Managed Detection and Response (MDR) is a comprehensive cybersecurity service that provides continuous protection by leveraging both automation and skilled analysts to offer a well-rounded, consistent security coverage. MDR providers promise 24/7 monitoring of an organization’s network, endpoints, and cloud environments, with careful analysis of security data to detect anomalies and potential threats in real-time. If an incident were to occur, MDR teams investigate, contain, and remediate threats.
For organizations that do not have in-house security expertise or resources, this service is particularly beneficial. Through outsourcing security operations to an MDR provider, organizations can enhance their cybersecurity posture, improve threat visibility, and ensure a proactive defense against evolving cyber threats. Bringing together advanced technology and human expertise, MDR is able to effectively limit the impact of cyber threats, without having to take on additional in-house staff or expertise.
Expert Insights have gathered the latest statistics and trends on MDR to provide a greater understanding of the service and who is best served by it. We will assess the MDR market, users, and explore the future of MDR.
General Market Statistics
- In 2024, the managed detection and response market was estimated at $4.32 billion USD
- This is projected to grow to $15.3 billion by 2030 with a CAGR of 23.5%
- The region with the largest market share is North America at 34.4%
- The region projected to have the highest CAGR in this market is Asia Pacific
- The industry with the largest revenue share in this market is BFSI (Banking, Financial Services, and Insurance).
- The IT & telecom industry is expected to witness the fastest CAGR by 2030.
- The main factors driving the market are:
- Growing incidents of business email compromise, ransomware, and crypto-jacking threats
- Addressing the cybersecurity skills gap and overwhelming alert volumes
- Government regulations / need for compliance
- These are some restraints in the MDR market that may deter organizations from adoption:
- Lack of trust in third-party applications
- Costs associated with implementing and maintaining MDR services
Factors Influencing The Rise Of MDR
- Back in 2023, Gartner predicted that by this year, 50% of organizations would be using MDR services for “threat monitoring, detection and response functions that offer threat containment and mitigation capabilities.”
- Gartner noted in 2024 that there was an MDR adoption growth increase of 67% from 2021 through 2022.
- A report by Rapid7 has found that of candidates applying for open cybersecurity positions, fewer than 1 in 4 are qualified.
- According to a report by the World Economic Forum, global shortages for cybersecurity talent could reach 85 million workers by 2030, causing approximately $8.5 trillion in unrealized annual revenue.
- As of January 2024, the US has an estimated 448,000 cybersecurity job vacancies across the private and public sectors.
Orca Security 2022 Cloud Security Alert Fatigue Report
The Orca Security 2022 Cloud Security Alert Fatigue Report explores the scale of public could alert fatigue, including the causes, impacts, and potential solutions. Orca commissioned this global survey of 813 IT decision makers in five countries and across ten industries.
- According to this survey of 800+ IT professionals, 59% of respondents receive more than 500, and 38% receive more than 1,000, public cloud security alerts per day.
- 64% of respondents reported that less than 10% of their alerts are actually critical.
- 62% of respondents say that alert fatigue has contributed to turnover at their organization.
- The average salary of a security analyst is about $90k USD per year. This means that just employing enough staff to build a fully functional, 24×7 SOC team can cost an organization over $1 million per year.
- After the additional costs of hardware, software, and training are factored in, running an in-house SOC can end up costing between $2 million and $7 million per year.
- According to Arctic Wolf’s 2024 Security Operations Report, 45% of security incidents are alerted outside of traditional working hours. Additionally, 20% of alerts occurred on weekends.
Cost Analysis Of MDR
- A smaller organization with 100 endpoints may pay approximately $50,000 per year for basic MDR services.
- In contrast, a larger organization with 10,000 endpoints might invest upwards of $500,000 per year for comprehensive MDR services with added features like threat hunting and incident response.
- The following factors can affect costs for MDR:
- Number of endpoints and assets within your organization
- Number of users / employees
- If other security tools like SIEMs need to be implemented
- What level of service and expertise is needed from the MDR provider
For more information on MDR from Expert Insights, why not have a look at some of our related articles?
- The Top Managed Detection and Response (MDR) Solutions
- What Are The Benefits Of MDR?
- How To Choose A Managed Detection And Response (MDR) Solution
- Do You Need to Invest in Managed Detection and Response (MDR)
