MDR is a managed security service that provides a combination of security tools, controls, and human expertise to deliver proactive 24x7 monitoring of a security environment and perform detection and response. While organizations have been providing SOC services for many years, MDR as a service has evolved. The change is due to fierce competition from inside and outside the MDR space and compounding external factors, such as the evolving threat landscape, the COVID-19 pandemic, and challenging geopolitical situations.
Several years ago, MDR was a security service focused on monitoring the environment and alerting customers’ security teams about cyber threats. It was fit for small and medium-sized businesses wanting help to handle security operations. Today, MDR is a threat detection and response powerhouse equipped with in-built capabilities for advanced threat investigation and threat hunting, augmented by AI, ML, and automation as well as collaborative features that work in unison with customer teams to manage their security stacks.
The MDR competitive environment is intense due to the influx of new competitors and the service's constant evolution. MDR is a well-established solution category in the cybersecurity space, and adoption is expected to accelerate in 2024. MDR companies will continue to thrive and differentiate themselves with their unique offerings as a growing number of organizations discover how the service can fulfill their present and future security needs.
Converging evolution with XDR solutions, increasing competitive intensity, leveraging generative AI and LLM algorithms to empower analysts, providing visibility and response capabilities across all environments, and increasing customer maturity and resilience will be the driving factors in the development of MDR platforms for the foreseeable future.
Author: Lucas Ferreyra
Revenue Forecast
The revenue estimate for the base year 2023 is $5,290.6 million, and the CAGR for the study period 2023-2026 is 25.3%.
The Impact of the Top Three Strategic Imperatives on the Managed Detection and Response (MDR) Industry
Innovative Business Models
- Why:
- The Dearth of Cybersecurity Professionals continues to shape the industry, challenging global organizations as they try to secure their growing environments.
- Owing to a lack of access to professionals and the inability to effectively protect business-critical data, Organizations are Outsourcing to Alleviate the Issue.
- Frost Perspective:
- MDR service providers can offer top-tier security across the environment, delivered by experienced professional teams that partner with and support organizations in establishing effective security perimeters.
- In the next 3 years, Organizations will Continue to Invest in Outsourced Security Through MDR Services as it enables them to focus personnel on the secure business instead of building internal security operations centers (SOCs).
Disruptive Technologies
- Why:
- Artificial Intelligence (AI), Machine Learning (ML), and Automation Have Become an Increasingly Integral Part of Cybersecurity Solutions. These technologies enhance detection and response and allow SOC analysts to focus on what is important instead of chasing down false alerts.
- Nevertheless, Automation Cannot Replace Human Analysts Just Yet—organizations cannot trust AI to take care of complex decision-making beyond detection and response.
- Frost Perspective:
- As organizations seek alternative ways to cope with the shortage of security analysts, they will adopt Solutions that Leverage ML and AI in Combination with the Ever-Present Human Factor.
- As a result, security services, such as MDR, will continue to thrive in the next years while security providers invest in streamlining processes and enhancing automated security.
Geopolitical Chaos
- Why:
- Owing to the sophistication of the latest cyberattacks, the growing incidence of nation-state-sponsored threats, and the increasing number of cybersecurity incidents, There is an Arms Race Between Threat Actors and Security Solution and Service Providers.
- Organizations are caught in the middle, with the pressure to understand, invest in, and keep up with the latest developments in the cybersecurity industry to protect their environments.
- Frost Perspective:
- As digital transformation continues and geopolitical conflicts around the world progress, organizations will continue to be targeted by complex cyberattacks and data breaches.
- MDR’s Promise to bolster an organization’s security posture with 24/7 monitoring, state-of-the-art detection and response, and incident response capabilities will Resonate with Global Organizations for the Foreseeable Future.
Scope of Analysis
- MDR is a managed security service that provides a combination of security tools, controls, and human expertise to deliver proactive 24x7 monitoring of a security environment and perform detection and response.
- MDR delivers its functions as a SOC and includes incident response capabilities as well as extensive threat hunting. Some MDR vendors take advantage of extended detection and response (XDR) to provide increased visibility and greater integration.
