Managed Detection and Response (MDR) Market is expected to reach $2.2 billion by 2025 at a CAGR of 16.7% during the forecast period 2020-2025. Increasing instances of cyber-attacks, shortage of cybersecurity practitioners, and need for compliance to various government regulations is driving the market. Moreover, technological advancement and increasing adoption of technologies such as Internet of Things (IoT) and enterprise mobility, across various industry verticals have increased the use of mobile devices to boost employee productivity and gain a substantial competitive edge in the industry. Moreover, the current usage of managed detection and response reduces the cyber security risks which gain visibility and a clear view of the threats which is growing individuals business in order to improve defenses. Several companies have been investing heavily for innovation in MDR services in the form of acquisition, partnership and so on. In 2020 Atos, has acquired Paladion, a US-based global provider of Managed Security Services, to strengthen its global cybersecurity services. Hence this kind of development is analyzed to drive the market in the forecast period 2020-2025.

The report: “Managed Detection and Response Market – Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Managed Detection and Response market

By Security Type: Endpoint Security, Network Security, Application Security, Cloud Security, Others

By Deployment Model: On-Premises, Cloud

By Organization Size: Small & Medium-Sized Enterprises, Large Enterprises

By Industry Vertical: Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Energy and Utilities, Manufacturing, Healthcare, Retail, Others

By Geography: North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)

Cloud deployment is growing at a highest CAGR of 19.2% in the forecast period owing to its operational flexibility and real-time deployment ease to companies than on-premises deployment. It also offers numerous benefits, including reduced operational costs, simple deployment process, and higher scalability in terms of connected resources. Additionally, the cost-effective cloud-based solutions ease installation when compared to the on-premises solutions. The highest level of data security and reliability offered by the cloud deployment are increasing the share of this deployment in the forecast period. Several companies are providing solutions related to this deployment. For instance, phoenixNAP implemented multiple security layers, including MDR, to design the world's safest Cloud computing platform. Hence these benefits are analyzed to drive the market growth in the forecast period 2020-2025.

SMEs in Managed Detection and Response Market is growing at a CAGR of 18.3% in the forecast period. Owing to the increasing instances of cyber-attacks and the deployment of advanced cybersecurity technologies after elimination of the traditional ones. MDR services assist SMEs in protecting their business-critical applications and networks. In addition Managed Detection and Response empowers SMEs to secure their valuable assets and ensure robust security across the entire business environment. Absence of a robust cybersecurity strategy and budgetary constraints make SMEs more susceptible to Advanced Persistent Threats (APTs) and cyber-attacks such as malware, botnets, and ransomware attacks. According to report by Small Business Trends, cyber-attacks on small businesses are on the increasing heavily more than 43% of cyber-attacks are targeted towards SMEs. Furthermore advancements in MDR service for SMEs is also analyzed to drive the market in the forecast period. In 2020, MDR ELUS has launched Managed Detection and Response (MDR) solution in partnership with Field Effect Security for a cost-efficient way to monitor, detect, and respond to SME cyber security threats.  Hence these advancements are analysed to drive the market for MDR in the forecast period 2020-2025.

North America dominated the market by a market share of more than 34% in 2019, owing to increasing awareness regarding the need to protect the enterprise cyber infrastructure is being identified as the most critical factor driving the growth in the region. In addition, the growing concern to ensure the protection of financial and sensitive data has increased government intervention in the recent years. Hence these developments are analyzed to drive the market in the forecast period 2020-2025. Moreover, factors such as presence of large number of cybersecurity vendors and stringent cybersecurity regulation in the region is expected to further proliferate the demand in the region. The presence of sustainable and well-established economies in the region that invest significantly in Research and Development (R&D) activities is contributing to the development of new advanced security technologies. Growing adoption of enterprise mobility and IoT, and an increase in the internal and external threats, enterprises in countries such as the US and Canada are increasingly adopting MDR solutions to protect their business environment from an ever-evolving threat landscape.

Machine Learning/Ai-Powered MDR Services provides deeper detection of cybersecurity breach as compared to traditional MSSP, which relies on rules and signature. In addition MDR uses Artificial Intelligence (AI) and machine learning to investigate and respond to security threats fastly. Moreover several companies have been investing heavily for the advancements in Machine Learning/Ai-Powered MDR Services.  ActZero has acquired IntelliGO Networks, to promote artificial intelligence (AI) and machine learning to bolster MDR services. In 2018, CrowdStrike had introduced Enhanced Endpoint Machine Learning Capabilities and Advanced Endpoint Protection Modules. Similarly, Trend Micro has announced Managed Detection and Response (MDR) service with multiple new AI-powered capabilities. Hence these advanceements are analyzed to drive the market in the forecast period 2020-2025.

Increasing instances of enterprise targeted cyber-attacks, upcoming government regulations, and need for compliance are expected to proliferate the demand for MDR services over the forecast period. With the emergence and increasing penetration of concepts such as Internet of Things (IoT) and enterprise mobility, businesses across various industry verticals have increased the use of mobile devices to boost employee productivity and gain substantial competitive edge in the industry. MDR service providers offer outsourced detection and response of threats and cyber-attacks for businesses operating across various industry verticals Due to this, enterprises are increasingly outsourcing their security management tasks to professional service providers. Many large enterprises are adopting managed detection and response services because their in-house team cannot identify potential risks as they mostly deal with security on a part-time basis. According to the report by eSentire, Inc. 28% believe an MDR provider can do a better job of threat detection and response than their organization. Hence these increased adoption is analysed to drive the market in the forecast period.

With the changing business process needs, organizations IT infrastructure is also becoming more agile. Organizations are facing several challenges in mitigating risks, and continuous monitoring and troubleshooting their IT infrastructure. The changing threat landscape poses a challenge for organizations to manage the rising complexities in the IT environment. In today’s complex organization infrastructure, there are multiple endpoints, such as smartphones, tablets, desktops, and laptops, through which end users access the organizational data. Moreover, interoperable IT infrastructure is being challenged by various cyber threats, such as antivirus, malware, APTs, and zero-day vulnerabilities. Further incompatibility with the existing IT systems is expected to be a major challenge for MDR services in the forecast period 2020-2025.

Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Managed Detection and Response market. In 2019, the market of Managed Detection and Response industry outlook has been fragmented by several companies.  Managed Detection and Response top 10 companies include Arctic Wolf Networks, Bae Systems, Crowdstrike, Esentire, Fireeye, F-Secure, IBM, Kudelski Security, Mnemonic, Networks Group, Optiv Security among others.