by Software testing and quality assurance (QA) services play a vital role in ensuring optimal functionality of various software applications. These services help identify bugs, defects, errors or other issues in software which helps software developers fix these issues and deliver high quality products. With growing digital transformation and integration of various technologies such as IoT, cloud, AI etc. across industries, dependence on software applications and subsequent need for testing services is increasing rapidly. The software testing and QA services market caters to a wide range of industries including BFSI, IT & telecom, healthcare, retail, transportation and others. Some key testing types include functionality testing, security testing, compatibility testing, performance testing etc.
The global Software Testing and QA Services Market is estimated to be valued at US$ 44.26 billion in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends
Adoption of DevOps practices: DevOps promotes collaboration, communication, integration and automation among software developers and IT professionals. DevOps approaches aim to shorten development cycles and release higher quality software quickly. This has triggered increased adoption of DevOps practices and tools across enterprises which is driving demand for testing services that can validate software at each stage of development.
Rise of test automation: With the goal of enhancing testing speed, reducing costs and improving quality, enterprises are increasingly automating testing processes. This includes automated test case development, execution of test suites and generating reports. The software testing and QA services market players are focusing on developing test automation tools and frameworks that can cater to evolving needs of enterprises. This is regarded as a major trend shaping the industry.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the software testing and QA services market requires substantial investment for setting up infrastructure and building expertise. However, startup costs are relatively low.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many providers offering similar testing and QA services. Buyers can negotiate on price and service quality.
Bargaining power of suppliers: Software developers face moderate to high bargaining power of suppliers as they depend on niche skillsets for testing. Suppliers possess specialist testing skills and knowledge.
Threat of new substitutes: Threat from substitutes is low as there are limited alternatives to software testing and QA services. Testing remains crucial for software quality.
Competitive rivalry: The competitive rivalry in the market is high attributed to many global and regional players providing similar test offerings. Players compete based on pricing, capabilities, and service excellence.
Key Takeaways
The Global Software Testing And QA Services Market Size is expected to witness high growth over the forecast period from 2023 to 2031. The increasing need to ensure software quality and reduce integration issues is a key factor driving growth. The global Software Testing and QA Services Market is estimated to be valued at US$ 44.26 billion in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023-2031.
Regional analysis
North America region currently dominates the global market and is expected to maintain its leading position over the next few years. This is attributed to early technology adoption and significant investments in testing by key players in the region. Asia Pacific is projected to be the fastest growing regional market owing to growing investments in software development from China, India, and other Asian countries.
Key players
Key players operating in the software testing and QA services market include Thermo Fisher Scientific, Merck KGaA, Danaher Corporation, Agilent Technologies, PerkinElmer, GE Healthcare, Promega Corporation, Genetec, Bio-Rad Laboratories, and Abcam. These players are focusing on new product launches, partnerships, and service expansions to strengthen their product portfolio and geographical presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
