Penetration Testing Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, Japan, UK, Germany - Size and Forecast 2024-2028

Penetration Testing Market Forecast 2024-2028 

The global penetration testing market size is estimated to grow by USD 1.93 billion at a CAGR of 13.98% between 2023 and 2028. The market is witnessing significant growth due to several factors. These include a surge in cyberattacks and data breaches, heightened dependence on digital technologies across industries, growing awareness about security issues, and increased investment in cybersecurity measures. As organizations prioritize safeguarding their digital assets, penetration testing emerges as a crucial tool to identify vulnerabilities and strengthen defenses. This trend underscores the importance of proactive security measures in an increasingly digitized world.

Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Acunetix, Aujas, Checkmarx Ltd., Coalfire Systems Inc., Cycops Information Security Services, Fortra LLC, HackerOne Inc., ImmuniWeb SA, Indium Software India Ltd., International Business Machines Corp., NetSPI LLC., Network Intelligence, PALADIN SECURITY, Rapid7 Inc., Raxis LLC, SecureLayer7.net, SecureTeam Ltd., SecurEyes, Vumetric Inc., and ScienceSoft USA Corp. Additionally, Acunetix provides a suite of penetration testing tools, including Kali Linux, Zed Attack Proxy ZAP, w3af, Nmap, Metasploit, Wireshark, Burp Suite, sqlmap, and more.

What will be the Size of the Market During the Forecast Period?

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Market Overview

The market is being propelled by escalating cyberattacks and stringent regulations driving compliance measures. With the surge in internet penetration and smartphone usage, coupled with the pandemic-induced remote work culture, data breaches and cybercrime have surged. Businesses, particularly in healthcare, are increasingly adopting cloud-based solutions, necessitating robust vulnerability management. However, challenges persist, including securing IoT-based devices, ensuring compliance across sectors like BFSI and retail, and enhancing employee awareness. To address these, organizations are embracing DevSecOps methodologies and investing in cybersecurity frameworks for layered defense strategies.

Key Market Driver

The market experiences notable growth propelled by the surge in cyber-attacks and data breaches. Utilizing penetration testing, a dynamic approach, organizations identify vulnerabilities in computer systems, networks, and applications. This simulation mirrors real-world cyber threats, revealing weaknesses preemptively. As cyber threats become more sophisticated, businesses recognize the significance of routine and comprehensive security assessments. Governments and industry regulators globally enforce stringent security measures like the General Data Protection Regulation (GDPR) and Payment Card Industry Data Security Standard (PCI DSS).

Further, penetration testing devices play a vital role in ensuring the security of diverse interconnected systems, addressing compliance measures for industry verticals. Identifying vulnerabilities through penetration testing mitigates the risk of cyber-attacks and data breaches, emphasizing the need for skilled personnel and increased awareness in the evolving landscape of software-based properties, mobile applications, web applications, cloud-based security solutions, Internet of Things (IoT), wireless networks, connected devices, and the defense sector.

Significant Market Trends

Increasing endorsement of cloud computing solutions and services is an emerging trend shaping the market growth. Cloud computing has changed the way businesses work and store data for the better in the last decade. Cloud computing has many benefits, including scalability, economies of scale, and flexibility. The cost-efficiency of cloud computing has also contributed to its widespread adoption. Cloud services eliminate the need for businesses to invest heavily in physical infrastructure, reducing their capital expenses. However, with cost savings come concerns about the security of shared resources in a multi-tenant environment. Another significant factor driving the adoption of cloud-based penetration testing is the increasing frequency and magnitude of cyber-attacks.

Moreover, hackers are continuously evolving their techniques, making it crucial for organizations to regularly assess their security posture. Cloud-based penetration testing offers a holistic approach to identifying vulnerabilities across the entire cloud infrastructure, ensuring comprehensive security coverage. Thus, the high adoption of cloud computing solutions and services will fuel the growth of the market trends and analysis during the forecast period.

Major Market Restrain

The increased cost involved in penetration testing is a significant challenge hindering market growth. Penetration testing, which is the practice of evaluating the security of computer systems, networks, and applications, has become an essential component of maintaining cybersecurity in today's digital landscape. However, one of the challenges faced by global penetration testing devices is the increased cost involved in conducting these tests. This challenge arises due to several factors that contribute to the overall expenses incurred during the penetration testing process. Additionally, complying with local regulations and legal requirements can necessitate the involvement of local experts or legal advisors, further adding to the overall cost.

Furthermore, ensuring compatibility with diverse cloud platforms and configurations further increases the cost and complexity of penetration testing. The complexity of technology systems, the diversified scope of testing, logistical considerations, and the evolution of cloud-based environments all contribute to higher expenses, which in turn will hamper the growth of the market during the forecast period.

Market Segmentation By Component, End-user and Geography

In the market, diverse sectors such as healthcare, BFSI, IT and telecommunications, and government agencies are actively investing in vulnerability management solutions to combat rising cyberattacks and ensure regulatory compliance. With the proliferation of cloud-based solutions and the adoption of DevSecOps practices, SMEs are enhancing their cybersecurity posture. Remote workers using smartphones and IoT-based connected devices pose unique challenges, necessitating robust security frameworks and layered defense strategies. Employee awareness and cybersecurity assessment tools play a crucial role in mitigating risks associated with digital networks and web- and mobile-based apps.

