Global Network Detection and Response (NDR) Market (by Deployment, Component, Application, & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)
In recent years, networks have become increasingly important to modern communication. Many businesses rely on networks, which are crucial components of the total IT infrastructure. Networks are therefore a common target for cyber-attackers looking to destabilize businesses and governments all around the world.
A cyber-security technology called Network Detection and Response (NDR) continually monitors the network of a company. To identify cyber dangers, it makes use of behavioral analytics, machine learning, and artificial intelligence. There is an immense requirement for cyber-security solutions for networks worldwide to avoid data leakage and privacy breaches due to the growing adoption of digitalization in both government agencies and commercial enterprises as well as the expanding number of internet users. The global network detection and response market is anticipated to reach US$3.11 billion in 2023, progressing at a CAGR of 13.94% during the forecast period.
- By Deployment: The market report has segmented the global network detection and response market into three different segments in terms of type of deployment: cloud-based and on-premises. Cloud based segment captured the highest share of the global market well as is the fastest growing segment, over the forecasted period, owing to enterprises increasingly adopt cloud-based services and products.
- By Components: The report splits the global market into two segments on the basis of components: solutions, and services. The services segment is the fastest growing segment of the market, due to the increased use of cloud computing and the progression of cyber-crime as technology advances throughout the forecasted period.
- By Application: According to report, the market has been segmented into two segments on the basis of application, namely large enterprises and small & medium enterprises. Large enterprises segment held the major share in the market. The IT security needs of SMEs have been relatively underserved compared with the significantly larger enterprise segment.
According to this report, the global market can be divided into five major regions, on the basis of geographical areas: North America, Europe, Asia Pacific; Latin America; and the Middle East and Africa. The countries covered in North America region include the US, Canada, and Mexico, while Europe includes UK, Germany, France, Spain, Italy and Rest of Europe. Moreover, China, India, Japan, South Korea and Rest of Asia Pacific are included in the Asia Pacific region.
The North American network detection and response market enjoyed the largest share of the global market share, primarily owing to the region’s significant investments in cyber-security solutions to prevent intellectual property theft and compromise of systems used to monitor and control the country's defense systems and capabilities. On the other hand, the Asia Pacific network detection and response market is the emerging region in the global market, due to increasing adoption of cloud-based solutions by both large enterprises and SMEs in the region.
Top Impacting Factors:
- Escalating Internet Users
- Increasing Digitalization
- Rising E-commerce Sales
- Surge in Cyber Crime Rate
- Complexity of Network Infrastructure
- Advancement in Cyber Crimes
- Rising Implementation of 5G Networking
- Advancement of Internet of Things (IoT) Devices
- Integration of Artificial Intelligence in NDR system
- Intensifying Edge Computing Trend
- Driver: Escalating Internet Users
With the number of internet users worldwide increasing at a rapid pace, the threat of cyber attacks is rising as well. According to a new analysis by cyber-security firm Kaspersky, online cyber risks have grown considerably over the last year. Network Detection and Response (NDR) enables organizations to detect malicious behavior and respond to cyber threats to the network. Therefore, the increasing number of internet users significantly implies an increment in protection for cyber- crimes, thereby augmenting the Network Detection and Response market.
- Challenge: Advancement in Cyber Crimes
The rate of cybercrime has increased tremendously in tandem with technological advancement. As technology advances, so do the types of cybercrimes perpetrated. These improvements in cyber crimes are so rapid that traditional cyber-security technologies, such as network detection and response systems, are unable of protecting against them. Therefore, rapid innovation and advancement in the cyber crimes have been as well as will be a challenge for market by making the latest solutions obsolete very soon.
- Trend: Advancement of Internet of Things (IoT) Devices
Internal and external information sharing has opened the door for hacker groups and cybercriminals to get access to networks. Moreover, as systems grow more complicated, networked, and capable of handling more data, cyber threats such as data breaches, malicious email attacks, and so on have proliferated. As a result, corporations have being prioritizing cyber protection. Furthermore, the quick increase in vulnerabilities, threats, frauds, and hazards has prompted organizations to adapt strategic counter-cyber-attack tactics, boosting network detection and response market to grow.
The COVID-19 Analysis:
The COVID-19 pandemic had a positive impact on the global NDR market. As a result of the pandemic, there was a heightened demand for remote working, increased awareness about the need for cyber-security was observed. In the coming years, the market is predicted to grow at a faster rate, owing to changes created during the pandemic. With increased adoption of remote working models as well as hybrid models, the trend would continue to boost the demand for NDR solutions in post- COVID era. Further, factors such as increased online frauds, growing internet penetration, adoption of concepts such as BYOD and CYOD would provide a boom in the industry in post COVID era.
Analysis of Key Players:
The global market for network detection and response is consolidated, with few major players operating worldwide. Network detection and response (previously known as network traffic analysis) companies are expanding their solutions with additional automatic and manual response functionalities. Since numerous manufacturers may use similar analytical techniques to data monitored via a SPAN port, network detection and response (NDR) remains a competitive market with a low barrier to entry. The key players of the network detection and response market are:
Cisco Systems, Inc.
Vectra AI, Inc.
VMware, Inc. (Lastline, Inc.)
Sangfor Technologies, Inc.
Companies are focusing on extending their market presence through expansion strategies such as mergers and acquisitions, collaborations, and the development of innovative products. These strategies also aid businesses in entering new markets and expanding geographically. For example, in November, 2021, Bricata was acquired by Opentext. Further, XDR, which is NDR + EPDR + User Behavioral Analysis (UBA) + Distributed Deception Platforms (DDP) + Cloud Workload Protection Platforms, will be the future of NDR. This market-wide union of product categories is likely to occur during the next 3-5 years, however some vendors have already begun to acquire and merge these products.