Security Testing Market Report Scope & Overview:

The security testing market size was valued at USD 16.2 billion in 2024 and is expected to reach USD 54.1 billion by 2032, growing at a CAGR of 16.29% during 2025-2032.

Security Testing Market growth is driven by the Increasing number of cyberattacks, growing need for regulatory compliance, and adoption of cloud-based applications across industries are key driving forces for the growth of the Security Testing Market. Proactive security assessments to identify vulnerabilities in applications, networks, and systems before exploitation are high on the priority list for organizations. Growth of the Internet of Things (IoT), mobile apps, and DevOps is also driving the need for automated, continuous security testing. AI & machine learning (ML) become prevalent as part of tools that operate for testing and identification, and this also improves the precision and the ease of finding a threat. In addition, the market is also being driven by the increasing awareness among enterprises regarding data privacy and security risks.

The Security Testing Market trend in the U.S. is driven by sophisticated cyber-attacks, stringent compliance regulations, and quickly growing adoption of cloud and DevSecOps. Valued at USD 6.02 billion in 2024, the market is projected to reach USD 16.75 billion by 2032, growing at a CAGR of 13.63% during the forecast period.

Market Dynamics:

Drivers:

• Increasing Frequency and Sophistication of Cyberattacks Drive Greater Adoption of Proactive Security Testing Solutions

The increasing number and sophistication of cyberattacks are the primary reasons for the strong growth of the security testing market. Enterprises across industry verticals are subjected to ransomware, phishing, and zero-day attacks more frequently than ever before. Continuous and proactive security testing helps organizations detect vulnerabilities and weaknesses on time, when they can still be remediated. Security testing tools and services help identify flaws before they are exploited maliciously, as well as assess their impact. At the same time, the attack surface of enterprises is expanding with the increased deployment of IoT devices, mobile apps, and cloud infrastructure. The compliance with regulations such as GDPR, HIPAA, or CCPA demands that organizations to make sure they are effectively testing to secure sensitive data from the constantly evolving threats.

In 2024, U.S.-based organizations saw a 56% year-over-year rise in cyberattacks, averaging 1,300 attacks weekly per organization

Restraints:

• Significant Setup and Upkeep Expenses Limit Adoption, Especially Among SMEs

While security testing is a critical aspect of the overall security posture of any organization, it is often associated with significant spending in tools, personnel, as well as time and effort to integrate testing into existing systems. SMEs might be unable to divert funds for the initial and ongoing spending required for testing. In the case of continuous testing, this might also require high levels of expertise to be implemented in heavily automated DevSecOps pipelines. At the same time, many security testing tools generate a significant number of false positives, causing organizations to waste resources on chasing incorrect detections. This means that constant resources are needed to keep security testing results under control.

A 2024 report by Coro found that U.S. SMEs managing cybersecurity tools spend an average of 4 hours and 43 minutes daily, juggling roughly 11.55 tools, which is both time-intensive and operationally costly

Opportunities:

• Advancements in AI/ML Capabilities Enable Faster, More Accurate, and Adaptive Security Testing

Need for Automation in Security Testing–The growth of AI and machine learning (ML) technologies is generating substantial openings in the security testing market. These testing tools, powered by AI can identify anomalies, foresee potential threats, and automate the threat analysis with far more accuracy and rapidity as compared to their traditional counterparts. Machine learning algorithms are capable of adapting to new threats, enabling a reduction in false positives as well as an improvement in remediation strategies. It also allows for real-time risk assessment in ever-changing environments such as the cloud and IoT ecosystems. AI analytics are being increasingly integrated into penetration testing, static application security testing (SAST), and dynamic application security testing (DAST) by vendors to make these methods more efficient. This innovation specifically makes it attractive to large enterprise operations of digital infrastructures on a large scale.

AI-driven cybersecurity platforms can reduce incident response times by up to 80%, and detect 85% of cyberattacks compared to just 50% with traditional methods 

Challenges:

• Limited Availability of Qualified Experts Hinders Effective Implementation and Optimization of Testing Tools

Workforce shortages of skilled cybersecurity professionals who can run current testing tools and analyze their results are among the top three challenges facing the security testing market [3]. The rise in sophistication of cyber threats has created a supply-demand imbalance in cybersecurity skills around penetration testing, ethical hacking and secure code analysis. Companies may have trouble finding and keeping good testers, relying on outsourced services at times which [] could be a security risk. This talent shortage can hamper effective testing protocol implementation and reduce responsiveness to any identified weaknesses. Even the most sophisticated automated testing tools will underperform in the field of battle if not powered by human intellect.

