APPLICATION SECURITY MARKET ANALYSIS

Application Security Market Size and Trends

The application security market is estimated to be valued at USD 10.67 Billion in 2024 and is expected to reach USD 34.82 Billion by 2031, growing at a compound annual growth rate (CAGR) of 18.4% from 2024 to 2031.

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The application security market trend has been rising significantly over the past few years. With growing cyber threats and increasing dependency of enterprises on applications, the demand for application security solutions has increased tremendously.

Key factors driving the market growth include rapid digitalization across industries, increasing revenue losses due to application breaches, rising adoption of cloud-based applications, and growing spend on application security by organizations to secure their brands. Rapid migration of applications to cloud-based platforms has also fuelled the need for effective security of applications. Furthermore, integration of AI and machine learning capabilities in application security solutions is expected to enhance their effectiveness and create new opportunities in the market going forward.

Rise of Cyber Attacks and Security Breaches

As digital transformation accelerates and more organizations move their operations and services online, the attack surface for cyber criminals has widened considerably. Sophisticated threat actors backed by nations are constantly probing networks for vulnerabilities while opportunistic hackers leverage readily available tools to compromise user credentials and launch ransomware attacks. High profile security breaches at major companies have heightened the awareness of cyber risks at the board level but have also given rise to more complex attacks aimed at critical infrastructure and supply chains. With more employees working remotely due to the pandemic, the enterprise perimeter has become even more diffused. Meanwhile, the proliferation of IoT devices have introduced new vectors for compromising networks.

For instance, in July 2023, the United States Departments of Justice (DOJ) and Homeland Security (DHS) launched StopRansomware.gov, a website dedicated to providing ransomware information and mitigation strategies for individuals, corporations, and organizations. This is the first joint website by the federal government to assist public and private entities in managing ransomware risk.

Growing Importance of Brand and Customer Trust

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As digital interactions become the primary way customers engage with brands, the importance of establishing trust has taken on a new dimension. Even a single high-profile breach can cause reputational damage that takes years to repair and results in long term customer erosion. In an increasingly regulated environment, businesses are also legally obligated to safeguard any personal data they store and process of both customers and employees. Fines for non-compliance to privacy laws have been rising sharply, acting as a further tax on those unable to demonstrate robust security measures.

Application vulnerabilities have emerged as a major factor contributing to data breaches in recent years. Frequently targeted software like web platforms and mobile apps require stringent testing and monitoring to identify flaws before they can be exploited. There is therefore a pressing need for organizations to assure customers and stakeholders of the security of their digital systems and services. Adopting a application security program and selecting tools that follow best practices has become vital for protecting brands and preventing costly litigation.

For instance, in October 2022, Oracle announced Oracle Database 23c Beta, focusing on application and development simplification, while also emphasizing performance, security, and reliability.