[120 Pages Report] The managed detection and response market size is expected to grow from USD 335.5 million in 2016 to USD 1,658.0 million by 2022, at a Compound Annual Growth Rate (CAGR) of 31.6% during the forecast period. Managed Detection and Response (MDR) is a modern approach to proactively detect threats and cyber-attacks and respond to them accordingly, thereby helping enterprises protect their cyberinfrastructure from attacks. MDR services detect threats, intrusions, and malicious activities on organizations’ cyberinfrastructure and assist in responding proactively to eradicate and mitigate such attacks. MDR service vendors normally combine a technology solution with in-house security professionals and analysts that help enterprises extend their cybersecurity technologies and workforce. MDR service providers offer real-time protection to organizations and help reduce the risks of potential attacks. The base year considered for the study is 2016 and the forecast period is from 2017 to 2022.
In today’s business environment, with rapid advancements in technology, there is an increase in the use of digital solutions, connected devices, and IT systems. The foundation of this digital infrastructure is based on the communications between various business-critical applications and data across platforms, devices, and users. With data explosion and frequently increasing cyber threats, chances of data breaches at every level have amplified significantly. Government agencies and businesses across industry verticals are more susceptible to such outbreaks, as hackers and cyber adversaries target the national security, and hit the confidential data, and personal information. Cybercriminals are adopting various hacking techniques to penetrate an organization’s infrastructure to gain access to such critical information.
During this research study, major players operating in the reed sensor market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.
The breakdown of the profiles of the primary participants is depicted in the below figure:
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The managed detection and response market includes various vendors providing MDR solutions, inclusive of hardware appliances, virtual appliances, and cloud-based firewall, to commercial clients across the globe. Companies such as Arctic Wolf Networks (US), BAE Systems (UK), CrowdStrike (US), eSentire (Canada), FireEye (US), F-Secure (Finland), IBM (US), Kudelski Security (Switzerland), mnemonic (Norway), NetWorks Group (US), Optiv Security (US), Paladion (India), Rapid7 (US), Raytheon (US), Redscan Cyber Security (UK), and WatchGuard (US) have adopted partnerships, agreements, and collaborations as the key strategies to enhance their market reach.
The study answers several questions for the stakeholders, primarily, which market segments to focus on in the next 2 to 5 years for prioritizing efforts and investments.
Report Metrics |
Details |
Market size available for years |
2016–2022 |
Base year considered |
2016 |
Forecast period |
2017–2022 |
Forecast units |
Million (USD) |
Segments covered |
Security Type (Endpoint, Network, Application, Cloud), Deployment (On-Premises, Hosted), Organization Size (SMEs, and Large Enterprises), Industry Vertical, and Region |
Geographies covered |
North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America |
Companies covered |
Arctic Wolf Networks (US), BAE Systems (UK), CrowdStrike (US), eSentire (Canada), FireEye (US), F-Secure (Finland), IBM (US), Kudelski Security (Switzerland), mnemonic (Norway), NetWorks Group (US), Optiv Security (US), Paladion (India), Rapid7 (US), Raytheon (US), Redscan Cyber Security (UK), and WatchGuard (US). |
The research report categorizes the Managed Detection and Response Market to forecast the revenues and analyze trends in each of the following subsegments:
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
The market is segmented on the basis of security type, deployment, organization size, industry vertical, and regions. The security type segment is further segmented into endpoint, network, application, cloud, and others. The other security types subsegment comprises Industrial Control System (ICS) security and database security. The deployment segment is further segmented into on-premises, and hosted managed detection and response market services.
Hosted managed detection and response services remotely manage and monitor an enterprises’ cyberinfrastructure regardless of Customer Premises Equipment (CPE) and provide the best protection against vulnerabilities, such as malware, phishing, ransomware, and the emerging cyber threats. These cloud-based managed detection and response services provide protection and safeguard the enterprise network, and offer capabilities, such as bot detection and enforcement, access control, malware detection, and threat intelligence. Cloud-based deployment of MDR solutions is projected to gain pace, owing to the increased adoption of cloud computing technologies across organizations operating across various industry verticals. The growth in the hosted managed detection and response market services is attributed to a significant increase in the government regulations and compliance requirements in the global cybersecurity scenario.
Managed Detection and Response is essentially evolved out of Managed Security Services (MSS) and possesses advanced threat detection and incident response capabilities. managed detection and response service enables immediate notification of any threat or vulnerability that allows cybersecurity experts to help an enterprise deal with the problem and provide advice. it helps to save businesses a significant amount of time and money that otherwise would have been spent dealing with problems after suffering an attack. The managed detection and response market is expected to witness increased demand, owing to the increasing adoption of concepts such as enterprise mobility and Internet of Things (IoT), the rise in instances of cyber-attacks, such as fraud, espionage, vandalism, and cyber theft. Stringent government regulations, need for compliance, and shortage of cybersecurity practitioners across enterprises are expected to further proliferate demand for managed detection and response services. Additionally, increasing adoption of services across SMEs and partnerships with traditional managed service providers has opened a wide range of growth avenues for the vendors in the global market space.
