Managed Detection and Response (MDR) Market by Security Type (Network, Endpoint, Cloud), Deployment Mode (On-Premises and Cloud), Organization Size (SMEs and Large Enterprises), Vertical and Region - Global Forecast to 2028
[282 Pages Report] The global MDR market size is projected to grow from USD 3.3 billion in 2023 to USD 9.5 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 23.3% during the forecast period. The expansion of the MDR market can be attributed to a range of influential factors including the rise in business email compromise, ransomware, and crypto-jacking incidents, as well as the urgent need to bridge the gap in cybersecurity skills and manage the overwhelming volume of security alerts. Additionally, government regulations and compliance requirements have played a crucial role in driving the adoption of MDR services. Furthermore, the widespread proliferation of technology and the increasing penetration of IoT devices have further contributed to the growth of the MDR market.
Moreover, the MDR market is experiencing growth due to the introduction of AI/ML-powered services, increasing adoption by SMEs, and scalability benefits. These factors contribute to the market's promising growth potential, providing enhanced threat detection and response capabilities and proactive security measures for organizations. Thus, driving the demand for MDR products in the near future.
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COVID-19 Impact
The COVID-19 pandemic has had a significant impact on the MDR market. With the sudden shift to remote work and increased reliance on digital infrastructure, the threat landscape has expanded, leading to a surge in cyberattacks. With the surge in attacks, organizations have become more vulnerable to phishing attempts, ransomware attacks, and other sophisticated threats. As a result, the demand for MDR services has increased as businesses seek to enhance their security posture and protect their sensitive data. Additionally, the MDR providers have been instrumental in helping organizations detect, respond to, and mitigate these evolving threats in real-time. Also, the pandemic has highlighted the critical importance of robust cybersecurity measures, driving the adoption of MDR services across industries.
Managed Detection and Response Market Dynamics
Driver: Addressing a gap in cybersecurity skills and overwhelming alert volumes
MDR addresses the problem of the cybersecurity skills gap within organizations, offering a solution to the shortage of skilled personnel in the field. Additionally, it helps organizations cope with the overwhelming volume of security alerts and the need to correlate and identify potential threats. MDR services provide access to advanced threat detection and response capabilities at a cost lower than building an in-house specialized security team. This cost-effective approach allows organizations to focus on their core business functions while leaving their cybersecurity needs in the hands of experienced MDR service providers.
Restraint: False positives hinder the effectiveness of MDR services
MDR services can be hindered by the presence of false positives, which can create limitations for businesses. False positives occur when an event is flagged as a security threat by the MDR service provider, but it turns out to be a false alarm. Factors such as improper configuration of detection algorithms, outdated threat intelligence, or lack of context for specific events can contribute to this issue. False positives can have negative implications for organizations, including wasted time and resources spent investigating non-existent threats, alert fatigue, and a decrease in confidence in the reliability and accuracy of the MDR service provider.
Opportunity: Introduction of ML/AI-powered MDR services
In the current dynamic enterprise IT environment, the frequency and complexity of cyberattacks continue to escalate. Traditional MSSPs are facing challenges in adapting to these evolving conditions and effectively countering new and intricate attacks. To address this, advanced next-generation cybersecurity services have emerged, integrating cutting-edge technologies such as ML and behavioral analytics. These services provide proactive threat protection by leveraging real-time contextual awareness, intelligent automation, and swift response capabilities. By deploying AI, ML, and pattern recognition, vendors can automatically update security rules, safeguarding an organization's critical information across networks, endpoints, and applications from advanced threats and vulnerabilities.
Challenge: Potential cyberattacks on MDR service provider's infrastructure
Large enterprises face distinct challenges that set them apart from smaller businesses, such as diverse customer bases, extensive product offerings, and complex internal structures. Safeguarding and managing data to deliver robust security services becomes a critical undertaking for key players in the MDR market. Recognizing these unique demands, MDR and security service providers dedicate resources to ensure information security, swift incident response, and efficient recovery. Adopting a unified approach to security management, these vendors offer comprehensive solutions that cater to the evolving needs of growth-oriented enterprises, safeguarding their IT infrastructure from cyber threats like viruses and malware.
