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How is the Endpoint Security Market Poised to Grow in the Coming Years?

The endpoint security market trajectory for endpoint security is being propelled by a "perfect storm" of infrastructure sprawl and threat velocity. The primary driver is the explosion of connected assets; the number of IoT devices globally is projected to reach 21.1 billion by the end of 2025. Each of these devices represents a potential entry point for attackers, necessitating a massive scale-up in defensive software coverage. Furthermore, the financial stakes are higher than ever, with the global average cost of a data breach hitting USD 4.88 million in 2024.

Consequently, organizations are abandoning legacy, manual security measures in favor of automated platforms, especially in the energy sector and adopting IoTs. The market is shifting toward solutions that can handle speed; with eCrime adversaries achieving a breakout time—the time to move laterally after compromising a host—of just 62 minutes, human operators cannot react fast enough. This latency gap is driving the rapid adoption of AI-driven endpoint solutions capable of machine-speed detection. With the global cybersecurity workforce gap standing at 4.8 million professionals, the market growth is partially strictly a function of labor displacement: companies are buying software because they cannot find the people to man the watchtowers.

Who Are the Top 5 Vendors Leading This Space and Why?

The competitive landscape is dominated by vendors who have successfully pivoted from simple prevention to holistic detection and response platforms.

1. CrowdStrike: Undeniably a market leader, CrowdStrike has redefined the sector with its cloud-native Falcon platform. Their dominance is evidenced by a massive customer base exceeding 29,000 subscription clients. They differentiate themselves through threat intelligence, tracking 232 distinct adversarial groups to predict attacks before they happen.
2. SentinelOne: This vendor is growing rapidly due to its focus on autonomous, AI-driven protection. With an Annualized Recurring Revenue (ARR) of USD 663.9 million and over 11,500 customers, SentinelOne appeals to enterprises seeking to reduce manual overhead. Their success with high-value clients is notable, boasting 1,060 customers who contribute more than USD 100,000 in ARR.
3. Microsoft: Microsoft’s ubiquity with the Defender suite makes it a formidable force. Their ability to integrate endpoint security directly into the operating system and cloud stack appeals to organizations looking to consolidate the 60 to 75 distinct security tools the average enterprise currently juggles.
4. Palo Alto Networks: Leading the charge on "platformization," Palo Alto Networks is aggressively capturing market share by consolidating network and endpoint data. Their strategy is working, evidenced by closing 1,100 consolidation deals recently, including a massive USD 85 million contract with a US telecom provider.
5. Trend Micro: A stalwart in the industry, Trend Micro remains a top player due to sheer volume and reliability. Their ability to block 161 billion threats annually and discover 1,914 zero-day vulnerabilities through their Zero Day Initiative keeps them essential for large enterprises requiring proven threat intelligence.

Which Application Areas Are Witnessing the Strongest Demand?

While every sector is at risk, specific verticals are driving outsized demand across the endpoint security market due to regulatory pressure and the potential cost of downtime.

Healthcare: This sector is currently the most critical growth area for endpoint security. With the average breach cost in healthcare reaching an eye-watering USD 9.77 million, hospitals are aggressively upgrading defenses to prevent ransomware that could threaten patient lives.

Banking, Financial Services, and Insurance (BFSI): Financial institutions face the highest frequency of sophisticated attacks. With the average cost of a breach in this sector at USD 6.08 million, the demand for real-time fraud detection at the endpoint is non-negotiable.

Retail and E-commerce: As digital transactions surge, so does fraud. With Zscaler blocking over 2 billion phishing transactions annually, retailers are investing heavily to protect Point of Sale (POS) systems and customer databases from scraping and credential theft.

Manufacturing and IoT: With the cellular IoT chipset market alone valued at USD 4.07 billion, manufacturers are scrambling to secure Operational Technology (OT) environments. Infected IoT devices remain under attack for an average of 52.8 hours, creating unacceptable production risks that drive security spending.

How Are Recent Cyberattacks and Security Concerns Affecting the Market?

The increasing sophistication and financial impact of recent attacks act as the primary catalyst for endpoint security market expansion. The era of "spray and pray" malware has been replaced by targeted, high-stakes extortion. The largest confirmed ransom payment recently hit USD 75 million, alerting boards of directors globally that cybersecurity is a balance sheet issue. Furthermore, the sheer volume of vulnerability exploitation—40,009 CVEs published in 2024 alone—has rendered manual patching strategies obsolete.

This hostile environment is forcing a shift toward "Zero Trust" architecture, where endpoints are never implicitly trusted. The reality that it takes organizations 292 days to identify and contain breaches involving compromised credentials has shattered faith in traditional perimeter defenses. High-profile data leaks, such as the National Public Data breach exposing 2.9 billion records, have heightened public scrutiny and regulatory fines, effectively making advanced endpoint security a mandatory compliance cost rather than an optional IT expense.

Which Key Countries Are Witnessing Stronger Demand Than Others?

Demand is not distributed evenly; it is concentrated in regions with high digital dependency and stringent regulatory frameworks.

