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:

Competitive Environment

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