Network Detection and Response (NDR) Market

The global Network Detection and Response (NDR) Market size is projected to grow from USD XX billion in 2024 to USD XX billion by 2029 at a Compound Annual Growth Rate (CAGR) of XX.X% during the forecast period. The NDR market is significantly driven by the increasingly frequent and sophisticated cyberattacks, as well as network infrastructures that are rapidly becoming more complex. Over time, cyber threats are evolving such that attackers use advanced techniques beyond the traditional security measures, increasing the need for more significant detection and response capabilities. The increasing number of IoT devices, along with cloud services, complicates network environments even more, creating additional vulnerabilities. In order to detect threats, organizations are compelled to adopt NDR solutions that can give real-time monitoring and analytics.

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Impact of AI/GEN AI the Network Detection and Response (NDR) Market

The integration of Gen AI in the NDR market has changed the cybersecurity practices through enhanced detection and response capabilities. Gen AI uses advanced algorithms to examine extensive network data in real time, detecting anomalies and probable threats more efficiently than traditional methods. This enables an organization to anticipate and address the risk before it becomes an influential breach. It continuously learns from evolving threats, thereby changing its models to enhance the accuracy of detection of sophisticated cyberattacks. As a result, security teams can respond more quickly, streamline operations, and strengthen their defenses against an increasingly complex threat landscape.

Network Detection and Response (NDR) Market Dynamics

Driver: Increasing frequency of sophisticated cyberattacks

According to Check Point, organizations suffered an average of 1,876 cyberattacks in the third quarter of 2024, which is up 75% from the third quarter of 2023 and 15% from the previous quarter. The rising cyberattacks cause organizations to deploy network security measures that can effectively detect and respond to such risks. NDR utilizes AI and ML algorithms for carrying out deep inspection of network traffic and detecting anomalies such as possible breach. It is important because other security measures tend to become outdated against modern tactics from the cybercriminal. Therefore, NDR technologies have been largely invested in by companies so as to improve their security position and effectively mitigate the potential risks caused by these evolving threats.

Restraint: Shortage of skilled professionals

The lack of skilled professionals is one of the significant challenges to growth of the NDR market, as deployment and management of NDR solutions require deep domain knowledge in cybersecurity, network management, and data analytics. The persistent gap has created many challenges for organizations trying to find qualified personnel who can effectively utilize such complex tools. This shortage in expertise not only does not only complicate the process but also limits the capabilities that these solutions can unlock within organizations. As a result, this skills gap forms a major restraint toward an increasingly robust network security system coupled with prompt threat responses for the evolving threat landscape.

Opportunity: Increased focus on incident response automation

With growing cyber threats, the need for swift and effective incident management has become crucial for organizations. NDR solutions, which utilize AI and machine learning, can automate such critical tasks as threat detection and response, thus reducing the time security teams spend on manual processes. Automation ensures that security staff focuses on strategic choices while also improving incident response effectiveness. Thus, it would improve security posture and resilience against ongoing attacks to incorporate incident response capabilities with automation in the NDR solution.

Challenge: Barries for adoption in highly regulated industries

In the NDR market, adoption barriers in extremely regulated industries such as healthcare and BFSI represent a crucial challenge. There is often a barrier presented by compliance with a host of rules and regulations that are typically believed to represent a tremendous drag on innovation and prolong implementation of sophisticated technologies, so the fear of technology translates into being reluctant to adopt a particular solution due to such rigid regulations that are likely to be strictly followed. The necessity for thorough validation and documentation makes the integration of NDR systems complicated, making it challenging for organizations to respond quickly to emerging cyber threats in terms of compliance with industry standards.

Network Detection and Response (NDR) Market Ecosystem

The NDR market ecosystem comprises solution providers and service providers, and end users such as BFSI, travel and hospitality, government, public sector, healthcare and life sciences, automotive, retail and E-commerce, IT & ITeS, education and others. Regulatory authorities and standardization bodies also play a crucial role in influencing market trends, innovations, and an organization's NDR strategies.

