SECURITY TESTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global security testing market size was valued at US$ 10.94 billion by 2023 and is expected to reach US$ 38.50 billion by 2030, growing at a compound annual growth rate (CAGR) of 19.7% from 2023 to 2030 during the forecast period.

Security testing tools and services are used to identify vulnerabilities, threats, risks in software applications, networks, and devices. The main types of security testing are static application security testing, dynamic application security testing, network security testing, and social engineering. The increasing number and sophistication of cyberattacks are driving the need for more extensive security testing solutions.

The security testing market is segmented based on testing type, deployment mode, organization size, vertical, and region. By testing type, the market is segmented into static application security testing, dynamic application security testing, mobile application security testing, and others. Dynamic application security testing is expected to account for the largest market share during the forecast period owing to its ability to detect vulnerabilities in running applications.

Security Testing Market Regional Insights

• North America is expected to be the largest market for the security testing during the forecast period, which accounted for over 35% of the market share in 2023. The growth of the market in North America is attributed to the early adoption of advanced security testing tools, presence of leading security vendors, and stringent regulations regarding cybersecurity.
• The Asia Pacific market is expected to be the second-largest market for the security testing, growing at a CAGR of over 25% during the forecast period. The growth of the market in Asia Pacific is attributed to the rapid digital transformation in the region, increasing complexity of enterprise IT infrastructure, and growing cyber threats.
• The Europe market is expected to be the second-largest market for security testing, which accounted for over 18% of the market share in 2023. The growth of the market in Europe is attributed to the increasing penetration of cloud-based security testing solutions and rising security concerns among European organizations.

Figure 1. Global Security Testing Market Share (%), by Region, 2023

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Security Testing Market: Analyst’s Viewpoint

The security testing market continues to grow steadily driven by the increasing threat landscape and rising cyber-attacks globally. The desire for organizations to ensure the security of their digital assets and customer data has never been greater. This growing demand along with stringent data privacy regulations being enforced in many countries are driving more organizations to invest in security testing solutions.

North America currently dominates the security testing market owing to the early adoption of technologies and stringent regulations such as HIPAA and PCI DSS. However, the Asia Pacific region is expected to experience the fastest growth in the coming years. This can be attributed to the rising BYOD and cloud adoption, increasing digitization of services across end users, and expanding digital ecosystems in countries like India and China.

While the need for robust security measures presents a massive opportunity, budget constraints continue to restrict spending, especially among small and medium enterprises. Finding the right talent also remains a challenge for many organizations. With security skills still scarce, it hampers organizations' ability to fully leverage security testing tools. Data localization trends could also hamper cloud deployments if not addressed properly.

Security Testing Market Drivers:

• Increasing Frequency and Severity of Cybersecurity Threats: The rapidly evolving threat landscape is a major factor propelling the growth of the security testing market. Cyber threats, such as malware, ransomware, phishing, DDoS attacks, and data breaches, are becoming more frequent, sophisticated, and damaging. High profile incidents like the 2020 SolarWinds and 2021 Colonial Pipeline attacks have highlighted how threat actors are leveraging new techniques to exploit vulnerabilities. Organizations are recognizing the need to identify and address security gaps before they can be leveraged by attackers. This is creating significant demand for security testing solutions.
• Stringent Compliance and Data Protection Regulations: Government policies and industry standards are mandating stringent security testing requirements which is driving the market growth. Regulations like Health Insurance Portability and Accountability Act (HIPAA), Payment Card Industry Data Security Standard (PCI-DSS), Sarbanes-Oxley Act (SOX), and General Data Protection Regulation (GDPR) impose heavy penalties for non-compliance and data breaches. To avoid regulatory fines and reputational damage, organizations are adopting security testing tools and services to audit their security posture. The growing focus on data privacy protection across jurisdictions is compelling enterprises to implement robust application and infrastructure security testing.
• Digital Transformation and Cloud Adoption Trends: The digital transformation wave has expanded the attack surfaces that organizations need to secure. Cloud adoption, Internet of Things (IoT) devices, mobility, microservices, and Application program interface (APIs) have changed application architectures and exposed new vulnerabilities. To secure these dynamic environments, organizations need scalable and flexible security testing capabilities. The accelerated pace of software releases in development and operations (DevOps) models is also fueling continuous security testing adoption. As digital transformation gathers steam globally, it will continue to spur the security testing market growth.
• Testing for Exposed Devices and Remote Users: The expansion of the work-from-home workforce and growth in connected devices has increased the demand for security testing. As more enterprise devices and users operate remotely, they become attractive targets for cybercriminals. Validating the security of Bring Your Own Device (BYOD) endpoints, corporate virtual private network (VPNs), exposed IoT devices, and remote access networks have become crucial. Organizations are leveraging security testing tools tailored to continuously monitor and secure remote assets. The remote work trend is thus a key catalyst for the security testing industry.