Leading managed detection and response market vendors are offering machine learning and Artificial Intelligence (AI) based services, which play vital roles in the arena. Major vendors offer services that are interoperable and enable all the required endpoints, technologies, and applications to interact in the organization’s cyberinfrastructure, thus facilitating effective threat detection and response.
The growth of managed detection and response market is depending on the factors, such as shortage of skilled security practitioners, stringent government policies, and need for compliance are expected to drive the market over the next 5 years
Endpoint security is the security provided on network devices, such as servers, desktops, laptops, smartphones, tablets, barcode readers, and Point of Sale (POS), which are connected to a client server. Network devices are nothing but the endpoints. These network devices are connected remotely which creates an entry point for potential cyber threats. Endpoint security solutions include antivirus, antispyware/malware, encryption personal firewall, IDS/IPS, patch and configuration management, behavioral blocking software, and virtualization security. These solutions provide continuous real-time threat detection, prevention, and response to the network devices (endpoints). Rapid growth in the number of mobile devices across the globe is one of the driving factors for this market. Due to the increasing number of mobile devices, networks are getting more vulnerable to cyber-attacks.
Network security is needed by organizations to protect their networking infrastructure from numerous threats, such as SQL injection, DDoS attacks, and XSS. Network security involves safeguarding the computer network and network-accessible resources of an enterprise. Network security products and services are used to detect and prevent cyber threats. They include multiple components, such as network monitoring and security software, hardware, and appliances, which work together as layers of comprehensive network security. MDR services deliver advanced threat detection, investigation, and response capabilities to secure the network environment. MDR network services use network sensors to keep track of network communications. Due to the increasing trend of BYOD adoption at the workplace, data access through remote devices, which is not limited to data centers, creates the possibility of data vulnerability.
Application security involves software and hardware countermeasures to protect mobile and web applications as well as confidential information from security attacks. It works with a set of security policies applied at 3 layers: the network layer, host layer, and application layer. Application security ensures the confidentiality and integrity of the data transferred between mobile applications. MDR application security services provide countermeasures to secure applications from glitches and external threats, such as DDoS, web attacks, frauds, and site scraping.
Cloud security includes security product and services that protect the data stored online. Cloud security essentially safeguards organizations’ critical assets from threats, such as data loss, data breaches, service traffic hijacking, account hijacking, insecure APIs, and DDoS. In cloud security, service providers follow regulatory requirements for storing sensitive customer data, such as credit card numbers and personal data. Cloud adoption across various industry vertical is increasing due to the cost-effectiveness and scalability of cloud solutions.
In 2017, the global managed detection and response market is dominated by North America, as it is considered the most advanced region in terms of the adoption of innovative cybersecurity solutions and services to protect cyberinfrastructure. Additionally, the region is affected by cybersecurity breaches, and as a result, has the largest number of cybersecurity vendors. The growing concern for the security of critical infrastructure and sensitive data has increased government intervention in the recent years. Specific budget allocations, support by the government, and mandated cybersecurity policies have led to an increased adoption of such services, thereby driving the demand for services in the region.
The study measures and evaluates the major offerings and key strategies of the major managed detection and response market vendors, including Arctic Wolf Networks (US), BAE Systems (UK), CrowdStrike (US), eSentire (Canada), FireEye (US), F-Secure (Finland), IBM (US), Kudelski Security (Switzerland), mnemonic (Norway), NetWorks Group (US), Optiv Security (US), Paladion (India), Rapid7 (US), Raytheon (US), Redscan Cyber Security (UK), and WatchGuard (US). These companies have been at the forefront in offering reliable MDR services to the commercial clients across diverse locations.
