The security testing market involves testing applications, software, and ICT infrastructure to detect security vulnerabilities, threats, risks, and ensure effective security controls. Security testing solutions help organizations meet compliance requirements and mitigate cyber threats by identifying vulnerabilities that could be exploited. The global security solutions deployed include network security testing, application security testing, cloud security testing and others. Increasing cyber-attacks and data breaches across various industries especially in the BFSI sector have highlighted the need for stringent security measures. The BFSI sector deals with highly sensitive customer data and financial transactions, thus faces greater risks of cyberattacks. Therefore, the growing demand for security assurance from the BFSI industry is expected to drive the adoption of security testing solutions over the forecast period.
The global security testing market is estimated to be valued at US$ 4.18 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand from the BFSI sector referred to in the heading is a key driver propelling the security testing market growth. Banking and financial institutions hold huge amounts of customer information like names, contact details, bank account numbers, credit/debit card numbers etc. Any data breach can severely damage a bank’s reputation and cost millions in fines and lawsuits. Therefore, financial organizations are emphasizing on implementing stringent security testing practices to protect sensitive data from cyber threats and meet regulatory norms. Another major driver is the rising need to comply with data privacy regulations across industry verticals. Strict data privacy laws like GDPR necessitate that organizations conduct regular security testing and vulnerability assessments to identify and address risks proactively. This growing regulatory focus on data protection is augmenting the demand for security testing solutions globally.
Segment Analysis
Security Testing Market is segmented into application security testing, network security testing, device security testing and social engineering. Application security testing dominates the market and holds around 35% share. Application security testing checks application for vulnerabilities to protect web, mobile or software applications. Rapid growth in web and mobile applications has increased the demand for application security testing solutions.
PEST Analysis
Political: Governments across various countries have implemented stringent regulations around data privacy and security like GDPR which has increased compliance requirements for organizations and demand for security testing.
Economic: In the post pandemic era, organizations are investing heavily in digital transformation initiatives and migrating workloads to cloud. This has increased spending on security testing to ensure safety of critical data and infrastructure.
Social: Rising cybercrimes and data breaches have increased security awareness among consumers. They expect organizations to take necessary measures to protect their personal data which is driving the security testing market.
Technological: Emerging technologies like IoT, AI and cloud computing have expanded the attack surfaces for cybercriminals. This has necessitated comprehensive security testing of emerging solutions to plug vulnerabilities early in the development cycle.
Key Takeaways
The Global Security Testing Market Demand was valued at USD 4.18 Bn in 2023 and is expected to grow at a CAGR of 5.1% during the forecast period.
Regional analysis: North America dominates the security testing market with more than 40% share owing to stringent data privacy laws and rising investments in digital transformation initiatives in the US and Canada. Asia Pacific is expected to witness fastest growth during the forecast period led by growing adoption of advanced technologies in emerging economies of China and India.
Key players: Key players operating in the security testing market are Turner Construction Company, Jacobs Engineering Group Inc., HOK Group, Inc., Skanska AB, AECOM, Balfour Beatty plc, Gensler, Lendlease Group, ISG plc, DPR Construction, PCL Construction Enterprises, Inc., Structure Tone, Clark Construction Group, LLC, HBA, JLL (Jones Lang LaSalle). These players are focusing on partnerships, acquisitions and new product innovations to solidify their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it