Extended Detection and Response Market Expected to Reach $6.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Extended Detection and Response Market," The extended detection and response market size was valued at $980.26 million in 2021, and is estimated to reach $6.7 billion by 2031, growing at a CAGR of 21.5% from 2022 to 2031.

XDR is an integrated suite of safety tool for IT infrastructure that provides comprehensive threat detection, prevention and response across the cloud, networks, endpoints and servers. XDR offer increased simplicity in scanning the integrated devices to scan for breaches. Various enterprises are adopting XDR solutions as it increases SOC efficiency by offering security team with a detailed view of detected threats across different data flows and security tools for instance, firewalls, endpoints detection solutions, network detection platforms and cloud security tools. Moreover, XDR provides automation, prioritization, faster detection and better visibility. These factors provide lucrative opportunities for market growth.

On the basis of component, solutions segment captured the largest Extended Detection and Response Market Share in 2021 and is expected to continue this trend during the forecast period as XDR solutions detects, automates, prevent and shield networks from cyber threats. However, services segmented is expected to witness highest growth in upcoming years since it complements software program implementation, maximize cost of existing installation by optimizing it, and minimizes deployment cost & risks, which further fuels increase of the extended detection and response market.

Depending on deployment model, on-premises segment dominated the market share in 2021, and is expected to continue this trend in forecast period. This is because companies choose on-premises version, due to excessive statistics security and much less data breach compared to cloud-based deployment models, which further drives demand for on-premises deployment model within public and personal sectors. However, cloud segment is expected to witness highest growth.

Depending on region, North America dominated the market in 2021. This is attributed to growing developments in technology and digitalization of market in this region leading to adoption of XDR solutions to protect critical data of organizations. However, Asia-Pacific is expected to witness highest growth in upcoming years owing to increased cyber threats and rapid shift towards cloud-based platforms in this region.

The extended detection and response market analysis was valued at $1167.49 million in 2022, and is projected to reach $ 6722.67 million by 2031, registering a CAGR of 21.5%. COVID -19 outbreak has significantly impacted the extended detection and response market. The global COVID-19 pandemic has drastically affected businesses across the world. It has positively impacted adoption of extended detection and response (XDR), owing to increased cyber threats. With increasing trend of WFH, the need to use managed security and XDR has increased eventually. Nowadays companies are focusing on emerging technology such as Al-powered solutions, automation, computing technology, and cloud-based endpoint detection and response across industries such as BFSI, healthcare, and government to perform contactless operation, with safely and securely. This factor creates demand for XDR solution, thus drive adoption of the extended detection and response market globally. Moreover, local enterprises have been increasingly adopting XDR solutions and services to make their operations scalable, efficient and secure. Furthermore, industries move toward digitalization creates demand for robust and Al-integrated XDR solutions to provide agile efficiency and real-time reporting features. Such benefits provide lucrative growth opportunities for the market growth during the forecast period.

KEY FINDINGS OF THE STUDY

• By component, the solution segment dominated the extended detection and response market forecast in 2021. However, the services segment is expected to exhibit significant growth during the forecast period.
• On the basis of deployment, the On-premises segment dominated the extended detection and response market in 2021.However, the Cloud segment is expected to witness the highest growth rate during the forecast period.
• On the basis of enterprise size, the large enterprise the highest revenue in 2021. However, the SME’s is expected to witness the highest growth rate during the forecast period.
• Depending on industry vertical, the BFSI the highest revenue in 2021. However, the Retail and e-commerce industry is expected to witness the highest growth rate in the near future.
• Region-wise, the extended detection and response market was dominated by North America in 2021. However, Asia-Pacific is expected to witness significant growth in the coming years.

The market players operating in the extended detection and response industry includes Bitdefender, Blueshift, Broadcom, Cisco, Confluera, Crowstrike, Cynet, Elastic, Fortinet, IBM, Sophos, McAfee llc, Microsoft, Palo Alto Networks , SentinelOne, and Trend Micro. These major players have adopted various key development strategies such as business expansion, new product launches, acquisitions and partnerships, which drive the growth of extended detection and response industry globally.