Security Testing Market (Updated Version Available)

Key Market Overview:

Security Testing Market is estimated to reach over USD 32.37 Billion by 2030 from a value of USD 8.28 Billion in 2022, growing at a CAGR of 18.58% from 2023 to 2030.

Security testing is a type of software testing that focuses on identifying and mitigating potential vulnerabilities or security risks in software systems. The primary objective of security testing is to ensure that the system under test is secure and has the ability to withstand various types of attacks, such as hacking, data breaches, and denial-of-service attacks. Security testing involves various techniques and tools to assess the security posture of the system such as penetration testing, vulnerability scanning, code review, security architecture review, and threat modeling.

The frequency and severity of security breaches are increasing, leading to a growing demand for security testing solutions that help organizations prevent such incidents. Therefore, security testing is a critical aspect of software development, and it helps ensure that the system under test is secure and protected against potential attacks. For instance, in October 2022, Intigriti announced a new and innovative approach to penetration testing. The Penetration Testing as a Service (PTaas) solution aims to provide organizations with a more effective and efficient way to identify and address security vulnerabilities in the software and systems. Therefore, the growing number of cyberattacks is driving the growth of the homeland security market.

Security Testing Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Billion)	USD 32.37 Billion
CAGR (2023-2030)	18.58 %
Base Year	2022
By Type	Network Security, Application Security, Device Security, and Others
By Deployment	On-Premise and Cloud-Based
By Enterprise Size	Large Enterprises and SMEs
By End-User	BFSI, IT & Telecommunication, Retail & E-Commerce, Education, Healthcare, and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	AT&T Inc., Cigniti, , McAfee, LLC, Micro Focus, SecureWorks, Inc., Veracode, Rapid7, NTT Security AppSec Solutions Inc., Synopsis, Inc.

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Market Dynamics:

Driver:

The growing adoption of electronic devices such as smartphones, laptops, and tablets is driving the growth of the security testing market. The increasing number of electronic devices connected to the internet and other networks increases the risk of potential threats by cyber criminals. Moreover, the increasing adoption of cloud-based services has created new security challenges, and organizations are turning to security testing to ensure the security of cloud environments. Security testing helps to identify vulnerabilities and weaknesses in the devices and their software, enabling organizations to address these issues before they are exploited by attackers. For instance, in May 2022, Nokia launched a cybersecurity-focused testing lab in the United States designed to help organizations identify and address potential security vulnerabilities in their networks and devices.

Restraint:

Security testing is a complex process that requires specialized knowledge and expertise thereby limiting the growth of the market. Organizations rely on a wide range of IT systems and technologies, including On-premise systems, cloud-based applications, mobile devices, and IoT devices, thereby making the process of security testing quite complex. Therefore, the complexity of security testing is difficult to adopt for smaller organizations that do not have dedicated security teams.

Opportunities:

The increasing number of IoT-connected devices is expected to create potential opportunities for the growth of the security testing market. IoT devices are often connected to networks that are vulnerable to cyberattacks. Network testing involves identifying any weaknesses in the network architecture, testing the security of network protocols, and evaluating the effectiveness of network security controls. Moreover, IoT devices rely on software applications that require application testing further expected to accelerate the growth of the security testing market.

Security Testing Market Competitive Landscape:

The market for security testing is highly competitive. The key market players are adopting strategies for mergers and acquisitions, and product innovations to stay competitive in the market. Following are the major market players that comprise the latest market concentration–

• AT&T Inc.
• Cigniti
• McAfee, LLC
• Micro Focus
• SecureWorks, Inc.
• Veracode
• Rapid7
• NTT Security AppSec Solutions Inc.
• Synopsis, Inc.

Recent Developments:

• In June 2022, Synopsys, Inc. announced the acquisition of WhiteHat Security to provide end-to-end software security solutions to its customers.

• In January 2023, The UK Cyber Security Council launched chartered status partnership for security testing.

