Frost & Sullivan’s report, Global Managed Detection and Response Market, Forecast to 2024, forecasts that the increasing number of sophisticated cyber threats will lead to a rise in demand for Managed Detection and Response (MDR) solutions from small and medium businesses. The market generated US$893.8 million in 2019 and is poised to grow at a CAGR of 16.4% between 2019 and 2024, with revenues expected to reach $1,907.9 million at the end of the forecast period.
With the increasing number and complexity of threats, the internal management of information security has become increasingly laborious and costly. Outsourcing should therefore be viewed as a strategic ally for securely managing IT environments in line with companies’ business strategies.
The challenges and the complexities that security brings to companies are increasing. Sophisticated cyber threats are targeting a broader cross-section of the companies. Inadequate security practices in some organizations are resulting in increasingly negative consequences for revenue streams and profitability. MDR is a necessary extra layer of defence that will combat these threats.
“The rise in the number and complexity of threats has made internal management of information security increasingly laborious and expensive. In this context, outsourcing is being viewed as strategically important in securely managing IT environments in line with companies’ business strategies,” said Mauricio Chede, senior industry analyst, Frost & Sullivan.
He noted that MDR providers offer organizations the technology, process, and people to enable the proactive monitoring of their customer security environment and 24/7 threat detection to help mitigate security breaches, even more so during COVID-19.
Chede added that MDR providers must demonstrate trustworthiness in remediation without interrupting a customer’s business operations.
“They must adapt themselves to the customer’s needs and budget, understanding the vertical they are in and providing detection and response solutions in the shortest period of time, along with custom reports. Personal interaction through email or telephone with an assigned analyst is also a differentiating factor,” he added.
Other revenue opportunities for MDR vendors can come by way of:
- Improving the quality of their solutions and offer new services to compete with new market participants and increase revenues.
- Developing customizable MDR solutions at affordable prices to attract small and midsized businesses.
- Exploring the merger and acquisition of competitors to enhance regional presence and maximize revenues.
- Offering consulting and value-added services to help clients take advantage of digital transformation initiatives.