This study provides revenue breakdown and forecast by the following segments:
| Industry Verticals | Finance (banking and finance); education; government; health (healthcare and medical); manufacturing; retail; tech (technology and communication); utilities; media (media and entertainment); professional services (scientific, consulting, technical services); and other (there is no breakdown of this category) |
|---|---|
| Geographic Regions | North America (NA); Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Latin America (LATAM) |
| Companies by Number of Employees | Small businesses (less than 101 employees); midsized businesses (101-1,000 and 1,001-2,500 employees); and large businesses (2,501-10,000 and 10,000 or more employees) |
Competitive Environment
| Active competitors with a revenue of at least $1 million in 2023 | More than 150 companies that provide MDR services |
| Competitive Factors | Service offerings; synergistic portfolios of adjacent products; vendor reputation; automation capabilities; environment visibility; SOCs' geographic availability; integration capabilities; pricing model flexibility |
| Key End-user Industry Verticals | Finance (banking and finance); government; manufacturing; tech (technology and telecommunications); retail; health (healthcare and medical) |
| High Revenue Competitors (A-Z) | ArcticWolf; AT&T Cybersecurity; CrowdStrike; DeepSeas; Deutsche Telekom; eSentire; Expel; Fortra; IBM; Microsoft; Rapid7; Red Canary; Secureworks; SentinelOne; Sophos; Telefnica Tech; WithSecure |
| Other Notable Competitors (A-Z) | BlueVoyant; Check Point Software; Critical Insight; Cybereason; Cyders; Field Effect; Group-IB; Kaspersky; NSFocus; OpenText; Orange Cyberdefense; Palo Alto Networks; Trustwave; Verizon |
| Distribution Structure | Direct sales; resellers; partnerships with MSSPs and other distributors |
| Notable Mergers and Acquisitions | CrowdStrike acquired Bionic (cloud security), Reposify (EASM), and SecureCircle (data protection); Fortra acquired Alert Logic; Herjavec Group merged with Fistech Group to form Cyders; Security On-Demand acquired Booz Allen Hamilton’s MTS business to operate as DeepSeas |
Key Competitors
- Arctic Wolf
AT&T Cybersecurity
- BlueVoyant
- Check Point Software
- Critical Insight
- Crowdstrike
- Cybereason
- Cyberseas
- DeepSeas
- eSentire
- Expel
- Field Effect
- Fortra
- IBM
- Microsoft
- OpenText
- Palo Alto Networks
- Rapid7
- Red Canary
- Secureworks
- SentinelOne
- Sophos
- Trustwave
- Verizon
- WithSecure
- Check Point Software
- Crowdstrike
- Cybereason
- Deutsche Telekom
- Group-IB
- eSentire
- Fortra
- Kaspersky
- Microsoft
- NSFOCUS
- Secureworks
- Orange Cyberdefense
- SentinelOne
- Sophos
- Telefónica Tech
- Trustwave
- Verizon
- WithSecure
- AT&T Cybersecurity
- Crowdstrike
- Cybereason
- Deutsche Telekom
- Fortra
- Kaspersky
- Microsoft
- NSFOCUS
- Secureworks
- Sophos
- Trustwave
- Verizon
- DeepSeas
- Digilware
- Deutsche Telekom
- IBM
- ISH Tecnologia
- Kaspersky
- Microsoft
- Sclum
- Telefónica Tech
- Trustwave
- Sophos
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on the Managed Detection and Response MDR) Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Scope of Analysis
MDR’s Core Aspects
MDR Evolution and Trends
MDR Evolution and Trends (continued)
Key Competitors
Key Growth Metrics
Growth Drivers
Growth Restraints
Forecast Assumptions
Revenue Forecast
Revenue Forecast by Region
Revenue Forecast by Industry Vertical
Revenue Forecast by Company Size
Revenue Forecast Analysis
Revenue Forecast Analysis (continued)
Pricing Trends and Forecast Analysis
Competitive Environment
Growth Opportunity 1: Enhancing MDR with Complementary Services and Tools
Growth Opportunity 1: Enhancing MDR with Complementary Services and Tools (continued)
Growth Opportunity 2: Extending Visibility Over the Environment and Increasing Versatility with Third-party Integration
Growth Opportunity 2: Extending Visibility Over the Environment and Increasing Versatility with Third-party Integration (continued)
Growth Opportunity 3: Leveraging AI, ML, and LLMs to Improve the Analyst Experience
Growth Opportunity 3: Leveraging AI, ML, and LLMs to Improve the Analyst Experience (continued)
Growth Opportunity 4: Providing Localized Support Through SOCs and Language Coverage
Growth Opportunity 4: Providing Localized Support Through SOCs and Language Coverage (continued)
Any Type of Organization can Leverage MDR
Points to Consider Before Deploying an MDR Service
MDR versus XDR—Convergent Developments
Your Next Steps
Why Frost, Why Now?
