Extended Detection And Response Market Analysis and Forecast to 2032: By Product Type (Core Banking Software, Omni-Channel Banking Software, Business Intelligence Software, Private Wealth Management Software), Application (Risk Management, Information Sec

Extended Detection And Response Market Analysis and Forecast to 2032: By Product Type (Core Banking Software, Omni-Channel Banking Software, Business Intelligence Software, Private Wealth Management Software), Application (Risk Management, Information Security, Business Intelligence, Training Consulting Solutions), By End-use (Retail Banks, Commercial Banks), And Region

The global Extended Detection And Response market was valued at USD 1.2 billion in 2022 and it is anticipated to grow up to USD 4.4 billion by 2032, at a CAGR of 13.9% during the forecast period.

Extended detection and response (EDR) is a security solution that uses advanced detection techniques to identify, investigate, and respond to security incidents. EDR solutions are designed to complement traditional security solutions, such as antivirus and intrusion detection/prevention systems. EDR solutions use a variety of techniques to detect security incidents, including behavioral analytics, machine learning, and heuristics. Once an incident is detected, EDR solutions provide a variety of tools to help security analysts investigate and respond to the incident. These tools may include a searchable database of security events, tools for analyzing network traffic, and tools for creating incident response plans.
Global Extended Detection And Response Market Scope and Report Structure
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Market Trends and Drivers
The increased integration of several software solutions with existing systems and heightened complexities in managing multiple alerts with limited context about the increasing number of security threats cause security teams to lose visibility, hampering business operations. The scenario has led to the emergence of XDR technology, which uses dynamic analytics and machine learning techniques to provide extended visibility, analysis, and response across networks, clouds, and endpoints. Over the years, the enhanced visibility and awareness of security threats offered by XDR solutions have led to their increased popularity in the U.S. By integrating XDR solutions, enterprise security analysts can eliminate and target cyber threats based on the severity at which they can impact the organization’s IT infrastructure. The rising popularity of XDR solutions has encouraged several cybersecurity vendors in the U.S. to introduce advanced EDR and XDR solutions. For instance, in February 2020, SentinelOne, a U.S.-based cybersecurity solution provider launched an AI-powered XDR solution that offers advanced threat detection and complete visibility across every endpoint device, physical or virtual, on-premise, or on the cloud.
Market Restraints and Challenges
The key restraints and challenges in extended detection and response market include the lack of awareness among organizations about the need for extended detection and response solutions and the lack of skilled resources to deploy and manage these solutions. Additionally, the high cost of these solutions and the lack of interoperability between different extended detection and response solutions are other challenges faced by the market.
Global Extended Detection And Response Market Segmental Overview
The report analyses the global Extended Detection and Response market based on component, deployment type, application, and region.

Global Extended Detection And Response Market by Component

On the basis of component, the Extended Detection and Response market is segmented into service, and solution. The solutions segment dominated the extended detection and response (XDR) market in 2022 and accounted for significant revenue share. The need for a unified solution that can provide a holistic view of cyber threats across several control points, ranging from endpoints to networks and servers, has helped increase the adoption of XDR solutions. Moreover, the need to reduce the complexities associated with managing several security solutions and the alerts provided by such solutions have also contributed to the growth of the segment.

The services segment is expected to register the highest CAGR over the forecast period. The evolving risks of cyber threats across the organizations security perimeters are driving the need for managed services. Managed XDR vendors to assess the IT infrastructures of organizations in real-time and detect and mitigate advanced incidents. Furthermore, the rising demand for implementation and training services is driving the services segment.

Global Extended Detection And Response Market by Deployment Type

By deployment type, the Extended Detection and Response market is classified into cloud, and on-premise. The on-premises segment dominated the market in 2022. Enterprises with the necessary IT infrastructure prefer the installation of XDR solutions on their premises as they have complete ownership of the solution and upgrades. Various large organizations and businesses that deal with critical business information select on-premise extended detection and response solutions as they provide an optimum level of data security and physical access controls. The cloud-based segment has gained popularity owing to its cost benefits and flexibility. Additionally, the major market players are concentrating on launching cloud-based advanced threat management solutions to capitalize on the rising cloud solutions market. For instance, in October 2020, McAfee, LLC launched MVISION XDR, a proactive, data-aware, and open XDR cloud-based platform. Cloud-based extended detection and response solutions eliminate the need for the consumer to manage, upgrade, and buy the software.

