USD 1.96 Billion
Penetration Testing Market Size, Share, Growth Analysis, By Testing Type(Red Team, Blue Team), By Testing Method(Blind Testing, Targeted Testing, External Testing, Internal Testing), By Offering(Solutions, Services (Professional Services, Managed Security Services)), By Deployment Mode(On-premises, Cloud), By Organization Size(Large Enterprises, Small & Medium-Sized Enterprises), By Type(Web applications, Mobile Applications, Network Infrastructure, Cloud), By Vertical(BFSI, Healthcare, IT & ITeS, Telecommunication), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45F2150 |
Region:
Global |
Published Date: September, 2024
Pages:
196
|Tables:
90
|Figures:
71
Penetration Testing Market Insights
Global Penetration Testing Market size was valued at USD 1.6 billion in 2022 and is poised to grow from USD 1.7 billion in 2023 to USD 2.29 billion by 2031, growing at a CAGR of 17.12% during the forecast period (2024-2031).
Rapidly increasing incidence of cyberattacks and growing use of cloud technologies and platforms are projected to drive the demand for penetration testing over the coming years. The launch of new stringent regulations to ensure data security and privacy is also expected to create new opportunities for penetration testing companies in the future. Increasing digital transformation around the world and the launch of new supportive initiatives to promote the use of advanced digital technologies are expected to uplift the demand for penetration testing in the long run.
Penetration testing plays a critical role in identifying vulnerabilities in these evolving digital environments, to ensure that security keeps up pace with digital innovation. The growing proliferation of mobile devices and IoT (Internet of Things) technologies is also estimated to uplift the global penetration testing market growth potential over the coming years. However, dearth of skilled professionals, high costs of penetration testing, and challenges in integration with legacy infrastructure are some key constraints that could impede market growth across the study period and beyond.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Offering
Fastest Growth
Offering
Growth Rate
12.50% CAGR
Global Penetration Testing Market ($ Bn)
Country Share for North America Region (%)
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Penetration Testing Market Segmental Analysis
Global Penetration Testing Market is segmented by Testing Type, Testing Method, Offering, Deployment Mode, Organization Size, Type, Vertical and Region. Based on Testing Type, the market is segmented into Red Team, Blue Team. Based on Testing Method, the market is segmented into Blind Testing, Targeted Testing, External Testing, Internal Testing, Double-Blind Testing. Based on Offering, the market is segmented into Solutions, Services (Professional Services, Managed Security Services). Based on Deployment Mode, the market is segmented into On-premises, Cloud. Based on Organization Size, the market is segmented into Large Enterprises, Small & Medium-Sized Enterprises. Based on Type, the market is segmented into Web applications, Mobile Applications, Network Infrastructure, Cloud, Social Engineering. Based on Vertical, the market is segmented into BFSI, Healthcare, IT & ITeS, Telecommunication, Retail and eCommerce, Manufacturing, Education, Other verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Penetration Testing Market Analysis by Enterprise Size
Large enterprises are forecasted to account for a major chunk of the global penetration testing market share. Increasing investments of large enterprises in enhancing the security of their solutions and data are expected to help this segment bring in the most revenue for penetration testing companies. Availability of capital and skilled human resources is another key factor that helps large enterprises spearhead the global penetration testing demand outlook. The increasing migration of large enterprises from on-premises solutions to cloud platforms is also expected to create new opportunities for penetration testing companies operating in this segment.
Meanwhile, the demand for penetration testing in small and medium enterprises (SMEs) is estimated to rise at a rapid CAGR across the forecast period and beyond. Rising awareness regarding the benefits of penetration testing and growing affordability of the same are forecasted to make this segment a highly opportune one for penetration testing companies. Increasing spending potential of small and medium enterprises on security solutions and the development of special penetration testing solutions designed for SME use are also slated to bolster market growth via this segment in the future. India, China, and the United States will be the most opportune markets for companies focusing on SMEs.
Penetration Testing Market Analysis by Offering
Penetration testing solutions are projected to account for a prominent chunk of the global penetration testing market share. Growing demand for advanced cybersecurity tools and solutions is estimated to help this segment maintain its dominance. Increasing investments in the development of new penetration testing solutions with advanced features to improve security of digital infrastructure will also contribute to the high market share of this segment going forward. High demand for comprehensive security solutions around the world is also expected to promote the demand for penetration testing solutions in the long run.
Meanwhile, the demand for penetration testing services is slated to surge at an impressive pace across the forecast period and beyond. The growing number of organizations outsourcing their penetration testing needs as they do not have skilled professionals for the same is expected to help bolster penetration testing market growth via this segment in the future. Rising complexity of regulations and IT infrastructure are also estimated to favor the adoption of penetration testing services in the long run. Small and medium enterprises are estimated to be more inclined to opt for penetration testing services as compared to large enterprises who prefer to do everything in-house.
Global Penetration Testing Market By Enterprise Size
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Penetration Testing Market Regional Insights
North America is estimated to account for a substantial share of the global penetration testing market. The presence of a strong technological infrastructure, stringent regulations for data privacy and security, rising incidence of cyberattacks, and high investments in R&D of novel security technologies are key factors allowing this region to hold sway over others. Canada and the United States are slated to bring in substantial revenue for all penetration testing companies operating in this region. High awareness and spending on bolstering security of digital platforms and technologies will also create new opportunities for market players in North America.
