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Managed Detection and Response Market Size, Share & COVID-19 Impact Analysis, By Type (Managed Endpoint Detection and Response (MEDR), Managed Network Detection and Response (MNDR), Cloud Detection and Response (CDR), and Others), By Deployment Mode (Cloud-based MDR and On-premises MDR), By Enterprise Type (Small and Medium-sized Enterprises and Large Enterprises), By Industry (BFSI, Healthcare & Life Sciences, IT & Telecom, Manufacturing, Retail & E-commerce, Government, and Others) and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI108618

 

KEY MARKET INSIGHTS

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The managed detection and response market size was valued at USD 1.29 billion in 2022 and is projected to grow from USD 1.56 billion in 2023 to USD 6.29 billion by 2030, exhibiting a CAGR of 22.0% during 2023-2030. North America dominated the global market with a share of 42.63% in 2022.


Managed Detection and Response (MDR) is a combination of human expertise, deep threat analytics, various endpoints, cloud based environments, and network detection technologies to help businesses lessen the risk and costs associated with cyberattacks and data breaches. MDR services enable 24/7, year-round coverage and expertise for threat identification, forensic investigation, and incident response.


The rapid growth of the MDR market is majorly attributed to the increasing cybersecurity threats, shortage of cybersecurity talent, increased adoption of cloud computing, and proliferation of the Internet of Things (IoT). Cyberattacks are rising at a rapid pace across the world. More than 30,000 websites are hacked daily worldwide. In addition, the average number of cyber threats, as well as data breaches, rose by 15.1% in 2021 compared to 2020. Due to all such increasing threats, businesses are investing significantly in robust detection and response services capabilities to identify and respond to cyberattacks.


Key MDR providers are increasingly launching sophisticated MDR services to help organizations reduce the risk of cyberattacks. For instance,



  • In November 2022, Vectra AI, Inc., an AI-driven threat detection and response platform, announced the launch of 24/7/365 Managed Detection and Response (MDR) services to detect, investigate, and stop cyberattacks.


COVID-19 IMPACT


Increased Cyberattacks Globally amid Pandemic Augmented Market Growth


The coronavirus pandemic significantly accelerated cybercrimes with ransomware attacks in most countries due to the large-scale adoption of remote work and increased digital transformation. Cybercriminals took advantage by targeting vulnerable people and systems. From February to May 2020, more than 500,000 million people across the globe were impacted due to data breaches during video conferencing. Moreover, 81% of organizations globally faced increased cyberattacks during the outbreak. During the pandemic, remote working created major challenges, especially for small and medium-sized enterprises, as these enterprises were not adequately equipped for the increased cyberattacks.


To reduce the risks and costs associated with the impact of a cyberattack, companies enhanced their endpoint security measures and invested significantly in cyberattack detection, response, and recovery capabilities. The pandemic also highlighted the necessity for robust MDR capabilities to overcome uncertain business dynamics. Thus, the adoption of managed detection and response services is anticipated to increase significantly post-pandemic.       


LATEST TRENDS


Integration of Artificial Intelligence (AI) and Machine Learning (ML) Aids Market Growth


In the past few years, cyberattacks have skyrocketed due to various factors, including the rapid digital transformation worldwide. In the ever-changing landscape of cybersecurity, Artificial Intelligence (AI) and Machine Learning (ML) have become crucial for enabling fast identification of potential cyber threats. AI and ML algorithms can analyze vast amounts of data in real time, helping in pattern recognition, process automation, and predictions. Many MDR providers are leveraging the power of AI and ML to offer complete cybersecurity solutions to enterprises that lack specialized AI and ML expertise. For instance,



  • In March 2021, AO Kaspersky Lab, a cybersecurity and threat management company, announced the launch of 24/7 machine learning-driven MDR services for large as well as Small and Midsize Businesses (SMBs). Kaspersky’s MDR service is integrated with AI analysts, offers automatic alert resolution, and helps Kaspersky SOC analysts focus on the other major alerts.


