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The Test Environment as a Service (TEaaS) Market size is estimated to grow at a CAGR of 20.26% between 2022 and 2027. The market size is forecast to increase by USD 16,458.04 million. The growth of the market depends on several factors, including the reduction in the cost of application development and time, the increasing adoption of mobile-based test environments as services, and the increase in the adoption of agile testing. Test environment as a service (TEaaS) is an outsourcing model that provides a suite of software, hardware, and network infrastructure to deliver and manage complete software testing environments.
This test environment as a service market report extensively covers market segmentation by application (large enterprises, small, and medium enterprises), type (cloud-based, on-premise, and testing as a service offering), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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The reduction in the cost of application development and time is driving growth in a test environment as a service market. In a global context, companies are focusing on reducing their overall cost of CAPEX by adopting new technologies. It is a complex, costly, and time-consuming job building and running on-premises applications. Traditionally, each on-premises application requires hardware, OS, a database, middleware, servers, and software.
Moreover, enterprises can use a single development platform as per their need and pay as they go, which helps reduce the extra cost needed to build different platforms. With all the characteristics of TeaaS, organizations are able to deploy applications and products in a shorter timeframe. Owing to the above-mentioned advantages, the growth of the global test environment as a service market is expected to grow during the forecast period.
The rise in test automation services is a key trend in a test environment as a service market. In particular, enterprises are increasingly adopting test automation services. They reduce the testing turnaround time and enhance the efficiency of testing software. The main objective of test automation services is to reduce manual intervention and improve testing output.
However, test automation services ensure accuracy and reduce testing costs without compromising on the software quality. Testing automation services are becoming more widespread due to the emergence of new methods for software development, such as DevOps and Agile. The increasing adoption of automated testing services will boost the growth of the global test environment as a service market.
The availability of open-source and free testing tools is a major challenge faced by the test environment as a service market. Open-source TeaaS platforms whose source codes are easily reachable and readily available on web portals. Most of these tools are developed by and for an important community of software engineers. The accessibility of open-source TeaaS tools has a pessimistic impact on the revenue of proprietary testing tool providers.
However, startups and SMEs are the primary users of open-source testing tools, owing to their cost constraints. Various types of software testing, such as functional and nondeterminable tests, can be carried out with open-source testing tools. Hence, the increasing adoption of open-source testing tools will have a negative impact on revenue generation opportunities for TeaaS vendors, which might hinder the growth of the global test environment as a service market.
The market share growth by the large enterprises segment will be significant during the forecast period. Large enterprises have complex IT requirements, and TeaaS provides various advantages, such as low cost, no maintenance, resource optimization, and scalability, to address those requirements. Without investment in costly hardware or software, major organizations can leverage TeaaS to expand their IT infrastructure rapidly and efficiently.
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The large enterprises segment showed a gradual increase in the market share of USD 3,564.23 million in 2017 and continued to grow by 2021. The increase in demand for TeaaS has been driven by an increasing number of large enterprises adopting cloud computing, as well as the availability of new and innovative cloud services and solutions. Thus, the large enterprise segment is expected to drive the growth of the global test environment as a service (TEaaS) market. during the forecast period.
The growth of cloud-based test environments as a service is primarily due to increasing globalization and the presence of IT, BFSI, and retail companies globally, which require a centralized system and software that enables organizations to manage, automate, and optimize their recurring and repetitive business processes. Cloud-based TeaaS enables enterprises to have more control over their business operations and helps improve the efficiency of these processes. With cloud-based applications, enterprises can ensure reliability, gain visibility, and accommodate unique business requirements globally. Innovations in data security are expected to drive the adoption of cloud solutions among large organizations during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, North America had the largest market share of the global test environment as a service (TEaaS) market. The US and Canada were the major contributors to the test environment as a service market in North America in 2022. The region is expected to grow at a moderate rate during the forecast period. In North America, the demand for The demand for TeAs in North America is growing as a result of the increasing adoption of software and applications by retailers, and financial institutions such as BFSI, telecom, and the media industry.
Moreover, the major banking services providers, such as JPMorgan Chase & Co. (JPMorgan), Citigroup Inc. (Citigroup), Goldman Sachs Group Inc. (Goldman Sachs Group), and Mitsubishi UFJ Financial Group Inc. (Mitsubishi UFJ Financial Group), are upgrading their IT infrastructure and adopting new IT solutions that are integrated with advanced technologies, such as cloud computing and IoT. This platform makes it possible to make sure that any browser is compatible with this robot regression test. Similarly, Cigniti Technologies offers test automation services to leading financial and brokerage service providers in the US to reduce costs and enhance the customer experience. Thus the above factors will increase the market growth in this region during the forecast period.
COVID-19 spread widely across North America, especially in the US, in 2020, which had a mixed impact on the test environment as a service (TEaaS) market. However, due to COVID-19 in 2020, organizations were closed, resulting in decreased demand for product testing in offices. But, in 2021, vaccination programs were launched that led to an overall resumption of activities and a gradual opening of the organizations. This increased the demand for TeaaS in 2021. Moreover, increasing software development startup companies and the adoption of mobile TeaaS are expected to further boost the growth of the regional test environment as a service market during the forecast period.
The Test Environment as a Service Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Test Environment as a Service Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc - The company offers test environment as a service software such as Accenture clone and test for cloud.
Atos SE - The company offers a test environment as a service solution such as the ATOS EGSE testing platform.
Broadcom Inc. - The company offers a test environment as a service such as the SVaaS platform to efficiently test and deploy apps.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The test environment as a service market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Test Environment As A Service Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.26% |
Market growth 2023-2027 |
USD 16,458.04 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.32 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Atos SE, Broadcom Inc., Capgemini Service SAS, CloudShare Inc., Cognizant Technology Solutions Corp., HCL Technologies Ltd., HP Inc., Infosys Ltd., Infotree, International Business Machines Corp., ITC Ltd., KPIT Technologies Ltd., Wipro Ltd., and Zettabytes Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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