NETWORK DETECTION AND RESPONSE (NDR) MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Network Detection and Response (NDR) Market size was valued at US$ 2,422.8 million in 2023 and is expected to reach US$ 6,957.9 million by 2030, growing at a compound annual growth rate (CAGR) of 16.3% from 2023 to 2030.

NDR solutions provide real-time network monitoring capabilities to help organizations quickly identify and respond to cybersecurity threats across network endpoints, on-premises, and cloud infrastructures. NDR leverages network telemetry data, advanced analytics, and threat intelligence to detect malicious activity and enable security teams to contain threats before they spread widely. Key drivers of the NDR market include the increasing frequency and sophistication of cyberattacks, growing network complexity with IoT devices and cloud adoption, and stringent regulatory compliance.

The network detection and response (NDR) market are segmented by component, deployment mode, organization size, industry vertical, and region. By component, the market is segmented into solutions, services, and others. The solutions segment accounts for the largest market share, owing to the growing need for advanced threat detection and response platforms equipped with capabilities like machine learning, user behavior analytics, and automation.

Network Detection and Response (NDR) Market Regional Insights:

• North America: North America is expected to be the largest market for network detection and response (NDR) during the forecast period, accounting for over 38% of the market share in 2022. The growth of the market in North America is attributed to the early adoption of advanced cybersecurity solutions, the presence of leading NDR vendors, and stringent regulations around data security and privacy.
• Europe: The Europe market is expected to be the second-largest market for network detection and response (NDR), accounting for over 28% of the market share in 2022. The growth of the market in Europe is attributed to the rising frequency of targeted ransomware attacks and the emergence of regulations like General Data Protection Regulation (GDPR).

• Asia Pacific: The Asia Pacific market is expected to be the fastest-growing market for network detection and response (NDR), with a CAGR of over 15% during the forecast period. The growth of the market in Asia Pacific is attributed to increasing digitalization and cyber threats across countries like China, India, Japan, and Australia.

Figure 1. Global Network Detection and Response (NDR) Market Share (%), by Region, 2023

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Global Network Detection and Response (NDR) Market: Analyst’s Viewpoint

The Network Detection and Response (NDR) market is well positioned for strong growth over the next five years. Traditional network security defenses like firewalls and intrusion detection and prevention systems are increasingly ineffective against modern threats. Sophisticated attackers are utilizing evasion techniques and moving laterally inside networks. This has made detection and rapid response capabilities critical. NDR platforms provide deep packet inspection and analytics at the perimeter and inside the network to detect anomalies and unknown threats in real-time.

North America currently dominates the Network Detection and Response (NDR) market due to early awareness of need amongst organizations and stringent data protection regulations. However, Europe and Asia Pacific are fast catching up, driven by growing spending on network-level security by both enterprises and governments post COVID. The work from home trend has underscored the need for internal protection of networks and endpoints. NDR is well suited to allow secure access while detecting infiltrations early.

Demand for effective zero-trust strategies is also boosting the NDR opportunity. Integrations of NDR platforms with secure access service edge technologies will optimize alert handling and responses by streamlining remediation workflows. Successful NDR deployments rely on user behavior analytics, machine learning, and orchestration with other tools for incident response. Vendors delivering these capabilities alongside NDR are favored in the market.

Network Detection and Response (NDR) Market Drivers:

• Rising sophistication of cybersecurity threats: The continuously evolving threat landscape is a key factor driving the growth of the Network Detection and Response (NDR) market. Cybercriminals are using more sophisticated techniques like zero-day exploits, advanced persistent threats, polymorphic malware, and evasion tactics to bypass traditional security tools. High profile breaches have highlighted the need for enhanced visibility and threat hunting capabilities provided by NDR solutions. According to industry estimates, the cost of cybercrime could reach US$10.5 trillion annually by 2025. As attacks become more targeted and difficult to detect, organizations are prioritizing investments in advanced NDR platforms to proactively hunt for in-network threats and accelerate response.
• Digital transformation and cloud adoption: The growing digital transformation and cloud migration initiatives across industries are contributing majorly to the Network Detection and Response (NDR) market growth. As organizations adopt technologies like cloud, Internet Of Things (IoT), big data, and mobility, their attack surface is expanding significantly. The lack of visibility into cloud workloads and exploded network endpoints makes threat detection very challenging. NDR solutions provide unified visibility across on-premise and multi-cloud environments to identify suspicious activities. Moreover, the remote work trends triggered by the pandemic have accelerated cloud adoption and the need for robust cloud-based security tools.
• Stringent regulatory and compliance mandates: Expanding regulatory requirements are compelling organizations to adopt advanced security platforms like NDR. Regulations such as Payment Card Industry Data Security Standard (PCI DSS), Health Insurance Portability and Accountability Act (HIPAA), Sarbanes-Oxley Act (SOX), and General Data Protection Regulation (GDPR) impose stringent data security, privacy, and compliance obligations on enterprises. Non-compliance can lead to heavy fines, lawsuits, and reputational damage. NDR solutions enable continuous network monitoring, threat hunting, and rapid response to address compliance needs effectively. For instance, GDPR mandates data breach notification within 72 hours, requiring faster incident response which NDR platforms can provide.
• Shortage of cybersecurity professionals: The severe shortage of skilled cybersecurity professionals is leading organizations to seek automated security solutions like NDR. With limited personnel, security teams are unable to effectively monitor networks, analyze enormous amounts of data for threats, and respond promptly to incidents. NDR solutions alleviate this pressure by automating threat detection, investigation, and response workflows through capabilities like machine learning, behavioral analytics, and orchestration. This enables lean security teams to strengthen threat hunting, incident investigation, and response processes in a more efficient manner.

