ENDPOINT DETECTION AND RESPONSE (EDR) MARKET ANALYSIS

The global endpoint detection and response (EDR) market size was valued at USD 2,720 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 26.12% from 2023 to 2030. This rise is attributed to the rising demand for IT security solutions, which are primarily used for preventing malware attacks, viruses, and other forms of threats. Moreover, the growing need for enhancing endpoint detection and response processes is projected to further bolster the demand for EDR solutions in the coming years.  

Global Endpoint Detection and Response (EDR) Market: Regional Insights

The global endpoint detection and response (EDR) market is regionally segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.

Among regions, North America is projected to show strong growth in the market over the forecast period. The U.S. is major contributor to this growth. The country is known to be a major hub for different organizations in the world. Thus, demand for smart devices is rapidly growing in the region due to rise in adoption of Internet of Things ((IoT) infrastructure. This in turn is putting the personal data of companies and consumers at risk of security breach. Thus, demand for endpoint detection and response solutions is high in the country. Along with this, increasing technological developments and emergence of 5G wireless telecommunications in Canada is also supporting growth of the market in this region.

Moreover, Asia Pacific is also expected to witness substantial growth in the global endpoint detection and response (EDR) market over the forecast period. This can be attributed to growing number of connected devices, rise in adoption of IoT technologies in various industries across the region. Along with this, growing malicious activities in potential sectors in countries such as Japan and China are also creating strong demand for EDR solutions in the region. Thus, these factors are expected to fuel growth of the market in Asia Pacific region.

Figure 1: Global Endpoint Detection and Response (EDR) Market Share (%), By Region, 2023

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Global Endpoint Detection and Response (EDR) Market Drivers:

Growing expansion of enterprise mobility to fuel growth of the market

Enterprise mobility enables employees to remote working from any location with the use of different devices and applications. These devices can be fit into the security infrastructure of the enterprise in different ways. With bring your own device policies, companies are putting a light management footprint on end user devices to trade off a lower level enterprise integration, and lower risk in order to get a less intrusive presence. Use of enterprise mobility solutions allows businesses to explore modern technology, along with this, it offers various advantages that any business can benefit from. Thus, this in turn creates demand for endpoint detection and response solutions as well, which is expected to drive growth of the global endpoint detection and response (EDR) market over the forecast period.

Rise in adoption of Bring Your Own Device (BYOD) and growing remote working to augment market pace

The adoption of BYOD model is increasing all over the world, as it enables use of personal devices for performing work duties. With this model, employees can be fully responsible to select, maintain, support, and secure their personal device that is also utilized for work purposes. Most of the times smaller business having limited resources and lesser or no corporate control use this BYOD model. This however is helpful for employees and also inexpensive for employers. Along with this, after the Covid-19 pandemic, several organizations are adopting hybrid or complete work from home module, which creates security gaps. This is further creating strong demand for endpoint detection and response solutions in organization, which is anticipated to support growth of the market in the coming future.

Global Endpoint Detection and Response (EDR) Market Opportunities:

Increasing adoption of software-defined data center (SDDC) is anticipated to offer growth opportunities in the global endpoint detection and response (EDR) market over the forecast period. Enterprises across the world are obtaining benefits from SDDC for its security, automation, business agility, and simplified data center management. The availability of wide range of smart devices to end users is increasing due to growth of BYOD. This has further increase endpoints, which is in turn has put endpoint security under more threat. Thus, the market for endpoint security and response is witnessing several opportunities.

Moreover, growing adoption of remote work is likely to create lucrative environment for growth opportunities in the global endpoint detection and response (EDR) market over the forecast period. With rise in adoption of remote work, along with security gaps economic pressure to perform on large and small businesses is increasing. Thus, several companies are providing customers and employees with security solutions and best practices to improve security of their PCs, in order for them to stay focused on serving their needs or end-customers. This is in turn creating several growth opportunities in the global endpoint detection and response (EDR) market.

Global Endpoint Detection and Response (EDR) Market Trends:

Growing demand for EDR due to rise in targeted attacks against large organization is a recent trend

Large organizations in various industries are facing increased targeted attacks. These attacks include initial scraping of data or reconnaissance and are carried out through brute-force password spraying or leakage, as well as a good amount of automation. Threat actors are using these methods to put minimum effort to get maximum returns, based on the personally identifiable information (PII) exfiltrated and the organization. Thus, demand for endpoint detection and response solutions is increasing significantly among large organizations. This trend is expected to grow in the market during the forecast period.

Need for EDR solutions in healthcare industry is a growing trend

Healthcare industry has been witnessing digitalization in recent years. In past two decades the industry has evolved and has become a digitalized sector. Storing healthcare record has become digital process containing private data. With continuous adoption of novel technologies in healthcare industry, cyber threats are on the rise. This is owing to the risk of exploitation of vulnerabilities, as due to unauthorized access to insurance and personal health data can cause drastic ramifications, inflicting huge financial and personal losses. Thus, need for EDR solutions is increasing in healthcare industry, and this trend is expected to propel growth of the market in the coming future.

Global Endpoint Detection and Response (EDR) Market Restraints:

High cost of innovations to impede growth of the market

Consumers need a multi-layered approach to endpoint detection and response that incorporate tools combining superior performance with centralized and low cost management. It also helps to deliver threat protection in all endpoints, which ensures the safety of consumer data, whether it is run in a virtual, physical, or hybrid environment. However, cost of EDR innovations is higher, due to which it is not being adopted in emerging and underdeveloped regions. This in turn is expected to hinder growth of the global endpoint detection and response (EDR) market over the forecast period. However, market players are involved in development of solutions that are cost effective, which is likely to support the market growth.

