With revenue of approximately US$364 million in 2021, Omdia predicts revenue from the Extended Detection and Response (XDR) market segment to grow at a compound annual growth rate of more than 56% through 2026. Potentially, reaching US$3 billion by the end of 2026, up by more than 800% in five years. This will make XDR the largest single market segment by revenue in security operations (SecOps) by the end of the decade.
XDR is an enterprise-grade Threat Detection, Investigation, and Response (TDIR) solution that offers a guided human-analyst experience across the entire lifecycle, from telemetry gathering and analysis, to alerting and investigation, to remediation-response, validation, and process improvement.
Omdia attributes the growth to several drivers, most notably the need for unified, enterprise-grade cybersecurity threat detection, investigation, and response (TDIR) capabilities across key areas of the IT estate, including endpoints, networks, and cloud environments.
“The reality is that, to date, most enterprise TDIR solutions, including SIEM, SOAR, and even EDR, have largely underperformed, often failing to consistently and quickly identify dangerous, costly cybersecurity threats."Eric Parizo
He opined that in the current period XDR remains overlooked, misunderstood, and even derided by some. "However, Omdia believes XDR is the cybersecurity industry’s best hope to empower enterprises with the powerful, innovative technology they need to keep pace with the broad and evolving scope of adversaries they face,” said Eric Parizo, managing principal analyst and lead analyst for Omdia’s SecOps Intelligence Service.