The global sales of security testing is estimated to be worth USD 15,149.0 million in 2024 and anticipated to reach a value of USD 62,360.5 million by 2034. Sales are projected to rise at a CAGR of 15.2% over the forecast period between 2024 and 2034. The revenue generated by security testing in 2023 was USD 13,150.2 million. The industry is anticipated to exhibit a Y-o-Y growth of 14.9% in 2024.
Security testing is a methodical approach to detect risk, vulnerabilities, and risks in software and IT systems. It aims to protect their reliability, secrecy, and usability. This testing is crucial to check if systems can resist unwanted entry, data leaks, and other cyber threats. Security testing uses various methods, such as penetration testing, vulnerability scans, risk evaluations, and security checks, each looking at different parts of system safety.
The advantages of security testing are numerous. It assist organizations in safeguarding sensitive data such that the information of the organization & customers and make sure it is not leaked. Since it discovers weaknesses before their exploit, security testing reduces data breaches, financial loss and reputational damage that comes with them.
Security testing enables achieving compliance in sector-specific standards and regulations, such as GDPR, HIPAA, PCI-DSS. Compliances in these standards and regulations instruct the organization about the specific security controls implemented over sensitive information. Non-compliance with the norms may lead to large fines with related legal consequences. It makes security testing an essential constituent for maintaining regulatory compliance, driving the growth of security testing market.
Global Security Testing Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 13,150.2 million |
| Estimated Size, 2024 | USD 15,149.0 million |
| Projected Size, 2034 | USD 62,360.5 million |
| Value-based CAGR (2024 to 2034) | 15.2% |
Government investment in cybersecurity is a strong growth enabler in the security testing market as countries come to understand the criticality of safeguarding their digital infrastructures from the increasing cyber threats.
Cyberattacks on crucial services, financial institutions, and public sector organizations are forcing countries to invest heavily into strengthening their cybersecurity framework. The funding does not only establish strong security procedures but also contributes towards the introduction of developed testing methods in security aid in the detection and elimination of potential vulnerabilities.
An important part of such investment is actually cybersecurity legislation and compliance regulations that forces public and private organizations to conduct regular security testing. Such a framework requires conducting security assessments, penetration testing, and risk management practice to ensure organizations maintain strict security measures. In turn, as organizations attempt at remaining compliant with such regulations, the business case increases for security testing services and tools.
Government efforts promote public-private partnerships through cooperation between the cybersecurity firms and government agencies. Further, collaboration will lead to further advancement in shared knowledge and innovation for security testing solutions that drive market growth.
Investments in education and developing a cybersecurity workforce are crucial in planning for a skilled workforce that can fulfill comprehensive security assessments to further boost the growth of the security testing market.
Government investment acts as a catalyst for the development of security testing technologies and methodologies. Such growing focus on cybersecurity does not only add strength to national security but also boosts economic growth in the sector as this ecosystem becomes strong where security testing services are required for organizations dealing with their digital assets.
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The below table presents the expected CAGR for the global security testing market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the security testing industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 represents first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 14.7%, followed by a higher growth rate of 15.4% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 14.7% (2023 to 2033) |
| H2, 2023 | 15.4% (2023 to 2033) |
| H1, 2024 | 14.5% (2024 to 2034) |
| H2, 2024 | 15.7% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 14.5% in the first half and remain higher at 15.7% in the second half. In the first half (H1) the market witnessed a decrease of 20 BPS while in the second half (H2), the market witnessed an increase of 30 BPS.
Incorporation of Artificial Intelligence (AI) and Machine Learning (ML) into Security Testing is an Emerging Trend
The integration of AI and machine learning in security testing is changing the approach of organizations toward cybersecurity. Advanced technologies boost the capacity to detect threats while allowing systems to identify and respond to prospective vulnerabilities much more efficiently, supporting expansion of security testing market.
The AI algorithms can process large quantities of data in real time, learn from previous incidents, and pinpoint patterns & anomalies that indicate security threats.
