The global security testing market size is projected to grow from USD 14.5 billion in 2024 to USD 43.9 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 24.7% during the forecast period. The security testing market is growing largely because of the developments of AI and ML that make anomaly detection and vulnerability prediction more reliable and thus improve threat detection and data protection. Moreover, the introduction of the new cloud-based security testing platforms further propels the market growth as these platform enables companies to access cost-effective and flexible solutions for protecting cloud environments.
Scope of the Report
Years Considered for the Study
2018-2029
Base Year
2023
Forecast Period
2024-2029
Units Considered
USD (Billion)
Segments
by Type, Network Security Testing, Application Testing Tools And Region
Regions covered
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
"By vertical, the healthcare segment accounts for the highest CAGR during the forecast period."
The healthcare vertical holds the largest market share in the security testing market due to its critical need for stringent security measures. With high reliability standards required to comply with industry regulations and internal best practices, healthcare organizations must protect sensitive patient information. The frequent targeting of hospitals and critical healthcare institutions by cybercriminals, driven by the urgency to disrupt IT systems and exploit vulnerabilities, highlights the sector's vulnerability. Incidents like ransomware attacks and medical identity theft can severely compromise patient care and safety. The potential for significant adverse impacts, including stalled treatments and false health records, underscores the necessity for robust security testing.
"By security testing type, the application security testing segment accounts for the highest CAGR during the forecast period."
Application security testing market has the growing at the fastest rate in security testing market because companies in different sectors, for example, BFSI, healthcare, retail, IT & ITeS, and Telecom, are depending much more on applications. With companies increasingly deploying digital solutions, it has become imperative to discover and address vulnerabilities in internal and external applications and their APIs. Additionally, the increasing number of sophisticated threats has resulted into the development of advanced testing tools with dedicated services and features for application security testing making it a lucrative segment with high growth potential.
Breakdown of primaries
The study contains insights from various industry experts, from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:
By Company Type: Tier 1 - 20%, Tier 2 - 32%, and Tier 3 - 48%
By Designation: C-level - 40% and Managers and Other Levels - 60%
By Region: North America - 40%, Europe - 25%, Asia Pacific - 20%, Middle East & Africa - 10%, Latin America - 5%
Major vendors in the global security testing market include as IBM (US), HCLTech (India), Synopsys (US), OpenText (UK), Cigniti Technologies (US), Qualitest (UK), Intertek (UK), DXC Technology (US), eInfochips (US), Checkmarx (US), HackerOne (US), Invicti (US), DataArt (US), Cobalt Labs (US), Trustwave (US), Contrast Security (US), Veracode (US), Qualys (US), OffSec (US), NCC Group (UK), GitHub (US), Bugcrowd (US), Applause (US), Rapid7 (US), Parasoft (US), BreachLock (US), ImmuniWeb (Switzerland), Pentest People (UK), SafeAeon (US), and REDTEAM.PL (Poland).
The study includes an in-depth competitive analysis of the key players in the security testing market, their company profiles, recent developments, and key market strategies.
Research Coverage
The report segments the security testing market and forecasts its size by Security Testing Type (Network Security Testing, Application Security Testing, Device Security Testing, and Social Engineering Testing), Network Security Testing Type (Network Penetration Testing, Vulnerability Scanning, Wifi/Wireless Security Testing, Firewall Security Testing, and Network Configuration Auditing), Application Security Testing Type (Mobile Application Security Testing, Web Application Security Testing, API Security Testing, and Secure Code Review), Application Security Testing Tools (RASP (Runtime Application Self-Protection), SAST (Static Application Security Testing), DAST (Dynamic Application Security Testing), and IAST (Interactive Application Security Testing)), Organization Size (Large Enterprises and SMEs), Vertical (BFSI, Healthcare, Government & Defense, IT & ITeS, Telecommunication, Manufacturing, Retail & E-Commerce, Education, Energy & Utilties, and Other Vertical), and Region (North America, Europe, Asia Pacific, Middle East and Africa, and Latin America).
