Extended Detection and Response Market Size - By Offering (Solutions, Services), By Deployment Mode (On-premises, Cloud), By Organization Size (Large Enterprises, SMEs), Industry Vertical & Global Forecast 2023 - 2032

Extended Detection and Response Market Size - By Offering (Solutions, Services), By Deployment Mode (On-premises, Cloud), By Organization Size (Large Enterprises, SMEs), Industry Vertical & Global Forecast 2023 - 2032

Extended Detection and Response Market size is projected to witness 19% CAGR from 2023-2032 fueled by the escalating cybersecurity threats worldwide. With the proliferation of sophisticated cyberattacks, including ransomware, phishing, and nation-state-sponsored threats, organizations are increasingly recognizing the urgency of bolstering security defenses. The integration of ML and AI into XDR solutions is also enabling the analysis of vast datasets in real time for identifying unusual patterns and behaviors indicative of potential threats.

To that end, businesses are adopting XDR solutions as proactive measures to stay ahead of cyber adversaries. The growing efforts led by industry players on introducing advanced and innovative XDR solutions is also expected to propel the market growth. For instance, in April 2023, Cisco revealed plans to introduce its XDR service with SaaS-delivered integrated system of network, endpoint, email, firewall, and identity software focused on protecting organizational resources.

The overall extended detection and response market is segmented based on offering, deployment mode, organization size, industry vertical and region.

With respect to offering, the market value from the service segment is estimated to expand through 2032. The growing complexity of cyber threats has increased the demand for XDR services to augment the cybersecurity capabilities. Additionally, compliance requirements and regulations are pushing organizations to invest in robust cybersecurity services to ensure data protection and regulatory adherence, further contributing to the industry development.

Based on deployment mode, the cloud-based extended detection and response market is set to gain momentum between 2023 and 2032. Cloud-based XDR solutions offer improved scalability, flexibility, and accessibility compared to their on-premise alternatives. This has led to the increasing number of organizations opting for cloud-based XDR solutions to enhance their cybersecurity posture. Industry players are also introducing innovative solutions to cater to the rising product end-user demands. To cite an instance, in August 2023, VMware, Inc., announced new developments in its Carbon Black Extended Detection and Response strategy to focus on cloud-native apps.

Asia Pacific extended detection and response market is projected to exhibit over 21.5% CAGR through 2032. With the rising adoption of technologies, such as cloud computing, IoT, and mobile technologies, the need for comprehensive threat detection and response solutions including XDR is surging rapidly. Lately, Southeast Asian businesses have turned popular targets for ransomware attacks. In March 2023, Kaspersky introduced its XDR platform for companies to empower their security teams with professional detection and response tools to assist them in strengthening their cybersecurity capabilities to protect against ransomware that targets corporations. Such ongoing developments by market participants are likely to augment the industry outlook.