This capability results in better accuracy & timeliness of vulnerability assessments since fully automated scans using AI are possible and focus on prioritizing the most impactful vulnerabilities. The machine learning models continually learn and improve with time, thus getting faster over time at identifying new threats as they evolve.
This proactive nature also streamlines the security testing process with less reliance on manual intervention that naturally leans to human error. Additionally, tools that utilize AI should improve the incident response since they could provide actionable insights and recommendations in light of threats and respond at the earliest opportunity.
The adoption of AI and ML will thus be a must for organizations that look to improve the strength of their defenses, increase efficiency, and have an assurance of robust protection against the evolving threats amid the increasing and highly sophisticated cyberattacks.
Shift to DevSecOps and Growing Awareness of Data Privacy is Boosting the Market Growth
DevSecOps represents a paradigm shift in software development that leans heavily on the practice of security integration all throughout the SDLC. Traditionally, security is focused only at the end, meaning vulnerability is left up until the last stage of the process, increasing remediation cost and complexity.
This means that with DevSecOps, security is added at every stage of the development lifecycle-from planning and coding through to testing and deployment. Shifting companies focus toward DevSecOps encourages collaboration between development, operations, & security teams. These eliminates silos, sharing responsibility for security.
Due to this, there is now increased need for automatic security testing tools that incorporate into CI/CD pipelines. Addition to this, heightened awareness of data privacy is expected to become an important factor shaping the market demands for security testing services.
Awareness regarding the value of personal information and the dangers linked to such handling is also creating space for change in how companies collect, store, and use information on their customers. It has led organizations in all sectors to review the way they protect information, doing more than ever to prioritize security measures for sensitive information.
More importantly, there is a growing concern from consumers for transparency and accountability from businesses regarding their data privacy practices as various high-profile data breaches and cyber incidents being covered in the press. Under the pressure, companies are moving towards proactive measures, from intense security testing to strengthen their defenses against potential breaches.
In this way, organizations can protect the personal data of consumers and improve their reputation and boost customers' confidence by ensuring systems are solid and resilient.
Increased Adoption of Managed Security Services (MSS) is creating Positive Outlook for Security Testing Market
Increased adoption of MSS is notably reshaping the security testing market landscape, assisting organizations of all sizes in creating a more secure digital environment. As cyber threats grow in both frequency and complexity, businesses increasingly realize their limitations of traditional security measures. The recognition has driven the demand for managed services that feature expert security oversight and protection, thereby creating a positive outlook for the security testing market.
The security testing service from MSSPs would be one of the most critical service components. Security testing basically entails finding vulnerabilities, weaknesses, and possible entry points for cybercriminals through systematic identification.
With the increasing demand from companies relying on MSSPs for their security needs, the security testing market expansion is increasing. MSSPs must constantly scan & probe their customers' security posture for them to discover and address identified vulnerabilities. This leads to a business growth of security testing providers.
Moreover, newer MSSPs also attract vendors of security testing services to collaborate with them. They usually partner with specialized companies that can bring new capabilities to enhance the strength and efficiency of the security testing structure.
Demand for comprehensive security testing services is likely to increase as more enterprises will strive to uphold their reputation and protect clients' data. Organizations that implement MSS may experience improved security maturity since customers are likely to trust and be loyal to the organization.
Evolving Threat Landscape may hamper Security Testing Market Growth
Key challenges towards the steady growth of the security testing market present the ever-evolving nature of the threat landscape. As cyber threats grow increasingly sophisticated, diverse, and adaptive, it becomes hard for organizations to keep their security measures up-to-date in real time. This implies that the traditional method of security testing might become ineffective in a matter of time and vulnerabilities remain unchecked with the systems at risk.
Organisations are subject to much pressure to tackle new attack vectors including advanced persistent threats, ransomware, and zero-day exploits that might appear unexpectedly. As attackers advance their strategies, so must security testing solutions, which would therefore require constant improvement, updates, & enhancements in methodology, tools, and frameworks used in testing.
If the security testing solutions are not developed to pace with the threat landscape advancement, it will prove that a particular organization's security posture is weak or outdated. In such a manner, it can result in lack of confidence in current security measures.