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Table of Contents
1 Introduction (Page No. - 13)
1.1 Objectives of the Study
1.2 Market Definition
1.3 Market Scope
1.4 Years Considered for the Study
1.5 Currency
1.6 Stakeholders
2 Research Methodology (Page No. - 16)
2.1 Research Data
2.1.1 Secondary Data
2.1.2 Primary Data
2.1.2.1 Breakdown of Primary Interviews
2.1.2.2 Key Industry Insights
2.2 Market Size Estimation
2.3 Research Assumptions and Limitations
2.3.1 Assumptions
2.3.2 Limitations
3 Executive Summary (Page No. - 22)
4 Premium Insights (Page No. - 25)
4.1 Attractive Market Opportunities in the Managed Detection and Response Market
4.2 Market, By Region, 2017–2022
4.3 Market, By Security Type, 2017–2022
4.4 Market, By Organization Size, 2017–2022
4.5 Market, By Deployment, 2017–2022
4.6 Market, By Industry Vertical, 2017–2022
4.7 Lifecycle Analysis, By Region
5 Market Overview and Industry Trends (Page No. - 29)
5.1 Market Dynamics
5.1.1 Drivers
5.1.1.1 Growing Incidents of Cyber-Attacks and Threats Targeting Enterprises
5.1.1.2 Shortage of Cybersecurity Professionals and Budget Constraints
5.1.1.3 Government Regulations and Need for Compliance Drive the Adoption of Services
5.1.1.4 Technological Proliferation and Increasing Penetration of IoT
5.1.2 Restraints
5.1.2.1 Lack of Trust in Third-Party Applications
5.1.3 Opportunities
5.1.3.1 Partnerships With Traditional Service Providers
5.1.3.2 Introduction of Machine Learning/Ai-Powered MDR Services
5.1.3.3 Increasing Adoption of MDR Across SMES
5.1.4 Challenges
5.1.4.1 Lack of Modern IT Infrastructure
5.1.4.2 Potential Cyber-Attacks on MDR Service Provider's Infrastructure
5.2 Regulatory Implications
5.2.1 Payment Card Industry Data Security Standard (PCI–DSS)
5.2.2 Health Insurance Portability and Accountability Act (HIPAA)
5.2.3 Federal Information Security Management Act (FISMA)
5.2.4 Gramm-Leach-Bliley Act (GLBA)
5.2.5 Sarbanes-Oxley Act (SOX)
5.2.6 The International Organization for Standardization (ISO) Standard 27001
5.2.7 European Union General Data Protection Regulation (EU GDPR)
5.3 Innovation Spotlight
6 Managed Detection and Response Market Analysis, By Security Type (Page No. - 37)
6.1 Introduction
6.2 Endpoint Security
6.3 Network Security
6.4 Application Security
6.5 Cloud Security
6.6 Others
7 Market Analysis, By Deployment (Page No. - 44)
7.1 Introduction
7.2 On-Premises
7.3 Hosted
8 Market Analysis, By Organization Size (Page No. - 48)
8.1 Introduction
8.2 Small and Medium-Sized Enterprises
8.3 Large Enterprises
9 Managed Detection and Response Market Analysis, By Industry Vertical (Page No. - 52)
9.1 Introduction
9.2 Banking, Financial Services, and Insurance
9.3 IT and Telecommunications
9.4 Government and Defense
9.5 Energy and Utilities
9.6 Manufacturing
9.7 Healthcare
9.8 Retail
9.9 Others
10 Geographic Analysis (Page No. - 61)
10.1 Introduction
10.2 North America
10.3 Europe
10.4 Asia Pacific
10.5 Middle East and Africa
10.6 Latin America
11 Company Profiles (Page No. - 76)
11.1 Esentire
(Overview, Strength of Product Portfolio, Business Strategy Excellence, and Recent Developments)*
11.2 Bae Systems
11.3 Fireeye
11.4 IBM
11.5 Optiv Security
11.6 Kudelski Security
11.7 Paladion
11.8 Arctic Wolf Networks
11.9 Watchguard
11.10 Rapid7
11.11 Raytheon
11.12 Redscan
*Details on Overview, Strength of Product Portfolio, Business Strategy Excellence, and Recent Developments Might Not Be Captured in Case of Unlisted Companies.
