MDR services market set to reach US$9 billion in 2024
Canalys has reported that managed detection and response (MDR) services are projected to grow by 50% in 2024, reaching a market value of USD $9 billion. This significant increase is attributed to a surge in the number of channel partners offering cybersecurity managed services, many of which leverage third-party security operations centres provided by managed security services providers (MSSPs) or IT cybersecurity vendors.
Several external factors are also driving this growth. Regulatory requirements, supply chain compliance mandates, and demands from cyber-insurance companies are pushing businesses to adopt robust cybersecurity measures. However, a notable rise in litigation involving channel partners and end customers following cyber breaches suggests there is often a critical disconnect between managed service providers (MSPs) and their clients regarding each party's responsibilities.
Keith Kamath, Senior Digital Marketing Executive at Canalys, emphasised the importance of clarity and communication in the services provided. "Partners that offer managed cybersecurity services need to be acutely aware of what they are receiving from their third-party MDR providers in terms of response and remediation capabilities," he said.
The current landscape indicates that MSPs are navigating an increasingly complex environment. Beyond just the technology and emerging threats, they need to understand a broad spectrum of stakeholders, including customers, regulators, legal firms, and third-party service providers. This ecosystem requires a coordinated approach to delivering cybersecurity services, starting from the initial assessment phase through to post-breach forensics.
The report further stresses the necessity for vendors and MSSPs to clearly define the extent of their services. According to Canalys, explicit service terms are critical. "If terms of service cover only monitoring and alerting in case of a breach, but exclude proactive response and remediation, vendors must communicate this upfront," Kamath stated. This clarity is essential to prevent misunderstandings that could lead to severe consequences for all parties involved.
Channel partners must ensure they are transparent about the services they can deliver and the roles third parties play within their operations. Effective communication with customers is crucial to maintain compliance, not only for the clients but also for the service providers themselves.
These pertinent issues will be a focal point at the upcoming Canalys Forums 2024. The event will feature a dedicated panel, "MSP Reality Check" Expert Hub, where vendors and top channel partners will delve into the complexities of the cybersecurity landscape and explore strategies to address these challenges. This forum offers a valuable platform for senior executives at partner companies to discuss how to adapt swiftly to the evolving needs of their customers.
The Canalys Forums 2024 will be held across different regions, including EMEA from 8-10 October in Berlin, Germany, North America from 22-24 October in Miami, Florida, and APAC from 3-5 December in Bali, Indonesia. These events will bring together leading channel-focused vendors, their partners, and the Canalys team to provide insights and encourage collaborative efforts to strengthen cybersecurity offerings.
