Extended Detection and Response Market
Report ID: SQMIG45C2102
Report ID: SQMIG45C2102
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Report ID:
SQMIG45C2102 |
Region:
Global |
Published Date: March, 2025
Pages:
185
|Tables:
84
|Figures:
71
Global Extended Detection and Response Market size was valued at USD 2.79 Billion in 2024 and is poised to grow from USD 3.37 Billion in 2025 to USD 15.6 Billion by 2033, growing at a CAGR of 21.1% during the forecast period (2026–2033).
The increasing complexity and frequency of cyber threats act as a primary driver of the global extended detection and response market. Organizations are facing a growing number of advanced persistent threats (APTs), ransomware attacks, and zero-day exploits that traditional security measures fail to detect. As cybercrooks employ AI-based malware and advanced attack vectors, traditional security technologies like Security Information and Event Management (SIEM) and Endpoint Detection and Response (EDR) are unable to deliver threat visibility across an enterprise's digital landscape.
This rising threat landscape has created an urgent demand for extended detection and response solutions, which integrate multiple security layers, including network, cloud, and endpoint security, into a single, centralized system. By correlating threat intelligence from various vectors, extended detection and response helps organizations detect and identify concealed threats quicker, eliminate false positives, and automate response to incidents, thus significantly improving their cybersecurity position. The need to counter growing cyberattacks propels widespread extended detection and response adoption among industries, driving market growth.
The shift toward cloud-based security solutions is a key factor influencing the extended detection and response market expansion. Enterprises are rapidly migrating their IT infrastructure to the cloud to improve scalability, flexibility, and operational efficiency. However, this transition increases cybersecurity risks by expanding the attack surface, making it difficult to monitor and secure data across hybrid and multi-cloud environments. Cloud-based XDR solutions help detect threats in real time, continuously monitor cloud environments, and use AI to analyze security risks. If they integrate well with other security tools and provide a clear view of potential threats, they become a crucial part of cybersecurity strategies.
Market snapshot - 2026-2033
Global Market Size
USD 2.3 billion
Largest Segment
Solutions
Fastest Growth
Services
Growth Rate
21.1% CAGR
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Global Extended Detection and Response Market is segmented by Offering, Deployment Mode, Vertical and region. Based on Offering, the market is segmented into Solutions and Services. Based on Deployment Mode, the market is segmented into On-premises, Cloud, Organization Size, Large Enterprises and SMEs. Based on Vertical, the market is segmented into BFSI, Government, Manufacturing, Energy and Utilities, Healthcare, Retail and eCommerce, IT and ITeS and Other Verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Why are Organizations Adopting Cloud-native XDR Solutions?
The solutions segment is dominating the global extended detection and response market due to the increasing need for automated, integrated, and AI-driven security platforms that provide real-time threat detection and response. Organizations are rapidly adopting cloud-native and AI-powered extended detection and response solutions to improve security visibility across endpoints, networks, cloud workloads, and applications. Differently from legacy security products, current extended detection and response offerings correlate across disparate sources of data, using advanced machine learning and behavior analysis to anticipate and neutralize threats. Ongoing innovation, fueled by the need for automated threat hunting, forensic analysis, and cross-layer detection, is helping security teams eliminate false positives and speed remediation. With the rise of hybrid work environments, IoT expansion, and sophisticated cyber threats, enterprises seek scalable, unified security solutions that simplify security operations. As a result, extended detection and response solutions are outpacing services-based offerings, making them the dominant factor in the market.
Why is Cloud Adoption Driving the Growth of XDR-Related Services?
