Incident Response Market Size, Share, Growth & Industry Analysis, By Component (Solution, Services), By Deployment (Cloud, On-Premises), By Type, By Security Type, By Organization Size, By lndustry Vertical (BFSI, Govt. & Defence, IT & Telecomm. & Others) and Regional Analysis, 2024-2031

Incident Response Market Size

The global Incident Response Market size was valued at USD 27.63 billion in 2023 and is projected to grow from USD 32.48 billion in 2024 to USD 110.00 billion by 2031, exhibiting a CAGR of 19.04% during the forecast period. As organizations transition to cloud-based infrastructures, they encounter increased complexity and potential vulnerabilities associated with these environments.

The adoption of cloud services has expanded the attack surface, making it essential for businesses to implement specialized incident response strategies designed to address and mitigate risks in cloud settings. This shift is fostering the demand for response services and solutions capable of effectively managing incidents within cloud environments, thereby contributing to the market growth.

In the scope of work, the report includes services offered by companies such as CrowdStrike, IBM Corporation, LevelBlue, Cynet, Check Point Software Technologies Ltd., Mandiant, Kaspersky Lab, Blackberry (Cylance AI)., McAfee, LLC, BAE Systems, and others.

Moreover, governments and regulatory bodies worldwide are imposing stringent data protection laws and cybersecurity regulations, such as GDPR and CCPA, which mandate organizations to establish and maintain effective cyber response plans, fueling incident response market growth. Compliance with these regulations is fostering the demand for incident response services.

Incident response is a systematic approach employed by organizations to effectively detect, manage, and mitigate the impact of cybersecurity incidents, such as data breaches, malware attacks, or unauthorized access. The process involves several critical steps, including preparation, identification, containment, eradication, recovery, and lessons learned.

By implementing a robust incident response plan, organizations aim to minimize damage, reduce recovery time, and ensure compliance with regulatory requirements. This proactive strategy safeguards sensitive data and critical assets and strengthens an organization’s overall cybersecurity posture, enabling a swift and efficient response to evolving cyber threats.

Analyst’s Review

As the frequency and complexity of cyber threats continue to escalate, governments around the world are implementing increasingly stringent regulations. These regulations require organizations to adopt comprehensive cybersecurity measures, including robust incident response frameworks.

These regulations, such as the General Data Protection Regulation (GDPR) in Europe and the Cybersecurity Maturity Model Certification (CMMC) in the United States establish rigorous standards for data protection, breach notification, and incident management. Consequently, it is imperative for organizations to implement advanced incident response solutions to ensure compliance and avoid severe penalties.

In addition to regulatory pressures, governments are making substantial investments in cybersecurity infrastructure, recognizing its importance as a critical component of national security, boosting the expansion of the incident response market. These investments often involve funding for national cybersecurity strategies, establishing dedicated cybersecurity agencies, and fostering public-private partnerships aimed at enhancing the resilience of critical infrastructure sectors such as finance, healthcare, and energy.

• In July 2024, IBM announced that it has secures a five-year contract with initial funding of USD 26 million from the U.S. Agency for International Development (USAID) to support its Cybersecurity Protection and Response (CPR) program. This initiative is designed to expand and enhance USAID’s cybersecurity response capabilities for host governments in the Europe and Eurasia (E&E) region. IBM's multidisciplinary teamis anticipated to offer ongoing support to help USAID strengthen the ability of host government agencies and critical infrastructure operators to identify, protect against, detect, respond to, and recover from cyberattacks.

Moreover, these government-led initiatives frequently include efforts to raise awareness regarding cybersecurity risks and to enhance organizational capacity for effectively responding to cyber incidents. This increases the adoption of incident response technologies and fosters a culture of cybersecurity that emphasizes proactive threat management, thus propelling incidenr response market growth.

Incident Response Market Growth Factors

The frequency and sophistication of cyberattacks are increasing, with threats such as ransomware, phishing, and advanced persistent threats (APTs) becoming more prevalent. These evolving threats pose severe risks to organizations' critical assets, making the implementation of robust incident response solutions critical. Companies are progressively investing in advanced incident response capabilities to detect, manage, and mitigate the impact of these attacks, thereby bolstering incident response market growth.

• A 2024 study by the National University reveals a 75% increase in cloud environment intrusions over the past year, 2023. As of 2023, more than 72% of businesses globally were impacted by ransomware attacks. Additionally, 82% of data breaches involved cloud-based data, with ransomware identified as the primary threat. Furthermore, 52% of organizations faced ransomware attacks that had a significant impact on their business systems and operations.

Moreover, as organizations transition to cloud-based infrastructures, the complexity and potential vulnerabilities associated with these environments have increased. The adoption of cloud services has expanded the attack surface, making it essential for businesses to implement specialized incident response strategies to effectively address and mitigate risks in cloud settings, thereby aiding the market. 

