Application Security Market Outlook:
Application Security Market size was over USD 14.12 billion in 2025 and is anticipated to cross USD 43.08 billion by 2035, growing at more than 11.8% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of application security is assessed at USD 15.62 billion.

The major factor set to influence the growth of the market is the growing adoption of cloud. In 2022, about 60% of organization all around the world were using one or two clouds in their organization. However, application security is very crucial for the cloud. Since cloud environments offer shared resources, it is particularly important to make sure that users can only access the information in their cloud-based applications that they are authorized to view.
Additionally, since sensitive data is sent from the user to the application across the internet and back again, cloud-based applications are also more prone to security breaches. A public cloud security incident was experienced by about 26% of firms in the past year, an increase of approximately 9% from the year before, and about 79% of businesses had at least one cloud security event in that time frame across the globe according to a survey.
Key Application Security Market Insights Summary:
Regional Highlights:
- North America application security market will dominate more than 40% share by 2035, driven by rising digital transformation and increasing financially motivated cyberattacks.
- Europe market will achieve significant growth during the forecast timeline, driven by rising government initiatives to protect organizations from cyberattacks and increased cybersecurity investments.
Segment Insights:
- The sast segment in the application security market is projected to secure a 40% share by 2035, driven by the ability of SAST tools to detect vulnerabilities early in development.
- The bfsi segment in the application security market is forecasted to achieve a notable CAGR through 2035, attributed to rising cybersecurity threats and regulatory needs in the financial sector.
Key Growth Trends:
- Growing Demand for Online Shopping
- Surge in Merges & Acquisitions of Company
Major Challenges:
- Growing Demand for Online Shopping
- Surge in Merges & Acquisitions of Company
Key Players: IBM Corporation, Capgemini Services SAS, Whitehat Security, Synopsys, Inc., SUBARU Corporation, Micro Focus, HCL Technologies Limited, Cisco Systems Inc., RapidAPI, Oracle Corporation.
Global Application Security Market Forecast and Regional Outlook:
Market Size & Growth Projections:
- 2025 Market Size: USD 14.12 billion
- 2026 Market Size: USD 15.62 billion
- Projected Market Size: USD 43.08 billion by 2035
- Growth Forecasts: 11.8% CAGR (2026-2035)
Key Regional Dynamics:
- Largest Region: North America (40% Share by 2035)
- Fastest Growing Region: Asia Pacific
- Dominating Countries: United States, China, United Kingdom, Germany, Japan
- Emerging Countries: China, India, Brazil, Mexico, South Korea
Last updated on : 11 September, 2025
Application Security Market Growth Drivers and Challenges:
Growth Drivers
- Growing Demand for Online Shopping
Globally, there are about 3 billion digital buyers. This means approximately 30% of the population all around the world do online shopping. Further, online retail are also including various features and options in order to remain in the competition. However, along with advanced feathers comes the threat of cyber risk. Typically, fraudsters accomplish this by breaking into e-commerce websites and collecting login or credit card information from users. They may employ it to either pose as customers and make fraudulent purchases or to sell information about consumers to other criminals online. Hence, the need for application security is growing with the rise in number of online shoppers.
- Surge in Merges & Acquisitions of Company
The risk of cyber security rises with the growing trend of merge and acquisitions of the company. Since integration and data exchange may expose assets to risks to their confidentiality, integrity, and availability (CIA), mergers and acquisitions constitute a considerable risk to organizations. Therefore, organizations should take application security into consideration before merging or acquiring an organization.
- Rise in Risk of Cybersecurity to Small Businesses
In 2021, globally, about 42% of small businesses were on target for security attacks. Moreover, given their modest online profile, small and medium-sized businesses (SMEs) don't believe they might become the target of an attack, as all the media attention is given to huge enterprise data breaches as those at Yahoo and TalkTalk. Therefore, they become more vulnerable to security attacks. As a result, small businesses are influenced more to focus on application security.
Challenges
- Not Sufficient Budgets – The cost of application and innovating it on timely bases carries a huge price. Hence, especially small businesses find it difficult to invest in application protection. Hence, this factor is stated to restrain the growth of the market.
- Inaccurate Sense of Security
- Lack of Experts
Application Security Market Size and Forecast:
Report Attribute | Details |
---|---|
Base Year |
2025 |
Forecast Period |
2026-2035 |
CAGR |
11.8% |
Base Year Market Size (2025) |
USD 14.12 billion |
Forecast Year Market Size (2035) |
USD 43.08 billion |
Regional Scope |
|
Application Security Market Segmentation:
Type of Security Testing Segment Analysis
The SAST segment in the application security market is anticipated to register a share of 40% by the end of 2035. This growth could be owing to the rising advantages of SAST. Since most SAST tools are automated, they can quickly and effectively investigate the whole source. This enables an in-depth study of the code and decreases the possibility of overlooking a vulnerability. Additionally, SAST can assist in lowering remediation costs by finding and repairing vulnerabilities early in the development phase.
End-User Vertical Segment Analysis
The BFSI segment in the application security market is set to grow at a notable CAGR over the forecast period. The BFSI industry is one of major critical infrastructure sectors that experiences frequent cyber-attacks, and data breaches due to the magnitude of its customer base and the highly confidential financial data involved. Additionally, the market for application security is expected to grow as a result of the fact that financial institutions are four times extra vulnerable to cyberattacks than more industries.
Our in-depth analysis of the global market includes the following segments:
Type of Security Testing |
|
Organization Size |
|
End-User Vertical |
|

Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Application Security Market Regional Analysis:
North American Market Insights
The application security market in North America is poised to dominate 40% revenue share by 2035, backed by rising digital transformation along with the growing prevalence of financially motivated attacks. Additionally, it was frequently noticed that hackers were utilizing stolen credentials to access the company's web-based email along with additional web applications in North America. The usage of hacked credentials has risen in lockstep with the rise in business adoption of cloud-based technologies. Software and services for application security are essential in this region. Therefore, this factor is set to influence the growth of the market in this region.
European Market Insights
The application security market in Europe is poised to have significant growth over the forecast period. This growth of the market in this region could be influenced by rising government initiatives in order to protect organizations from cyberattacks. Moreover, there has been a growing launch of applications in this region would also be an important factor. Also, companies in this region are investing heavily in cyber-security, hence giving scope for market expansion.

Application Security Market Players:
- IBM Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Capgemini Services SAS
- Whitehat Security
- Synopsys, Inc.
- SUBARU Corporation
- Micro Focus
- HCL Technologies Limited
- Cisco Systems Inc.
- RapidAPI
- Oracle Corporation
Recent Developments
- Oracle Corporation released Oracle Database 23c Beta, the most recent iteration of the top convergent database in the world, which supports all data types, workloads, and development methodologies. Oracle Database 23c, often known as "App Simple," is aimed at streamlining application development.
- In order to address the rising shadow data issue, IBM Corporation has announced the acquisition of Polar Security, an inventor in technology that aids in the discovery, ongoing monitoring, and security of cloud and software-as-a-service (SaaS) application data.
- Report ID: 5099
- Published Date: Sep 11, 2025
- Report Format: PDF, PPT
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