Component Analysis

The market share growth by the solution segment will be significant during the forecast period. The global market has been experiencing significant growth in recent years due to the increasing concerns over cybersecurity and data breaches. Penetration testing, also known as ethical hacking, is a crucial practice that helps organizations identify vulnerabilities within their systems and networks. It involves systematically attempting to exploit these vulnerabilities to assess the potential risks they pose and provide recommendations for improvement.

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The solution segment was the largest and was valued at USD 732.00 million in 2018. Managed service providers often possess a high level of expertise and experience in conducting thorough assessments. They employ skilled security professionals who carry out comprehensive tests, analyze results, and provide actionable recommendations to improve security posture. This allows organizations to leverage external expertise and resources, ultimately enhancing their overall security measures. Thus, the availability of advanced software tools, penetration testing platforms, and managed services empowers organizations to proactively identify and mitigate vulnerabilities, thus safeguarding their digital assets from potential threats, which in turn will drive the growth of the solution segment in the market during the forecast period.

End-user Analysis 

The large enterprises segment in the market plays a crucial role in ensuring the security and stability of large-scale organizational systems. With the exponential growth in digitalization, large enterprises face significant challenges in safeguarding their networks and sensitive data from potential cyber threats and breaches. Further, the adoption of penetration testing services allows these organizations to identify vulnerabilities, strengthen their security posture, meet compliance requirements, and enhance their overall resilience against cyber threats. Thus, the increased demand for penetration testing in large enterprises will drive the growth of the large enterprises segment market during the forecast period.

Regional Overview

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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 will shape the market during the forecast period. The market in North America has experienced significant growth in recent years, fueled by increasing cybersecurity concerns and the ever-evolving threat landscape. As organizations recognize the importance of securing their digital assets, the demand for comprehensive and reliable penetration testing services has surged. North America remains at the forefront of technological innovation, with numerous industries like finance, healthcare, retail, and government heavily reliant on technology. This dependency on digital infrastructure makes them lucrative targets for cybercriminals, necessitating robust security measures. 

In addition, the integration of artificial intelligence and machine learning technologies into penetration testing tools is expected to revolutionize the industry, enabling faster and more accurate identification of vulnerabilities. As organizations embrace digital transformation, the demand for comprehensive penetration testing services is expected to grow steadily, which in turn will drive the growth of the regional market during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and trends strategies.

Global Market Customer Landscape

Market Companies

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.

Aujas - The company offers penetration testing, which consists of manual and automated processes to reduce risks in applications and networks.

Market analysis and report of 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.

Segment Overview

The market report forecasts market growth and trends by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Component Outlook
  • Solution
  • Services

• End-user Outlook
  • Large enterprises
  • Small enterprises
  • Medium enterprises

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth due to the increasing need for compliance measures and robust security solutions in software-based properties, mobile applications, web applications, and cloud-based environments. With the proliferation of the Internet of Things (IoT), wireless networks, and connected devices across various industry verticals, the demand for skilled personnel and awareness regarding cybersecurity has surged. Business networks are increasingly vulnerable to cyber-attacks, highlighting the importance of vulnerability testing, defense mechanisms, and the protection of sensitive citizen information. Initiatives such as Digital India are driving infrastructure development, including public Wi-Fi and connected public transport, further necessitating secure solutions.

Additionally, commercial off-the-shelf (COTS) products are being deployed along with frameworks like the National Institute of Standards and Technology (NIST) Risk Management Framework (RMF) to enhance security. The penetration testing market is expected to grow as organizations undergo digital transformation and governments focus on securing data and ensuring compliance through rigorous testing and defense measures. In the market, cyber experts employ pen testing to assess system robustness against both authentic and unauthorized users, ensuring adherence to regulatory laws and compliance standards. They evaluate the security of software-based applications, particularly in mobile and web environments, leveraging tools like CoreSecurity and engaging information security professionals.

Further, with the rise of DevSecOps and DevOps architecture, strategies against social engineering and phishing attacks are vital in mitigating cybersecurity threats across enterprise networks. The market addresses data privacy concerns amidst digitization trends, emphasizing software testing requirements and closing communication gaps for data accuracy. Various testing types, including network and cloud penetration testing, cater to different deployment modes like on-premise setups, ensuring secured encryption and effective threat identification across BYOD-enabled enterprise and retail environments, as well as government and public sectors, safeguarding end-users and electronic health records in telehealth solutions.

Market Scope
Report Coverage	Details
Page number	152
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 13.98%
Market Growth 2024-2028	USD 1.93 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	12.77
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
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	Acunetix, Aujas, Checkmarx Ltd., Coalfire Systems Inc., Cycops Information Security Services, Fortra LLC, HackerOne Inc., ImmuniWeb SA, Indium Software India Ltd., International Business Machines Corp., NetSPI LLC., Network Intelligence, PALADIN SECURITY, Rapid7 Inc., Raxis LLC, SecureLayer7.net, SecureTeam Ltd., SecurEyes, Vumetric Inc., and ScienceSoft USA Corp.
Market dynamics	Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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