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“By offering, the solution/platform segment accounts for the largest market size during the forecast period.”

The solutions segment is expected to hold the highest market share in the NDR market because of an ever-increasing requirement for enhanced security measures against cyber threats. Organizations are investing in NDR solutions that can incorporate leading-edge technologies, such as machine learning, user behavior analytics, and automation to enhance threat detection and response capabilities. With sophisticated cyberattacks, the traditional security measures become less effective. It is because of this reason that organizations are switching to complete NDR platforms for real-time monitoring and analysis of network traffic. Such evolution becomes crucial for organizations to secure their networks from the emergent threats across diverse environments, whether it is an on-premises infrastructure or cloud.

“By deployment mode, the cloud NDR segment is to grow at the highest CAGR during the forecast period.”

Organizations have been increasingly shifting to cloud-based infrastructures, which has led to an increase in demand for advanced security solutions more so built on these environments. Since cloud networks offer scalability, flexibility, and economy, they are particularly attractive for business systems modernization initiatives. The diversity and complexity of cloud platforms, however, present some challenges in security management. Thus, there is a need for strong NDR solutions which guarantee real-time visibility while going for efficient threat detection. This makes the reliance on cloud environments as fastened up cloud-based NDR services, which becomes the need to keep guarded modern IT infrastructures safe and sound. Therefore, the cloud deployment mode is expected to grow at the highest growth rate in the NDR market.

“By region, North America accounts for the highest market share during the forecast period.”

North America is leading the way in the Network Detection and Response market, due to this region's early adoption of the most advanced cybersecurity technologies coupled with stringent data protection regulation. Organizations in this region have been more concerned with improving network security with more developed cyberattacks. The number of large enterprises and the adoption of proactive strategies for dealing with vulnerabilities at the network level are other factors that add on to North America's lead position in this market. The increasing adoption of remote work has also increased demand for reliable internal network protection, and NDR solutions have become critical to protecting sensitive information in key industries, such as finance and healthcare.

Key Market Players

The key players in the NDR Market are Cisco (US), Cognyte (Israel), ExtraHop (US), Arista (US), Corelight (US), Gatewatcher (France), Darktrace (UK), Vectra AI (US), Hillstone Networks (China), Trend Micro (Japan), Palo Alto Networks (US), Broadcom (US), Stellar Cyber (US), Sangfor Technologies (China), Fortinet (US), Trellix (US), Netwitness (US), LinkShadow (US), Plixer (US), Exeon (Switzerland), IronNet (US), Sophos (UK), NetScout (US), MixMode (US), NSFOCUS (China), Progress (US) and other key players.

Recent Developments:

• In November 2024, Arelion expanded its partnership with NETSCOUT to bolster global DDoS mitigation on its Internet backbone, enhancing network security and response capabilities for enterprises in critical sectors like finance and government.
• In November 2024, Morgan Business Consulting (MBC) partnered with IronNet to bolster cybersecurity in the Defense Industrial Base (DIB) by leveraging IronNet's Network Detection and Response (NDR) technology for enhanced threat visibility and proactive defense.
• In June 2024, Trend Micro launched an Inline Network Detection and Response (NDR) solution that provides real-time visibility and automated threat responses, enhancing organizational security across various functions.
• In January 2023, Sophos launched a Network Detection and Response (NDR) solution that uses advanced analytics and machine learning to detect cyber threats like unauthorized devices and zero-day attacks, integrating with its Managed Detection and Response (MDR) service for comprehensive threat analysis and rapid response.
• In January 2023, IronNet has upgraded its IronDefense NDR solution to enhance threat visibility and detection capabilities, with new features including advanced activity recognition, auto commissioning, and seamless integration with tools from SentinelOne, CarbonBlack, and CrowdStrike.

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