Penetration Testing Market Size - By Offering (Solution, Services), By Deployment Model (On-Premises, Cloud), Application (Network Infrastructure, Web Applications, Mobile Applications, Social Engineering, Cloud), Enterprise Size, End-user & Forecast, 2024 - 2032

Penetration Testing Market Size - By Offering (Solution, Services), By Deployment Model (On-Premises, Cloud), Application (Network Infrastructure, Web Applications, Mobile Applications, Social Engineering, Cloud), Enterprise Size, End-user & Forecast, 2024 - 2032

Penetration Testing Market Size

Penetration Testing Market size was valued at USD 2.8 billion in 2023 and is estimated to register a CAGR of over 17% between 2024 and 2032.

The increasing cybersecurity threats are a major driving factor for the market. These threats expose organizations to serious risks, such as monetary losses, harm to their reputation, and legal ramifications. According to an IBM report, the average cost of a data breach was USD 4.45 million in 2023. By locating vulnerabilities and offering useful information for their efficient remediation, penetration testing reduces these risks. Organizations can decrease the possibility of cyberattacks and improve their security posture by resolving vulnerabilities found during penetration testing.

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The constant evolution of cyber threats, the growing intricacy of IT systems & networks, the requirement for specialized knowledge & skills, and the difficulties of testing in a live environment are some of the elements that contribute to the complexity of penetration testing. Penetration testing is the process of mimicking actual attacks on organizational networks and IT systems to find holes and flaws that can be potentially used by adversaries. It must be carried out in a way that minimizes interference with the organization's daily activities and ensures the security & integrity of its data, which may add to the difficulties of implementing penetration testing services.

Penetration Testing Market Trends

Conventional penetration testing usually takes place once a year or more frequently. Continuous penetration testing, on the other hand, is gaining traction. It involves regular security assessments and their integration into DevOps or Software Development Lifecycle (SDLC) procedures. Companies are launching continuous penetration testing offerings to help security teams ahead of changing threats.

For instance, in February 2024, Synack, a security testing platform launched a continuous Attack Surface Discovery offering scalable AI penetration testing to help overtaxed security teams stay ahead of evolving threats. The new offering allows enterprises to not only reveal their external attack surfaces but also make that data actionable, pairing continuous discovery with comprehensive Pentesting as a Service (PTaaS).

The ability of continuous security testing to detect and fix vulnerabilities instantly is one of its main benefits. Traditional testing techniques frequently involve a long delay between the discovery of a vulnerability and the application of a fix. As a result, organizations are exposed to attacks while the cleanup procedure is ongoing. Conversely, firms that use continuous testing can identify vulnerabilities early on and take appropriate action. This reduces the window of opportunity for attackers and the possible consequences of a successful breach.

Penetration Testing Market Analysis

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Based on enterprise size, the market is divided into large enterprises and SMEs. The large enterprise segment holds over 60% of the market share in 2023 and is expected to reach over USD 7 billion by 2032. Large organizations usually have complex IT networks with many different endpoints, systems, and apps. As it is difficult to manage security in such environments, regular penetration testing is necessary to find weaknesses and fix them. Cybercriminals target large organizations due to their possession of financial assets, sensitive customer data, and valuable intellectual property. Penetration testing helps detect and mitigate security risks before their exploitation, thus protecting these assets.

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Based on end-user, the penetration testing market is categorized into BFSI, healthcare, IT & telecom, retail & consumer goods, manufacturing, education, energy & utilities, and others. The BFSI segment held around 26% of the market share in 2023. To ensure the security and integrity of financial transactions and consumer data, the BFSI sector is subject to strict regulations. Regular security assessments including penetration testing are required by legislation such as the Payment Card Industry Data Security Standards (PCI DSS), the Gramm-Leach-Bliley Act (GLBA), and numerous regional banking rules.

Compliance with these standards is necessary to maintain the organization's reputation, retain customers’ trust, and avoid fines. For a variety of tasks including software development, data hosting, and payment processing, BFSI companies frequently depend on outside partners, suppliers, and service providers. Penetration testing also evaluates the security of third-party interfaces and systems, making sure that vendors follow security guidelines and do not jeopardize the company's data or operations.

