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The software testing services market size is forecast to increase by USD 15.94 billion at a CAGR of 9.22% between 2022 and 2027. The market is experiencing notable growth propelled by several key factors. With the increasing adoption of mobile testing, organizations are striving to ensure the quality and performance of their software across diverse platforms and devices. Furthermore, the availability of cloud-based software testing services offers scalability and flexibility, catering to the evolving needs of businesses. Additionally, the rising demand for test automation services streamlines the testing process, enhancing efficiency and reducing time-to-market for software products. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market is witnessing significant growth driven by a diverse range of testing requirements across various domains. Functional testing ensures that software applications meet specified requirements, while compatibility testing ensures seamless operation across different platforms and systems. Usability testing focuses on enhancing user experience, while security testing safeguards against vulnerabilities and threats. Load testing assesses system performance under stress, crucial for ensuring reliability. In the dynamic landscape of Agile and DevOps methodologies, the demand for comprehensive testing services, especially for mobile-based applications, continues to surge, reflecting the market's adaptability to evolving industry trends.
The market research report extensively covers market segmentation by service (functional, digital-testing, specialized offering), end-user (BFSI, telecom and media, and others), and geography (North America, Europe, APAC, and South America). The service segment of the market is experiencing notable transformations with the integration of cutting-edge technologies and methodologies. Service providers are increasingly focusing on addressing issues such as bugs and improving the overall software quality across various platforms. Key services like test automation services and crowdsourced testing are gaining traction, especially in the mobile-testing space, enabling faster and more efficient testing processes. Additionally, agile testing and DevOps methodology are being adopted to streamline development cycles and enhance collaboration between development and operations teams. Leveraging artificial intelligence and machine learning, service providers are offering new technological solutions to optimize manual and automation testing processes, ensuring comprehensive test coverage and minimizing the footprint.
The market share growth by the functional segment will be significant during the forecast period. Functional-testing is a type of software quality control that examines the specific features or operations of an application. It offers a framework for identifying and resolving functional issues in applications prior to their release into production, which lowers overall costs related to corrective actions after release.
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The functional segment was valued at USD 10.86 billion in 2017 and continued to grow until 2021. Functional testing's primary goal is to evaluate each software function by providing sufficient input and contrasting the results with the functional requirements. Over the past ten years, software applications have proliferated to the point where both businesses and developers cannot function without them. Because of how important these applications have become for businesses, most companies worldwide are now releasing their own mobile apps in an effort to increase online sales and profitability. Some of the top businesses, including WhatsApp Inc. (WhatsApp), LINE Corp. (LINE), and Niantic Inc., rely heavily on mobile apps to make money. Increased smartphone adoption in emerging economies and expanding internet bandwidth in developed nations have encouraged investments in the creation of mobile applications. Thus, it also drives investment in functional software-testing services. Hence, rising demand for applications drives functional these services during the forecast period.
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North America is estimated to contribute 40% 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 market. US and Canada were the major contributors to the market in 2022. The growing use of software and applications in the retail, BFSI, telecom, and media industries in North America is driving up demand. The largest providers of banking services, including 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 modernizing their IT infrastructure and implementing new IT solutions that incorporate cutting-edge technologies like cloud computing and IoT. For instance, the US-based company Application Software Technology (AST) LLC introduced its new automated-testing-as-a-Service (TaaS) platform in October 2020. This platform helps to accelerate test cycles for Oracle cloud applications. Cross-browser compatibility is guaranteed by this platform's ability to enable robotic regression testing. Hence, such factors will boost regional market growth during the forecast period.
The market is witnessing significant growth due to the rising demand for functional-testing, compatibility-testing, usability-testing, and security testing across various software applications, platforms, and systems. With the increasing adoption of Agile and DevOps methodologies, especially in mobile-based applications, the need for continuous testing to ensure seamless transactions, entertainment, and gaming experiences has become crucial. The market is also seeing a surge in test automation services and crowdsourced testing, leveraging artificial intelligence and machine learning for more efficient and accurate testing solutions. These advancements offer new technological solutions and ample market growth opportunities in both manual and automation testing segments. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in test automation services is notably driving market growth. Services for test automation are very popular with businesses. They speed up software-testing and shorten the turnaround time. With these services, the software is tested using an automated testing methodology by the tester. Test automation services' primary goals are to minimize manual intervention and enhance the results. The automation tool in a process automates the login and registration forms, user access counts, all GUI elements, database connections, and other test-related tasks. Moreover, these services have a number of advantages that encourage businesses to use them, including shorter testing times and cost savings.
