The Asia Pacific extended detection and response market is segmented into China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific. Enterprises in the region increasingly adopt extended detection and response solutions due to the rising number of cybercrimes in the region. In December 2022, according to Experian’s Global Identity & Fraud Report, a recent survey of six APAC markets found that India and China have the highest online fraud rates, with 29% of consumers in each country reporting being victims; this figure is substantially higher than the global average of 23%. Moreover, India recorded 212,485 cybercrime cases in the first two months of 2022, more than that of 208,456 cases in the entire 2018. Thus, increasing cybercrimes in APAC have contributes to the significant extended detection and response market share of Asia Pacific.
The extended detection and response market size is likely to surge by 2028 in India owing to rise in internet penetration and consumption, rapid adoption of extended detection and response solutions, and an increase in the number of cyberattacks. India is among the top countries when it comes to cyberattacks. According to a report by Microsoft, India accounts for 13% of cyberattacks in Asia Pacific. A study by Cloudflare has revealed that 83% of Indian enterprises experienced at least one cybersecurity incident in 2022. Out of these organizations, 48% experienced ten or more number of cyberattacks. According to a mid-year cybersecurity report by Trend Micro, India is among the top five countries globally for malware detections, accounting for 5.5% of 90,945 ransomware detections in the first half of 2023. Moreover, according to AAG, cybercrime cases jumped from 394,499 in 2019 to 1,158,208 in 2020 and 1,402,809 in 2021. Cybercrime across India increased by 15.3% between Q1 and Q2 2022. All such factors contribute to the significant extended detection and response market share of India.
The COVID-19 pandemic has accelerated digital adoption and digital service delivery across the world. The pandemic has brought different work styles to business entertainment. The digital model has become the new normal for customers and businesses of all sizes. This sudden spike in digital activity has created a huge growth in internet traffic in China, leading to an unprecedented demand for extended detection and response solutions to tackle security risks. Moreover, the rapid adoption of collaboration and network security tools in the pandemic has also increased the use of extended detection and response solutions to protect access to resources better. The number of cyberattacks by Chinese cyber criminals and their severity have increased in recent years. All such factors boost the extended detection and response market growth in China.
Increasing Number of Cyberattacks Drives Extended Detection and Response Market Growth
Cyberattacks have been rated the fifth top-rated risk in 2020 and are increasing day by day with technology. Computer malware, denial of service (DoS), and data breaches are among the examples of cyber risks. Businesses are under continuous threat of cybercrimes. In the COVID-19 pandemic, cybercriminals took advantage of misaligned networks as businesses were moving toward remote working environments. According to OneLogin, cybercrime cost the world over US$1 trillion, wherein 37% of organizations were affected by ransomware, and 61% were affected by malware attacks in 2020. Between 2019 and 2020, cyber-attacks in the US have increased by 139%. In fact, there were 145.2 million cases in Q3 2020 alone. Malware attacks increased by 358% in 2020 when compared to 2019. Similarly, according to the Clusit Report, cyberattacks across the world have increased by 10% in 2021 when compared to the previous year. Cyber-attacks increased by 125% globally in 2021, and rising volumes of cyberattacks continued to threaten businesses and individuals in 2022. According to AAG, the UK had the highest number of cybercrime victims per million internet users at 4,783 in 2022, an increase of 40% over 2020 figures. The average cost of a cyber breach was US$ 4.35 million in 2022, and it is predicted that this number is expected to rise to US$10.5 trillion by 2025. Cyber threats are a huge matter of concern in today’s digital environment. They have serious consequences for individuals, corporations, and governments. Prevention from cyberattacks is essential. The rise in number of cyberattacks has increased the importance of cybersecurity to safeguard critical infrastructures and to ensure the safety of individuals and organizations. Extended detection and response have emerged as an important solution that companies can adopt to defend against online attacks. Thus, the increasing number of cyberattacks across enterprises drives the growth of the extended detection and response market.
Extended Detection and Response Market: Segmental Overview
Based on industry vertical, the extended detection and response market is segmented into IT and telecom, BFSI, manufacturing, retail and eCommerce, healthcare, and others. The IT and telecom segment is expected to dominate the extended detection and response market, and the BFSI segment is estimated to record the highest CAGR in the market from 2022 to 2030.
Extended Detection and Response Market Analysis: Competitive Landscape and Key Developments
Broadcom Inc.; Bitdefender; Cybereason; Cynet Security, LTD.; Microsoft; Palo Alto Networks; SentinelOne; Sophos Ltd; Cisco Systems, Inc.; and Trend Micro Incorporated are among the key playerds profiled in the extended detection and response market report. The extended detection and response market forecast can help stakeholders in this marketplace plan their growth strategies. The extended detection and response market leaders focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.
- In November 2023, Kaspersky announced the launch of a new comprehensive security XDR solution—Open XDR. The new solution combines multiple security options in a unified platform, including log collection and correlation, case and asset management, response playbooks, and investigation capabilities. The new product is available to early adopters who can assess its functionality and compatibility with the existing infrastructure in a test environment.
- In August 2023, EY announced the launch of its Intelligent Extended Detection Response (IXDR) solution, supported by Secureworks, to help organizations combat cyber threats. IXDR is a service providing 24×7 threat monitoring, detection, and response on an open XDR platform that leverages threat intelligence research, artificial intelligence (AI), machine learning (ML) algorithms, and modern data pipelines to help organizations drastically reduce the response time to cyber threats.