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North America dominated the global penetration testing market with market share of over 38% in 2023. Cybersecurity solutions and technological innovations are developed throughout the region, especially in the U.S. North America is home to several of the top penetration testing and cybersecurity companies. These companies take advantage of the strong R&D skills in the region to produce innovative security testing tools & processes.

The necessity of cybersecurity is well recognized by North American enterprises, especially those in the technology, healthcare, and finance industries, due to the frequent cyber threats and numerous high-profile data breaches. To defend against changing threats and secure sensitive data, this awareness motivates investments in cybersecurity procedures such as penetration testing.

Penetration Testing Market Share

IBM Corporation and Rapid7, Inc. hold a significant position in the market with around 20% of the market share in 2023. IBM Corporation invests heavily in research and development to innovate new technologies and solutions for cybersecurity, including penetration testing. The company's R&D efforts focus on developing advanced threat detection capabilities, automation tools, and AI-driven security analytics to enhance the effectiveness and efficiency of penetration testing services.

Rapid7 collaborates with technology partners, managed security service providers (MSSPs), and channel partners to extend the reach of its penetration testing solutions. By forging strategic alliances and integrations with industry leaders, Rapid7 enhances the interoperability and effectiveness of its security testing offerings.

Penetration Testing Market Companies

Major players operating in the penetration testing industry are

• Broadcom Inc.
• IBM Corporation
• NCC Group
• Offensive Security Ltd.
• Rapid7, Inc.
• Secureworks
• Synopsys Inc.
• Trustwave Holdings, Inc.
• Veracode
• Verizon

Penetration Testing Industry News

• In March 2024, F5 added new automated reconnaissance and penetration testing capabilities into its F5 Distributed Cloud Services. The new capabilities are enabled through acquisition of Heyhack and it helps customers to protect the high number of applications and APIs across multi-cloud environments.
   
• In October 2023, IBM launched a new AI-powered Threat Detection and Response (TDR) service. As part of IBM's TDR Services, users have access to the company's X-Force Incident Response Services and the option to add more proactive security services, such as vulnerability management, adversary simulation, and penetration testing, to support the enhancement of security operations capabilities.

The penetration testing market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments

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Market, By Offering

• Solution
• Services
  • Professional services
  • Managed services
  • Consulting services

Market, By Deployment Model

• On-premises
• Cloud

Market, By Enterprise Size

• Large enterprises
• SMEs

Market, By Application

• Network infrastructure
• Web applications
• Mobile applications
• Social engineering
• Cloud
• Others

Market, By End User

• BFSI
  • Large enterprises
  • SMEs
• Healthcare
  • Large enterprises
  • SMEs
• IT & telecom
  • Large enterprises
  • SMEs
• Retail & consumer goods
  • Large enterprises
  • SMEs
• Manufacturing
  • Large enterprises
  • SMEs
• Education
  • Large enterprises
  • SMEs
• Energy and utilities
  • Large enterprises
  • SMEs
• Others
  • Large enterprises
  • SMEs

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA

Frequently Asked Questions (FAQ)

How much is the penetration testing market worth?

The market size of penetration testing reached USD 2.8 billion in revenue in 2023 and is set to grow at 17% CAGR between 2024 and 2032, led by increasing cybersecurity threats.

Why is the demand for penetration testing rising in large enterprises?

The large enterprise size segment held over 60% of the market share in 2023 and is set to cross USD 7 billion by 2032, due to higher need to help detect and mitigate security risks before their exploitation in these organizations.

Why is penetration testing popular in North America?

North America penetration testing industry held a revenue share of 38% in 2023, driven by a well-recognized need for cybersecurity.

Who are the major penetration testing market players?

Broadcom Inc., IBM Corporation, NCC Group, Offensive Security Ltd., Rapid7, Inc., Secureworks, Synopsys Inc., Trustwave Holdings, Inc., Veracode, Verizon among others.