Global Extended Detection And Response Market by Application

Based on the application, the Extended Detection And Response market is bifurcated into Large Enterprise, and SMEs. The large enterprises segment dominated with a largest revenue share in 2022. Large organizations are at a bigger risk of cyber threats owing to the large number of employees processing sensitive business information and data on their workstations. Furthermore, the increasing trend of Bring Your Own Device (BYOD) among technology companies is intensifying the threat of cyber-attacks, driving the demand for XDR solutions. The demand for XDR solutions and services across small and medium enterprises (SMEs) is expected to rise at a significant CAGR across the forecast period. With the increased adoption of mobile and web-based applications for business operations, SMEs are deploying XDR solutions to identify security gaps and mitigate cyber risks. SMEs are increasingly becoming aware of the benefits of threat detection and response systems. Moreover, the increasing number of large-scale start-ups is expected to drive the demand for XDR solutions and services over the forecast period.
Geographical Analysis of Global Extended Detection And Response Market
Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. North America dominated the market in 2022 and accounted for largest global revenue share. The U.S. and Canada are the leading markets for XDR solutions in the region, thanks to the increased investment in research & development activities to improve the existing cybersecurity techniques. The European market is also witnessing a significant increase in demand owing to the high demand for threat detection and response solutions from countries such as the U.K., Germany, and France.

The Asia Pacific XDR market is expected to be the most attractive regional market due to increasing technological innovations across Japan and China. Growing IT spending and an increasing number of data breaches are the key factors driving the regional market growth. According to the GSM Association, Asia Pacific is the largest IoT market in terms of the number of connections. Therefore, the demand for XDR solutions is expected to increase to protect data across organizations, be it on IoT devices, in the cloud, in email, or on-premises servers.
Major Players in the Global Extended Detection And Response Market
The key players in the Extended Detection And Response Market are McAfee, LLC, Trend Micro Incorporated., Microsoft, Palo Alto Networks, Cybereason, Broadcom, Cynet, SentinelOne, Rapid7, and LMNTRIX. among others.
COVID-19 Impact
Responding to the COVID-19 pandemic remained a major challenge for most security businesses across the world in 2020. The pandemic has refocused the attention of security staff on operational tools and cloud-delivered security tools that do not require a Local Area Network (LAN) connection to function, and the need to migrate to cloud data centers and software as a service (SaaS) applications. This encouraged businesses to adopt XDR solutions to access policies and track threats across the cloud and business networks remotely.
Recent Developments

In September 2020, Cynet launched Cynet 360 Version 4.0, the new generation autonomous breach prevention platform featuring extended detection and response.
In June 2020, Atos SE announced an agreement to acquire Paladion to strengthen its global cybersecurity services. With their combined expertise, Atos SE and Paladion expect to bring their business knowledge assets and technology to build the XDR capability that end-users need as they are adopting multi-cloud and hybrid.
In February 2020, SentinelOne, a U.S.-based cybersecurity solution provider launched an AI-powered XDR solution that offers advanced threat detection and complete visibility across every endpoint device, physical or virtual, on-premise, or on the cloud.
In October 2020, McAfee, LLC launched MVISION XDR, a proactive, data-aware, and open XDR cloud-based platform. Cloud-based extended detection and response solutions eliminate the need for the consumer to manage, upgrade, and buy the software.


Frequently Asked Questions
Q1. How big is the Extended Detection And Response market?

Ans. The global Extended Detection And Response market was valued at USD 1.2 billion in 2022 and it is anticipated to grow up to USD 4.4 billion by 2032, at a CAGR of 13.9% during the forecast period..

Q2. What is the Extended Detection And Response Market growth rate?

Ans. The growth rate of the Extended Detection And Response Market is 13.9%

Q3. Which region holds a major market share for the market?

Ans. North America holds a major market share of the Extended Detection And Response Market in 2022.

Q4. Which segment accounted for the largest Extended Detection And Response Market share?

Ans. By application, the Large Enterprises segment accounted for the largest Extended Detection And Response Market share.

Q5. Who are the key players in the Extended Detection And Response market?

Ans. The global Extended Detection And Response Market report includes players such as  McAfee, LLC, Trend Micro Incorporated., Microsoft, Palo Alto Networks, Cybereason, Broadcom, Cynet, SentinelOne, Rapid7, and LMNTRIX, among others.

Q6. What are the factors driving the Extended Detection And Response Market growth?

Ans. The major factors such as ongoing developments in technologies such as the Internet of Things (IoT) and the cloud have increased the risk of cyber threats, creating challenges in securing critical data. As a result, organizations are spending on several security solutions to strengthen their security and reduce redundant attacks.

Q7. What are the key growth strategies of Extended Detection And Response Market players?

Ans. The key growth strategies of Extended Detection And Response Market players are product launch and product approval.

Q8. Which region will provide more business opportunities for the Extended Detection And Response Market during the forecast period?

Ans. The Asia-Pacific region will provide more business opportunities for the Extended Detection And Response Market during the forecast period.

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