Automation Testing Market Size - By Component (Testing Type, Services), By End-point Interface (Mobile, Web, Desktop, Cloud, Embedded Software), By Application & Forecast, 2024 - 2032

Automation Testing Market Size - By Component (Testing Type, Services), By End-point Interface (Mobile, Web, Desktop, Cloud, Embedded Software), By Application & Forecast, 2024 - 2032

Automation Testing Market Size

Automation Testing Market size was valued at USD 22.2 billion in 2023 and is estimated to register a CAGR of over 17% between 2024 and 2032, driven by technological advancements, evolving regulatory demands, and the widespread adoption of digital solutions. Automated testing tools play a critical role in improving software quality,

accelerating release cycles, and reducing testing costs across various industries such as IT, healthcare, and finance. In March 2024, Tricentis introduced Tosca X, its latest automation platform. This advanced tool integrates cutting-edge functionalities for continuous testing, including robust test case management, AI-driven test automation, and comprehensive reporting capabilities.

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The market's expansion is catalyzed by significant investments in R&D by key players. For instance, in May 2023, SeleniumHQ announced Selenium 4, a major update to its open-source automation framework. Selenium 4 introduces new features such as improved web element locators, enhanced Docker integration, and expanded support for multiple programming languages. These advancements highlight SeleniumHQ's commitment to empowering developers and QA teams with scalable and efficient automation tools, aligning with industry trends toward Continuous Integration and Delivery (CI/CD) and DevOps practices.
 

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The automation testing market holds significant promise for the future. However, it faces several notable challenges that could impede its growth. The market faces initial implementation costs that can be a barrier, particularly for smaller firms and startups. Ongoing maintenance and the necessity for regular software updates also contribute to operational expenses. Integrating automation testing tools with evolving technologies, such as cloud computing and DevOps practices, while ensuring compatibility with the existing IT infrastructures, presents additional challenges.

However, despite these obstacles, the automation testing market is set for growth, driven by the increasing complexity of software systems, the need for faster release cycles, and the rising demand for quality assurance across various industries such as finance, healthcare, and telecommunications.

Automation Testing Market Trends

The automation testing industry is expanding rapidly due to the growing adoption of digital transformation initiatives across various sectors. This growth is driven by the need for scalable and efficient testing solutions that can keep pace with agile development practices and ensure software quality.

In May 2023, Micro Focus introduced the latest version of Unified Functional Testing (UFT), UFT 16. This updated version incorporates advanced capabilities such as AI-powered test automation, enhanced support for web and mobile applications, and improved integration with CI/CD pipelines. These enhancements enable organizations to achieve faster test execution, higher test coverage, and improved reliability in their software releases.

Additionally, significant investments in automation testing tools by major software providers are driving market innovations. For instance, in February 2024, Ranorex launched Ranorex Studio 11, featuring new enhancements including a redesigned user interface, enhanced reporting capabilities, and expanded support for cloud testing environments. Ranorex Studio 11 aims to empower QA teams with intuitive tools that facilitate seamless test creation, execution, and analysis across web, desktop, and mobile applications. These advancements highlight the industry's commitment to delivering robust automation solutions that support continuous improvement and innovations in software testing practices.

Automation Testing Market Analysis

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Based on component, the market is categorized into testing and services. The testing segment is projected to exceed USD 40 billion by 2032. The different types of testing ensures that software applications meet specific functional requirements and perform as expected under different scenarios. These functional tests are essential for verifying individual components and the overall system functionality, detecting defects early in the development lifecycle, and maintaining software quality.
 

Non-functional testing evaluates software attributes beyond functional requirements. Performance testing assesses how the system behaves under various workloads, ensuring it meets performance benchmarks and handles expected user traffic efficiently. Security testing identifies vulnerabilities and safeguards against potential cyber threats and is crucial for protecting sensitive data and maintaining regulatory compliance.

The comprehensive coverage of testing types and subcategories addresses diverse aspects of software quality, performance, security, and user experience, supporting organizations in delivering reliable and high-quality software solutions to meet evolving customer demands and industry standards.

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Based on application, the automation testing market is divided into IT & telecom, BFSI, manufacturing, retail, transportation & logistics, government & public sector, smart consumer devices, automotive, and healthcare & medical devices. The IT & telecom segment held a major market share of around 24% in 2023. Automation testing plays a crucial role in ensuring the reliability and efficiency of software applications and network infrastructure by streamlining the testing process through automation of repetitive tasks, such as regression testing, performance testing, and API testing, thereby reducing manual effort and accelerating time-to-market for new products and updates.