United States: The US remains the dominant market force in the global endpoint security market. Despite having a cybersecurity workforce of 1.28 million, the country faces a shortage of 225,200 skilled workers. This gap, combined with 1.5 million job openings, forces US companies to automate security. Additionally, the SEC’s new disclosure rules are pushing public companies to harden their endpoints to avoid liability.

United Kingdom: With a workforce of 349,360, the UK is seeing strong demand driven by GDPR and high cloud adoption. The high density of financial services firms in London also contributes significantly to the uptake of advanced EDR solutions.

Israel: As a global innovation hub, Israel sees high domestic demand and export potential, driven by a mature understanding of cyber warfare and nation-state threats.

What Are the Recent Trends Shaping Market Dynamics?

Two major trends are reshaping the endpoint security market landscape in 2025: Platform Consolidation and AI-Driven Automation.

Organizations are suffering from "tool fatigue." With the average retail organization managing between 10 and 49 distinct security tools, efficiency is plummeting. Consequently, buyers are favoring vendors who offer unified platforms (XDR) that combine endpoint, identity, and cloud security. This is evidenced by Palo Alto Networks’ success in closing platform-centric deals.

Simultaneously, the speed of attacks is necessitating AI integration. With adversaries weaponizing 204 distinct flaws in just seven months, human defenders cannot keep pace. The market is trending toward "autonomous" security agents that can detect and block 78,923 new malware variants—as found by SonicWall—without waiting for cloud updates. The ability to identify a phishing link in the 21 seconds it takes a user to click it is now the benchmark for competitive solutions.

Segmental Analysis

By Deployment: On-premises (Largest)

On-Premises Retains Critical Share in Endpoint Security Market Due to Rigid Data Sovereignty and Legacy Mandates

Despite the rapid growth of cloud solutions, on-premises deployments hold a massive, persistent share of the market, primarily anchored by the Global 2000, government, and defense sectors. Broadcom’s Symantec division explicitly targets this segment, publicly affirming that "Symantec Enterprise is here to stay" with a focus on hybrid and on-premises support for highly regulated industries. These organizations often operate "air-gapped" networks—systems physically isolated from the internet—where cloud-native solutions cannot function.

The dominance of this segment in the endpoint security market is justified by strict data sovereignty laws (such as GDPR in Europe and localized banking regulations) that forbid sensitive data from leaving physical jurisdictional boundaries. As highlighted in Broadcom’s strategic pivot, the retention of high-value, legacy contracts relies on their ability to service these complex, on-premise infrastructures that cannot easily migrate to the cloud due to compliance risks or technical debt. While cloud adoption is faster, the installed base and total value of on-premises contracts remain substantial because they protect the world's most critical and immovable financial and operational technology (OT) assets.

By Enterprise Size: Large Enterprises (Largest)

Large Enterprises Dominate Spending Driven by Complex Infrastructure and Regulatory Compliance

Large enterprises represent the leading segment, contributing nearly two-thirds of total revenue to the endpoint security market, as they possess the expansive budgets and complex infrastructure that necessitate comprehensive security suites. Trend Micro’s 2024 earnings report reveals that their enterprise segment is the primary revenue driver, significantly outpacing consumer sales, confirming that big business is the market's financial engine. These organizations face exponentially higher risks; the Verizon 2024 Data Breach Investigations Report (DBIR) indicates that large entities are the primary targets of lucrative ransomware extortion and supply chain attacks.

The dominance in the endpoint security market is further justified by the trend of "vendor consolidation." Large enterprises are actively moving away from disjointed point products to unified platforms offered by leaders like Palo Alto Networks and CrowdStrike. Only large enterprises have the scale to deploy and manage these full-stack platforms, which include EDR, identity protection, and cloud security. The sheer volume of endpoints—ranging from thousands to hundreds of thousands of devices per company—ensures that the recurring revenue from this segment dwarfs that of the Small and Medium Enterprise (SME) market.

By Industry Verticals: IT and Telecommunications (Largest)

IT and Telecommunications Sector Leads Market Driven by Critical Network Infrastructure

The IT and Telecommunications sector stands as the dominant vertical in the endpoint security market, accounting for approximately 30% of the market, as it forms the backbone of global digital connectivity. This dominance is driven by the massive attack surface created by the rollout of 5G networks and the proliferation of IoT devices, which require carrier-grade endpoint security. Palo Alto Networks Unit 42 research highlights that the telecommunications industry faces some of the highest volumes of automated attacks due to its role as a gateway to other businesses and consumers.

The sector's spending is non-negotiable; telcos are now themselves Managed Security Service Providers (MSSPs), meaning they must secure their own infrastructure to sell security services to others. For instance, major carriers partner with vendors like Check Point and Fortinet to embed security directly into their network endpoints. Furthermore, the Verizon DBIR consistently identifies the information technology sector as a top target for system intrusion and espionage, compelling these firms to maintain the highest level of endpoint hardening to prevent catastrophic downstream effects on global communications.