The services segment is poised to be the fastest-growing in the global extended detection and response (XDR) market due to the increasing complexity of cyber threats and the need for expert-driven security solutions. Organizations struggle with talent shortages in cybersecurity, leading them to rely on managed XDR services for round-the-clock threat monitoring, incident response, and proactive risk management. Additionally, as businesses shift to cloud environments, demand surges for consulting, integration, and training services to ensure seamless XDR implementation. Service providers leverage AI-driven threat intelligence and automation, offering tailored solutions that enhance threat detection and response efficiency while reducing operational overhead. The rapid adoption of Managed Detection and Response (MDR) services, coupled with the need for regulatory compliance, further drives service growth. As cyber threats evolve, enterprises increasingly view XDR services as an essential investment, making the services segment the market’s primary growth driver.
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Factors Driving XDR Market Expansion in North America?
North America leads the global extended detection and response market based on its highly developed cybersecurity ecosystem, high rates of cyber threats, and the speed of adopting AI-based security technology. Companies adopt cloud-native and hybrid extended detection and response solutions in rising numbers to fend off developing threats. Government compliance (CISA cybersecurity, compliance regimes of the type NIST, HIPAA, GDPR) also accelerates adoption of cloud-native and hybrid extended detection and response solution. The high-tech ecosystem in the region and cybersecurity spending makes it a primary market driver in extended detection and response growth. Increasing North American cyber threat sophistication, such as ransomware and nation-state attacks, compels organizations to implement AI-based extended detection and response solutions for anticipatory threat detection and response. The new North American XDR vendors are Cynet (automated threat detection), Hunters (AI-driven threat hunting), and ReliaQuest (cloud-native XDR), all of which are innovating in integrated next-generation cybersecurity solutions for today's businesses.
The United States dominates the North America’s extended detection and response market and accounting for 42.1% share in the region, fueled by its sophisticated cybersecurity infrastructure, high incidence of cybercrime, and stringent regulatory frameworks (NIST, CISA, HIPAA, GDPR). Large enterprises and government organizations in the country are increasingly embracing AI-based, cloud-native extended detection and response solutions to improve security on endpoints, networks, and cloud workloads. Industry leaders such as Palo Alto Networks, Microsoft, and CrowdStrike drive innovation in this market.
Canada is also a developing extended detection and response market, driven by government cybersecurity efforts, rising cloud adoption, and growing cyber threats. Canadian organizations prioritize zero-trust security models and AI-powered threat detection, with organizations such as BlackBerry (Cylance) and eSentire contributing to cutting-edge XDR solutions.
How is France Emerging as a Key Hub for AI-driven Cybersecurity?
Europe is the fastest growing region in the global extended detection and response market, driven by strict data privacy regulations (GDPR, NIS2 Directive) and a rising number of cyberattacks targeting enterprises. Organizations are quickly embracing cloud-based extended detection and response solutions to improve security compliance and counter threats. Increasing focus on zero-trust security architectures and AI-powered threat intelligence is driving demand, with government policies and cybersecurity investment driving adoption across sectors. Europe's stringent regulatory environment, such as GDPR and the NIS2 Directive, requires strong cybersecurity frameworks, prompting businesses to implement extended detection and response solutions for compliance, risk management, and real-time threat detection. Rising European XDR firms are Darktrace (UK, AI threat detection), Sekoia.io (France, predictive security intelligence), and Exeon Analytics (Switzerland, network-based XDR) driving the forefront of AI-based cybersecurity solutions.
France is emerging as a key hub for AI-driven cybersecurity, with companies like Sekoia.io and Gatewatcher innovating in predictive threat intelligence and network-based extended detection and response solutions. French AI in cybersecurity market generated revenue of approximately USD 831.3 million, with projections indicating growth to USD 3,317.2 million by 2030. Government-sponsored programs, like France's National Cybersecurity Strategy, are driving extended detection and response adoption to boost national security and business resilience against cyberattacks.
The United Kingdom is a forerunner in AI-driven threat detection and cybersecurity innovation, with Darktrace being a leader in machine learning-based extended detection and response solutions. The UK's stringent compliance regulations (NCSC, GDPR) and public-private sector partnerships are driving the development and implementation of cloud-native, zero-trust security architectures in businesses.