Security Testing Market Segmentation:



By Type

Based on the type, the market is segregated into network security, application security, device security, and others. The network security segment accounted for the maximum revenue share in 2022. The growing need for network security solutions is driven by the increasing number of cyberattacks targeting networks as well as the rising demand for secure remote access solutions. Network security testing involves evaluating the security of an organizations network infrastructure, including routers, switches, firewalls, and other network devices. The application security segment is expected to emerge as the fastest-growing segment during the forecast period. The increasing use of technology such as laptops, smartphones, and tablets is growing the demand for software applications. Application security testing involves evaluating the security of software applications used by an organization, including web applications, mobile applications, and other types of software. As a result, organizations are turning to application security testing to identify vulnerabilities and weaknesses in their applications. For instance, in December 2020, Dynatrace entered the Cloud Application Security market with its new solution called Dynatrace Application Security. The solution is designed to provide real-time security monitoring and protection for cloud-native applications and microservices.

By Deployment

Based on the deployment, the market is bifurcated into On-premise and cloud-based. The On-premise segment accounted for the largest market share in the year 2022. On-premise solutions are installed on the organizations infrastructure and offer benefits such as control and customization over the solutions, as well as better performance and security. As a result, such security testing solutions help to address these concerns by keeping sensitive data within an organizations own infrastructure. Therefore, organizations ensure that their sensitive data remains secure and protected within their own infrastructure, thereby contributing to the growth of security testing market.
The cloud-based security solutions are expected to witness the fastest CAGR growth during the forecast period due to their flexibility, scalability, and lower upfront costs. Cloud-based security testing solutions offer several advantages such as easier and faster deployment, automatic software updates, and the ability to easily scale up or down depending on the organizations needs. For instance, in August 2022, TestGrid launched a new solution called Real Device Cloud that allows developers and testers to access a wide range of real mobile devices for testing purposes.

By Enterprise Size

Based on the enterprise size, the market is divided into large enterprises and SMEs. The large enterprise segment dominates the market share in the year 2022. Large enterprises have more complex and distributed IT infrastructures, with a larger number of applications and data sources. As a result, diverse IT infrastructure requires more sophisticated security testing solutions for network security, application security, and device security. Large enterprises also tend to have more resources to invest in security testing, both in terms of budget and staff expertise. The SMEs segment is expected to witness robust growth during the forecast period. SMEs are increasingly adopting digital technologies to automate their processes and improve efficiency. As their IT infrastructures grow, they require security testing solutions that help them to manage and monitor their networks, software, and applications. Furthermore, SMEs need real-time insights into the performance of their applications to identify issues and take corrective actions quickly. Moreover, the adoption of cloud-based security testing solutions has made it easier and more cost-effective for SMEs to implement and manage security testing

By End-User

Based on the end-user, the market is segmented into BFSI, IT & telecommunication, retail & E-commerce, education, healthcare, and others. The BFSI sector dominates the security testing market and accounted for the largest revenue share in 2022. The BFSI sector is a prime target for cybercriminals who tend to gain access to sensitive financial and personal information for financial gain. As a result, BFSI organizations require robust security testing solutions to protect against a range of threats, including hacking, malware, and ransomware attacks. The IT & Telecommunication segment is expected to register the fastest CAGR growth during the forecast period. The IT & Telecommunication sector is highly dependent on technology to deliver services and communicate with customers. The dependence on technology creates a high risk of cyber threats, thereby contributing to the growth of this segment. For instance, in May 2022, Spirent launched its new security automation package for its 5G Core Test Suite. The package provides a comprehensive set of security testing capabilities that help operators to identify potential threats in their 5G networks and eliminate security risks.

By Region:

North America accounted for the largest revenue share in the security testing market. The threat of cyberattacks on critical IT infrastructure and government systems has increased in recent years demanding robust security testing solutions in North America. As a result, the demand for security testing and advanced security solutions is increasing in the North American region. Furthermore, the presence of key players such as AT&T Inc., McAfee, LLC, and Synopsis, Inc. is contributing to the growth of the security testing market in the region.



Asia-Pacific is expected to register the fastest CAGR growth during the forecast period. The Asia Pacific region has seen significant growth in the adoption of digital technologies in recent years, including cloud computing, and the Internet of Things (IoT), creating new security challenges. Therefore, the demand for security testing solutions to protect software systems against cyber threats is driving the growth of the regional market.