Global Extended Detection and Response Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Deployment Type (On-premises and Cloud), By Application, By Regional Outlook and Forecast, 2021 - 2027

Analysis of Market Size & Trends

The Global Extended Detection And Response Market size is expected to reach $1.6 billion by 2027, rising at a market growth of 19.9% CAGR during the forecast period.

Extended detection and response (XDR) is relatively a new concept in security technology that was created to address the demand for advanced and comprehensive detection and response. Cyber risks have increased as a result of ongoing innovations in technologies like the Internet of Things (IoT) and the cloud, posing issues in securing important data. As a result, businesses are investing in a variety of security solutions in order to enhance their defenses and limit the number of redundant attacks.

In addition, extended detection response is defined as a SaaS-based, vendor-specific security threat detection and incident response platform that natively combines several security products into a cohesive security operations system that integrates all licensed components. By offering a holistic and yet simplistic view of threats across the whole technology ecosystem, XDR enables an organization to go beyond traditional investigative controls. Moreover, XDR provides the real-time data required to deliver risks to business processes in order to achieve better, faster results.

Security teams lose visibility as a result of the greater integration of numerous software solutions with current systems, as well as the increased difficulties of managing multiple warnings with inadequate information regarding the growing number of security threats. XDR technology, which employs dynamic analytics and machine learning approaches to give increased visibility, analysis, and response across networks, clouds, and endpoints, has emerged as a result of this scenario.

COVID-19 Impact Analysis

Increasingly complicated regulatory compliance standards, fast migration to cloud computing, a scarcity of technical security employees, and the continuous evolution of threats are all adding to security concerns of the companies. In 2020, however, most security businesses around the world faced serious difficulty in responding to the COVID-19 pandemic. The pandemic has refocused security professionals' attention on operational tools and cloud-delivered security solutions that do not require a LAN connection to function, as well as the necessity to transition to cloud data centers and use the software as a service (SaaS) application. This prompted companies to use XDR solutions to remotely access policies and track risks across cloud and enterprise networks.

Market driving Factors:

High awareness of the benefits of Extended Detection and Response Systems

These solutions are restricted to endpoints and server environments in practice, and external security services (or third-party security solutions) have limited access to threat perspectives. In addition, XDR gives security experts a 360-degree view of the security landscape, allowing them to expose threats on any security layer, analyze how an attack occurred- from entry points to affected areas, to where the threat began and how it spread, and respond to threats that extend beyond infrastructure control points, networks, and endpoints.

IT teams and security groups must contend with enormous signals in order to sustain floods of security alerts created by security devices. Moreover, the benefits of wider data analysis and simultaneous efficiency that XDR provides enable teams to group related alarms together, prioritize them, and operate the most important ones.

Governments and businesses are investing in R&D to build comprehensive threat intelligence systems

Governments and commercial companies from all over the world are investing in R&D to bring enhanced threat detection to the market. The Critical Infrastructure Security and Resilience (CISR) R&D plan calls for communities, like crucial infrastructure owners and operators, government and corporate entities, and international partners, to increase the security of the critical infrastructure. The CISR R&D encourages action plans for deploying critical infrastructure solutions at the local, regional, and national levels to improve country resilience. In collaboration with the Joint Research Centre (JRC), the European Reference Network for Critical Infrastructure Protection (ERNCIP) has created tools, approaches, and scientific publications to defend critical infrastructures against threats and breaches.

Marketing Restraining Factor:

High cost of installation

Investing in security solutions is critical for a country's overall economic stability and security posture to be maintained. In addition, these solutions necessitate company-wide coverage for efficient and secure operations, resulting in higher infrastructure expenses. As a result, several operators find these systems to be prohibitively expensive. Moreover, there are many companies that are willing to shift to the cloud but could not go ahead due to the high associated cost of security solutions. Further, many countries are still witnessing low penetration of advanced security solutions that may discourage the operating companies from reaping appropriate benefits of such solutions.

Component Outlook

Based on Component, the market is segmented into Solution and Services. In 2020, the Solutions segment procured the largest revenue share of the Extended Detection and Response Market. This is because of the increasing demand for a unified solution that can give a broader picture of cyber threats across many control points, such as endpoints, networks, and servers. Moreover, the need to lessen the difficulties associated with maintaining many security systems, as well as the warnings generated by such solutions, has driven the growth of the segment.

Deployment Type Outlook

Based on Deployment Type, the market is segmented into On-premises and Cloud. The Cloud segment held a significant revenue share of the Extended Detection and Response Market in 2020. Because of its cost savings and flexibility, the cloud-based category has grown in popularity. To take advantage of the growing cloud solutions industry, the key market participants are focusing on introducing cloud-based advanced threat management systems. McAfee, for example, announced MVISION XDR, a proactive, data-aware, and open XDR cloud-based platform, in October 2020. Consumers don't have to manage, upgrade, or acquire the software with cloud-based extended detection and response systems.