However, integrating new incident response technologies with existing IT infrastructure and security systems presents a significant challenge, deterring organizations and hindering market growth. This is due to concerns about compatibility, potential disruptions, and the need for specialized technical expertise.

To overcome these barriers and sustain market growth, companies are collaborating closely with technology vendors to ensure smooth integration and leverage customized support. Modular solutions are also being adopted, allowing for incremental implementation and easier alignment with existing systems, thereby sustaining the market growth. Additionally, organizations are investing in professional services and consulting to guide complex integrations and provide ongoing support.

Furthermore, with rising awareness of the importance of data privacy and protection, organizations are prioritizing incident response strategies to safeguard sensitive information. High-profile data breaches and the resulting financial and reputational damage have underscored the need for prompt and effective incident response. Companies are investing in incident response solutions to quickly address breaches, minimize impact, and protect their data, thereby fueling market growth. 

Incident Response Industry Trends

The growing cybersecurity workforce is emerging as a significant incident response market trend, supported by the rising need for skilled professionals to combat increasingly sophisticated cyber threats. As organizations increasingly recognize the critical importance of maintaining a robust incident response capability, there is a surge in demand for cybersecurity experts who are proficient in detecting, analyzing, and responding to security incidents.

This trend is further fueled by the evolving regulatory landscape and the adoption of advanced technologies, both of which require specialized knowledge and expertise. Companies are investing heavily in training and development programs to build a strong cybersecurity talent pool, ensuring that they are equipped to handle the complexities of modern cyberattacks.

• According to the International Information System Security Certification Consortium (ISC2) in 2024, the global cybersecurity workforce was estimated to reach 5.5 million in 2023, reflecting an 8.7% increase from the previous year and the creation of nearly 440,000 new jobs. Notably, Japan has exhibited a rapid growth rate in this sector, with a remarkable 24% increase year over year.

Additionally, the transition to remote and hybrid work models has significantly increased the attack surface for organizations, making them more vulnerable to cyber incidents. This trend has led to the widespread adoption of incident response solutions to secure remote work environments and mitigate potential threats. As businesses increasingly adopt flexible work arrangements, there is a growing demand for comprehensive incident response services to manage security risks in remote settings.

Segmentation Analysis

The global market has been segmented based on component, deployment, type, security type, organization size, industry vertical, and geography.

By Component

Based on component, the market has been segmented into solution and services. The solution segment led the incident response market in 2023, reaching a valuation of USD 24.74 billion due to its critical role in providing organizations with the necessary tools and technologies to effectively manage and mitigate cyber threats.

These solutions encompass a wide range of software and platforms, including security information and event management (SIEM) systems, endpoint detection and response (EDR) tools, and automated incident response platforms. These solutions enable organizations to quickly detect, analyze, and respond to security incidents, thereby minimizing potential damage and reducing downtime.

Additionally, the increasing adoption of cloud-based and AI-driven solutions further enhances the capabilities of incident response strategies. This advancement makes the solution component the preferred choice for businesses aiming to strengthen their cybersecurity posture.

By Deployment

Based on deployment, the market has been classified into cloud and on-premises. The cloud segment secured the largest revenue share of 57.39% in 2023. As organizations increasingly migrate their critical operations and data to the cloud, there has been a pressing need for specialized incident response solutions tailored to these environments.

Cloud platforms present unique security challenges, such as complex configurations, data sovereignty issues, and multi-tenant environments, which require advanced incident response strategies. Additionally, the scalability and flexibility of cloud-based incident response solutions allow organizations to rapidly detect, analyze, and mitigate threats across distributed networks. This increased focus on securing cloud infrastructures has positioned the cloud deployment as the leading choice for incident response.

By Industry Vertical

Based on industry vertical, the incident response market has been divided into BFSI, Govt. & defence, it & telecomm., healthcare, retail, and others. The BFSI segment is poised to experience significant growth at a robust CAGR of 20.56% through the forecast period.

Given the increasing frequency and sophistication of cyberattacks targeting financial institutions, including phishing, ransomware, and data breaches, the BFSI sector is confronted with significant risks that could result in substantial financial losses and regulatory penalties.

Moreover, stringent compliance requirements, including GDPR, PCI DSS, and other global financial regulations, mandate the implementation of robust incident response mechanisms to protect customer data and ensure the continuity of services. Due to this, financial institutions are heavily investing in advanced incident response solutions to detect, respond to, and mitigate cyber threats promptly, thereby aiding segmental growth.

Incident Response Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America incident response market held a notable share of around 38.01% in 2023, with a valuation of USD 10.50 billion. North America, particularly the United States, is a prime target for cyberattacks due to the concentration of high-value organizations and critical infrastructure.

