The application security market is estimated to be valued at USD 10.67 Bn in 2024, growing at a CAGR of 18.4% over the forecast period (2024-2031). The market is witnessing high growth owing to rising sophistication of cyber-attacks and growing dependency of organizations on web and cloud-based applications. Furthermore, stringent data security regulations and compliance norms are encouraging organizations to adopt robust application security solutions.
Market Dynamics:
The growth of the application security market is driven by the rising sophistication of cyber-attacks and increasing adoption of cloud-based applications. Cyber-attacks are becoming more complex with hackers leveraging advanced technologies like AI, machine learning, and IoT to launch targeted ransomware and phishing attacks. This has increased the need for enterprises to closely monitor and secure their web and cloud-based applications. Furthermore, a surge in remote working during the pandemic has expanded the attack surface for hackers, amplifying security risks. According to IBM, the average cost of a data breach in 2021 was US$ 4.24 million, compelling companies to prioritize application security. In addition, the growing usage of SaaS tools, cloud-based ERP systems and other business applications has prompted organizations to implement effective security measures to protect sensitive data on these platforms.
Market Drivers:
- Increasing adoption of mobile and web applications is driving the growth of the application security market: With more organizations adopting mobile and web applications for business operations and customer engagement, application security has become a top priority. As businesses leverage apps to expand their digital footprint, they are exposed to new cybersecurity risks. Attackers are finding more ways to target vulnerabilities in applications and steal sensitive data. This has pushed organizations to invest heavily in application security solutions to protect their apps and ensure compliance. Tools that can scan for vulnerabilities, prevent leaks and breaches, and provide runtime protection are in high demand. As long as digital transformation continues and applications become mission-critical for businesses, the need for a robust application security will only increase.
- Growing regulatory pressure to ensure data privacy and compliance is fueling the adoption of application security solutions: Various data privacy regulations such as General Data Protection Regulation (GDPR) in Europe and Central Consumer Protection Authority (CCPA) in the U.S. have made it mandatory for organizations to protect personal data. Non-compliance can result in heavy fines. Applications that store or process customer information are especially at risk of data breaches. To avoid penalties, companies are compelled to audit applications, detect vulnerabilities, and plug security holes. Application security vendors that can help meet stringent compliance standards through automated scanning and remediation are seeing increased traction. As data privacy legislations become more widespread globally, regulatory compliance will remain a key driver propelling the application security industry.
Market Restraints:
- Lack of in-house skills and resources hampers effective application security programs: While awareness about application security has risen significantly, many organizations still struggle with the implementation due to shortage of skilled professionals. Developing and maintaining a robust security program requires different competencies – from developers with application code knowledge to security experts who can analyze threats. Finding and retaining such talent is proving difficult. This leads to either dependence on overworked security teams or reliance on insecure code. The skills gap undermines quick resolution of issues and continuous monitoring. Unless companies make concerted efforts to close this expertise deficit through training or hiring, it will inhibit stronger security postures.
- Immature and complex multi-platform environments pose significant management challenge: Today’s applications operate across multiple environments including mobile, web, APIs, microservices, hybrid clouds, and serverless architectures. The expanded attack surface poses headaches for security teams tasked with visibility and protection. Getting a unified view and consistent policy enforcement across such complex ecosystems is not easy. Often vendors provide point solutions that do not integrate well, resulting in security gaps. The immaturity of newer technologies also hides vulnerabilities that are difficult to predict and defend against. Until multi-platform security tools emerge that simplify management across any infrastructure, this fragmentation will remain a deterrent.
Market Opportunities:
- Demand for API protection is rising exponentially with increasing API usage: APIs have become the underlying connectivity fabric for modern applications. But inadequate API security leaves the entire architecture vulnerable to attacks. As more organizations leverage APIs for functions ranging from data sharing to external integrations, unprotected APIs act as an open door for hackers. Any security issues found in APIs can potentially impact entire digital ecosystems. As API-first approaches take over, API protection through tools that automate discovery, testing and runtime monitoring present a massive business opportunity. Vendors delivering API-focused capabilities can capitalize on the exponential surge in demand for API-centric security.
- Advent of serverless computing opens new possibilities for securing workloads: Serverless architectures allow the scaling of workloads on demand without capacity planning and provisioning. For security teams, serverless brings the dual challenge of securing stateless functions with limited context as well as managing permissions and policies across multiple backends. However, it also presents novel opportunities to apply security best practices natively. Serverless-aware tools that can plug into existing processes, detect policy violations, and enforce least privilege across functions in real-time aim to simplify protection for this new environment. With serverless adoption still in initial stages across businesses, early adopters stand to gain.
- In summary, an expanding digital economy driven by apps as well as stricter compliance mandates will sustain the demand for application security solutions.
Link: https://www.coherentmarketinsights.com/market-insight/application-security-market-5100
Key Developments:
- In January 2024, Qualys Web Application Scanning (WAS) launched a new user interface (UI) with enhanced scalability, reliability, and features tailored for modern application security needs. It emphasizes high availability, efficient testing, and integration capabilities for a smoother user experience. Existing users have a 90-day transition period to migrate seamlessly.
- In November 2023, Require Security Inc. launched Falcon, a runtime application security protection solution specifically designed to secure open-source libraries against potential threats and vulnerabilities
- In October 2023, the Qualys WAS team released a critical security signatures update to detect vulnerabilities in commonly used software applications including PaperCut, Openfire, Citrix ADC, GraphQL, Atlassian Confluence, WordPress, Apache Tomcat, Nginx, Zabbix, Oracle WebLogic Server, Apache HTTP Server, and Drupal
- In June 2022, Synopsys acquired WhiteHat Security, a leading provider of dynamic application security testing (DAST) technologies
Key Market Players:
Key companies covered as a part of this study include Acunetix , CAST Software, Checkmarx Ltd. , Cisco Systems, Inc., Contrast Security , F5, Inc., Fasoo, GitLab, HCL Technologies Ltd, Hewlett Packard Enterprise Development LP , High-Tech Bridge SA , IBM Corporation, Micro Focus , Onapsis, Oracle , Positive Technologies , Pradeo , Qualys, Rapid7, SiteLock , Synopsys, Inc., Trustwave Holdings, Veracode, VMware, and WhiteHat Security.