Network Detection and Response (NDR) Market Opportunities:

• Convergence with SIEM and SOAR: The integration of NDR capabilities with Security Information and Event Management (SIEM) and Security orchestration, automation and response (SOAR) solutions can unlock significant growth opportunities. As SIEM provides log management and reporting while SOAR enables automation of response workflows, their convergence with NDR provides a comprehensive threat lifecycle management capability. Integrated NDR-SIEM-SOAR solutions allow seamless transition across threat detection, investigation, prioritization, and coordinated response. This convergence also strengthens analytics, enriches contextual information, and allows for orchestrating actions across security infrastructure.
• Managed detection and response services: The growing demand for managed security services presents an important growth avenue for NDR vendors. Many organizations lacking in-house security expertise are seeking to outsource NDR capabilities by leveraging MDR offerings provided by managed security service providers.
• Managed detection and response services: The growing demand for managed security services presents an important growth avenue for NDR vendors. Many organizations lacking in-house security expertise are seeking to outsource NDR capabilities by leveraging MDR offerings provided by managed security service providers.
• NDR for SMEs: SMEs face disproportionately higher cyber risks relative to their security budgets and resources. NDR vendors have massive room for market expansion by providing affordable and scalable solutions tailored for the needs of small and mid-sized organizations. SME-focused NDR offerings driven by capabilities like unified visibility, advanced analytics, automation and ease of use can help such companies cost-effectively boost security postures against sophisticated threats.

Network Detection and Response (NDR) Market Trends:

• Artificial intelligence and machine learning: Artificial Intelligence (AI) and Machine Learning (ML) have emerged as key technology trends shaping the Network Detection and Response (NDR) market. By applying AI algorithms to network traffic, NDR platforms can automate the discovery of hard-to-detect threats and minimize false positives. ML also enables NDR solutions to consume vast amounts of data from diverse environments and endpoints to uncover hidden patterns, anomalies, and relationships indicative of advanced attacks. AI-powered capabilities like behavioral analytics and User and entity behavior analytics (UEBA) are becoming indispensable components of modern NDR offerings. In May 2022, Fortinet®, a renowned global provider of comprehensive and automated cybersecurity solutions, introduced FortiNDR. This latest network detection and response solution harnesses advanced artificial intelligence and practical analytics, facilitating quicker identification of incidents and a swifter reaction to threats.

• Integration with threat intelligence: The integration of NDR solutions with cyber threat intelligence feeds is gaining traction as a key market trend. Threat intelligence provides real-time information on known indicators of compromise, attacker infrastructure, and TTPs. By ingesting and correlating threat intelligence feeds from both internal and external sources, NDR platforms can enhance threat detection accuracy and reduce false positives. Real-time intelligence enables identifying threats specific to the organization's industry and geography.
• Cloud-based deployment: The growing trend is shifting towards cloud-based delivery of NDR solutions, providing flexible and scalable options for organizations. Cloud-native NDR platforms allow easy integration with other cloud-based security tools. By moving to the cloud, NDR solutions can match the agility of modern hybrid networks and distributed workforces. Cloud infrastructure also enables easy scalability to handle the vast amounts of data required for advanced analytics while ensuring faster and more frequent updates.
• Automated response and containment: Leading NDR vendors are incorporating advanced automation capabilities to enable faster response and containment of threats. By leveraging pre-defined rules and integrated threat intelligence , NDR platforms can take immediate actions such as isolating infected endpoints, stopping lateral movement, disabling user accounts, or rolling back changes through built-in playbooks. This reduces reliance on manual investigation and frees up security analysts to focus on high-priority threats.