Segmentation Analysis:

By Type:

In 2024, the application security testing segment dominated the security testing market and accounted for a significant revenue share, due to the rise in application-layer vulnerabilities and an increase in adoption of web and mobile applications, application security testing segment account for the highest revenue share with a robust growth rate as the instant demand in web and mobile applications and data protection regulations on stringent mode are the introducing factors.

The network security testing segment is expected to register the fastest CAGR in the security testing market due to the rising complexity of enterprise networks, an increase in the number of DDoS and ransomware attacks, and the adoption of zero trust architecture. This segment consists of Continuous monitoring and penetration testing, which is likely to demonstrate rapid growth till 2032, with the availability of these new innovative solutions driving growth, especially in industries where critical infrastructure and sensitive data are managed.

By Deployment:

In 2024, the cloud-based segment dominated the security testing market and accounted for a significant revenue share, supported by rapid digital transformation, increased adoption of SaaS, and the need for scalable and on-demand testing solutions. Thus, we can expect to see it expand its dominance, especially as organizations move more workloads to the cloud and can benefit from the flexibility, cost-effective pricing, and AI-driven automated testing control that it offers.

On-premises segment is expected to register the fastest CAGR in the security testing market. Due to the full control of data requirements within industries with strict compliance necessities such as banking, healthcare and, needless to say, defense, the security testing market is expected to register the fastest CAGR in the on-premises segment worldwide.

By Enterprise Size:

In 2024, large enterprises segment dominated the security testing market and accounted for a significant revenue share, due to the presence of more complex IT infrastructures, large cybersecurity budgets, and stricter compliance mandates. This is likely to help the segment in dominating the industry because of its rising adoption among large enterprises to invest heavily in advanced automated testing technologies to reduce the risk of complex and wide-scale of cyber attacks.

The small & medium enterprises segment is expected to register the fastest CAGR in the security testing market, supported by increasing awareness about cyber threats, cost-effective cloud-based testing solution suites, and regulatory forces. The increasing reliance on managed security testing services and AI-based tools will further increase SME adoption through 2032, as these technologies allow modest but effective security for vulnerability management and data protection.

By Industry:

In 2024, the BFSI segment dominated the security testing market and accounted for a significant revenue share, owing to the strict regulatory requirements in the banking sector with the necessity of high-value data protection, as well as the increasing adoption of digital banking services. This segment is expected to dominate as financial institutions are investing in advanced testing to nip changing fraud schemes and cyberattacks in the bud.

The healthcare segment is expected to register the fastest CAGR in the security testing market. Due to the swift digitalization of health records, increased telemedicine growth, and rising instances of healthcare data breaches. High demand for security testing in healthcare through 2032 will be fueled by increasing compliance with HIPAA and other data protection regulations, coupled with greater implementation of AI-enabled vulnerability detection tools.

Regional Analysis:

In 2024, the North America region dominated the security testing market and accounted for a significant revenue share, supported by advanced cybersecurity infrastructure, stringent regulatory frameworks, and high adoption of cloud and IoT technologies. The region is expected to maintain its lead as enterprises continue investing in AI-driven and automated testing solutions to address sophisticated cyber threats.

According to the security testing market analysis, the Asia Pacific region is expected to register the fastest CAGR in the security testing market, driven by rapid digital transformation, expanding internet penetration, and rising cyberattack incidents across emerging economies. Government-led cybersecurity initiatives, growing adoption of cloud services, and increased awareness among SMEs are anticipated to fuel strong demand for security testing across the region through 2032.

Europe is witnessing strong growth due to increasing drug discovery and development, friendly regulations on artificial intelligence in healthcare, and cross-border research collaborations are fueling rapid growth across Europe. Despite a growing adoption of materials and drug design, the region is predicted to experience gradual expansion until 2032 for generative AI applications.

Germany dominated the European market due to its large chemical and pharmaceutical industry, sound academic research infrastructure, and the presence of governmental funding for AI innovation. Finally, with a continued focus on automation and digital chemistry, over the next decade (2025-2032), Germany is best positioned to spearhead generative AI adoption in chemical applications.

Key Players:

The major security testing market companies are IBM Corporation, HCLTech, Synopsys, OpenText, Cigniti, Qualitest, Intertek Group, DXC Technology, eInfochips, Checkmarx, HackerOne, Invicti, DataArt, Cobalt Labs, Trustwave, Contrast Security, Veracode, Qualys, OffSec (Offensive Security), Parasoft  and others.

Recent Developments:

• In July 2024, Invicti launched Invicti API Security, combining comprehensive API discovery with proactive security testing in a single platform.

• In May 2025, Invicti launched its next-gen Application Security Platform with AI-powered DAST, delivering 8× faster scans, 40% more high/critical vulnerability detection, and 99.98% accuracy.