This makes them avoid further investment in security testing solutions as they doubt the effectiveness of what they use now, overwhelmed by the sheer volume of emerging threats. Organizations may also divert resources that could have otherwise addressed short-term dangers away from security testing, which hampers long-term investment in comprehensive security strategies.
Principal Consultant
The global security testing market recorded a CAGR of 14.5% during the historical period between 2019 and 2023. The growth of security testing industry was positive as it reached a value of USD 13,150.2 million in 2023 from USD 7,466.6 million in 2019.
In 2019, the market was on an upward curve as firms owing to increased cyber threats and growing regulatory compliance requirements. Rising digital transformation among various industries is also propelling market demand. Data breaches, ransomware attacks, and data leaks have uncovered weaknesses in existing security measures. These forced businesses to give top priority to security testing for the protection of sensitive information.
The COVID-19 pandemic in early 2020 boosted the market growth remarkably. A massive shift to work from home, along with the uptake of cloud services made huge contributions to the industry growth.
As organizations transitioned to purely digital operations, the attack surface expanded and new vulnerabilities opened up. This led to an increased demand for security testing solutions that could effectively evaluate and mitigate the risks connected with remote work environments as well as with cloud-based applications.
The markets for post-pandemic times have grown further due to vigilance towards digital transformation and innovation in technological advance. The adoption of AI & ML into the testing services has been instrumental in making it more effective, with enhanced proactive and automated security assessments. It is this technological advancement that attracted business interests interested in streamlining their security processes.
Tier 1 companies comprise market leaders capturing major market share of 50% to 55% in global security testing market. These companies typically provide wide range of security testing services and actively invests in R&D to strengthen their security services.
Their strong brand reputation, extensive resources, and global reach enable them to serve large enterprises and government organizations. This makes them key influencers in shaping industry standards and practices. Prominent companies within tier 1 include IBM Corporation, Cisco Systems, Inc., HCL Technologies Limited, Accenture, and Synopsys.
Tier 2 companies may not have the same extensive reach or breadth as Tier 1 companies but holds respectable market share. Their agility allows them to quickly adapt to changing market demands. This enable them to provide tailored solutions that cater to unique customer requirements. Key companies in tier 2 include Open Text Corporation, DXC Technology, Intertek Group plc, Qualys, and Cigniti Technologies
Tier 3 companies are small enterprises or startups that are emerging in the security testing market. These firms might offer more basic or niche-specific types at lower price points, making them accessible to organizations with limited budgets.
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The section below covers the industry analysis for the security testing market for different countries. Market demand analysis on key countries in several regions of the globe, including the USA, UK, China, India, and Brazil is provided. USA is anticipated to remain at the forefront in North America, with a value share of 73.2% through 2034. In East Asia Pacific, South Korea is projected to witness a CAGR of 13.2% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 15.0% |
| Germany | 14.6% |
| China | 15.5% |
| India | 15.9% |
| UK | 14.1% |
North America, spearheaded by the USA which currently holds around 79.65% share of the North America security testing industry. USA market is anticipated to grow at a CAGR of 15.0% throughout the forecast period.
The growing cyberattacks in almost all industries are causing significant financial losses to the respective client companies. Companies across sectors have highlighted the need of maintaining a cybersecurity system to safeguard information and gain customer confidence. Strict requirements for regulatory compliance, including Health Insurance Portability and Accountability Act (HIPAA), force the organizations to invest in the entire security testing solutions in country.
China’s security testing market is poised to exhibit a CAGR of 15.5% between 2024 and 2034. Currently, it holds the highest market share in the East Asia market, and the trend is expected to continue through 2034.
China's security testing market is witnessing significant growth driven by the rapid expansion of its digital economy and increasing internet penetration. As businesses adopt advanced technologies and digital platforms, they face heightened cyber threats, prompting a greater emphasis on security testing.
Moreover, various global cybersecurity companies are expanding their presence in the country, creating positive outlook for regional growth. For instance, in June 2024, cloud computing company, Akamai Technologies partnered with digital transformation company, Digital China for its enterprise security solution distribution in China.