Security Testing Market Opportunities:

• Cloud-Native Application Security Testing: The shift from traditional monolithic applications to cloud-native microservices and serverless functions requires updated application security testing approaches. New tools that provide seamless integration with Continuous Integration And Continuous Delivery (CI/CD) pipelines are needed. Emerging Application security testing (AST) solutions leverage techniques like fuzz testing, Software composition analysis (SCA), and Infrastructure as a service (IAAS) configuration checks to secure cloud-native apps. Cloud-native security testing represents a major opportunity for vendors to differentiate their offerings.
• Securing 5G Networks and IoT Ecosystems: The advent of 5G networks and associated technologies like edge computing will unlock new use cases across industries. However, 5G also introduces new potential vulnerabilities that need to be assessed. IoT ecosystems comprising millions of connected devices present a huge and complex surface for attacks. Testing 5G infrastructure and IoT systems before deployment will be crucial. This represents a sizeable opportunity for network and device security testing vendors.
• Integrating Security into DevOps Pipelines: Incorporating security earlier in DevOps workflows through shift-left testing is an impactful opportunity. Solutions that enable continuous security checks, remediation advice, and policy enforcement during the build process can find and fix flaws faster. Automated testing tools integrated into CI/CD pipelines allow businesses to scale secure software delivery. The shift-left approach provides significant potential for security testing vendors.
• Testing and Optimization of Machine Learning/Artificial Intelligence (ML/AI) Systems: As enterprises adopt ML and AI within critical business applications, new testing approaches are required to address algorithmic bias, poisoning attacks, model evasion, and extraction threats. Startups have emerged offering AI and ML model security testing capabilities. Checking an analytics model’s robustness and security compliance before deployment provides value. Testing and optimization represents an opportunity to build trust in AI systems.

Security Testing Market Trends:

• Adoption of Automated Testing Platforms and Tools: Traditional manual testing methods struggle to match the swift release cadences seen in DevOps settings. This has led to an increased reliance on automated testing tools capable of efficiently pinpointing vulnerabilities and issues across applications or infrastructure on a large scale. Automated security testing methods like SAST (Static Application Security Testing), DAST (Dynamic Application Security Testing), IAST (Interactive Application Security Testing), and AI and ML-driven solutions are becoming more favored. Vendors are focusing on improving compatibility, streamlining integrations, and minimizing false alarms. The move towards automated security testing stands out as a significant trend.
• Testing Incorporation in DevSecOps Pipelines: Businesses are increasingly shifting security practices earlier in the development process to detect and address vulnerabilities sooner. By integrating DevSecOps, security evaluations seamlessly integrate into ongoing development workflows. This approach enables developers to receive immediate security insights without compromising speed and flexibility. Centralized platforms are now emerging to consolidate various testing tools and interfaces into one unified system. The evolution and refinement of DevSecOps methodologies are driving this significant shift.
• Emergence of Testing-as-a-Service Consumption Models: The complexity of managing multiple point security testing tools is leading organizations to explore testing-as-a-service (TaaS) offerings provided by MSSPs. TaaS allows access to expertise and eliminates overheads of maintaining lab infrastructure. Cloud-based on-demand testing platforms provide flexibility and scalability. Vendors are enhancing SaaS delivery models with capabilities like ML-based analytics. The TaaS trend will empower wider security testing adoption.
• Shift Towards Risk-based Intelligence Driven Testing: Traditional schedule or compliance-driven testing is maturing towards more risk-based approaches leveraging threat intelligence. Prioritizing tests based on vulnerability severity, exploitability, and business impact provides more coverage and efficiency. Technologies like threat intelligence feeds, attack surface modeling, and advanced analytics allow smarter testing strategies. Risk-driven intelligent orchestration will gain significant traction going forward.

Security Testing Market Restraints:

• Talent Shortage and Expertise Requirements: The security testing domain faces a huge skills gap as demand outstrips qualified personnel. Deploying and managing complex testing tools requires specialized expertise. Resource constraints at smaller businesses hamper adoption. Lack of standardized skills development and certifications adds friction. Unless more professionals are trained, talent shortage will hinder the security testing market growth. On the flip side, addressing the skills gap in the security testing domain is crucial for overcoming the challenges posed by the increasing demand for qualified personnel. To bridge this gap, industry stakeholders can invest in comprehensive training programs that focus on deploying and managing complex testing tools. This would help professionals acquire the specialized expertise needed for effective security testing.
• High Costs of Implementation and Maintenance: For many resource-constrained organizations, the costs of procuring, integrating, and maintaining enterprise-grade security testing platforms are prohibitively high. The complex nature of infrastructure and workflows makes testing tool deployment expensive. Continuous upgrades needed to keep pace with new threats also add overhead. The high total cost of ownership remains a restraint, especially for smaller businesses. However, leveraging open-source or community-driven security testing tools can provide cost-effective alternatives without compromising on essential functionalities. Outsourcing certain aspects of security testing to specialized third-party providers can also be a viable option for smaller businesses looking to optimize their resources.
• Operational Overhead of False Positives and Tuning: Security testing tools often suffer from accuracy issues like false positives, irrelevant findings, and alert fatigue. Triaging and investigating a deluge of faulty alerts wastes resources and impacts productivity. The constant need to tune tools to minimize noise amid dynamic environments increases operational overhead. Despite improvements, efficacy challenges remain a hindrance. Furthermore, organizations can implement intelligent automation and orchestration solutions to streamline the triaging process, enabling security teams to focus on genuine threats rather than getting overwhelmed by false alerts. Collaborative efforts between tool developers and cybersecurity experts also play a crucial role in refining these platforms, ensuring they remain effective in dynamic and complex environments. By embracing a proactive approach to tool optimization and leveraging emerging technologies, organizations can navigate the challenges associated with security testing tools and enhance their cybersecurity posture effectively.