The use of test automation services has increased as a result of the introduction of new software development methodologies like DevOps and Agile. For example, Cigniti Technologies has established an Automation Center of Excellence (ACoE) specifically for the provision of test automation services. For the purpose of executing test automation services, Cigniti Test Automation Accelerator Kit includes pre-built test automation scripts, utilities, process assets, and frameworks. Businesses have increased their use of test automation services to speed up the delivery and release of their software in this dynamic and competitive business environment. Thus, these factors will boost the growth of the global market during the forecast period.
The growing momentum of crowdsourced testing is an emerging trend in the market. The term crowdsourced describes the testing services provided by a dispersed group of temporary workers worldwide. It offers a significant testing method for the verification of applications in the later stages of software development. The crowdsourced-testing approach functions in a variety of ways. In certain circumstances, testers may employ their environment or a crowdsourced platform to test the software, or they may use virtual machines (VMs) or device emulators. Testers occasionally work directly with customers and complete tasks as required.
Scalability, speed, output-based pricing, device and geography coverage, and real-time software-testing are a few advantages of crowdsourced-testing. Because of its advantages, crowdsourced testing has become extremely popular. Leading companies like Accenture and Cigniti Technologies have also partnered with providers of crowdsourced platforms to enter the crowdsourced market. Crowdsourced testing will gain more traction during the forecast period, and it is anticipated that other top service providers may enter this market through inorganic developments.
The availability of open-source and free testing tools is a major challenge impeding market growth. Software platforms known as open-source software testing tools have readily available source codes on online portals. The revenue of manufacturers of proprietary testing tools is adversely affected by the availability of open-source software testing tools. These tools are widely used by testers because they have advantages like free use and support, prevent vendor lock-in, and are created using open standards. Selenium, Appium, Cucumber, and Katalon Studio are a few of the many open-source tools on the market that can test using various software development methodologies.
Due to their financial limitations, startups and SMEs are the main users of open-source-testing tools. Costs associated with installation and licensing are the main barriers keeping these businesses from choosing proprietary software. Different kinds of software testing, including functional and non-functional testing, can be carried out using open-source-testing tools. As a result, the growing use of open-source testing tools will hinder software testing companies' ability to generate income and restrain the market's expansion during the forecast period.
The 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.
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.
DeviQA Solutions - The company primarily focuses on providing QA services. The key offerings of the company include software testing services and solutions such as Full Cycle-Testing, Agile-Testing, and API-Testing.
The 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 market is experiencing rapid expansion driven by the increasing demand for compatibility testing, usability testing, security testing, and load testing across various systems and platforms. With the proliferation of mobile-based applications in areas such as transactions, entertainment, and gaming, the need for comprehensive testing solutions has grown significantly. Continuous application updates require efficient testing to identify and address bugs and minimize the footprint of software. Adoption of DevOps methodology and integration of Artificial intelligence and Machine learning are enhancing testing capabilities, offering new technological solutions for improved efficiency and accuracy. This dynamic landscape presents numerous market growth opportunities for both manual testing and automation testing services in the evolving mobile testing space.
The market is witnessing a surge in demand driven by various factors such as the proliferation of cloud-based testing solutions, the exponential growth of mobile and web applications, and the increasing awareness of security threats. Additionally, the advent of big data technologies has necessitated robust testing strategies to ensure data integrity and reliability. Concepts like shift left testing and multi-channel and omnichannel testing are gaining traction as organizations seek to deliver seamless user experiences across diverse platforms. Furthermore, the rise of DevOps teams is driving the adoption of automated test environments and cross-platform support to streamline the testing process. Despite challenges like skill shortages and the perception of testing as a cost center, businesses are increasingly focused on achieving a positive ROI through efficient testing methodologies, including crowdtesting.
The 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.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.22% |
Market growth 2023-2027 |
USD 15.94 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.87 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atos SE, BRISA, Capgemini Service SAS, Cognizant Technology Solutions Corp., DeviQA Solutions, Expleo Group SAS, Hexaware Technologies Ltd., Infosys Ltd., International Business Machines Corp., Kualitatem Inc., Oxagile, QA Mentor Inc., QA TestLab Solutions Ltd., QASource, QualiTest Group, QualityLogic Inc., Tata Consultancy Services Ltd., Testfort, Wipro Ltd., Quality Area Ltd., and LogiGear Corp. |
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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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