The penetration testing market is anticipated to witness high growth owing to increasing digitalization initiatives across industries. Penetration testing, which involves simulating cyber-attacks to evaluate and strengthen an organization’s security posture, plays a pivotal role in the digital transformation journey of companies across sectors.
Penetration testing enables organizations to identify security gaps and vulnerabilities in their networks, applications, systems and infrastructure. With the accelerating adoption of cloud, IoT and mobile technologies amid growing security threats, penetration testing has become mission-critical for businesses to protect customer and organizational data as well as prevent financial and reputational losses arising from cyber breaches. The growing requirement to comply with data privacy regulations such as GDPR and CCPA has further amplified demand for periodic vulnerability assessments and remediation through penetration testing services.
The Global penetration testing market is estimated to be valued at US$1.59Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the penetration testing market are IBM Corporation, Rapid7, Inc., Microfocus, Qualys, Inc., Synopsys Inc., Core Security SDI Corporation, Whitehat Security, Trustwave Holdings, Inc., Checkmarx.com LTD, VERACODE, Inc., Secure Works Inc., Acunetix, Contrast Security, and Paladion Network Private Limited. These market leaders are focusing on strengthen their portfolio through collaborations and M&A activities to offer end-to-end security solutions.
The growing proliferation of connected and IoT devices along with rapid adoption of cloud technologies present huge opportunities for penetration testing providers. Additionally, the rising demand for compliance with data privacy regulations from various sectors such as healthcare, BFSI and government is fueling market growth.
Several penetration testing companies are expanding their geographical footprint through partnerships with regional players to tap into new markets globally and meet the burgeoning security needs of global organizations operating across industries and regions. The North America region currently dominates the market and is expected to retain its pole position throughout the forecast period.
Market drivers:
1) Increasing need to be compliant with data privacy regulations: Stringent laws around data privacy such as GDPR and CCPA are increasing the need for periodic security evaluations through penetration testing.
2) Rapid digital transformation initiatives: Widespread adoption of digital technologies like cloud, IoT and mobile is exposing organisations to newer threats while also increasing the attack surface. This is driving the need for frequent security assessments.
Market restraints:
1) Lack of skilled security professionals: Shortage of cybersecurity professionals with penetration testing skills is a major challenge faced by companies as well as penetration testing service providers.
2) High costs associated: Some organisations, especially SMEs, find the costs associated with formal penetration testing programs to be prohibitively expensive which limits wider adoption.
Segment Analysis
The security assessment segment is dominating the penetration testing market owing to prevalence of security breaches across critical infrastructure and financial institutions. The segment analyzes and tests vulnerabilities across web, network, mobile and cloud applications to identify security loopholes. Customers rely on penetration testing services to conduct periodic security assessment and maintain compliance.
Global Analysis
The North America region holds the major share in penetration testing market due to stringent regulations and presence of major players. Industries in US and Canada extensively use penetration testing services to meet standards set by compliance mandates like PCI DSS, HIPAA etc. The Asia Pacific region is projected to grow at fastest rate during the forecast period. This is attributed to rapid digital transformation across industries and increasing cyber threats in developing countries like India and China. Rising BYOD and cloud adoption further drives the demand for periodic security audits in the region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it