Threat Detection

Extended Detection and Response Market to reach $8 Bn by 2032

Major extended detection and response market participants include Barracuda Networks, Bitdefender, Cybereason, Cynet, Blueshift, CrowdStrike, eSentire, Palo Alto Networks, and Qualys.

The extended detection and response market valuation is projected to cross USD 8 billion by 2032, as reported in a research study by Global Market Insights Inc.

The growing burden of cyber threats and their sophistication across various industries is likely to favor the industry demand. It has been estimated that in 2022, India witnessed 13.91 lakh cyber security incidents. With cybersecurity threats becoming more persistent and complex, the limitations of traditional security solutions have surged in detecting and responding to advanced threats. Consequently, the rising popularity of XDR solutions in providing comprehensive and proactive approaches to threat detection and response while leveraging advanced analytics and automation in identifying and mitigating threats more effectively will propel the market expansion.

The extended detection and response market from the cloud-based segment is anticipated to witness robust CAGR from 2023 to 2032, driven by benefits, including scalability and flexibility. The surging obligation for accommodating the rising data volumes as well as processing requirements without significant hardware investments has compelled several organizations to scale their XDR infrastructure. To that end, the growing focus of numerous industry players on innovations will fuel the market demand.  For instance, in February 2022, Cybereason developed Cybereason XDR for Cloud Workloads to assist organizations in protecting their cloud workloads as well as containers across hybrid and native cloud environments at petabyte scale.

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Extended detection and response market from the SMEs organisation size segment is slated to record significant CAGR between 2023 and 2032, propelled by the surging number of large-scale start-ups across the globe. The surging number of mobile and web-based applications for businesses has prompted the higher adoption of XDR solutions for identifying security gaps and mitigating the incidences of cyber risks. The rising demand for user-friendly and easy to deploy XDR solutions for reducing the complexity of managing security will contribute to the market development.

Extended detection and response market from the manufacturing segment is predicted to depict significant expansion through 2032. The growth can be attributed to surging cyber threats to manufacturing systems coupled with the subsequent need for advanced cybersecurity solutions for protecting sensitive data and intellectual property. According to the State of Ransomware in Manufacturing and Production 2022 report, 55% of the manufacturing and production organizations were affected by ransomware in 2021, up from 36% in 2020. The rapid adoption of technologies, including automation, industrial IoT, and cloud computing across the manufacturing space will also influence the segment growth.

Europe extended detection and response market is poised to record over 19.5% CAGR till 2032. The rapid growth of healthcare, finance, and critical infrastructure has led to the surge in unique security requirements in these sectors. As per GTAI (Germany Trade and Invest), financial services as well as insurance providers contributed nearly EUR 122 billion to GDP in 2021. The rising number of financial fraud and cyberattacks that target the banking systems will further drive the adoption of XDR in the financial space. The strong presence of strict data protection regulations in the region to ensure the security and privacy of data along with the surging focus on providing enhanced threat detection and response capabilities will add to the regional industry growth.

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Some of the leading companies operating in the extended detection and response market are Barracuda Networks, Bitdefender, Cybereason, Cynet, Blueshift, CrowdStrike, eSentire, Palo Alto Networks, and Qualys. These industry players are focusing on innovation and expansion strategies to sustain the rising market competition. For instance, in April 2023, Cisco developed a SaaS-delivered integrated system of network, endpoint, firewall, email, and identity software for protecting enterprise resources in an attempt to foray into XDR.

Partial chapters of report table of contents (TOC):

Chapter 2   Executive Summary
2.1    Extended Detection and Response market 360º synopsis, 2018 – 2032
2.2    Business trends
2.2.1    Total Addressable Market (TAM), 2023-2032
2.3    Regional trends
2.4    Offering trends
2.5    Deployment mode trends
2.6    Organization size trends
2.7    Industry vertical trends
Chapter 3   Extended Detection and Response market Industry Insights
3.1    Impact of COVID-19
3.2    Impact of the Russia-Ukraine war
3.3    Industry ecosystem analysis
3.4    Vendor matrix
3.5    Profit margin analysis
3.6    Technology & innovation landscape
3.7    Patent analysis
3.8    Key news and initiatives
3.8.1    Partnership/Collaboration
3.8.2    Merger/Acquisition
3.8.3    Investment
3.8.4    Product launch & innovation
3.9    Regulatory landscape
3.10    Impact forces
3.10.1    Growth drivers    Growing complexity of IT Environments    Integration of security technologies into a unified platform    Increased adoption of cloud based services    Increasing demand for integrated security solutions
3.10.2    Industry pitfalls & challenges    Privacy and compliance concerns
3.11    Growth potential analysis
3.12    Porter’s analysis
3.13    PESTEL analysis
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