Extended Detection and Response Market Size, Share, Growth, Trends, and Global Industry Analysis: By Component (Solutions, Services), Deployment Type (On-Premises, Cloud-Based), End user (BFSI (Banking, Financial Services, and Insurance), IT & Telecommunications, Government & Public Sector, Healthcare, Retail & E-commerce, Manufacturing, Energy & Utilities, Others), and Region Forecast 2020-2031

Extended Detection and Response Market size was valued at US$ 1,535.3 million in 2024 and is expected to reach US$ 9,176.2 million by 2031, growing at a significant CAGR of 29.1% from 2025-2031. Moreover, the U.S. Global Extended Detection and Response Market is projected to grow significantly, reaching an estimated value of US$ 2,578.5 Million by 2031. The market solutions integrate multiple security products into a unified platform, offering improved threat detection, investigation, and response capabilities. XDR solutions are designed to collect and automatically correlate data across various security layers such as endpoints, networks, servers, and email to provide holistic visibility and faster incident response. Unlike traditional security information and event management (SIEM) systems or endpoint detection and response (EDR) tools, XDR provides cross-layered threat detection with built-in analytics and automation. This enables security teams to detect sophisticated attacks with greater accuracy and to respond more efficiently by reducing alert fatigue and manual effort.

The global XDR market is experiencing rapid growth driven by the increasing complexity of cyber threats, rising digital transformation, and the need for integrated threat response across IT environments. Organizations are shifting from siloed security tools to centralized platforms like XDR that offer real-time insights, improved efficiency, and reduced mean time to detect (MTTD) and respond (MTTR) to threats. Cloud adoption, remote workforces, and the expansion of IoT devices are also contributing to the demand for XDR solutions. As a result, cybersecurity vendors are investing heavily in XDR capabilities, either by developing proprietary platforms or acquiring niche players to enhance their offerings. The market is expected to see continued innovation and consolidation, with a strong emphasis on AI-driven analytics, automation, and support for hybrid and multi-cloud environments.

Facts and Figures

• Rising Cyberattack Frequency: Over 90% of organizations globally have reported an increase in the frequency and complexity of cyberattacks in recent years, fuelling the demand for advanced security solutions like XDR.
• Cloud Adoption Growth: The global cloud market is expected to have significant share, contributing to the growing adoption of cloud-based security solutions, including XDR platforms, as organizations increasingly prioritize hybrid and multi-cloud environments.
• Digital Transformation: As of 2024, over 60% of enterprises worldwide are undergoing some form of digital transformation, creating a significant need for integrated security solutions like XDR to protect expanding and complex IT infrastructures.

Key Developments:

• In June 2024, Kivu Consulting introduced its Cyber Certainty Managed Extended Detection and Response (XDR) platform. This advanced solution combines Kivu’s extensive threat expertise with cutting-edge technology to deliver agile protection and rapid detection across various attack vectors, including endpoint, network, identity, and cloud. The platform aims to reduce downtime of critical servers by providing customized incident responses, thereby fostering growth in the extended detection and response industry.
• In May 2024, Sekuro launched a managed extended detection and response (XDR) platform, offering sovereign architecture and adaptive intelligence. This platform is designed to provide organizations with enhanced security capabilities, including real-time threat detection and automated responses, tailored to meet the specific needs of various industries.

Extended Detection and Response Market Segmentation:

Based on the component:

• Solutions
• Services

Among the two components, solutions are anticipated to lead the XDR market. The increasing complexity of cyber threats and the need for comprehensive, real-time protection across various IT layers are key drivers of this growth. Organizations are seeking integrated solutions that provide automated threat detection, analysis, and response capabilities, which can efficiently address multi-vector attacks. The growing adoption of cloud, IoT, and hybrid environments further propels the demand for advanced XDR solutions. As these solutions provide enhanced security coverage and faster response times, they are expected to dominate the market in the coming years, outpacing services.

Based on the deployment Mode:

• On-Premises
• Cloud-Based

Among the two deployment modes, cloud-based deployment is expected to lead the XDR market. The rapid adoption of cloud technologies and the increasing shift toward cloud infrastructures are key factors driving this growth. Cloud-based XDR solutions offer scalability, flexibility, and cost-effectiveness, making them highly attractive for organizations of all sizes. They also provide seamless integration with cloud-based services and hybrid IT environments, enabling businesses to maintain strong security measures while managing dynamic workloads. As more organizations embrace digital transformation and remote work models, the demand for cloud-based XDR solutions is anticipated to surpass on-premises deployments in the near future.

Based on the end user:

• BFSI (Banking, Financial Services, and Insurance)
• IT & Telecommunications
• Government & Public Sector
• Healthcare
• Retail & E-commerce
• Manufacturing
• Energy & Utilities
• Others

Among the various end-users, the BFSI (Banking, Financial Services, and Insurance) sector is anticipated to lead the XDR market. This industry is highly vulnerable to cyber threats due to the sensitive nature of financial data and transactions. As cyberattacks such as phishing, ransomware, and financial fraud continue to evolve, BFSI organizations are increasingly adopting advanced cybersecurity solutions like XDR to protect their assets. The need for real-time threat detection, compliance with stringent regulations, and the protection of customer data are driving the demand for XDR solutions in this sector. As financial institutions embrace digital transformation, the BFSI sector is expected to remain the dominant end-user of XDR solutions.