The study also includes an in-depth competitive analysis of the market's key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall security testing market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
Analysis of key drivers (increasing sophistication in cyberattack drives the growth of security testing, rising demand of security testing for web and mobile applications, stringent government regulations to increase the adoption of security testing solutions and services, and need to ensure seamless user experience with accelerated release cycles), restraints (security breaches due to internal vulnerabilities), opportunities (emergence of technologies like ai and ml in security testing, increase in adoption of cloud-based security testing, and integration of DevSecOps in software security testing), and challenges (higher costs involved in executing security tests and lack of cybersecurity professionals)
Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the security testing market.
Market Development: Comprehensive information about lucrative markets - the report analyses the security testing market across varied regions.
Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the security testing market.
Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players IBM (US), HCLTech (India), Synopsys (US), OpenText (UK), Cigniti Technologies (US), among others, in the security testing market strategies.
TABLE OF CONTENTS
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.2.1 INCLUSIONS AND EXCLUSIONS
1.3 STUDY SCOPE
1.3.1 MARKET SEGMENTATION
1.4 YEARS CONSIDERED
1.5 CURRENCY CONSIDERED
1.6 STAKEHOLDERS
1.7 SUMMARY OF CHANGES
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.1.1 SECONDARY DATA
2.1.2 PRIMARY DATA
2.1.2.1 Breakup of primary profiles
2.1.2.2 Key insights from industry experts
2.2 DATA TRIANGULATION
2.3 MARKET SIZE ESTIMATION
2.3.1 TOP-DOWN APPROACH
2.3.2 BOTTOM-UP APPROACH
2.4 MARKET FORECAST
2.5 RESEARCH ASSUMPTIONS
2.6 RESEARCH LIMITATIONS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES FOR KEY PLAYERS IN SECURITY TESTING MARKET
4.2 SECURITY TESTING MARKET, BY SECURITY TESTING TYPE, 2024
4.3 SECURITY TESTING MARKET, BY NETWORK SECURITY TESTING TYPE, 2024
4.4 SECURITY TESTING MARKET, BY APPLICATION SECURITY TESTING TYPE, 2024
4.5 SECURITY TESTING MARKET, BY APPLICATION SECURITY TESTING TOOL, 2024
4.6 SECURITY TESTING MARKET, BY ORGANIZATION SIZE, 2024
4.7 SECURITY TESTING MARKET, BY VERTICAL, 2024
4.8 MARKET INVESTMENT SCENARIO
5 MARKET OVERVIEW AND INDUSTRY TRENDS
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Increased sophistication and variety in cyberattacks fueling demand for security testing
5.2.1.2 Rapid adoption of web and mobile applications vulnerable to cyberattack
5.2.1.3 Stringent government regulations to develop cybersecurity standards for data protection
5.2.1.4 Need to ensure seamless user experience with accelerated release cycles
5.2.2 RESTRAINTS
5.2.2.1 Security breaches due to internal vulnerabilities
5.2.3 OPPORTUNITIES
5.2.3.1 Emergence of technologies, such as AI and ML, in security testing
5.2.3.2 Increased adoption of cloud-based security testing
5.2.3.3 Integration of DevSecOps in software security testing
5.2.4 CHALLENGES
5.2.4.1 Absence of skilled cybersecurity professionals
5.2.4.2 Higher costs involved in executing security tests
5.3 TRENDS AND DISRUPTIONS IMPACTING CUSTOMER BUSINESS
5.4 PRICING ANALYSIS
5.4.1 AVERAGE SELLING PRICE TREND OF KEY PLAYERS, BY TESTING TYPE