What is Driving the Demand for XDR Solutions in Indonesia?
Regions such as China, India, Japan, and Australia are investing in AI-based and cloud extended detection and response solutions to battle sophisticated cyberattacks. Increased adoption of IoT, growth of smart cities, and growing financial industries continue to drive demand for scalable, integrated security solutions across enterprises as well as government agencies. Asia Pacific's growing cyber threats, digital banking growth, and stringent government regulations are compelling organizations to embrace AI-powered XDR solutions for advanced threat detection and regulatory compliance. Key Asia Pacific extended detection and response startups are Singtel (Singapore, cloud security), CyCraft (Taiwan, AI-powered forensics), and Vehere (India, network-based XDR), propelling regional innovation in cybersecurity and threat intelligence.
Singapore is an Asia cybersecurity center of gravity with extensive government support through programs such as the Cyber Security Agency (CSA) & the Safer Cyberspace Masterplan and reflecting a compound annual growth rate (CAGR) of 16.14%. Vendors such as Singtel and Group-IB are at the forefront of cloud-native XDR and AI-powered threat intelligence, fueling enterprise adoption across financial services, government, and critical infrastructure.
Indonesia is experiencing rising demand for XDR solutions as cyberattacks on digital banking and e-commerce environments surge. Government policies, including GR 71/2019 on cybersecurity, are encouraging companies to embrace comprehensive security architectures, with indigenous companies such as Nozomi Networks and Protergo leading the charge in network and endpoint-centric XDR solutions.
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Increasing Sophistication of Cyber Threats
Growing Adoption of Cloud-Based Security Solutions
False Positives and Alert Fatigue
Shortage of Skilled Cybersecurity Professionals
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Global extended detection and response market is extremely competitive based on growing cybersecurity threats and requirements for AI-powered security solutions. Top players invest in innovation, cloud-native security solutions, and AI-based threat detection to get an edge in the market. Some of the biggest players in the market are international majors such as Microsoft (Defender XDR), Palo Alto Networks (Cortex XDR), CrowdStrike (Falcon XDR), Trend Micro (Vision One), IBM (QRadar XDR), Cisco (XDR Solution), and SentinelOne (Singularity XDR). These giants continue to bolster their capabilities via acquisitions, partnerships, and next-gen AI-driven analytics to expand real-time threat detection, incident response automation, and end-to-end security for hybrid and cloud environments.
In What Ways Does AI Enable Predictive Cybersecurity?
Artificial Intelligence (AI) is revolutionizing the extended detection and response industry by improving threat detection, automation of response, and predictive analysis. The higher number and complexity of cyber-attacks require real-time processing of gigantic datasets, a task which human capabilities cannot execute. AI-based extended detection and response solutions use machine learning (ML) algorithms to detect out-of-pattern behavior, correlate threat intelligence from multiple attack vectors, and eliminate false positives. This translates into quicker, more precise threat detection and response. AI helps businesses stay ahead of cybercriminals by learning from past attacks and predicting future threats, allowing them to stop cyberattacks before they happen.
One key development is Microsoft's AI-driven Security Copilot, which is integrated into extended detection and response platforms to give security analysts real-time intelligence, automated threat briefs, and recommended actions. This development illustrates how AI directly enhances the efficiency of extended detection and response by maximizing decision-making and shortening incident response times, fueling increased adoption in the market.
What Factors are Driving Investments in XDR Startups?
The global extended detection and response market has experienced significant growth, driven by the escalating complexity of cyber threats and the increasing adoption of AI-driven security solutions. Startups have played a crucial role in this environment, bringing new solutions to improve cybersecurity.