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MANAGED DETECTION AND RESPONSE MARKET GROWTH FACTORS


Stringent Regulatory Compliance Requirements to Fuel Market Growth


Governments across the globe are increasingly directing stringent data protection regulations such as the General Data Protection Regulation (GDPR) to safeguard personally identifiable information from cyberattacks and other security incidents. Non-compliance to these regulations can cause legal penalties and fines and may damage the reputation of organizations. For instance, non-compliance with GDPR can lead to fines of up to 4% of the company’s annual revenue. However, fulfilling such compliance is a demanding task for organizations as industry standards and requirements can overlap.  Hence, to address strict compliance needs, many organizations are opting for MDR services to identify security threats while fulfilling regulatory mandates. MDR services offer real-time, 24/7 threat detection technologies, helping organizations detect and respond to suspicious activities and data breaches on time and meet regulatory compliance. 


RESTRAINING FACTORS


Data Security Concerns Coupled with High Cost May Hinder Market Growth


Organizations often share sensitive information with MDR providers. Hence, data privacy, as well as managed security services, becomes a major concern, limiting market growth. Another major concern is the increasingly intricate and rapidly changing cyber threat landscape. Cybercriminals are employing more sophisticated and new strategies to target organizations. This, in turn, requires continuous advancement of threat detection strategies, vigilant monitoring, and prompt incident response.


Moreover, the high cost, especially for small enterprises, also poses a significant challenge for widespread adoption. The cost of procurement and maintenance of the tools and technologies, as well as the expense of hiring and retaining cybersecurity experts, is significantly high. In today’s highly competitive business environment, organizations that operate on tight budgets may find it challenging to allocate enough resources for implementing 24/7/365 cyber threat monitoring and response service.  


SEGMENTATION


By Type Analysis


MEDR Segment to Dominate Due to Simplification of Endpoint Management Process


Based on type, the market is divided into Managed Endpoint Detection and Response (MEDR), Managed Network Detection and Response (MNDR), Cloud Detection and Response (CDR), and others. The Managed Endpoint Detection and Response (MEDR) segment is expected to hold the largest market share during the forecast period. MEDR is typically used for detecting and remediating suspicious activity at various endpoint servers, mobile devices, laptops, desktop PCs, and others. It offers real-time threat detection, monitoring, and responses to malicious activities. It also simplifies the endpoint management process by enabling threat detection and response via one central platform.    


The Cloud Detection and Response (CDR) segment is poised to show the highest growth rate during the forecast period owing to increased cloud adoption and data breach issues. Enterprises are increasingly migrating to cloud environments, augmenting the need for cloud security solutions such as MDR.   


By Deployment Mode Analysis


Cloud-based MDR Segment to Dominate Owing to Better Accessibility


Based on deployment mode, the market is divided into cloud-based MDR and on-premises MDR. The cloud segment is poised to dominate the market during the forecast period owing to its numerous advantages compared to on-premises deployment. Cloud-based MDR enables enterprises to easily adjust their resources to cater to their requirements. Moreover, cloud deployment facilitates accessibility to remote teams in any part of the globe with an active internet connection. In addition, cloud-based MDR can be updated rapidly in an ever-changing cyber threat landscape.


By Enterprise Type Analysis


Large Enterprises Segment to Dominate Due to Growing Spending on Cybersecurity


Based on enterprise type, the market is divided into large enterprises and small and medium-sized enterprises. The large enterprises segment is anticipated to account for the largest market share during the forecast period, as large enterprises typically spend more on cybersecurity due to the higher value of their data as well as assets. Stricter compliance requirements also cause large enterprises to increase their cybersecurity budget. This, in turn, augments the managed detection and response market growth.


The small and medium sized enterprises segment is expected to experience rapid growth during the forecast period. The rapid shift to remote as well as hybrid working, accelerated by the pandemic, has raised the cybersecurity stakes significantly for SMEs. Hence, safeguarding the security of remote access and devices has become crucial.  


