Penetration Testing Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2032

Penetration testing otherwise known as pen testing, is a proactive security method that functions in the detection and evaluation of security weaknesses existing in the computer system, network or application. Here is the scenario: the simulated cyber-attack is used to analyze the value of the organization's online assets. The main goal of vulnerability assessing is to find weakness that malicious persons can use to get access to system, steal valuable information or even disrupt business activities. Organizations carrying out the penetration tests will be getting security gaps, defining the strategic targets and enhancing the defense.

Additionally, it aids businesses in checking security issues such as breach through cross-site scripting (XSS) code injection attacks in various application systems and servers (frontend/backend) as an example. The penetration testing market has experienced a robust growth in the past few years due to the increasing adoption of digital technologies, strict regulation, and rising awareness of cybersecurity. Moreover, cloud computing, IoT devices and connected systems are rapidly growing attack surfaces that contribute to the escalating trend of penetration testing demand.

The penetration testing market is anticipated to reach USD XXX.X million by 2032 from USD XXX.X million in 2023, at a CAGR of XX.X% during the forecast period.

Automation and artificial intelligence (AI) technologies are anticipated to bring process streamlining, increased efficiency, and faster detection and correction of vulnerabilities in the penetration testing tool set. However, vendors would develop industry specific penetration testing tailored to diverse security challenges for the sectors such as healthcare, finance, and others, which would lead to growing the penetration testing market during the forecast period 2024-2032.

Growth Drivers:

The increasing frequency and advancement of cyber threats is predicted to be a key factor in the growth of global penetration testing market. As cyberattacks are becoming more frequent and advanced, the companies in different industries realize the necessity of an active approach to cybersecurity to defend their digital assets and reduce cyber risk. With cyberattacks still on the rise and becoming more diversified, the need for penetration testing services is going to shoot up drama.

More and more enterprises are deploying cloud services, web applications, and mobile platforms which generate the global demand for penetration testing services. In the process of moving their most important workloads to the cloud while building web-based applications to address the evolving customer tastes, they are confronting new security risks and threats. Penetration testing serves as a means of assessing the security of the cloud infrastructures, web applications, and APIs (Application Programming Interfaces) and reporting on any vulnerabilities that could possibly jeopardize the organization's data security and privacy.

Proactive cybersecurity is becoming increasingly significant among organizations globally and this is increasing the demand for pen testing services. Instead of basing the security system solely on reactive measures to respond to cyber threats after they have occurred, companies are adopting a proactive approach which involves identifying and mitigating any vulnerabilities before they can be exploited.

The global penetration testing market is significantly driven by the strict regulatory compliance requirements imposed by government authorities as well as major industry standard organizations. For instance, regulations like GDPR, HIPAA, PCI DSS, and SOX require organizations to conduct regular security tests, including penetration testing, which ensure the protection of sensitive data and compliance with regulatory standards.

Penetration Testing Segmentation:

By Offering:

·         Solutions

·         Services

o   Professional Services

o   Managed Security Services

By Type:

·         Web Applications

·         Mobile Applications

·         Network Infrastructure

·         Cloud

·         Social Engineering

·         Others

By Testing Type:

·         Red Team

·         Blue Team

By Testing Methods:

·         Blind Testing

·         Double-Blind Testing

·         Internal Testing

·         External Testing

·         Targeted Testing

By Deployment Mode:

·         Cloud

·         On-Premises

By Organization Size:

·         Large Enterprises

·         Small & Medium Enterprises (SMEs)

By End-User Industry:

·         IT & ITES

·         Telecommunication

·         BFSI

·         Healthcare

·         Manufacturing

·         Education

·         Retail & E-Commerce

·         Others

By Region:

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East and Africa

Penetration Testing Market by Offering Review:

Based on the offering, the penetration testing market is segmented into two segments including solution, and services, which is further sub-segmented into professional services, and managed security services. On the basis of offering, the services segment is expected to dominate the market in terms of market share, while the solutions segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

Penetration Testing Market by Type Review:

Based on the type, the market is segmented into web applications, mobile applications, network infrastructure, cloud, social engineering, and others. On the basis of type, the web applications segment is expected to be the largest in terms of market share, while the cloud segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