Lack of protection for mobile devices to obstruct growth of the market

Endpoint detection and response solutions are falling short of offering protection for mobile devices. Manual investigation and longtime of detection is one of the factors lacking for protecting mobile devices. Mobile security solutions are effective depending on the time taken to offer an accurate verdict on a threat and for creating and implementing protections in the organization. The time required for identifying a breach with EDR is long due to which it needs human investigation. Thus, these factors impede adoption of endpoint detection and response solutions, which is expected restrict growth of the global endpoint detection and response (EDR) market over the forecast period.                   

Figure 2: Global Endpoint Detection and Response (EDR) Market Share (%), By Component, 2023

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Global Endpoint Detection and Response (EDR) Market Segmentation:

The global endpoint detection and response (EDR) market report is segmented into Component, Deployment Type, Solution Type, Organization Size, and End User Industry.

Based on Component, the market is segmented into Solutions and Services. Out of which, Solutions is expected to dominate the global market over the forecast period and this is attributed to the growing rate of cyberattacks and constant modification in the types of malware further creating need for endpoint detection and response solutions. This in turn is supporting growth of the segment.

Services segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of EDR services. The increase in adoption is fueled by mandates to follow data protection and regulatory laws, digitization initiatives, sophisticated attacks, as well as high cost of maintaining the security systems, resulting into outsourcing.

Based on Deployment Type, the market is segmented into Cloud - based and On - premise. Out of which, Cloud is expected to dominate the global market over the forecast period and this is attributed to the rise in adoption cloud and cloud-based operations with poor cloud security leading to increased demand for EDR solutions and services in several organizations.

On-premise segment is also expected to witness significant growth in the near future and this is owing to the strong demand for on-premise deployment in various regions. As not many of the companies have adopted cloud-based operations, the on-premise deployment of EDR solutions has become necessary. Thus, the segment will witness strong growth.

Based on Solution Type, the market is segmented into Work Stations, Mobile Devices, Servers, and Point of Sale Terminals. Out of which, Workstations is expected to dominate the global market over the forecast period and this is attributed to the emergence of Bring Your Own Device and increasing use of teleworking cybersecurity among enterprises. This is in turn creating strong demand for the segment, which will support growth of the market in the near future.

Servers segment is also expected to witness significant growth in the near future and this is owing to the increasing focus of market players on development of cutting-edge solutions. For instance, in October 2020, BlackBerry Limited announced development of BlackBerry Cyber Suite, and AI-powered unified endpoint security solution.

Based on Organization Size, the market is segmented into Small and Medium Enterprises and Large Enterprises. Out of which, Small and Medium Enterprises is expected to dominate the global market over the forecast period and this is attributed to the increasing cyberattacks in SMEs creating need for solutions stronger than conventional endpoint protection mechanisms.  

Large Enterprises segment is also expected to witness significant growth in the near future and this is owing to the increasing number of large enterprises focusing to be proactive with their cybersecurity solutions, as the number of attack vectors is increasing. This is in turn leading to high demand for endpoint detection and response solutions among large enterprises.

Based on End User Industry, the market is segmented into BFSI, IT and Telecom, Manufacturing, Healthcare, Retail, and Other End user Industries. Out of which, BFSI is expected to dominate the global market over the forecast period and this is attributed to the increasing number of solution providers leveraging different opportunities to offer support to companies in their security challenges. For instance, in May 2019, InsuraShield introduced a cybersecurity solution, and related managed security services for insurance agents.

IT and Telecom segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of mobile and connected devices among several enterprises. For instance, Lumen Technologies announced the expansion of its Managed Endpoint Detection and Response (MEDR) service in Asia Pacific. Thus, such factors are expected to drive growth of the segment in the coming future.

Global Endpoint Detection and Response (EDR) Market: Key Developments

In March 2021, Carbon Black Inc. (VMWARE Inc.) entered into collaboration with Armo Cloud for introducing novel endpoint detection and response capabilities extending threat detection and response to end use devices.

In June 2021, Cisco Systems Inc. acquired Kenna Security, and now the company is likely to start integration of risk-based vulnerability management technology of Kenna with its SecureX platform.

In May 2021, Crowdstrike Holdings Inc., introduced a new partnet applications in the CrowdStrike Store and it announced the availability of the CrowdStrike Store in the European Union Cloud for consumers to fine and buy IT and security applications.

In June 2021, Broadcom Inc., launched Adaptive Protection, an advanced capability as part of the Symantec Endpoint Security solutions. The new solution offers enhanced security, which is customized and automated for every customer’s environment, while also ensuring its zero impact on productivity.

Global Endpoint Detection and Response (EDR) Market: Key Companies Insights

The global endpoint detection and response (EDR) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global endpoint detection and response (EDR) market are RSA Security (DELL EMC), Carbon Black Inc., McAfee Corporation, Cisco Systems Inc., OpenText Corporation, FireEye Inc., CrowdStrike Inc., Digital Guardian, Broadcom Inc., Deep Instinct, and Cybereason Inc.

*Definition:

Endpoint Detection and Response (EDR) is a data security technology that monitors endpoints and alerts the security team if there is a threat to the network. It can contain attacks and provide a full picture of all activities in the network. Many EDR solutions incorporate machine learning and artificial intelligence to increase detection and respond to threats.