5.4.2 INDICATIVE PRICING ANALYSIS, BY VENDOR
5.5 VALUE CHAIN ANALYSIS
5.5.1 SECURITY TESTING TOOLS AND SERVICE PROVIDERS
7.1.2.1 Network penetration testing to help ethical hackers simulate cyberattacks to uncover vulnerabilities
7.1.3 VULNERABILITY SCANNING
7.1.3.1 Network vulnerability scanning solutions to identify and mitigate potential threats
7.1.4 WI-FI/WIRELESS SECURITY TESTING
7.1.4.1 Need to identify vulnerabilities in wireless networks and ensure protection of sensitive data and systems to bolster market growth
7.1.5 FIREWALL SECURITY TESTING
7.1.5.1 Firewall security testing to evaluate effectiveness of firewalls in protecting networks from unauthorized access and cyber threats
7.1.6 NETWORK CONFIGURATION AUDITING
7.1.6.1 Network configuration auditing to scan network infrastructure, check for compliance with security policies, and identify devices with outdated firmware or insecure configurations
8 SECURITY TESTING MARKET, BY APPLICATION SECURITY TESTING TYPE
8.1.2.1 Mobile application security testing to protect sensitive data, help organizations adhere to regulations, and enhance security posture
8.1.3 WEB APPLICATION SECURITY TESTING
8.1.3.1 Web application security testing to help prevent data breaches, ensure compliance with industry standards, and maintain user trust
8.1.4 API SECURITY TESTING
8.1.4.1 API security testing to validate API endpoints to detect vulnerabilities that attackers might exploit and ensure safe integration with development processes
8.1.5 SECURE CODE REVIEW
8.1.5.1 Secure code review to help developers address issues early by analyzing code for potential security flaws and preventing future breaches and attacks
9 SECURITY TESTING MARKET, BY APPLICATION SECURITY TESTING TOOL
9.1.5.1 Interactive Application Security Testing (IAST) to combine static and dynamic testing elements to uncover web application vulnerabilities during runtime integration
10.1.2.1 Trend of digitalization and security testing, growing connectivity of bandwidths, and mobility trends in large enterprises to drive market
10.1.3 SMALL AND MEDIUM-SIZED ENTERPRISES
10.1.3.1 Complex IT environments and need to comply with stringent data protection regulations to propel market
11 SECURITY TESTING MARKET, BY VERTICAL
11.1 INTRODUCTION
11.1.1 VERTICALS: SECURITY TESTING MARKET DRIVERS
11.1.2 BANKING, FINANCIAL SERVICES, AND INSURANCE
11.1.2.1 Reliance on digital platforms for smart banking, internet banking, and mobile transactions increasing cyberattacks to foster market growth
11.1.3 HEALTHCARE
11.1.3.1 Critical nature of operations and sensitive nature of patient data to drive demand for security testing
11.1.4 GOVERNMENT & DEFENSE
11.1.4.1 Escalating cyber threats and evolving regulatory requirements to boost demand for security testing solutions
11.1.5 IT & ITES
11.1.5.1 Continuous development of new solutions and extensive use of web and mobile applications to rise demand for security testing solutions
11.1.6 TELECOMMUNICATIONS
11.1.6.1 Need to protect against evolving threats, comply with regulatory standards, and ensure reliability of services to boost market growth
11.1.7 MANUFACTURING
11.1.7.1 Security testing to help adhere to compliance requirements, protect against potential data breaches, and ensure overall security of manufacturing operations
11.1.8 RETAIL & ECOMMERCE
11.1.8.1 Digital transformation in retail and high-value transactions to accelerate market growth
11.1.9 EDUCATION
