Endpoint Detection & Response (EDR) Software Market Size 2031

Report Description

Endpoint Detection & Response (EDR) Software Market Outlook 2031

The global endpoint detection & response software market size was valued at USD 2.75 Bn in 2022 and is likely to reach USD 19.62 Bn by 2031, expanding at a CAGR of 24.4% during the forecast perod, 2023-2031. Rising need for advanced security solutions to identify cyberattacks and reduce data breach cases is driving the market.

Rise of remote working across industries has empowered employees to work from different locations using various devices. Various organizations use endpoint detection and response software solutions, as they help in detecting malware and cyberattacks. According to a survey conducted by researchers from Ladders in December 2021, 25% of all professional jobs in North America are expected to be remote by the end of 2023.

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Growing concerns regarding data security and the popularity of remote working are driving the need for EDR solutions. Ongoing trend of working from home is boosting the number of data breaches and malware attacks. Major organizations are adopting EDR solutions to limit these attacks. These solutions offer organizations an advanced level of security, which prevents data from being lost and stolen.

Impact of AI on Endpoint Detection & Response (EDR) Software Market Solutions

Growing integration of AI in cyber security platforms enable threat detection and protection. The ideal data collection point allows AI to determine the potential threats. It plays a crucial role in EDR by helping to establish a baseline for enhancing behavioral analysis to identify anomalies. Thus, AI components are used for ensuring high accuracy, eliminating false positives, and providing real-time alerts. For instance,

• In March 2023, the Palo Alto Networks Cortex team launched the latest AI and ML data-driven Cortex XSIAM and Cortex XDR. These new software solutions have advanced UEBA and ITDR capabilities. It provides an AI-native Identity Threat Detection and Response module for standalone point products.

COVID-19 Analysis

The COVID-19 pandemic boosted the EDA market. It has positively impacted EDR solutions, as companies were focused on adopting AI-driven technologies, automation, and computing technology during the pandemic. The pandemic forced all the major companies to switch to Work from Home (WFH) mode, which increased the need for EDA solutions to protect the organization's data.

During the pandemic, many industries such as healthcare, BFSI, and others heavily adopted EDR solutions for security purposes. Furthermore, many key companies invested in EDR solutions for scalability and safe work processes, which boosted the market.

Endpoint Detection & Response (EDR) Software Market Dynamics

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Major Drivers

Rising demand for advanced security solutions is driving the market. EDA solutions are coupled with features, such as providing behavioral analysis of events in real-time and historical visibility of memory, disks, and devices. Furthermore, many organizations are concerned about their sensitive data and handling process. EDR solutions help companies meet these requirements and ensure compliance.

Rising trend of Bring Your Own Device (BYOD) is creating the need for endpoint detection and response solutions to eliminate the risk of data breach cases. Employees use their own devices during hybrid work and work-from-home (WFH). In these cases, the chances of sensitive organizational data getting leaked are high. Global organizations prefer endpoint detection and response solutions to eliminate this risk.

EDR solutions allow organizations to set control access on employee-owned devices for corporate data. As per the International Journal of Creative Research Thoughts (IJCRT) in 2023, 12.7% of full-time employees worked from home, while 28.2% worked in a hybrid model, illustrating the rapid normalization of remote work environments.

Existing Restraints

High initial investment for EDA solutions, especially for SMEs, hampers the market. EDA solutions cost more than traditional ones, as they offer advanced AI-integrated solutions. SMEs are not able to afford the maintenance and overall cost of these solutions, which hampers the potential market growth.

Emerging Opportunities

Rising demand for integrated and next-generation security solutions for companies operating in the BFSI and IT & telecom sectors is expected to create opportunities in the global market. Companies present in the BFSI and IT & telecom sectors have sensitive consumer-driven data. Increasing data breach cases in these sectors is boosting the demand for advanced security solutions, creating lucrative opportunities in the market.