List of Exhibits
Legal Disclaimer
List of Figures- MDR: Key Growth Metrics, Global, 2023
- MDR: Growth Drivers, Global, 2024–2026
- MDR: Growth Restraints, Global, 2024–2026
- MDR: Revenue Forecast, Global, 2020–2026
- MDR: Revenue Forecast by Region, Global, 2020–2026
- MDR: Revenue Forecast by Industry Vertical, Global, 2020–2026
- MDR: Revenue Forecast by Company Size, Global, 2020–2026
- MDR: Competitive Environment, Global, 2023
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MDR is a managed security service that provides a combination of security tools, controls, and human expertise to deliver proactive 24x7 monitoring of a security environment and perform detection and response. While organizations have been providing SOC services for many years, MDR as a service has evolved. The change is due to fierce competition from inside and outside the MDR space and compounding external factors, such as the evolving threat landscape, the COVID-19 pandemic, and challenging geopolitical situations.
Several years ago, MDR was a security service focused on monitoring the environment and alerting customers security teams about cyber threats. It was fit for small and medium-sized businesses wanting help to handle security operations. Today, MDR is a threat detection and response powerhouse equipped with in-built capabilities for advanced threat investigation and threat hunting, augmented by AI, ML, and automation as well as collaborative features that work in unison with customer teams to manage their security stacks.
The MDR competitive environment is intense due to the influx of new competitors and the service's constant evolution. MDR is a well-established solution category in the cybersecurity space, and adoption is expected to accelerate in 2024. MDR companies will continue to thrive and differentiate themselves with their unique offerings as a growing number of organizations discover how the service can fulfill their present and future security needs.
Converging evolution with XDR solutions, increasing competitive intensity, leveraging generative AI and LLM algorithms to empower analysts, providing visibility and response capabilities across all environments, and increasing customer maturity and resilience will be the driving factors in the development of MDR platforms for the foreseeable future.
Author: Lucas Ferreyra
| Deliverable Type | Market Research |
|---|---|
| Author | Lucas Ferreyra |
| Industries | Information Technology |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | mdr market size |
| Keyword 2 | mdr market |
| Keyword 3 | xdr market |
| List of Charts and Figures | MDR: Key Growth Metrics, Global, 2023~ MDR: Growth Drivers, Global, 2024–2026~ MDR: Growth Restraints, Global, 2024–2026~ MDR: Revenue Forecast, Global, 2020–2026~ MDR: Revenue Forecast by Region, Global, 2020–2026~ MDR: Revenue Forecast by Industry Vertical, Global, 2020–2026~ MDR: Revenue Forecast by Company Size, Global, 2020–2026~ MDR: Competitive Environment, Global, 2023~ |
| Podcast | No |
| Predecessor | K6F8-01-00-00-00 |
| WIP Number | K943-01-00-00-00 |
Global Managed Detection and Response Growth Opportunities
Global Managed Detection and Response Growth Opportunities
Competitive Intensity Drives AI-powered Innovation and Extended Service Offerings in the Rapidly Evolving and Fast-growing MDR Space
RELEASE DATE
21-Feb-2024
21-Feb-2024
REGION
Global
Global
Deliverable Type
Market Research
Market Research
Research Code: K943-01-00-00-00
SKU: IT_2024_589
$4,950.00
In stock
SKU
IT_2024_589