Automation testing becomes indispensable for validating the performance, scalability, and security of these cutting-edge solutions as the IT and telecom sectors increasingly rely on advanced technologies such as 5G networks and cloud computing. Organizations in these sectors can effectively manage complexity, mitigate risks, and deliver superior digital experiences to their customers by leveraging automation testing tools and methodologies.

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North America dominated the global automation testing market with a share of over 48% in 2023. This is driven by a robust economy, widespread adoption of digital solutions, and stringent regulatory standards promoting technological advancements. The U.S. and Canada are frontrunners, embracing innovations such as AI-driven testing tools and integrated test automation frameworks. This dynamic environment and proactive adoption of cutting-edge technologies highlight North America's influential role in shaping the global automation testing landscape.

APAC holds a significant stake in the automation testing market, driven by its diverse and rapidly expanding IT and software development sectors. The region's strong economic growth, coupled with increasing digitalization in business processes, fuels the demand for advanced automation testing solutions. Countries, such as China, India, and Japan, lead in adopting innovative testing methodologies to enhance software quality and accelerate time-to-market for applications.

Europe maintains a prominent position in the automation testing market, characterized by its progressive stance on technology adoption and adherence to rigorous quality standards. This emphasis supports businesses in meeting stringent regulatory requirements and delivering high-quality software solutions, reinforcing Europe's role as a key driver of automation testing innovation.

Automation Testing Market Share

Accenture and IBM hold a significant market share of over 20% in the automation testing industry. In March 2024, Accenture launched its new AI-driven automation platform, Accenture myWizard. This platform integrates machine learning and analytics to enhance the efficiency and accuracy of automated testing and software development processes.

IBM stands out with its robust automation testing solutions, integrating advanced AI and machine learning capabilities to enhance software quality and delivery speed for enterprises worldwide. Tata Consultancy Services Limited (TCS) offers cutting-edge testing services and solutions tailored to meet the evolving needs of global businesses, ensuring efficient software testing and deployment through its expansive global delivery model and industry expertise.

Automation Testing Market Companies

Major players operating in the automation testing industry are

• Accenture
• Amdocs
• Capgemini
• Cognizant
• IBM
• Infosys
• NTT DATA Inc.
• Tata Consultancy Services Limited
• Tech Mahindra Limited
• Wipro Limited

Automation Testing Industry News

• In March 2024, Sauce Labs announced a strategic partnership with GitHub Actions to streamline continuous testing workflows for developers. This integration allowed developers to seamlessly trigger tests within their GitHub repositories, leveraging Sauce Labs' cloud infrastructure for automated testing of web and mobile applications directly from their CI/CD pipelines.
   
• In February 2024, Micro Focus unveiled UFT One 17.5, the newest version of its automation testing platform. UFT One 17.5 integrates advanced features for scriptless automation, AI-driven test maintenance, and enhanced test reporting, empowering organizations to streamline testing workflows and improve software quality across complex IT environments.
   
• In January 2024, Eggplant, a leading provider of intelligent automation solutions, introduced Eggplant AI 2.0. This upgraded version of its AI-powered testing platform offers enhanced capabilities for autonomous test creation, adaptive learning, and predictive analytics, enabling organizations to achieve faster and more reliable testing outcomes.

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

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Market, By Component

• Testing
  • Functional
    • System testing
    • Unit testing
    • Integration testing
    • Smoke testing
    • Regression testing
    • Others
  • Non-functional
    • Security testing            
    • Performance testing  
    • Usability testing           
    • API testing       
    • Compliance testing     
    • Others
• Service
  • Advisory & consulting
  • Planning & development
  • Support & maintenance
  • Documentation & training
  • Implementation
  • Managed

Market, By End-point Interface

• Mobile
• Web
• Desktop
• Cloud
• Embedded software

Market, By Application

• IT & telecom
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software
• BFSI
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software
• Manufacturing
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software
• Retail
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software
• Transportation & logistics
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software
• Government & public sector
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software
• Smart consumer devices
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software
• Automotive
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software
• Healthcare & medical devices
  • Mobile
  • Web
  • Desktop
  • Cloud
  • Embedded software

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Spain
  • 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
  • South Africa
  • Saudi Arabia
  • Rest of MEA