Founded in the Year 2024, Edera is a security firm founded by Alex Zenla, Emily Long, and Ariadne Conill. The firm specializes in improving cloud infrastructure security through the isolation of devices into their own cloud environments, mitigating vulnerabilities in shared setups, specifically for AI workloads that are GPU-dependent. Edera's groundbreaking technology for cloud workload isolation allows for the isolation of nearly any device into its own cloud space. This approach prevents attackers from exploiting weaknesses within one system region and escalating their access, thereby enhancing overall security in shared cloud environments. With their novel approach to cloud workload isolation, Edera proves to be a giant leap forward in the domain of cloud security. By isolating the devices into their own cloud space, Edera effectively mitigates the weaknesses induced by shared environments, especially when those work on AI workloads relying on GPUs, further securing the entire system.
Formation in the year of 2024, Orchid Security is an Israeli-U.S. AI-based security company that came out of stealth with $36 million in seed capital from Team8 and Intel Capital. Orchid solves long-standing user identity and password security problems, major headaches for big companies. Orchid uses large-language models to detect and strengthen the security needs of multiple internal applications companies use. This AI-based methodology makes possible the discovery and elimination of security risks on enterprise applications, which in turn hardens enterprise cybersecurity stance. Orchid's use of large-language models to security is a new development within the field of cybersecurity. Using AI for understanding and securing internal applications, Orchid strengthens the capability of enterprises to ward off advanced cyber threats.
Established in 2018, based in Dublin, Tines offers an automation platform tailored for IT and security teams. The company focuses on streamlining repetitive tasks, allowing teams to concentrate on more strategic initiatives. Tines' automation platform enables users to create workflows that automate routine processes without the need for coding. This flexibility allows IT and security teams to respond faster to incidents and manage operations more efficiently. Tines has been at the forefront of integrating AI into its automation processes. By incorporating machine learning algorithms, the platform can intelligently adapt workflows based on real-time data, enhancing its responsiveness to emerging threats and operational challenges.
How Does XDR Provide a Unified View of Security Events?
Extended detection and response market is growing fast due to the complexity of cyber threats, the use of cloud technologies, and the requirement for security teams to simplify incident response. Endpoint Detection and Response (EDR) and Security Information and Event Management (SIEM) traditional security products are not able to provide a single view of security incidents on all the different attack surfaces. Extended detection and response overcome this challenge by bringing together several layers of security network, endpoints, cloud, email, and applications into one platform.
Short-Term (Next 1-2 Years): The rising incidence and complexity of cyberattacks are compelling organizations to implement integrated security solutions. Extended detection and response platforms improve cybersecurity by integrating various security tools, increasing visibility across systems, automating threat detection, and accelerating incident responses. This leads to more effective protection against cyber threats.
Mid-Term (2-5 Years): The use of artificial intelligence and machine learning in extended detection and response products is projected to make the process of detecting and responding to threats autonomous. The use of autonomous XDR will ease the burden on security teams and allow remediation of security threats quickly.
Long-Term (5+ Years): The broad deployment of cloud-native extended detection and response platforms will become mainstream as more organizations keep shifting to cloud infrastructures. The platforms will provide scalability and flexibility, easily integrating with cloud-native security tools to deliver holistic protection across heterogeneous environments.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global extended detection and response industry is rising exponentially as organized crime transgresses across borders, cloud technology adopts a new paradigm, and innovative AI-centric options spring up. Organizations are leveraging extended detection and response such that every layer of their security becomes one to enhance visibility for monitoring threats' detection and response. The evolution of modern AI techniques, such as predictive analytics and behavioral threat detection, further propels XDR.
Startups such as Edera and Orchid Security are spearheading innovation with cloud workload isolation and AI-powered identity security, while mature companies such as Exabeam dominate automated SIEM offerings. As companies focus on cybersecurity resilience, cloud-native and on-premises extended detection and response solutions continue to advance, meeting compliance requirements and multi-cloud security concerns. With increased cybersecurity threats, extended detection and response adoption is poised to reshape contemporary cybersecurity strategies across sectors.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 2.79 Billion |
| Market size value in 2033 | USD 15.6 Billion |
| Growth Rate | 21.1% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Extended Detection and Response Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Extended Detection and Response Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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