Application Outlook

Based on Application, the market is segmented into Large Enterprises and Small & Medium Enterprises (SMEs). The Small and medium enterprises (SMEs) segment garnered a significant revenue share of the Extended Detection and Response Market in 2020. This is because SMEs are using XDR solutions to discover security weaknesses and minimize cyber risks as the popularity of mobile and web-based applications for corporate operations grows. Threat detection and response solutions are becoming increasingly popular among SMEs.

Extended Detection and Response Market Report Coverage

Report Attribute	Details
Market size value in 2020	USD 493.2 Million
Market size forecast in 2027	USD 1.6 Billion
Base Year	2020
Historical Period	2017 to 2019
Forecast Period	2021 to 2027
Revenue Growth Rate	CAGR of 19.9% from 2021 to 2027
Number of Pages	189
Number of Tables	322
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered	Component, Application, Deployment Type, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Increasing adoption of the IoT sector Governments and businesses are investing in R&D to build
Restraints	High cost of installation

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, the Large Enterprises segment collected the biggest revenue share of the Extended Detection and Response Market. Due to the huge number of employees processing important company information and data on their workstations, large enterprises are more vulnerable to cyber threats. In addition, the growing trend of Bring Your Own Device (BYOD) among technology organizations is heightening the potential of cyber-attacks, fueling the demand for XDR solutions.

Free Valuable Insights: Global Extended Detection and Response Market size to reach USD 1.6 Billion by 2027

KBV Cardinal Matrix - Extended Detection and Response Market Competition Analysis

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the major forerunner in the Extended Detection and Response Market. Companies such as Cybereason, Palo Alto Networks, Inc., Sophos Group PLC are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include McAfee Corp., Microsoft Corporation, Cynet Security, Bitdefender SRL, Fidelis Cybersecurity, Inc., SentinelOne, BENQ, Palo Alto Networks, Inc., and Sophos Group PLC.

Recent Strategies Deployed in Extended Detection and Response Market

» Partnerships, Collaborations and Agreements:

