Straits Research published a report, “Global Extended Detection and Response (XDR) Market Size & Outlook, 2026–2034”. According to the study, the global market size was valued at USD 2.13 billion in 2025 and is projected to expand to USD 10.91 billion by 2034, registering a compound annual growth rate (CAGR) of 20.1%.

Market Dynamics

Extended Detection and Response (XDR) Market is aided by rising adoption of convergent cybersecurity solutions among enterprises, heightened frequency and sophistication of cyberattacks, and the move from siloed security products to converged XDR platforms. Strengthening demand for real-time threat detection, active incident response, and adherence to strict data protection norms is fueling market growth in BFSI, IT & telecom, healthcare, and manufacturing sectors.

Growth drivers are investment in cloud-native security platforms, AI-based threat analytics, and managed XDR services in North America, Europe, and the Asia Pacific. Deploying scalable, multi-layered security approaches and integration with current SOCs is opening up new opportunities for cybersecurity vendors and enterprise customers.

Market Highlights

• Segmental Leadership: Solutions hold the largest share (64.21%), while Cloud-based deployment records the fastest CAGR (23.14%).
• Organization Size Outlook: Large Enterprises are expected to witness the highest CAGR (23.14%) during the forecast period.
• End User Industry: The BFSI segment is expected to witness a CAGR (21.87% %) during the forecast period, reflecting strong adoption of integrated cybersecurity solutions.
• Regional Insights: North America dominates with over 38% share, driven by increased cybersecurity spending, regulatory compliance mandates, and adoption of advanced XDR platforms.