The region has witnessed an increase in sophisticated cyber threats, such as ransomware, zero-day exploits, and advanced persistent threats (APTs), which are often state-sponsored or involve organized cybercriminal groups. This growing threat landscape has compelled organizations across various sectors to invest heavily in incident response solutions to detect, mitigate, and recover from these attacks, driving the market growth in the region.

The need to safeguard sensitive data and ensure business continuity is fueling the demand for advanced incident response capabilities, thereby contributing to market growth.

• The FBI’s Internet Crime Report 2023 reveals that there were 880,418 cybercrime complaintsfiled by the public, marking a 10% increase from the previous year. The total potential total losses attributed to these crimes surged to USD 12.5 billion in 2023, compared to USD 10.3 billion in the previous year. California, Texas, and Florida recorded the highest number of cybercrime victims.

Moreover, North America is at the forefront of technological innovation, with widespread adoption of cloud computing, Internet of Things (IoT) devices, and artificial intelligence (AI). While these technologies offer significant benefits, they also introduce new vulnerabilities and increase the attack surface for organizations.

Securing these advanced technologies necessitates specialized incident response strategies to effectively address the unique challenges they pose. This is prompting companies to increasingly invest in incident response tools that leverage AI and machine learning to enhance threat detection and response capabilities, thereby bolstering market growth.

Asia Pacific is poised to witness significant growth at a robust CAGR of 21.63% over the forecast period. Governments across the Asia-Pacific region are recognizing the critical importance of cybersecurity and are actively strengthening their regulatory frameworks and cybersecurity policies.

Countries such as Singapore, Australia, and China have established national cybersecurity strategies and regulations that mandate organizations to implement comprehensive incident response plans. Additionally, regional collaborations, such as the ASEAN Cybersecurity Cooperation Strategy, are promoting cross-border initiatives to enhance cyber resilience, that is positively inpactiong the growth of the market in Asia Pacific.

These government-led efforts are prompting organizations to adopt and upgrade their incident response capabilities to comply with regulatory requirements and protect national security.

• In January 2024, the Indian government introduced the National Cybersecurity Reference Framework (NCRF), a comprehensive guideline designed to establish cybersecurity standards across the nation. The framework targets key sectors such as telecom, power, transportation, finance, strategic entities, government bodies, and healthcare. It provides recommendations fororganizationsto develop robust cybersecurity systems and advises that enterprisesallocate at least 10% of their total IT budget to cybersecurity, with oversight by top-level management or the board of directors.

Additionally, Asia Pacific is experiencing increasing digital transformation and rapid urbanization globally, with governments and businesses increasingly adopting digital technologies to enhance efficiency and foster market growth. This digital shift is accompanied by the expansion of smart cities, IoT devices, and cloud computing, which have significantly increased the attack surface for cyber threats.

As the digital infrastructure in the region continues to expand, the importance of implementing effective incident response strategies to protect critical data and systems has become crucial. Organizations are investing heavily in advanced incident response solutions to secure their digital environments and ensure business continuity amidst the ongoing digital revolution.

• According to the 2023 reports from the World Economic Forum, South Asian countries are increasinglyadopting digitalization in a strategic and widespread manner. By 2030, Southeast Asia's internet economy is projected to reach USD 1 trillion, fueled by a rapidly expanding base of digital consumers and applications.

Competitive Landscape

The global incident response market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, could create new opportunities for market growth.

List of Key Companies in Incident Response Market

• CrowdStrike
• IBM Corporation
• LevelBlue
• Cynet
• Check Point Software Technologies Ltd.
• Mandiant
• Kaspersky Lab
• Blackberry (Cylance AI).
• McAfee, LLC
• BAE Systems.

Key Industry Developments

• May 2024 (Launch): BlackBerry launched the Cylance Assistant, a generative AI tool specifically designed to enhance cyber threat detection and response capabilities. Developed on BlackBerry's Cylance AI platform, Cylance Assistant leverages Amazon Web Services' (AWS) Generative AI service, Amazon Bedrock.
• March 2024 (Business Expansion): IBM officially inaugurated its new IBM X-Force Cyber Range in Washington, DC. This cutting-edge facility provides customized training exercises aimed at enhancing the ability of U.S. federal agencies, their suppliers, and critical infrastructure organizations to respond to cyberattacks and AI-related threats. The Cyber Range equips a diverse group of professionals, including legal, C-Suite executives, mission-critical leaders, and technical security teams, with the skills needed to handle real-world cyber incidents effectively.

The global incident response market is segmented as:

By Component

• Solution
• Services

By Deployment

• Cloud
• On-Premises

By Type

• Retainer
• Assessment & Response
• Tabletop Exercise
• Incident Response Planning & Development
• Advanced Threat Hunting
• Others

By Security Type

• Web Security
• Application Security
• Endpoint Security
• Network Security
• Cloud Security

By Organization Size

• SMEs
• Large Enterprise

By Industry Vertical

• BFSI
• & Defence
• IT & Telecomm.
• Healthcare
• Retail
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America