by Security testing is an evaluation process used to identify vulnerabilities, security flaws, and mistakes in the application or software system that could compromise the security of user data and privacy. Security testing techniques include application security testing, network security testing, wireless security testing, cloud security testing, and social engineering. Security testing is crucial to protect systems from cyber threats like data breaches, SQL injection attacks, ransomware attacks, and denial of service attacks. With increased digitization and interconnectivity across industries, cyberattacks have intensified over the past few years. Instances of phishing, ransomware, malware, and other cyber threats have grown exponentially due to increased attack surfaces and sophisticated tools and techniques adopted by cybercriminals. According to the 2022 Cost of a Data Breach Report by IBM Security, the global average total cost of a data breach is $4.35 million. The rising cases of monetary losses incurred due to security compromises are forcing organizations to adopt robust security testing practices to safeguard systems and user privacy.
The global Security Testing Market is estimated to be valued at US$ 4.82 Mn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Increased instances of cyber-attacks: As highlighted earlier, growing interconnectivity and digitization of processes, systems, and infrastructure across industries have increased vulnerabilities and attack surfaces significantly. Threat actors are continuously developing innovative techniques like AI-powered attacks to exploit existing loopholes. This has led to a dramatic rise in both the frequency and impact of cyberattacks. The driver further accelerates the need for robust security testing services to detect weaknesses proactively.
Growing security concerns related to privacy laws: Stringent privacy laws like GDPR and CCPA have imposed heavy non-compliance penalties on organizations for security compromises resulting in data breaches. Mandatory data privacy and security compliance audits are forcing companies to rigorously test application and network layers for vulnerabilities before launching products or services. Failure to ensure privacy and security can lead to lawsuits, financial losses, and brand damage. This acts as a key driver boosting security testing adoption.
Segment Analysis
The security testing market is dominated by the web application security segment which holds more than 35% share of the overall market. With businesses increasingly relying on web and mobile applications, the vulnerability of these interfaces to cyber threats has increased tremendously. Web applications are especially prone to SQL injections, cross-site scripting and broken authentication issues. Therefore, performing stringent security testing of web applications during the development phase and periodic testing post deployment is crucial. This driver has ensured the dominance of the web application security segment over the forecast period.
PEST Analysis
Political: Stringent data security laws and regulations around the globe are prompting organizations to strengthen their security infrastructure and processes. For example, the GDPR in Europe introduced hefty penalties for non-compliance which is positively impacting demand.
Economic: The growing digital transformation of economies worldwide and increasing mobile and internet penetration are driving the need for robust security testing services. Organizations are allocating more funds to minimize cyber risks.
Social: Rising cybercrimes and data breaches have increased security awareness among consumers who now demand stringent protection of their personal information. This is encouraging businesses to rigorously test their systems and plug vulnerabilities.
Technological: Emerging technologies like IoT, cloud computing and mobility have enlarged the attack surface for hackers. Consequently, proper testing of these complex environments before and after implementation is imperative.
Key Takeaways
The global Security Testing Market Demand is expected to witness high growth over the forecast period driven by the expanding attack surface, proliferating regulations and rising need to secure digital operations. The global Security Testing Market is estimated to be valued at US$ 4.82 Mn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2031.
North America currently dominates the market owing to stringent cybersecurity mandates and advanced threat landscape in the region. The presence of major security players is another factor fueling the North American market. Asia Pacific is projected to be the fastest growing regional market during the forecast period. This can be attributed to the surging digitization of economies like India and China coupled with growing instances of cybercrime. Furthermore, organizations across Asia are allocating increased budgets for security testing to safeguard their expanding digital infrastructure and comply with emerging data protection laws.
Key players
Key players operating in the security testing market are Orion Engineered Carbons, Cabot Corporation, Mitsubishi Chemical Corporation, Phillips Carbon Black Limited, Birla Carbon, Sid Richardson Carbon & Energy Co., Anyang HengXu Specialty Carbon Black Co., Ltd., and Imerys Graphite & Carbon. These players are focused on developing sophisticated testing solutions integrated with AI and analytics capabilities to detect even well-hidden vulnerabilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