11.13 Key Innovators
11.13.1 F-Secure
11.13.2 Crowdstrike
11.13.3 Networks Group
11.13.4 Mnemonic
12 Appendix (Page No. - 113)
12.1 Discussion Guide
12.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
12.3 Introducing RT: Real-Time Market Intelligence
12.4 Available Customizations
12.5 Related Reports
12.6 Author Details
List of Tables (44 Tables)
Table 1 United States Dollar Exchange Rate, 2014–2016
Table 2 Innovation Spotlight: Latest Managed Detection and Response Innovations
Table 3 Managed Detection and Response Market Size, By Security Type, 2015–2022 (USD Million)
Table 4 Endpoint Security: Market Size, By Region, 2015–2022 (USD Million)
Table 5 Network Security: Market Size, By Region, 2015–2022 (USD Million)
Table 6 Application Security: Market Size, By Region, 2015–2022 (USD Million)
Table 7 Cloud Security: Market Size, By Region, 2015–2022 (USD Million)
Table 8 Others: Market Size, By Region, 2015–2022 (USD Million)
Table 9 Market Size, By Deployment, 2015–2022 (USD Million)
Table 10 On-Premises: Market Size, By Region, 2015–2022 (USD Million)
Table 11 Hosted: Market Size, By Region, 2015–2022 (USD Million)
Table 12 Managed Detection and Response Market Size, By Organization Size, 2015–2022 (USD Million)
Table 13 Small and Medium-Sized Enterprises: Market Size, By Region, 2015–2022 (USD Million)
Table 14 Large Enterprises: Market Size, By Region, 2015–2022 (USD Million)
Table 15 Market Size, By Industry Vertical, 2015–2022 (USD Million)
Table 16 Banking, Financial Services, and Insurance: Market Size, By Region, 2015–2022 (USD Million)
Table 17 IT and Telecommunications: Market Size, By Region, 2015–2022 (USD Million)
Table 18 Government and Defense: Market Size, By Region, 2015–2022 (USD Million)
Table 19 Energy and Utilities: Market Size, By Region, 2015–2022 (USD Million)
Table 20 Manufacturing: Market Size, By Region, 2015–2022 (USD Million)
Table 21 Healthcare: Market Size, By Region, 2015–2022 (USD Million)
Table 22 Retail: Market Size, By Region, 2015–2022 (USD Million)
Table 23 Others: Market Size, By Region, 2015–2022 (USD Million)
Table 24 Managed Detection and Response Market Size, By Region, 2015–2022 (USD Million)
Table 25 North America: Market Size, By Security Type, 2015–2022 (USD Million)
Table 26 North America: Market Size, By Deployment, 2015–2022 (USD Million)
Table 27 North America: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 28 North America: Market Size, By Industry Vertical, 2015–2022 (USD Million)
Table 29 Europe: Market Size, By Security Type, 2015–2022 (USD Million)
Table 30 Europe: Market Size, By Deployment, 2015–2022 (USD Million)
Table 31 Europe: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 32 Europe: Market Size, By Industry Vertical, 2015–2022 (USD Million)
Table 33 Asia Pacific: Managed Detection and Response Market Size, By Security Type, 2015–2022 (USD Million)
Table 34 Asia Pacific: Market Size, By Deployment, 2015–2022 (USD Million)
Table 35 Asia Pacific: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 36 Asia Pacific: Market Size, By Industry Vertical, 2015–2022 (USD Million)
Table 37 Middle East and Africa: Managed Detection and Response Market Size, By Security Type, 2015–2022 (USD Million)
Table 38 Middle East and Africa: Managed Detection and Response Market Size, By Deployment, 2015–2022 (USD Million)
Table 39 Middle East and Africa: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 40 Middle East and Africa: Market Size, By Industry Vertical, 2015–2022 (USD Million)
Table 41 Latin America: Managed Detection and Response Market Size, By Security Type, 2015–2022 (USD Million)
Table 42 Latin America: Market Size, By Deployment, 2015–2022 (USD Million)
Table 43 Latin America: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 44 Latin America: Market Size, By Industry Vertical, 2015–2022 (USD Million)
List of Figures (31 Figures)
Figure 1 Global Managed Detection and Response Market: Market Segmentation
Figure 2 Global Market: Research Design
Figure 3 Data Triangulation
Figure 4 Market Size Estimation Methodology: Bottom-Up Approach
Figure 5 Market Size Estimation Methodology: Top-Down Approach
Figure 6 Banking, Financial Services, and Insurance Industry Vertical is Estimated to Hold the Largest Market Share in 2017
Figure 7 North America is Estimated to Hold the Largest Market Share in 2017
Figure 8 Growing Instances of Cyber-Attacks and Threats Targeting Enterprises and the Need for Compliance are Expected to Drive the Managed Detection and Response Market
Figure 9 Asia Pacific is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 10 Cloud Security Type is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 11 Small and Medium-Sized Enterprises Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 12 Hosted Deployment Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 13 Energy and Utilities Industry Vertical is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 14 The Managed Detection and Response Market has Significant Growth Opportunities in Asia Pacific
Figure 15 Market: Drivers, Restraints, Opportunities, and Challenges
Figure 16 Major Cyber-Attack Types, Global, 2015 vs 2016
Figure 17 Cloud Security Segment is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 18 Hosted Deployment Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 19 Small and Medium-Sized Enterprises Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 20 Energy and Utilities Industry Vertical is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 21 Asia Pacific Region is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 22 Asia Pacific is Expected to Exhibit the Highest Growth Rate in the Managed Detection and Response Market During the Forecast Period
Figure 23 North America: Market Snapshot
Figure 24 Asia Pacific: Market Snapshot
Figure 25 Bae Systems: Company Snapshot
Figure 26 Fireeye: Company Snapshot
Figure 27 IBM: Company Snapshot
Figure 28 Kudelski Security: Company Snapshot
Figure 29 Rapid7: Company Snapshot
Figure 30 Raytheon: Company Snapshot
Figure 31 F-Secure: Company Snapshot
Benchmarking the rapid strategy shifts of the Top 100 companies in the Managed Detection and Response Market
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Growth opportunities and latent adjacency in Managed Detection and Response Market