Managed Detection and Response Market Ecosystem
By vertical, the IT and ITeS segment is to grow at the highest CAGR during the forecast period
The industry's continuous growth and reliance on technology contribute to an increased vulnerability to cyber threats, necessitating robust cybersecurity measures like MDR. With the growing adoption of cloud computing, IoT, and digital transformation, IT and ITeS organizations face evolving and sophisticated attacks, prompting them to invest in comprehensive MDR services. Furthermore, the need to comply with stringent data protection regulations and safeguard sensitive customer information further drives the demand for MDR solutions in the IT and ITeS segment. As a result, the IT and ITeS industry experiences significant growth in the MDR market, emphasizing the importance of effective cybersecurity practices in protecting valuable assets and ensuring business continuity.
By region, North America accounts for the highest market size during the forecast period
North America accounts for the highest market size due to several key factors. The region has witnessed a surge in cyberattacks, particularly in the US and Canada, which has heightened the demand for robust security solutions like MDR. Additionally, the issuance of security patches by companies like Apple in response to zero-day vulnerabilities has emphasized the need for proactive threat detection and response. Furthermore, the warning from the US Federal Trade Commission about sextortion schemes targeting the LGBTQ+ community on online dating apps has raised awareness about online threats and increased the importance of cybersecurity. Also, the Biden administration's announcement of sanctions on crypto exchanges involved in ransomware activities has underscored the need for effective detection and response capabilities, further driving the adoption of MDR services in North America.
Key Market Players
CrowdStrike (US), Rapid7 (US), Red Canary (US), Arctic Wolf (US), Kudelski Security (Switzerland), SentinelOne (US), Proficio (US), Expel (US), Secureworks (US), Alert Logic (US), Trustwave (US), Mandiant (US), Binary Defense (US), Sophos (UK), eSentire (Canada), Deepwatch (US), Netsurion (US), GoSecure (US), LMNTRIX (US), UnderDefense (US), Ackcent (Spain), Cybereason (US), Critical Start (US), Cysiv (US), and Critical Insight (US) are the key players and other players in the MDR market.
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Report Metrics |
Details |
Market size available for years |
2017-2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD Million/USD Billion) |
Segments covered |
Security Type, Deployment Mode, Organization Size, Verticals, and Regions |
Geographies covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies covered |
Major vendors in the global MDR market include CrowdStrike (US), Rapid7 (US), Red Canary (US), Arctic Wolf (US), Kudelski Security (Switzerland), SentinelOne (US), Proficio (US), Expel (US), Secureworks (US), Alert Logic (US), Trustwave (US), Mandiant (US), Binary Defense (US), Sophos (UK), eSentire (Canada), Deepwatch (US), Netsurion (US), GoSecure (US), LMNTRIX (US), UnderDefense (US), Ackcent (Spain), Cybereason (US), Critical Start (US), Cysiv (US), and Critical Insight (US). |
The study categorizes the MDR market by security type, deployment mode, organization size, SME type, verticals, and regions.
By Security Type:
- Endpoint Security
- Network Security
- Cloud Security
- Other Security Types (Application security and Database security)
By Deployment Mode:
- On-Premises
- Cloud
By Organization Size:
- SMEs
- Large Enterprise
By Vertical
- BFSI
- IT and ITeS
- Government and Defense
- Energy and Utilities
- Manufacturing
- Healthcare
- Retail and eCommerce
- Other Verticals (Media and Entertainment, Transport and Logistics, and Education)
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Recent Developments
- In April 2023, CrowdStrike (US) launched Falcon Insight for IoT solution that provides endpoint detection and response (EDR) and extended detection and response (XDR) capabilities for XIoT assets, IT endpoints, cloud workloads, identities, and data on a single platform. Organizations can use it to identify ransomware, malware, and other threats across their devices and systems, leverage AI-based threat prevention, and receive custom security policy recommendations for their XIoT assets.
- In March 2023, Rapid7 (US) acquired Minerva Labs, Ltd., a leading anti-evasion and ransomware prevention technology provider to further extend Rapid7's MDR capabilities with the ability to orchestrate advanced ransomware prevention.
- In January 2022, Red Canary (US) collaborated with Microsoft (US). The company integrated with Microsoft Sentinel and Microsoft Defender for Cloud, enabling it to detect attacks early and stop them more quickly for Microsoft clients. This increased integration will effectively defend against identity-based attacks, enhance cloud security coverage, and operationalize Microsoft's security capabilities.
- In December 2022, Kudelski Security (Switzerland) unveiled a new tool named Threat Navigator, a part of its MDR services. This tool enables clients to visualize and understand their current security coverage, receive automated recommendations to improve detection capabilities and gain a deeper understanding of what data and security tooling is required to mitigate risks
- In May 2022, Arctic Wolf (US) launched Arctic Wolf Labs, a new research-focused division focused on advancing innovation in the field of security operations. The mission of Arctic Wolf Labs is to develop cutting-edge technology and tools that are designed to enhance the company’s core mission to end cyber risk, while also bringing comprehensive security intelligence to Arctic Wolf’s customer base and the security community at large.