By Industry Analysis


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BFSI Segment Leads and Embraces MDR for Enhanced Protection


Based on industry, the market is divided into BFSI, healthcare & life sciences, IT & telecom, manufacturing, retail & e-commerce, government, and others. The BFSI segment is expected to hold the largest market share during the forecast period. The BFSI sector is the most targeted sector by cyber criminals and involves the highest cost of data breaches. Due to this, investments in digital infrastructure and cybersecurity are critical for the BFSI industry. In addition, this sector is rapidly adopting cloud solutions to process data in real time. Hence, more and more financial institutions are anticipated to adopt MDR to safeguard against cyber threats.


The IT & telecom segment is anticipated to experience rapid growth during the forecast period owing to its heavy dependency on technology and increasing exposure to cyber-attacks. Many IT and telecom enterprises have a global presence, requiring robust cybersecurity.   


REGIONAL INSIGHTS


Geographically, the market share is fragmented into five major regions, including North America, South America, Europe, the Middle East & Africa, and the Asia Pacific. They are further categorized into countries.


North America Managed Detection and Response Market Size & Share, 2022


North America market for managed detection and response is expected to hold the largest share during the forecast period due to the stringent regulatory landscape, increased cloud computing adoption, robust cybersecurity spending, rapid developments in digitization, and technological developments in this region. Moreover, the U.S. has maintained its leadership in the North America region on account of the presence of key players. Acquisitions, product launches, collaborations, and partnerships by key players in the region further contribute to the regional growth. For instance,



  • In September 2022, NetWitness LLC, a network security firm, launched a managed detection and response service to help organizations address cyber skills shortages and strengthen their cybersecurity.


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Asia Pacific market for managed detection and response is expected to show the highest growth rate during the forecast period due to the presence of the world’s fastest-growing economies, such as India, South Korea, and Singapore, growing cloud adoption, and increasing cyber threats.


Europe market for managed detection and response is driven by government initiatives to bolster cybersecurity, growing emphasis on cybersecurity, and rapid digital transformation. These factors are expected to augment the regional growth during the forecast period.


The growth of the South America market for managed detection and response is being propelled by the cloud computing expansion and growth of various industries, such as BFSI and e-commerce. Brazil is anticipated to dominate the market in this region on account of more awareness regarding cybersecurity in this country.  


The Middle East & Africa (MEA) market for managed detection and response shows significant growth as major financial institutions are spending significantly on cybersecurity.


KEY INDUSTRY PLAYERS


Key Players are Focused on Strengthening their Market Position with Continuous Developments


Leading players such as CrowdStrike, Secureworks, Inc., Arctic Wolf Networks Inc., Palo Alto Networks, Rapid7, WithSecure, Atos SE, Accenture, TATA Consultancy Services Limited, Sophos Ltd., and others consolidate the global market. These key players are expanding their operations by adopting strategies such as mergers, acquisitions, product launches, collaborations, and partnerships. For instance,



  • In April 2023, CrowdStrike, a cybersecurity technology company, extended its existing MDR offerings with Managed Extended Detection and Response (MXDR) service. The MXDR combines Artificial Intelligence (AI) and threat intelligence with human intelligence to cater to organizations’ threat detection and response needs.  


List of Key Companies Profiled in Managed Detection and Response Market:



KEY INDUSTRY DEVELOPMENTS:



  • October 2023: Rapid7, a cybersecurity company, improved its MDR services with amplified endpoint prevention capabilities enabled by its insight agent, helping enterprises with advanced cyber threats.

  • July 2023: Sophos Ltd., an enterprise security software company, unveiled MDR for Microsoft Defender for organizations using Microsoft Security. This solution enables 24/7 security across the Microsoft security suite of endpoints, cloud, and others to defend against data breaches.

