Penetration Testing Market

Global Penetration Testing Market Size (2024 to 2029)

The penetration testing market is predicted to reach USD 2.09 billion in 2024 and USD 3.98 billion by 2029, growing at a CAGR of 13.7% during the forecast period.

Penetration testing executes a cyberattack on your computer system to look for exploitable defects. It is also commonly known as the Pen test. The results and analysis provided by the Penetration test help modify or improve the Web Application Firewall. This testing has five stages: planning, scanning, gaining access, maintaining access, and analysis. Artificial intelligence is one of the latest trends in Pen Test and is gaining a place by helping to understand the behavioral patterns of malicious threat actors. Another trending phenomenon is Machine learning, which can make all cybersecurity operations, including Web Application Penetration testing, more proactive. The penetration testing market is forecasted to grow immensely as organizations need it to streamline processes and optimize expenses.

Global Penetration Testing Market Drivers:

Due to the rising adoption of data centers, the demand for penetration testing is increasing globally because of security concerns. Penetration testing helps the organization with security audits and assessments. In addition, the cloud computing platform helps organizations store their data at a lower cost than other traditional methods. Still, it is vulnerable to security attacks, and due to the increasing adoption and usage of these platforms, the penetration testing demand is also rising simultaneously. In short, due to increasing reliance on technology and security, attacks by cyber hackers, such as penetration testing, have become a concern.

Global Penetration Testing Market Restraints:

Although penetration testing has a lot of advantages, it also has a few downsides. Organizations rely on automated tools to conduct penetration testing because of the large number of tests to be undertaken, but this opens room for error. As a result, the test gives false results. Penetration Testing requires the testing environment to replicate the error, but not every organization has the climate to produce a mistake. Organizations are adopting an agile environment that requires modifications and additional features to be released frequently in the scheduled sprint cycle. Due to this, the test needs to be run and re-run often. Hence, it becomes challenging to evaluate real situations and risks. The cost of doing the test also limits the market because it requires resources and tools that not every company can afford.

Global Penetration Testing Market Opportunities:

Due to the shift to technology, security improvement is needed, allowing the penetration testing industry. In addition, the properties of penetration testing, like tracing and monitoring, increase its application in industries. To fulfill business requirements, improve processes, and reduce the costs of organizations, penetration is more practical, reliable, and preferred over traditional testing. Along with the technology industries, the opportunity for penetration testing is growing in the healthcare industry as it is moving towards digitalization, making it prone to cyber-attacks. Thus, the healthcare industry is adopting penetration testing.

Impact of COVID-19 on the Global Penetration Testing Market:

COVID-19 has positively impacted the penetration testing industry as many companies, businesses, industries, and governments have adopted penetration testing due to increased security concerns during the lockdown. Additionally, during work from home, data breaches and cyber-attacks increased due to a lack of employee training on security, which led to increasing adoption of penetration testing.

GLOBAL PENETRATION TESTING MARKET REPORT COVERAGE:

This research report on the global penetration testing market has been segmented and sub-segmented based on the offering, vertical, deployment mode, and region.

Global Penetration Testing Market - By Offering:

• Software

• Services

Based on Segmentation, the trend of outsourcing professional services to developing markets, especially in compliance and other value-added services, is the main factor pushing the growth of the services segment in the penetration market. The services offered by the penetration service market improve companies' efficiency in terms of security. This services segment is expected to show a higher growth rate.

Global Penetration Testing Market - By Vertical:

• BFSI

• IT & Telecom

• Retail and E-Commerce

• Education

• Healthcare

• Others

Based on Segmentation by Vertical, the central vertical provides an opportunity for the penetration testing industry because of the sensitive data of millions of people available here. Now, healthcare is also moving towards digitalization; hence, the records of the patients are also public digitally, which is critical and vulnerable to cyber hacks. In case of a data breach, healthcare companies are levied with hefty fines. The healthcare industry uses penetration testing solutions and services because of these rules and regulations. BFSI is also forecasted to have high growth in the future because of the critical financial data of companies and customers it has. By 2027, BFSI is expected to cross USD 370 million.

Global Penetration Testing Market - By Deployment Mode: 

• On-Premises

• Cloud

Based on Segmentation by Deployment Mode, On-Premise mode is forecasted to have the highest market share. On-premise has the highest market share and growth due to the ease of use it offers to organizations. When it comes to using large organizations, they are the prevalent users because of the critical information they have with them. Now, most information and data can be accessed on mobile, making it more vulnerable to cyber-attacks. This has increased the demand for On-Premises. The cloud computing market is also expected to grow by a CAGR of 18.1%, and most companies will be cloud-based, contributing to penetration testing growth.

Global Penetration Testing Market Key Segmentation - By Region:

• North America

• Europe

• Asia-Pacific

• Middle East & Africa

• Latin America

Based on Segmentation by Region, North America is forecasted to have the highest growth rate during the forecast period, owing to the technology and innovation in the country. Asia-Pacific is also one of the regions with a higher growth rate because of companies' increasing need for cyber security. Also, since it's a growing market, adoption of these technologies is growing. Additionally, compliance and government regulation in a few verticals, such as healthcare, have made it mandatory to abide by privacy and security norms; hence, penetration testing usage and growth are on a higher growth rate.

Key Market Participants:

The major companies operating in the global penetration testing market include

1. IBM

2. Cisco

3. Synopsys

4. CloudStrike

5. Redbot Security

6. HackerOne

Recent Developments:

• In 2021, Coalfire, to empower its modern risk-taking approach and enhance its digital capabilities, acquired Neuralys Corporation.

• In 2021, Brillio, a digital technology company to advance its cloud security services, acquired Cedrus Digital.

• In 2022, Invicti Security with Summit Partners signed an agreement valued at USD 625 million to support its product development initiative.

• In 2022, Synopsys Inc. acquired WhiteHat Security, a leading security application company, to strengthen its security testing portfolio.