XDR Market to Hit $38.09B by 2031 as Identity Threats Surge
Delray Beach, Fla. – October 02, 2026 -- The global Extended Detection and Response (XDR) market is projected to grow from USD 10.98 billion in 2026 to USD 38.09 billion by 2031, a compound annual growth rate of 28.2%, according to MarketsandMarkets. The market stood at USD 7.92 billion in 2025, reflecting accelerating enterprise adoption of unified threat detection platforms.
Identity-based attacks drive integration of detection signals
Growing reliance on cloud applications, hybrid identities, service accounts, and machine-to-machine authentication is pushing organizations toward XDR to correlate identity behavior with endpoint and cloud activity. Microsoft notes that non-human identities can carry high privileges, making lateral-movement detection a priority for security teams managing increasingly distributed infrastructure.