Increasing digital transformation of the Asia Pacific is slated to help it become the fastest-growing regional market for penetration testing companies. Rising investments in IT infrastructure development, growing awareness regarding benefits of penetration testing, and increasing number of penetration testing start-ups in this region are all expected to make this a highly opportune market in the future. China, India, and Japan are estimated to spearhead revenue generation for penetration testing companies operating in this region. Rising internet and smartphone usage in this region will also offer lucrative business scope for penetration testing companies focused on mobile applications and mobile devices in the future.
Global Penetration Testing Market By Region
- Largest
- Fastest
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Penetration Testing Market Dynamics
Penetration Testing Market Drivers
Rising Use of Cloud-based Applications
- Rise of cloud technologies has led to a massive upsurge in the popularity and use of cloud-based applications around the world. Penetration testing for cloud environments helps organizations identify potential security gaps, making it a crucial tool for ensuring that cloud-based systems are secure. Hence, growing use of cloud-based applications will drive up the demand for penetration testing.
Launch of Digital Transformation Initiatives
- Digital transformation across the world is increasing at a rapid pace and this trend is projected to bolster the importance of penetration testing in the future. As companies go digital, they also focus on enhancing their security by opting for solutions such as penetration testing to help safeguard their data and maintain privacy.
Restraints
Integration Issues
- Integrating penetration testing solutions legacy systems and infrastructure remains a key challenge for all penetration testing companies as the technology used for penetration testing is highly advanced. This incompatibility with legacy systems could hinder the adoption of penetration testing in the long run. Creating a streamlined integration process will be essential for sustained market growth in the future.
Dearth of Skilled Penetration Testers
- Professionals who can skillfully perform penetration testing are quite scarce and this can be attributed to the high complexity of IT systems and infrastructure. This dearth of skilled penetration testers around the world could result in delays in testing, higher service costs, and limited availability of testing resources, expected to impede market development.
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Penetration Testing Market Competitive Landscape
Penetration testing providers should focus on reducing the costs and complexity of their offerings to maximize their business scope in the future. Collaborations and mergers are expected to emerge as popular strategies for penetration testing market players to enhance their market share. Addressing the issue of skilled professional shortage will be crucial for penetration testing companies to unlock the full growth potential of the market in the long run.
Penetration Testing Market Top Player’s Company Profiles
- Rapid7
- Secureworks
- Synopsys
- Cisco Systems
- IBM
- Crowdstrike
- Coalfire
- Cigniti Technologies
- The Chertoff Group
- Fortinet
- Bugcrowd
- Summit Partners
- Hackerone
- Raxis
- Rsi Security
- Rhino Security Labs
- Sciencesoft
- Portswigger
- Netragard
- Software Secured
- TELUS Corporation
- LRQA Nettitude
- Liberty Strategic Capital
- Nowsecure
- Securitymetrics
- KKR (Netspi)
- Covertswarm
- Holm Security
- Intruder Systems
- Breachlock
- Isecurion
- Redbot Security
Penetration Testing Market Recent Developments
- Recently, in August 2024, FireCompass, a new name in the continuous penetration testing business announced the launch of a new generative AI autonomous penetration testing agent. FireCompass Agent AI can execute the complete penetration testing workflow by itself to increase testing coverage and overall security of an organization.
- In July 2024, Horizon3.ai, a leading name in the cloud security business announced the launch of NodeZero™ Cloud Pentesting to enhance cloud security and identify hidden vulnerabilities as well.
- In March 2024, F5, a renowned provider of cloud and application security announced the addition of penetration testing to its F5 Distributed Cloud Services. The company made this move soon after it acquired Heyhack to enhance its multi cloud security capabilities and application security as well.
Penetration Testing Key Market Trends
- Use of Automation: Penetration testing companies can focus on integration of artificial intelligence and machine learning technologies to introduce automation in penetration testing. Use of automation can also help organizations resolve the issue of the dearth of skilled professionals, enhance the efficiency of penetration testing solutions, and make them more accessible going forward.
- Emphasis on Mobile Application Testing: Mobile applications are being extensively used across multiple industry verticals and ensuring their security is a major concern for all companies. Penetration testing can be used to bolster the security of these mobile applications as emphasis on fixing vulnerabilities in these applications becomes prime focus for multiple organizations.
Penetration Testing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, increasing digital transformation around the world and rising sophistication of cyberattacks are slated to primarily augment the demand for penetration testing in the future. However, dearth of skilled penetration testers and integration challenges are slated to slow down market development going forward. North America is slated to lead the demand for penetration testing on a global level owing to high emphasis on security among organizations in this region. Use of automation and integration of artificial intelligence provides attractive opportunities for penetration testing companies to explore in the future.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 1.6 billion |
| Market size value in 2031 | USD 2.29 billion |
| Growth Rate | 17.12% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Penetration Testing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Penetration Testing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Penetration Testing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Penetration Testing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Penetration Testing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Penetration Testing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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