Penetration testing involves the process of evaluating computer system, network, web application or physical security system vulnerabilities by simulating an attack from a potential threat. The demand for penetration testing has been growing significantly over the past few years due to increasing instances of cyberattacks and growing need for network security in various industries such as BFSI, IT & Telecommunication, Healthcare among others. Penetration testing helps evaluate security risks by finding security vulnerabilities, configuration weaknesses and access control lapses. With growing adoption of digital technologies and internet usage, there is an increasing need for robust cybersecurity measures which is expected to drive the global penetration testing market.
The global penetration testing market is estimated to be valued at US$1.59Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing instances of cyberattacks have significantly increased the need for advanced network security solutions across various end use industries which continue to drive the demand for penetration testing market. As per the latest report, the total number of cyberattacks increased by over 30% in 2021 compared to previous year. Ransomware attacks doubled in 2021 affecting critical infrastructure. Phishing and malware attacks have also increased considerably. With growing instances of security breaches due to remote working culture during the pandemic, organizations are increasingly focusing on vulnerability assessments and network security audits using penetration testing to prevent financial and data losses. This has accelerated the growth trajectory of global penetration testing market over the recent past.
Segment Analysis
The global penetration testing market is segmented based on component, type, organization size, vertical, and region. The services segment dominated the market in 2020 as it helps businesses to effectively identify security gaps and vulnerabilities in their applications, networks, and systems. Professional services such as advisory & consulting, penetration testing, and risk & threat assessment services are expected to continue their dominance during the forecast period owing to increasing demand for assessing the security posture of firms on a regular basis.
Key Takeaways
The global penetration testing market is estimated to be valued at US$1.59Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
Regional analysis: North America region dominated the global penetration testing market in 2020 and is expected to continue its dominance during the forecast period. This is attributed to early adoption of advanced technologies, presence of key players, and stringent cybersecurity regulations. The Asia Pacific region is expected to witness the fastest growth rate during the forecast period owing to increasing cyber threats, growing digitalization, and rising cybersecurity budgets across industries.
Key players: Key players operating in the penetration testing market are Rapid7, Core Security, IBM, Veracode, Synopsys, Checkmarx, Whitehat Security, and Hewlett Packard Enterprise. Rapid7 dominated the global market in 2020 due to its wide geographical presence and robust portfolio of penetration testing solutions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it