organizations with the tools & information needed to respond to threats and prevent data breaches.
 

North America emerged as the dominant over extended detection and response (XDR) market in 2022. The rise of cyber-attacks increased the importance of robust cybersecurity measures, encouraging organizations to prioritize their security efforts. Moreover, the regulatory requirements pertaining to cybersecurity have led to the adoption of extended detection & response solutions in certain industries as companies aim to comply with these mandates and safeguard themselves against non-compliance risks. As per the U.S. Federal Bureau of Investigation (FBI) report, in 2021, the American population submitted a total of 847,376 reported complaints to IC3, a 7% increase from 2020, with potential losses exceeding USD 6.9 billion.
 

The extended detection and response market was led by several key players including McAfee, LLC, Microsoft, Trend Micro Incorporated, Palo Alto Networks, Broadcom, Cybereason, SentinelOne, and Cynet. These companies implemented growth strategies, such as new product developments, collaborations, and mergers & acquisitions, to strengthen their market presence and expand into untapped markets. For instance, in October 2022, Secureworks Inc. launched Taegis, an extended detection & response platform. Taegis comprises Taegis XDR and Taegis ManagedXDR, which enable enterprises to enhance their cybersecurity solutions and mitigate cyber risks.
 

The extended detection and response (XDR) technology is still relatively new, and many end users are not yet completely aware of its capabilities despite its potential advantages. Professionals are not proficient at XDR fundamentals and potential advantages it offers. Additionally, organizations often use a combination of vendors to build their security infrastructure, and the prospect of being locked into one vendor's product with XDR may be seen as a significant challenge in its adoption. This can create a hesitation to invest in XDR and may slow down the market growth.
 

This extended detection and response market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

Market, By component

• Solutions
• Services

Market, By Deployment mode

• Cloud
• On premise

Market, By Organization size

• SMEs
• Large Enterprises

Market, By End-users

• BFSI
• Government
• Retail
• Ecommerce

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
• Latin America
  • Brazil
  • Argentina
  • Mexico
• MEA
  • GCC
  • South Africa

What Information does this report contain?