Recent Developments

New product launches

• In October 2023, Checkmarx, a leading provider of cloud-native application security solutions for enterprises, introduced its Checkmarx Technology Partner program. This initiative allows organizations to effortlessly enhance the primary AppSec platform by integrating various capabilities from technology partners.
• In July 2023, New Relic, a comprehensive observability platform designed for engineers, unveiled the public preview of its Interactive Application Security Testing (IAST) feature. New Relic IAST offers enhanced visibility and contextual insights into security findings, boasts high detection accuracy with minimal false positives, and includes proof-of-exploit features along with guided remediation. This tool empowers engineers, DevOps professionals, and security teams to prioritize genuine security threats, address issues more efficiently throughout the application development cycle, and confidently deliver secure code at a rapid pace. Accessible through the Data Plus package and integrated within the New Relic observability platform, interested users can explore the public preview via a complimentary 30-day trial, combining observability and security capabilities for all engineers.
• In April 2023, Synopsys, Inc., the world's most advanced tools for silicon chip design, verification, IP integration, and application, announced the introduction of Synopsys Software Risk Manager, an advanced application security posture management (ASPM) solution. This tool allows security and development teams to unify and simplify their application security testing processes across various projects, teams, and application security testing (AST) tools. By integrating policy-driven orchestration and vulnerability management features, Software Risk Manager complements Synopsys Software Integrity Group's leading SAST and SCA technologies, while also offering compatibility with a wide range of other open-source and commercial AST tools. Overall, Synopsys' ASPM solution enhances the capability to consistently enforce application security standards within any organization.

Acquisition and partnerships

• In July 2023, leading cybersecurity companies Cynerio, focused on safeguarding IoT, IoMT, and OT devices in healthcare settings, and Check Point Software Technologies, a provider of comprehensive IT security solutions encompassing both hardware and software, have announced a partnership. Their collaboration aims to provide strong security measures specifically tailored for medical IoT devices used within healthcare institutions. Cynerio's 360 platform will offer essential features such as device identification, patch recommendations, microsegmentation, and intrusion detection specific to healthcare IoT devices. By integrating these capabilities with Check Point's Quantum IoT Protect for threat prevention and resolution, healthcare institutions can achieve comprehensive device security measures they require.
• In November 2021, IBM, a renowned U.S.-based multinational technology company, revealed its intention to bolster its cybersecurity threat detection and response functionalities by acquiring ReaQta. ReaQta's endpoint security tools utilize AI to autonomously detect and handle threats, ensuring they remain invisible to potential adversaries. This acquisition aims to enhance IBM's presence in the extended detection and response (XDR) sector, consistent with IBM's broader strategy of offering security solutions that integrate seamlessly across various tools, datasets, and hybrid cloud settings.
• In February 2021, Rapid7, Inc., a prominent company specializing in security analytics and automation, revealed its acquisition of Alcide.IO Ltd., a top-tier Kubernetes security firm located in Tel Aviv, Israel. This marks Rapid7's second purchase in the cloud security domain within a span of nine months, following its acquisition of DivvyCloud, a key player in Cloud Security Posture Management (CSPM). Combined, these acquisitions strengthened Rapid7, Inc.’s capacity to deliver a comprehensive cloud-native security platform to its clientele, enabling ongoing risk management and compliance oversight across diverse cloud infrastructures.

Figure 2. Global Security Testing Market Share (%), By Organization Size, 2023

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Top Companies in the Security Testing Market

• Synopsys, Inc. 
• Open Text (Micro Focus)
• IBM
• Rapid7
• Trustwave Holdings, Inc. 
• SecureWorks Inc.
• Cigniti
• WhiteHat Security (Synopsys, Inc.)
• Veracode
• McAfee, LLC
• Parasoft
• Data Theorem, Inc.
• ImpactQA
• NowSecure
• Kryptowire

Definition: Security testing refers to a software testing process focused on identifying vulnerabilities, threats, risks, and gaps in the security mechanisms of software applications, networks, mobile apps, IoT devices, cloud infrastructure, and other systems. It aims to improve the overall security posture of an organization against constantly evolving cyber threats and attacks. Security testing is performed using various types of tools, techniques, and processes such as penetration testing, static/dynamic analysis, fuzzing, and audit of infrastructure configurations and controls. Robust security testing is crucial for organizations to stay ahead of cybercriminals and build resilient systems.