Extended Detection and Response Market Analysis

Extended Detection and Response Market Analysis

Based on offering, the extended detection and response market is divided into solutions and services. The need for a unified solution that can provide a comprehensive view of cyber threats across multiple control points, ranging from endpoints to networks and servers, has contributed to the increased adoption of XDR solutions. Furthermore, the complexities associated with managing multiple security solutions and the alerts provided by such solutions have created a need for these solutions, further contributing to segment growth.

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Based on the deployment mode, the extended detection and response market is categorized into on-premises and cloud. Enterprises with mandatory IT infrastructure prefer to install extended detection and response solutions on their premises as they can own the upgrades and solutions completely. Moreover, on-premises XDR solutions are preferred by many large enterprises and organizations that deal with critical business information owing to the highest level of data security and physical access controls these solutions provide.

Based on organization size, the extended detection and response market is bifurcated into large enterprises and SMEs. A large number of employees process sensitive business information and data on their workstations, large organizations are more vulnerable to cyber threats. Furthermore, the growing trend of Bring Your Own Device (BYOD) among technology companies is heightening the threat of cyberattacks, fueling the demand for XDR solutions.

The BFSI segment accounted for 25% of the extended detection and response market share in 2022. The BFSI industry faces increased cybersecurity threats as it handles sensitive data regarding financial transactions and customer information. Cyberattacks such as data breaches, ransomware, and phishing attempts are prevalent. XDR solutions provide advanced threat detection & response capabilities, enabling BFSI organizations to detect and mitigate cyber threats more effectively, minimizing potential financial losses and reputational damage.

North America extended detection and response market held over 40% revenue share in 2022 and is set to cross USD 3 billion by 2032. The region experiences a high volume of cyber threats including data breaches, ransomware attacks, and advanced persistent threats. As organizations strive to enhance their cybersecurity measures, they are inclining toward XDR solutions to procure comprehensive threat detection, response, and remediation capabilities.

North America has stringent data privacy and compliance regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and the California Consumer Privacy Act (CCPA). Organizations in the healthcare, finance, and government industries must adhere to these regulations and implement robust security measures. XDR solutions help them meet these requirements by providing advanced threat detection, incident response, and compliance reporting capabilities.