Frequently Asked Questions (FAQ):
What are the opportunities in the global MDR market?
The growing adoption of AI/ML-powered MDR services, increasing adoption of MDR across SMEs and benefits of scalability for MDR services are a few factors contributing to the growth and creating new opportunities for the MDR market.
What is the definition of the MDR market?
MDR is a comprehensive cybersecurity service that combines advanced technology and skilled professionals to effectively detect, monitor, and respond to security threats. One of the primary advantages of MDR is its ability to rapidly identify and mitigate risks without the need for an additional workforce. By leveraging cutting-edge tools and expert expertise, MDR enables organizations to proactively hunt for threats, continuously monitor their systems, and promptly respond to incidents, minimizing potential harm.
Which region is expected to show the highest market share in the MDR market?
North America is expected to account for the largest market share during the forecast period.
What are the major market players covered in the report?
Major vendors, namely, include CrowdStrike (US), Rapid7 (US), Red Canary (US), Arctic Wolf (US), Kudelski Security (Switzerland), SentinelOne (US), Proficio (US), Expel (US), Secureworks (US), Alert Logic (US), Trustwave (US), Mandiant (US), Binary Defense (US), Sophos (UK), eSentire (Canada), Deepwatch (US), Netsurion (US), GoSecure (US), LMNTRIX (US), UnderDefense (US), Ackcent (Spain), Cybereason (US), Critical Start (US), Cysiv (US), and Critical Insight (US).
What is the current size of the global MDR market?
The global MDR market size is projected to grow from USD 3.3 billion in 2023 to USD 9.5 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 23.3% during the forecast period.
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The study involved major activities in estimating the current market size for the MDR market. Exhaustive secondary research was done to collect information on the MDR industry. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, such as top-down and bottom-up, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the MDR market.
Secondary Research
In the secondary research process, various sources were referred to for identifying and collecting information regarding the study. The secondary sources included annual reports, press releases, MDR software and service vendor investor presentations, forums, certified publications, and white papers. The secondary research was used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market and technology-oriented perspectives, all of which were further validated by primary sources. The factors considered for estimating the regional market size are technological initiatives undertaken by governments of different countries, Gross Domestic Product (GDP) growth, ICT spending, recent market developments, and market ranking analysis of major MDR solution providers.
Primary Research
Various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, including Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the MDR market.
In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list the key information/insights throughout the report.
After the complete market engineering process (including calculations for market statistics, market breakups, market size estimations, market forecasts, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. The primary research was also conducted to identify the segmentation types; industry trends; the competitive landscape of MDR market players; and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
Following is the breakup of the primary study:
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Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the global MDR market and estimate the size of various other dependent sub-segments in the overall MDR market. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their revenue contributions in respective regions were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of the top market players, and extensive interviews were conducted for key insights from the industry leaders, such as CEOs, VPs, directors, and marketing executives. All percentage splits and breakups were determined using secondary sources and verified through primary sources.
Data Triangulation
After arriving at the overall market size using the market size estimation processes explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
MDR is a robust cybersecurity service designed to detect and respond to network intrusions and threats promptly. It offers real-time monitoring to identify malware and malicious activities, allowing for swift incident response and effective remediation. MDR employs a combination of cutting-edge technology solutions and outsourced security analysts to enhance the capabilities of the existing security infrastructure and team.
Key Stakeholders
- Cybersecurity software vendors
- MDR vendors
- MSSP providers
- Cybersecurity service providers
- Government agencies
- Independent Software Vendors (ISVs)
- Consulting firms
- System integrators
- Value-Added Resellers (VARs)
- IT security agencies
- SOC vendors
Report Objectives
- To define, describe, and forecast the MDR market based on security type, deployment mode, organization size, SME type, verticals, and regions
- To forecast the market size of five main regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America
- To analyze the subsegments of the market with respect to individual growth trends, prospects, and contributions to the overall market
- To provide detailed information related to the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the MDR market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the MDR market
- To profile the key players of the MDR market and comprehensively analyze their market size and core competencies.
- To track and analyze competitive developments, such as new product launches; mergers and acquisitions; and partnerships, agreements, and collaborations in the global MDR market.
Customization Options
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern and African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Managed Detection and Response (MDR) Market