• Jan-2022: Palo Alto Networks formed a partnership with KPMG, a British-Dutch multinational professional services network, and one of the Big Four accounting organizations. Under this partnership, the two entities would offer Managed Security Services (MSS) powered by Palo Alto Networks Cortextm XDR and XSOAR security platform, Zero Trust, and multi-cloud cybersecurity solutions to KPMG clients and customers in India. In addition, the partnership would integrate the deep cybersecurity expertise, threat intelligence, information protection, and consulting practices of KPMG in India with Palo Alto Networks’ industry-leading cybersecurity solutions and services.
• Nov-2021: Cybereason formed a collaboration with GlobalLogic, a Hitachi Group Company, and leader in Digital Engineering. Following the collaboration, Cybereason selected GlobalLogic to assist in creating its advanced cyber security platform and services. Moreover, this collaboration would leverage GlobalLogic’s thorough and deep expertise in security and data management software across devices through to the cloud, including the integration of next-generation artificial intelligence (AI).
• Oct-2021: Cybereason came into a partnership with Taqnia Cyber, the cybersecurity arm of Saudi Arabia’s government-owned technology investment company, Taqnia. Under this partnership, the two companies would develop cutting-edge technologies and cybersecurity capabilities for large enterprises and defense and government organizations across the Kingdom. Moreover, Taqnia Cyber would become a reseller as well as systems integrator for the Cybereason extended detection and response (XDR), endpoint detection and response (EDR), and endpoint protection platform (EPP) solutions.
• Oct-2021: Cybereason partnered with Google Cloud, offered by Google, is a suite of cloud computing services that runs on the same infrastructure that Google uses internally for its end-user products, such as Google Search, Gmail, Google Drive, and YouTube. Through this partnership, the two companies would introduce a combined solution to reverse the adversary advantage. The partnership would develop a platform that can effortlessly ingest and examine petabyte-scale telemetry across the complete IT and security stack and provides unparalleled speed and accuracy for the prevention of advanced threats against endpoints, applications suites, networks, containers, user personas, and cloud infrastructure.
• Oct-2021: Cybereason entered into a partnership with Aon’s Cyber Solutions, a purpose-built risk management consulting firm that helps businesses solve the complex challenges they face in today's digital and connected world. Following this partnership, the two companies would allow customers to better prevent, identify and respond to cyber threats using a combination of services and solutions.
• Oct-2021: SentinelOne formed a partnership with BlueVoyant, a cybersecurity company. This partnership would see BlueVoyant unite its unparalleled cybersecurity expertise with the advanced, automated endpoint detection and response capabilities of SentinelOne's Singularity Complete Suite to offer excellent Managed Detection and Response (MDR) services to customers.
• Jan-2021: Cybereason partnered with Ensign InfoSecurity (Ensign), one of Asia Pacific’s largest pure-play cybersecurity firms. This partnership would expand the portfolio of cybersecurity solutions and services that Ensign provides to safeguard its APAC customers from the evolving cyber threats and security vulnerabilities faced in the post-pandemic scenario. This collaboration would allow Ensign’s customers access to Cybereason’s best-in-breed Cybereason Defense Platform, a combination of award-winning endpoint detection and response (EDR) and endpoint protection platform (EPP) capabilities.
• Dec-2020: Cybereason came into a partnership with Secutec, a company that offers businesses integrated security solutions for a fast, efficient, secure, and enjoyable IT experience. Following the partnership, the two companies aimed to safeguard enterprises at the endpoint, across the enterprise, to everywhere the battle is taking place. The partnership would allow the companies’ combined customers to evolve to an operation-centric security model that would streamline complicated cybersecurity issues through a new offering that integrated the Cybereason Defense Platform with the Secutec Secure DNS Solution.
• Dec-2020: Cybereason teamed up with Oracle, an American multinational computer technology corporation. Under this partnership, Cyberreason implemented Oracle Cloud Infrastructure (OCI) as its preferred platform to boost the Cybereason Defense Platform and support its worldwide expansion. In addition, the two companies are working together to assist safeguard enterprises against next-generation cybersecurity threats at every endpoint and across the enterprise.
• Oct-2020: Palo Alto Networks extended its cybersecurity partnership with PwC, a multinational professional services network of firms. Under this partnership, the two companies would provide managed detection and response (MDR) services to the combined customers. Moreover, the extended partnership integrates PwC Managed Cyber Defense capabilities and Cortex XDR by Palo Alto Networks.
• Aug-2020: Palo Alto Networks formed a partnership with Infocyte, a cybersecurity company providing the leading platform for Incident Response and delivering cost-effective MDR services. Following this partnership, Infocyte is integrated with Palo Alto Networks Cortex XSOAR. Cortex XSOAR and Infocyte's combined power allows for automated detection, alarm validation, and incident response, reducing mean time to detection and response cycle durations. Moreover, Infocyte is the first partner to integrate with Cortex XSOAR's new PowerShell interface, which allows security analysts to swiftly deploy and begin threat remediation.
• May-2020: Palo Alto Networks partnered with Deloitte, a multinational professional services network. This partnership would expand Deloitte’s managed security services offerings for customers around the world. Cortex XDR, Cortex XSOAR (previously Demisto), and Prisma Cloud technologies would be integrated into Deloitte's EMEA Cybersphere Center security portfolio as part of this partnership.
• Feb-2020: Palo Alto Networks formed an extended partnership with NTT, a world-leading global technology services vendor. Under this partnership, the two companies would provide an offering of intelligence-driven security products that would assist help clients to reduce risk by decreasing time to predict, detect, and respond to attacks. The new offering would integrate NTT's ‘Secure by Design’ services with Palo Alto Networks’ Prisma Access and Cortex XSOAR technologies and focus on the intelligent workplace, intelligent infrastructure, and intelligent cybersecurity.

» Acquisitions and Mergers:

• Jul-2021: Cybereason took over empow, a security analytics company based in Tel Aviv. Through this acquisition, the company would gain advanced predictive response technology, a set of out-of-the-box data integrations, and top-tier engineering and product talent of empow. These capabilities would be integrated into the Cybereason XDR offerings to further accelerate the company’s mission to end cyberattacks on the endpoint, across the enterprise.
• Jul-2021: Sophos took over Braintrace, a privately held, boutique, sole source cybersecurity provider. This acquisition would improve Sophos' Adaptive Cybersecurity Ecosystem with Braintrace's proprietary Network Detection and Response (NDR) technology. Following the partnership, Braintrace's developers, data scientists, and security analysts merged with Sophos' global Managed Threat Response (MTR) and Rapid Response teams. Moreover, these extra layers of visibility and event ingestion would considerably enhance threat detection, threat hunting, and response to suspicious activity.
• May-2021: Fidelis Cybersecurity took over CloudPassage, a pioneer in cloud security and compliance. This acquisition would improve the company's vision to integrate endpoint, network, cloud, and deception in a centralized platform so the customers can identify and respond to adversaries earlier in the attack lifecycle.
• Feb-2021: SentinelOne took over Scalyr, a leading cloud-native, cloud-scale data analytics platform. Following the acquisition, SentinelOne would be able to ingest, correlate, search, and action data from any source, offering the industry’s most cutting-edge integrated XDR platform for real-time threat mitigation across the enterprise and cloud.
• Dec-2020: Palo Alto Networks acquired Expanse, a leader in attack surface management. The addition of Expanse's internet collection and attribution data would expand Cortex's capabilities across exposed and untracked external assets that could make the attack surface of the company vulnerable.
• Sep-2020: Palo Alto Networks took over the Crypsis Group, a leading incident response, risk management, and digital forensics consulting firm. The acquisition would further support the Palo Alto Networks Cortex platform with expert services for incident response and proactive assurance. The combination of The Crypsis Group's security consulting and forensics capabilities would bolster Cortex XDR's ability to gather rich security telemetry, manage breaches and begin rapid response actions.