  • March 2023: NTT Limited, an IT infrastructure and services company, announced the launch of a new analytics-driven MDR security service to help organizations with effective risk management against cyber threats. This new MDR service offers various service tiers, deployment options, and add-ons such as Endpoint and Security Device Management (SecDM).

  • January 2023: CRITICALSTART, a cybersecurity firm, announced its MDR service offering for Trend Micro Vision One customers. Trend Micro Vision One is a threat defense tool that offers extended detection and response. CRITICALSTART helps Vision One customers with 24x7x365 monitoring, investigation, and response services.  

  • October 2022: Malwarebytes, a cybersecurity and anti-malware software provider released a new MDR designed to aid enterprises lacking cybersecurity staff. A new MDR offers real-time continuous threat hunting, monitoring, and response, as well as detects advanced malware attacks and prioritizes critical alerts.


REPORT COVERAGE


An Infographic Representation of Managed Detection and Response Market

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The managed detection and response market research report offers qualitative and quantitative insights into the market and a detailed analysis of the size & growth rate for all possible segments in the market. It also provides an elaborative analysis of market dynamics, emerging trends, and the competitive landscape. The report also offers key insights, such as the implementation of automation in specific market segments, recent industry developments such as partnerships, mergers, funding, acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and major industry trends. This detailed analysis provides a comprehensive view of the market and its potential for growth and development.


REPORT SCOPE & SEGMENTATION










































ATTRIBUTE



DETAILS



Study Period



2017 - 2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023 – 2030



Historical Period



2017 - 2021



Growth Rate



CAGR of 22.0% from 2023 to 2030



Unit



Value (USD Billion)



Segmentation



By Type



  • Managed Endpoint Detection and Response (MEDR)

  • Managed Network Detection and Response (MNDR)

  • Cloud Detection and Response (CDR)

  • Others (Application Security and others)


By Deployment Mode



  • Cloud-based MDR

  • On-premises MDR


By Enterprise Type



  • Small and Medium-sized Enterprises

  • Large Enterprises


By Industry



  • BFSI

  • Healthcare & Life Sciences

  • IT & Telecom

  • Manufacturing

  • Retail & E-commerce

  • Government

  • Others (Education, Media & Entertainment, and others)


By Region



  • North America

    • U.S. (By Industry)

    • Canada (By Industry)

    • Mexico (By Industry)



  • South America

    • Brazil (By Industry)

    • Argentina (By Industry)

    • Rest of South America



  • Europe

    • U.K. (By Industry)

    • Germany (By Industry)

    • France (By Industry)

    • Italy (By Industry)

    • Spain (By Industry)

    • Russia (By Industry)

    • Benelux (By Industry)

    • Nordics (By Industry)

    • Rest of Europe



  • Middle East & Africa

    • Turkey (By Industry)

    • Israel (By Industry)

    • GCC (By Industry)

    • North Africa (By Industry)

    • South Africa (By Industry)

    • Rest of the Middle East & Africa





  • Asia Pacific


    • China (By Industry)

    • India (By Industry)

    • Japan (By Industry)

    • South Korea (By Industry)

    • ASEAN (By Industry)

    • Oceania (By Industry)

    • Rest of the Asia Pacific




Frequently Asked Questions

According to Fortune Business Insights, the global market is predicted to reach USD 6.29 billion by 2030.

In 2022, the market value stood at USD 1.29 billion.

The market is projected to grow at a CAGR of 22.0% during the forecast period (2023 – 2030).

Based on deployment mode, the cloud-based MDR segment is anticipated to dominate the market during the forecast period.

The increasing cloud-computing adoption coupled with a surge in the number of cyberattacks aids market growth.

Some of the top players in the market are CrowdStrike, Secureworks, Inc., Arctic Wolf Networks Inc., Palo Alto Networks, and others.

North America is expected to dominate the market during the forecast period due to the presence of major market players in this region.

By industry, the IT & Telecom segment is expected to adopt the solution at a higher rate during the forecast period.

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