• In 2022, the report published by the Federal Bureau of Investigation, Internet Crime Report (IC3) received 800,944 complaints, which is a 5 percent decrease from 2021. However, the potential total loss has grown from $6.9 billion in 2021 to more than $10.2 billion in 2022.

Scope of The Endpoint Detection & Response (EDR) Software Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Endpoint Detection & Response (EDR) Software Market Segment Insights

Component Segment Analysis

Based on component, the endpoint detection & response (EDR) software market is divided into solutions and services. The solutions segment dominates the market, as it offers protective features, such as cloud-based endpoint detection, threat insight, and security analytics techniques.

Additionally, it allows organizations to ensure compliance with various regulatory standards, such as the General Data Protection Regulation (GDPR) and Health Insurance Portability and Accountability (HIPAA), by enforcing security policies and providing audit trails.

Furthermore, EDR software provides numerous beneficial features to companies ranging from real-time security to increased productivity for improved user experience. These factors are expected to boost the segment in the coming years.

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Deployment Mode Segment Analysis

In terms of deployment mode, the global market is segmented into cloud-based and on-premise. The on-premise segment dominates the market, due to its numerous advantages, such as a high level of data security protection. Organizations prefer the on-premise mode to protect sensitive organizational information. On-premise EDA solutions offer organizations complete control of data, resources, and services, which helps reduce data breach cases.

The cloud-based segment is anticipated to grow rapidly in the coming years, as it accesses EDR functionality through a web-based interface. It provides a convenient and cost-effective way for organizations to handle and secure their disks, devices, and data storage. This helps organizations to enhance their productivity and reduce costs.

Organization Size Segment Analysis

Based on organization size, the global endpoint detection & response (EDR) software market is segregated into SMEs and large enterprises. The large enterprises segment is expected to dominate the market in the forecast period, owing to the growing adoption of EDR solutions to protect the network's endpoints against external threats. Large companies in the BFSI and IT & telecom sectors prefer EDA solutions for security purposes, as they have sensitive consumer-driven data.

The SMEs segment is anticipated to grow rapidly in the coming years, as it allows for complete monitoring of all end-point processes. These solutions help SMEs to fend off enterprise-class attacks. EDR provides SMEs with enhanced visibility into endpoints, offering real-time analytics. Growing adoption of EDA solutions by SMEs is expected to drive the segment in the coming years.

Vertical Industry Segment Analysis

On the basis of vertical industry, the market is segregated into the BFSI, IT & telecom, manufacturing, healthcare, and retail. The BFSI segment dominates the market, due to the increasing preference for EDA solutions by companies competing in the BFSI sector. Companies present in the sector are highly vulnerable to cyber threats, as they have consumer data.

Companies in the sector prefer using EDA solutions to combat cyberattacks and data breaching cases. Another factor that facilitates the adoption of these solutions is that EDR solutions offer multiple layers of protection from threats as compared to conventional antivirus solutions. The retail & e-commerce segment is expected to register lucrative growth in the coming years.

The retail industry uses EDR solutions to provide real-time visibility into endpoint activities and enable security and identification of devices from advanced threats, such as malware, cyber threats, and others. Furthermore, EDR solutions help e-commerce companies to detect cyberattacks and potential malware threats. E-commerce companies are adopting these solutions to avoid potential cyberattacks, as they have sensitive consumer data.

Regional Outlook

In terms of region, the global endpoint detection & response (EDR) software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominates the market, owing to the presence of key companies in the region that adopt EDR solutions, as the cyber and malware attack cases are rapidly increasing in the region.

Furthermore, growing trends such as remote working, work-from-home (WFH) mode, and bringing your own devices are creating the need for EDR solutions to protect sensitive organizational data. The market in Asia Pacific is projected to register lucrative growth in the coming years, as the demand for cloud-based EDR solutions is rapidly increasing for security systems and better customer experiences.

Growing government initiatives to support cyber security complaints and solutions to protect data from cyberattacks have resulted in creating favorable opportunities in the market. Moreover, the regional retail and BFSI sectors are adopting cost-effective and scalable solutions. This is creating favorable opportunities for the market growth.

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