India’s security testing market is anticipated to register a CAGR of 15.9% from 2024 to 2034. The country is expected to grow at a substantial pace and continue its dominance in South Asia & Pacific through 2034.
The rapid digital transformation of the country along with an growing usage of technology in various industries is fueling industry growth. E-commerce, fintech, cloud services are on the rise, making Indian companies realize the need for the urgency of safeguarding their sensitive data from cyber threats, thus organizations are compelling to adopt security testing solutions.
Further, government initiative of Digital India and also a recently proposed bill on Personal Data Protection underscores the importance of cybersecurity as an impetus for organizations to adopt security testing solutions.
The section contains information about the leading segments in the industry. By type, application security testing segment is estimated to grow at a CAGR of 15.9% throughout 2034. Additionally, by industry, IT & telecom segment is projected to expand at 16.0% till 2034.
| Type | Network Security Testing |
|---|---|
| Value Share (2024) | 41.2% |
Network security testing segment is expected to acquire share of 41.2% in the market in terms of type in 2024. Severe breaches in security may arise from vulnerabilities in network configurations, protocols, or devices as businesses start relying on interdependent systems and data transmission over networks. Network security testing pinpoints potential vulnerabilities through techniques like penetration testing, vulnerability scanning, and configuration assessments to help organizations to address this issue.
| Industry | BFSI |
|---|---|
| Value Share (2024) | 29.2% |
The BFSI segment is poised to capture share 29.2% in 2024. The BFSI industries are undergoing a fast phase of digital transformation with online banking, mobile payments, and digitization of insurance solutions, all of which have opened vulnerabilities that cyberhackers can exploit.
Notable data breaches and cases of financial fraud make it very important to adopt comprehensive security testing practices. Moreover, the rise of fintech companies has intensified competition within the BFSI sector, prompting traditional financial institutions to enhance their cybersecurity measures to protect their market share.
Key players operating in the security testing market are investing in advanced technologies and also entering into partnerships. Key security testing providers have also been acquiring smaller players to grow their presence to further penetrate the market across multiple regions.
Recent Industry Developments in Security Testing Market
In terms of type, the industry is divided into application security testing, network security testing, device security testing, and others.
In terms of deployment, the industry is divided into cloud-based and on-premises.
In terms of enterprise size, the industry is segregated into small & medium enterprises and large enterprises.
The industry is classified by industry as IT & telecom, BFSI, healthcare, retail & e-commerce, government & education, transportation & logistics, and others.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa (MEA) have been covered in the report.
The global security testing industry is projected to witness CAGR of 15.2% between 2024 and 2034.
The global security testing industry stood at USD 13,150.2 million in 2023.
The global security testing industry is anticipated to reach USD 62,360.5 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 16.1% in the assessment period.
The key players operating in the global security testing industry include IBM Corporation, Cisco Systems, Inc., HCL Technologies Limited, Accenture, and Synopsys.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type 6.1. Application Security Testing 6.2. Network Security Testing 6.3. Device Security Testing 6.4. Others 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Deployment 7.1. Cloud-based 7.2. On-premises 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Enterprise Size 8.1. Small & Medium Enterprises 8.2. Large Enterprises 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Industry 9.1. IT & Telecom 9.2. BFSI 9.3. Healthcare 9.4. Retail & E-commerce 9.5. Government & Education 9.6. Transportation & Logistics 9.7. Others 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. Eastern Europe 10.5. East Asia 10.6. South Asia and Pacific 10.7. Middle East and Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Type, Deployment, Enterprise Size, and Industry for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. IBM Corporation 20.2. Cisco Systems, Inc. 20.3. HCL Technologies Limited 20.4. Accenture 20.5. Synopsys 20.6. Open Text Corporation 20.7. DXC Technology 20.8. Intertek Group plc 20.9. Qualys 20.10. Cigniti Technologies 20.11. HackerOne 20.12. Checkmarx 20.13. Invicti Security 20.14. Rapid7 20.15. Parasoft
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