11.1.9.1 Surge in vulnerabilities in eLearning sector and shift toward digital technologies for educational data to propel market
11.1.10 ENERGY & UTILITIES
11.1.10.1 Rapid incorporation of digital technologies increasing exposure to cyberattacks to drive market
11.1.11 OTHER VERTICALS
12 SECURITY TESTING MARKET, BY REGION
12.1 INTRODUCTION
12.2 NORTH AMERICA
12.2.1 NORTH AMERICA: SECURITY TESTING MARKET DRIVERS
12.2.2 NORTH AMERICA: MACROECONOMIC OUTLOOK
12.2.3 US
12.2.3.1 Focus on strategic developments and rising incidents of cyber threats to drive market
12.2.4 CANADA
12.2.4.1 Significant rise in various types of cybercrimes to fuel demand for enhanced security testing
12.3 EUROPE
12.3.1 EUROPE: SECURITY TESTING MARKET DRIVERS
12.3.2 EUROPE: MACROECONOMIC OUTLOOK
12.3.3 UK
12.3.3.1 Strategic advancement in security testing through AI collaboration to boost market growth
12.3.4 GERMANY
12.3.4.1 Rapid digital transformation and surge in cyber threats to bolster demand for security testing
12.3.5 FRANCE
12.3.5.1 Expanding cybersecurity landscape to boost demand for security testing solutions
12.3.6 ITALY
12.3.6.1 Rise in sophisticated cyberattacks and demand for cybersecurity in automotive & industrial sectors to propel market
12.3.7 REST OF EUROPE
12.4 ASIA PACIFIC
12.4.1 ASIA PACIFIC: SECURITY TESTING MARKET DRIVERS
12.4.2 ASIA PACIFIC: MACROECONOMIC OUTLOOK
12.4.3 CHINA
12.4.3.1 Escalating cyber threats and stringent regulations regarding cybersecurity challenges to accelerate market growth
12.4.4 JAPAN
12.4.4.1 Advanced technological landscape and increasing cyber threats to fuel market growth
12.4.5 INDIA
12.4.5.1 Advancements in India's security testing frameworks and implementation of new regulations to propel market
12.4.6 REST OF ASIA PACIFIC
12.5 MIDDLE EAST & AFRICA
12.5.1 MIDDLE EAST & AFRICA: SECURITY TESTING MARKET DRIVERS
12.5.2 MIDDLE EAST & AFRICA: MACROECONOMIC OUTLOOK
12.5.3 GULF COOPERATION COUNCIL COUNTRIES
12.5.3.1 Implementation of 'Vision for Regional Security' to accelerate market growth
12.5.3.2 KSA
12.5.3.2.1 Growing digital transformation and rising instances of cyber threats to drive market
12.5.3.3 UAE
12.5.3.3.1 UAE to enhance cybersecurity through advanced training and SOC innovations
12.5.3.4 Rest of GCC countries
12.5.4 SOUTH AFRICA
12.5.4.1 Growing prevalence of phishing attacks, social engineering scams, and phishing scams to propel market
12.5.5 REST OF MIDDLE EAST & AFRICA
12.6 LATIN AMERICA
12.6.1 LATIN AMERICA: SECURITY TESTING MARKET DRIVERS
12.6.2 LATIN AMERICA: MACROECONOMIC OUTLOOK
12.6.3 BRAZIL
12.6.3.1 Adoption of agile development methods, increasing automation in testing, and rise of AI testing to foster market growth
12.6.4 MEXICO
12.6.4.1 State-driven cyber-espionage and hacktivism and vulnerability of government organizations to propel market
12.6.5 REST OF LATIN AMERICA
13 COMPETITIVE LANDSCAPE
13.1 KEY PLAYER STRATEGIES/RIGHT TO WIN
13.2 REVENUE ANALYSIS
13.3 MARKET SHARE ANALYSIS
13.4 PRODUCT/BRAND COMPARISON
13.5 COMPANY VALUATION AND FINANCIAL METRICS
13.5.1 COMPANY VALUATION
13.5.2 FINANCIAL METRICS USING EV/EBIDTA
13.6 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023
13.6.1 STARS
13.6.2 EMERGING LEADERS
13.6.3 PERVASIVE PLAYERS
13.6.4 PARTICIPANTS
13.6.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023
13.6.5.1 Company footprint
13.6.5.2 Security testing type footprint
13.6.5.3 Application security testing type footprint
13.6.5.4 Vertical footprint
13.6.5.5 Regional footprint
13.7 COMPANY EVALUATION MATRIX: START-UPS/SMES, 2023