Network Detection and Response (NDR) Market Restraints:

• Deployment and operational complexity: The complexity involved in deploying, customizing, and operating NDR solutions can restrain market growth, especially for organizations with limited security expertise and resources. Integrating NDR platforms with complex security and network infrastructures can be challenging. Lack of interoperability standards poses integration issues. Fine tuning algorithms and rules to minimize false positives requires significant expertise and time investment. Such challenges may deter adoption among resource-constrained businesses. On the other side, as the demand for integrated security measures grows, there is a burgeoning ecosystem of third-party consultants and managed service providers specializing in NDR implementation. These entities offer tailored solutions, reducing the burden on resource-constrained businesses and ensuring smoother integration with existing infrastructure. Additionally, ongoing efforts to establish interoperability standards are fostering compatibility between various security platforms, simplifying the integration process. As the cybersecurity landscape evolves, solutions are becoming more intuitive and accessible, paving the way for broader adoption and enhanced protection across diverse organizational landscapes.
• High costs: While the benefits are enormous, NDR solutions require significant capital and operational investments, which restrain adoption. The costs encompass expenditures on proprietary network sensors, large-scale data storage, advanced analytics capabilities, and specialized security talent. Justifying these investments may be difficult, especially for smaller organizations and those with tight security budgets. Lack of skilled staff also inflates operational costs and impacts Return on Investment (ROI) realization. Furthermore, advancements in cloud-based NDR offerings and subscription-based models are providing organizations with more flexible and scalable cost structures, allowing them to tailor solutions to their specific needs and budgets. Additionally, as the demand for skilled cybersecurity professionals continues to grow, various training programs, partnerships, and collaborative initiatives are emerging to bridge the talent gap. By leveraging these resources, organizations can develop in-house expertise or collaborate with managed service providers to optimize their NDR investments, ensuring effective threat detection and response without compromising financial sustainability.
• Privacy concerns and data regulations: Growing data privacy regulations like GDPR pose compliance challenges around collecting and analyzing large volumes of network metadata. Some solutions ingest full packets, raising privacy issues that could discourage adoption. Moreover, the need to anonymize customer data and enable user consent before collecting network telemetry can increase compliance overheads for NDR vendors. This acts as a market restraint, forcing providers to adapt solutions to regional regulations. However, embracing a proactive approach to privacy can spur innovation, prompting vendors to develop advanced anonymization techniques and consent management mechanisms. As global regulations continue to evolve, forward-thinking NDR providers have an opportunity to lead by example, setting industry benchmarks for ethical data practices while delivering robust security solutions tailored to regional compliance requirements.

Recent Developments:

New product launches:

• In September 2023, Mission Secure delivers OT cybersecurity assessments and a complete OT security platform, introduced its latest ransomware protection solution tailored for operational technology (OT) and industrial control system (ICS) networks. Engineered for swift deployment and immediate risk mitigation, this solution equips organizations with essential tools to address security vulnerabilities and inhibit the dissemination of harmful malware within industrial settings.

• In July 2023, Trend Micro is an American-Japanese cyber security software company, Incorporated, a prominent figure in the global cybersecurity landscape, unveiled Trend Vision One™ – Endpoint Security as its newest addition to the advanced cybersecurity platform. This integrated solution combines prevention, detection, and response capabilities across user endpoints, servers, cloud environments, and data centers. Designed to assist clients in their IT modernization journeys, the platform offers a holistic approach to security.

• In January 2023, Sophos, a British-based security software and hardware company, unveiled its Network Detection and Response (NDR) solution, which has quickly demonstrated tangible benefits for organizations aiming to bolster their protection against advanced adversaries and unforeseen threats.

Acquisition and partnerships:

• In October 2022, Google Cloud, a suite of cloud computing services, acquired Siemplify, a security orchestration, automation, and response (SOAR) provider, to integrate its security orchestration, automation and response capabilities into Google Chronicle's NDR platform.
• In September 2022, SentinelOne is an American cybersecurity company, acquired Attivo Networks provides required visibility and actionable, substantiated alerts to detect, isolate, and defend against cyber-attacks, to enhance identity threat detection across cloud, data centers, and endpoints.
• In September 2023, WatchGuard® Technologies, a worldwide frontrunner in integrated cybersecurity, revealed its acquisition of CyGlass Technology Services. CyGlass is recognized for its cloud and network-focused threat detection and response solutions, aiding organizations in identifying risks, thwarting threats, and validating compliance.

Figure 2. Global Network Detection and Response (NDR) Market Share (%), by Component, 2023

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Top companies in Network Detection and Response (NDR) Market:

• Cisco
• Juniper Networks
• RSA Security
• Awake Security
• Vectra AI
• ExtraHop
• Darktrace
• Fortinet
• FireEye
• Trend Micro
• Niara
• Securonix
• Hillstone Networks
• Countertack
• Corelight
• ProtectWise
• Flowmon Networks
• BluVector
• Armor
• Palo Alto Networks

Definition: The Network Detection and Response (NDR) market refers to the cybersecurity sector focused on detecting and responding to malicious activities within a computer network. NDR solutions are designed to monitor and analyze network traffic, identifying potential threats, anomalies, and suspicious behavior. These solutions play a crucial role in enhancing an organization's cybersecurity posture by providing real-time visibility into network activities.