Penetration Testing Market by Testing Type Review:

Based on the testing type, the market is segmented into red team, and blue team. On the basis of testing type, the red team segment is expected to be the largest in terms of market share, while the blue team segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

Penetration Testing Market by Testing Methods Review:

Based on the testing methods, the market is segmented into blind testing, double-blind testing, internal testing, external testing, and targeted testing. On the basis of testing methods, the external testing segment is expected to be the largest in terms of market share, while the targeted testing segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

Penetration Testing Market by Deployment Mode Review:

Based on the deployment mode, the market is segmented cloud, and on-premises. On the basis of deployment mode, the on-premises segment is expected to be the largest in terms of market share, while the cloud segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

Penetration Testing Market by Organization Size Review:

Based on the organization size, the market is segmented into large enterprises, and small & medium enterprises (SMEs). On the basis of organization size, the large enterprises segment is expected to be the largest in terms of market share, while the small & medium enterprises (SMEs) segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

Penetration Testing Market by End-User Industry Review:

Based on the end-user industry, the market is segmented into IT & ITES, telecommunication, BFSI, healthcare, manufacturing, education, retail & e-commerce, and others. On the basis of end-user industry, the BFSI segment is expected to be the largest in terms of market share, while the healthcare segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

Regional Outlook:

The penetration testing market research report offers detailed analysis and forecasts for five major regions i.e., North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East & Africa.

The North America region is forecasted to dominate the global penetration testing market followed by Asia Pacific, Europe, Latin America, and Middle East & Africa during the forecast period 2023-2030.

The North America region is forecasted to perpetuate its dominance in the global penetration testing market with a projected market share of XX.X% in 2023. Driving the regional market for penetration testing is a strong cybersecurity infrastructure, stringent regulatory frameworks, and an active attitude towards promptly responding to the cyber threats. This part of the world, which is dominated by the United States, continues to spearhead cybersecurity innovation as well as acceptance and hence leads to many opportunities and growth in the penetration testing market. Moreover, enterprises in North America are now incorporating more sophisticated penetration testing solutions leveraging AI, ML, and automation which are expected to boost the market growth for penetration testing in North America during the period 2024-2032.

North America plays a key role in the global invasion testing market due to the presence of major cybersecurity vendors, tight rules requirements, and high cybersecurity awareness on the company level. The area covers the United States and Canada these two economies constitute the main engines of the market development.

Furthermore, growing number of cyber threats happening in North America, such as ransomware, malware, and phishing, will increase demand for penetration testing services. For instance, Microsoft declared that the Russian hackers got into the systems of its corporation. Hackers utilized “password spray attack” to accomplish stealing emails and documents from accounts of senior leadership, cybersecurity, and legal team at Microsoft back in November 2023.

Moreover, it is a common knowledge that data privacy and protection in North America are two priority issues for organizations in the region, stimulated by regulatory demands and consumers’ expectations and the same is expected to fuel the industry development during the forecast period 2024-2032.

The Asia-Pacific market is becoming an attractive region for penetration testing due to the great speed of digitalization, the high rate of internet penetration, and the growing cybersecurity issues in the countries such as China, India, and Japan. Adding to the increasing IT infrastructure with cloud computing, mobile technologies, and the growing adoption of them have opened up new avenues for cyberattacks making adequate security measures vital, including penetration testing. Additionally, penetration testing services are widely used in various industries such as banking, healthcare and e-commerce, where data security is paramount, which is expected to lead the market's forward movement during the forecast period 2024-2032.

Key Companies in Penetration Testing Market:

The research report offers a competitive analysis of prominent companies operating in the penetration testing market. Some of the leading players profiled in the market research report include:

·         Rapid7

·         Secureworks, Inc.

·         Synopsys, Inc. 

·         Cisco Systems, Inc.

·         IBM

·         CrowdStrike

·         Coalfire Systems, Inc.

·         PortSwigger Ltd.

·         Cigniti

·         Trustwave Holdings, Inc. 

·         Fortinet, Inc.

·         Bugcrowd

·         Invicti Security Corp.

·         RSI Security

·         Other Players