By Component: Software (Largest)

Software Solutions Command Market Share Through Scalable AI-Driven Threat Protection

Software solutions currently account for the majority of the endpoint security market share, driven by the critical shift from reactive antivirus to proactive, AI-driven defense mechanisms. As noted in Trend Micro’s financial reports, enterprise subscription and platform-based software sales now constitute over 76% of their business, highlighting the overwhelming preference for software over one-off services. This dominance is fueled by the necessity of Endpoint Detection and Response (EDR) and Extended Detection and Response (XDR) platforms, which are software-centric solutions required to combat sophisticated ransomware and "living-off-the-land" attacks.

The software segment's leadership in the endpoint security market is further solidified by the integration of Generative AI into security stacks, such as Microsoft’s Security Copilot and CrowdStrike’s Charlotte AI, which are deployable only via software updates. Unlike the services segment, which relies on human labor and scales linearly, software offers infinite scalability and instant remediation capabilities. Consequently, organizations are allocating the bulk of their cybersecurity budgets to software licenses that offer automated, real-time protection, as verified by Microsoft’s reported 28.6% growth in its modern endpoint security software revenue in 2024.

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Regional Analysis 

How is North America Poised to Grow as the Largest Contributor?

North America continues to hold the lion’s share of the endpoint security market, driven by a mature corporate landscape and the highest concentration of high-value targets. The region’s growth is sustained by the immense volume of compromised data; the Identity Theft Resource Center reported 1.73 billion people notified of compromises, many of whom are US-based. This creates a litigious environment where negligence is costly.

Moreover, the infrastructure in North America endpoint security market is vast. The sheer number of connected devices and the widespread adoption of remote work keep the attack surface massive. With 102 million malicious emails targeting organizations annually, US enterprises are investing heavily in Next-Gen Antivirus (NGAV) and EDR to protect intellectual property. The region’s growth is stable but substantial, fueled by replacement cycles where legacy antivirus is swapped for cloud-native platforms like CrowdStrike and SentinelOne.

How Are Asia Pacific and Europe Set to Grow in the Years to Come?

Europe is witnessing growth across the global endpoint security market, which is driven primarily by regulation. The NIS2 directive and GDPR enforcement are compelling organizations to demonstrate robust security postures or face severe fines. With the recovery cost from ransomware (excluding the ransom) averaging USD 2.73 million, European firms are financially motivated to adopt preventative endpoint measures. The market here is focused heavily on data privacy and compliance-driven security modules.

Conversely, the Asia Pacific region represents the fastest growth percentage-wise. As digitization accelerates in economies like India and Southeast Asia, the "greenfield" opportunity is massive. These regions are leapfrogging legacy technologies and moving directly to cloud-native endpoint security. However, they also face significant threats; the region is a playground for mobile threats, with users facing an average of 600 mobile security threats annually. As the 5G rollout expands across APAC, connecting millions of new IoT devices, the demand for lightweight, scalable endpoint protection is set to skyrocket, making it the most dynamic region for new customer acquisition in the coming decade.

Top 5 Recent Developments in Endpoint Security Market

1. ESET Protect MDR Launch: ESET announced Protect MDR on November 3, 2025, via its official India press release, offering 24/7 endpoint protection, vulnerability patching, and 6-minute MTTR for SMBs and enterprises.
2. ​N-able-Adlumin Integration: N-able revealed its Ecoverse platform integration with Adlumin's MDR post-April 2025 acquisition in a CRN-reported company update, bolstering Microsoft 365 defenses against account takeovers.
3. ​ThreatLocker Anomaly Detection: ThreatLocker launched Advanced Anomaly Detection for Cyber Hero MDR in August 2025, per vendor statements in CRN, enhancing cloud threat log analysis.
4. ​WatchGuard AI Strategy: WatchGuard detailed its 2025 endpoint roadmap on May 18 via company blog press, highlighting AI-driven Zero Trust beyond AV/EDR.
5. ​ESET Ransomware Remediation: ESET released Ransomware Remediation and AI Advisor updates for Protect Platform on April 1, 2025, through GlobeNewswire, aiding automated recovery.

Top Companies in the Endpoint Security Market

• AO Kaspersky Lab
• Bitdefender
• BlackBerry
• Broadcom Inc.
• Cisco Systems Inc.
• Comodo Security Solutions Inc.
• CrowdStrike Holdings Inc.
• Cybereason Inc.
• Deep Instinct Ltd
• Endgame
• ESET Spol. s r.o.
• Fortinet Inc.
• F-Secure Corp.
• IBM
• Kaspersky Lab JSC
• Malwarebytes Inc.
• Microsoft
• OpenText
• Palo Alto Networks Inc.
• Quick Heal Technologies
• SentinelOne Inc.
• Sophos Ltd.
• Trellix
• Trend Micro Inc.
• Vmware
• Other Prominent Players

Market Segmentation Overview

By Component

• Software
• Service

By Deployment Mode

• On-premises
• Cloud Based

By Organization Size

• Large Enterprises
• Small and Medium-sized Enterprises

By Industry Verticals

• BFSI
• IT and Telecommunications
• Government and Defense
• Healthcare and Life Sciences
• Manufacturing
• Retail and E-Commerce
• Others

By Region

• North America
  • The US
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia and New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America