» Product Launches and Product Expansions:

• Mar-2022: Microsoft rolled out the general availability of Microsoft Defender for Business, a new endpoint security offering developed for small and medium-sized businesses (SMBs). Moreover, Microsoft Defender for Business is an affordable enterprise-grade endpoint security solution that fulfills the requirements of small businesses with up to 300 employees. In addition, the new security offering automatically examines probable security threats (ransomware, phishing, and malware) in enterprise environments.
• Jan-2022: Sophos rolled out Sophos ZTNA, the only zero-trust network access (ZTNA) offering that completely integrates with an industry-leading, advanced endpoint solution, Sophos Intercept X, offering next-generation endpoint protection and zero-trust network access with a single agent. Moreover, Sophos ZTNA rolled out a transparent and scalable security model with an aim to connect users and devices to applications and data, enhancing and streamlining protection against ransomware and other advanced cybersecurity threats.
• Nov-2021: Palo Alto Networks introduced its Cortex eXtended Managed Detection and Response (XMDR) Partner Specialization to assist customers to examine, investigate and respond to cyberthreats across endpoint, network, and cloud assets. Moreover, the Cortex XMDR Specialization would allow MSSP partners to integrate Cortex XDR with their managed services offerings, hence assisting customers around the globe simplify security operations center (SOC) operations and easily mitigate cyberthreats.
• Aug-2021: Palo Alto Networks launched Cortex XDR 3.0 for the cloud. This third-generation XDR would expand the company’s extended detection and response (XDR) solution to cloud- and identity-based threats, offering companies the comprehensive analytics they require to defend against more advanced cyberattacks. In addition, the third version of Cortex XDR, which already surpassed previous generations in the MITRE ATT&CK test, offers security operations center (SOC) teams even more protection during their attack surface.
• Jul-2021: Bitdefender rolled out the next generation of Endpoint Detection and Response solutions – eXtended EDR (XEDR) with the inclusion of analytics and cross-endpoint security event correlation to Bitdefender Endpoint Detection and Response (EDR) and GravityZone Ultra, the company's unified endpoint prevention, detection and response, and risk analytics platform. Moreover, these new capabilities enhance security efficacy for detecting and stopping the spread of ransomware attacks, advanced persistent threats (APTs), and other next-generation attacks before they impact companies.
• May-2021: Sophos unveiled Sophos XDR, the industry’s only extended detection and response (XDR) solution that synchronizes native endpoint, server, firewall, and email security. This solution is an exhaustive and integrated offering that would offer a comprehensive view of an organization’s environment with the richest data set and deep analysis for threat detection, investigation, and response.
• Sep-2020: Cynet rolled out Cynet 360 V4.0, a next-generation of extended detection and response. The advanced autonomous breach prevention platform has XDR, 24/7 Managed Detection & Response (MDR), and full Response Automation, enhancing cyber threat detection accuracy while decreasing the complexity and overhead needed for exhaustive defense and mitigation of advanced and subversive cyber-attacks.
• Feb-2020: SentinelOne released the general availability of its advanced container and cloud-native workload protection (CWPP) offering. The solution is the first to provide completely featured autonomous Runtime Protection, Detection, and Response for cloud workloads. This new solution is well-suited for containers, and CWPP offering offers the richest set of capabilities on the market, including next-generation runtime protection, complete remote shell to any pod, container kill, and complete remediation to empower security. Moreover, SentinelOne extends its XDR platform to deliver complete visibility, detection, response, and threat hunting for containerized workloads utilizing the same console which is utilized for endpoints and IoT devices.

Scope of the Study

Market Segments Covered in the Report:

By Component

• Solution
• Services

By Deployment Type

• On-premises
• Cloud

By Application

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• McAfee Corp.
• Microsoft Corporation
• Cynet Security
• Bitdefender SRL
• Fidelis Cybersecurity, Inc.
• SentinelOne
• BENQ
• Palo Alto Networks, Inc.
• Sophos Group PLC