Security Testing Market Size - By Type (Network Security, Application Security, Device Security), Enterprise Size (SMEs, Large Enterprises), Deployment Model (On-premises, Cloud), Industry Vertical, Regional Outlook & Global Forecast 2024 - 2032

Security Testing Market Size - By Type (Network Security, Application Security, Device Security), Enterprise Size (SMEs, Large Enterprises), Deployment Model (On-premises, Cloud), Industry Vertical, Regional Outlook & Global Forecast 2024 - 2032

Security Testing Market Size

Security Testing Market size was valued at USD 8.9 billion in 2023 and is estimated to register a CAGR of 20.5% between 2024 and 2032. The rising frequency and scale of data breaches have propelled the demand for security testing services. Organizations are increasingly investing in comprehensive security testing to identify vulnerabilities, protect sensitive information, and maintain regulatory compliance.

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According to IBM July 2023 report, the global average cost of data breaches in 2023 is USD 4.45 million, a 15% increase over three years. The average savings for organizations that extensively use security AI and automation are USD 1.76 million compared to organizations that do not. 51% of the organizations aim to boost their security investments by allocating resources toward Incident Response (IR) planning & testing, enhancing employee training, and adopting advanced tools for threat detection & response.

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The surge in cyberattacks has increased the need for security testing services. Fearing data breaches and system vulnerabilities, organizations are intensifying their focus on cybersecurity. For instance, in September 2023, Iranian hackers launched a cyberattack on Israel's railway system, employing a phishing campaign to compromise the electrical infrastructure. This attack also reportedly targeted companies in Brazil and the UAE, underscoring the global reach and potential impacts of such cyber threats.

The security testing market faces a significant challenge due to the shortage of skilled security professionals. The demand for robust cybersecurity measures is growing; however, enough experts are not available to conduct thorough security testing. This scarcity will hamper the timely identification and mitigation of vulnerabilities, leaving organizations exposed to potential threats. Bridging this skills gap is essential to meet the escalating demand for security testing services and fortify digital defenses effectively.

COVID-19 Impact

The COVID-19 pandemic had positive impacts on the security testing market as the sudden shift to remote work and increased reliance on digital platforms exposed vulnerabilities. Owing to the heightened cyber threats, organizations ramped up their security testing investments to fortify the defenses. The demand for services including penetration testing, vulnerability assessments, and incident response surged. This underscored the critical role of security testing in safeguarding remote work environments and ensuring business continuity.

Security Testing Market Trends

The increasing adoption of cloud technologies is an emerging trend in the security testing industry. As more organizations migrate their data and applications to the cloud, they face unique security challenges. Cloud security testing addresses these challenges by evaluating the security of cloud infrastructure & services, identifying vulnerabilities, and ensuring compliance. It helps organizations protect sensitive data, maintain the integrity of applications, and mitigate risks associated with cloud-based operations, addressing a fundamental aspect of modern cybersecurity in the digital age.

The security testing industry is also witnessing a notable trend of AI and automation. AI-driven tools and automated processes enhance the efficiency & effectiveness of security testing. For instance, in September 2023, Code Intelligence launched CI Spark, a security testing solution powered by Large Language Models (LLMs). CI Spark employs LLMs to autonomously detect vulnerabilities and propose test code, utilizing generative AI to automate the creation of fuzz tests and enhancing AI-driven white-box testing capabilities. This trend will allow organizations to proactively identify & address security issues, adapting to the evolving threat landscape more effectively and ultimately strengthening their cybersecurity position.

Security Testing Market Analysis

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Based on deployment model, the cloud segment held over 68% of the market share in 2023. As businesses are increasingly adopting cloud technologies, the need to secure data and applications in such environments becomes of utmost importance. Cloud security testing services are expected to witness increased adoption to ensure data privacy, integrity, and regulatory compliance.

With the versatility and scalability of the cloud, organizations need to employ robust security testing solutions to identify vulnerabilities and protect against the evolving cyber threats. This will boost the growth of the cloud segment in the market. For instance, in June 2023, Honeywell launched the Honeywell Digital Prime solution, a cloud-based digital twin for efficient & secure testing. The solution allows users to test frequently for more accurate results.

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Based on industry vertical, the BFSI segment accounted for 25% of the security testing market share in 2023. This industry handles vast volumes of sensitive data and transactions, which makes it a prime target for cyber threats. To safeguard customer information and maintain trust, BFSI companies are increasingly investing in security testing services. Regulatory requirements further drive segment growth as institutions need to comply with stringent data protection laws. To meet the BFSI sector's unique security challenges and its commitment to ensuring robust cybersecurity measures, the segment is witnessing expansion in the market.

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North America security testing market size recorded 36% of the revenue share in 2023. It is home to many technology-driven enterprises and financial institutions, which are the prime targets for cyber threats. Regulatory frameworks and data privacy laws, such as GDPR and CCPA, are pushing organizations to invest in security testing. The increasing adoption of cloud technologies and IoT devices further fuels the demand for robust security solutions, making North America a prominent market for security testing services.

Security Testing Market Share

Synopsys, Veracode, and Checkmarx Ltd. are the major companies in the security testing industry owing to their advanced, comprehensive solutions. Synopsys offers a wide range of security testing tools including static and dynamic analysis. Veracode provides cloud-based application security testing with a focus on scalability. Checkmarx specializes in static application security testing. Their established reputations, expertise, and strong customer bases make them dominant market players as they prioritize robust security measures in the face of growing cyber threats and compliance requirements.

Security Testing Market Companies

The major companies operating in the security testing industry are

• Cisco
• Checkmarx Ltd.
• Intertek Group PLC
• OpenText
• Qualys, Inc.
• Rapid7
• SecureWorks
• Synopsys
• Veracode

Security Testing Industry News

• In July 2023, New Relic unveiled the public preview of Interactive Application Security Testing (IAST), enhancing traditional security testing by offering comprehensive visibility, contextual information, and advanced accuracy with minimal false positives.

The security testing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032 for the following segments

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Market, By Type

• Network Security
• Application Security
• Device Security
• Others

Market, By Enterprise Size

• SMEs
• Large Enterprises

Market, By Deployment Model

• On-premises
• Cloud

Market, By Industry Vertical

• BFSI
• Healthcare
• Education
• IT & Telecom
• Retail & E-commerce
• Others
   

The above information has been provided for the following regions and countries

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

Frequently Asked Questions (FAQ)

How big is the security testing market?

The market size of security testing reached USD 8.9 billion in 2023 and is set to witness 20.5% CAGR from 2024 to 2032, backed by the rising frequency and scale of data breaches.

Why is cloud deployment gaining traction in security testing industry?

The cloud segment accounted for around 68% market share in 2023, as businesses are increasingly adopting cloud technologies, necessitating security testing to secure data and applications.

What is the revenue contribution of North America in the security testing market?

North America accounted for a market share of around 36% in 2023, as the region is home to many technology-driven enterprises and financial institutions, which are the prime targets for cyber threats, which along with regulatory frameworks and data privacy laws, such as GDPR and CCPA, are pushing organizations to invest in security testing.

Who are the leading players in security testing landscape?

Cisco, Checkmarx Ltd., Intertek Group PLC, OpenText, Qualys, Inc., Rapid7, SecureWorks, Synopsys and Veracode.