Automation Testing Market Size & Share, by Component Type (Testing Solutions, Functional Testing, API Testing, Security Testing, Usability Testing, Compliance Testing); Services (Professional, Managed); End Point Interface (Mobile, Web, Desktop, Embedded Software); End-user (IT & Telecommunication, BFSI, Healthcare, Retail, Transportation & Logistics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4740
  • Published Date: Mar 20, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Automation Testing Market size is poised to cross USD 94 Billion by the end of 2035, growing at a CAGR of 15% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of automation testing was over USD 25 Billion. The growth of the market can be attributed to the increasing demand for smart vehicles with advanced sensors. Autonomous vehicles and connected cars are other names for smart cars, they use cutting-edge technology such as artificial intelligence. Autonomous vehicle security and safety in real-world settings are evaluated via automated testing. By 2024, annual shipments of smart cars are anticipated to reach roughly 76 million worldwide.

In addition to these, factors that are believed to fuel the market growth of automation testing include the rising penetration of digital transformation of the industries to make it industry 4.0. This revolution includes the use of various technology, such as artificial intelligence, the internet of things, cloud computing, and others inside industrial settings and processes. According to 86% of CEOs, AI was a common tool in offices by 2021. Furthermore, by 2027, 80% of retail executives want their companies to use intelligent automation that is powered by AI across the globe.

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Automation Testing Sector: Growth Drivers and Challenges

Growth Drivers

  • Higher Implementation of IoT – In the IoT, automated testing is necessary for a variety of devices, services, and IoT layer components. Therefore, a rise in the number of IoT-connected devices is expected to increase the demand for automated testing. In 2020, globally there were nearly 10 billion IoT-connected devices, and this number is expected to increase by nearly three times to reach around 29 billion devices by 2030.
  • Increasing Use of Smartphones– Automated testing fixes all the bugs of the application and ensures its securing and delivers smooth running of the application in smartphones. Almost six billion people now subscribe to smartphones around the world, and it is expected that figure will increase by several hundred million over the next several years. The top three countries for smartphone usage are China, India, and the United States.
  • Growing Adoption of AI-enabled Technology – Automated testing for these applications helps increase the overall quality and safety of the machinery while saving valuable diagnostic time. According to the new World Robotics 2020 Industrial Robots study released by the International Federation of Robotics, there are now a record-breaking 2.7 million industrial robots working in industries all over the world, a 12% increase. With 373,000 units shipped globally in 2019.
  • Rising Use of Online Applications- Automated testing helps developers understand the performance of the application in the users’ device. Consumers downloaded around 255 billion mobile apps to their connected devices as of January 2023, an increase of more than 80% from nearly 141 billion app downloads in 2016.
  • Growing Popularity of In-Vehicle Infotainment Systems – Automated testing enables the cost-effective development of software that is made exclusively for in-car infotainment. The emergence of cloud computing and the proliferation of smartphones have fueled the worldwide in-car infotainment business. In comparison to around 53% in 2014, almost nearly 82% of vehicles sold in 2019 have a dashboard touchscreen.


  • Higher investment in deploying automation – Initial infrastructure of automation includes human capital, infrastructure, equipment, and others, which required a huge amount of investment. Moreover, in the cases of the construction industry, test automation of buildings becomes even more expensive, and in some cases, operating fees, licensing fees, and facilitating expenses are also added. Therefore, for small businesses, deploying automation becomes expensive.
  • Switching from manual to automated testing is challenging
  • Lack of qualified automation testers

Automation Testing Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

USD 25 Billion

Forecast Year Market Size (2035)

USD 94 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Automation Testing Segmentation

The global automation testing market is segmented and analyzed for demand and supply by end user into IT & telecommunication, BFSI, healthcare, retail, and transportation & logistics. Out of the five end users of automation testing, the IT & telecommunication segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the rising use of advanced technologies, such as AI, ML, and the Cloud in IT and telecommunication industry. Around 52% and nearly 48% of businesses in the telecom sector use artificial intelligence for cybersecurity and customer service around the world, respectively. With the integration of AI, the sector can improve the operation associated with customer care and enhance the customer experience. Furthermore, in April 2022, Xiaomi selected Keysight's automated field-to-lab device test platform solutions, which leverage channel simulation and artificial intelligence (AI) software to validate 5G technology supporting smartphones and internet of things (IoT) devices.

The global automation testing market is also segmented and analyzed for demand and supply by end-point interface into mobile, web, desktop, and embedded software. Amongst these four segments, the mobile segment is expected to garner a significant share in the year 2035. The growth of the segment is expected on account of the rising usage of various mobile applications and the launch of new applications. Automation testing is crucial for mobile apps, and it can perform on every type of app, including native, hybrid, and web pages. Mobile test automation enhances these apps' quality, functionality, performance, security, and dependability while ensuring their appropriate operation. Around 97,000 mobile apps were made available through the Google Play Store in October 2022. Moreover, around 134,5000 new Android apps were made available through the Google Play Store in May 2019. Moreover, the number of mobile apps released through the Apple App Store in October 2022 was about 37,000, an increase of 2% from the previous month.

Our in-depth analysis of the global automation testing market includes the following segments:

          By Component Type

  • Testing Solutions
  • Functional Testing
  • API Testing
  • Security Testing
  • Usability Testing
  • Compliance Testing

          By Services

  • Professional
  • Managed

          By End Point Interface

  • Mobile
  • Web
  • Desktop
  • Embedded Software

           By End User

  • IT & Telecommunication
  • BFSI
  • Healthcare
  • Retail
  • Transportation & Logistics

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Automation Testing Industry - Regional Synopsis

North America Market Forecast

The North American automation testing market, amongst the market in all the other regions, is projected to hold the largest market share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the rising investment in advanced technologies. The U.S. invested USD 37 billion in the machine learning application sector in 2019. Moreover, from just under USD 300 million in 2011 to over USD 17 billion in 2019, funding for artificial intelligence firms in the US has grown tremendously in recent years. Furthermore, market growth in the region is expected on the account of the rising use of test automation. Canada Drives saved 38 hours for each deployment by reducing their manual regression effort by 95% with Provar's test automation for Salesforce. Moreover, the company also saved 33 hours per month by cutting its automation maintenance effort by more than 80%.

Asia Pacific Market Forecast

The Asia Pacific automation testing market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to the increasing penetration of smartphones. In China, the penetration rate of smartphones was about 72% as of 2022. There were more than 1 billion smartphone users in 2022. Moreover, by 2027, it is predicted that 83 percent of Chinese citizens would be smartphone users. Besides this, the market growth in Asia Pacific is also ascribed to a rise in the number of mobile applications and the rising use of these apps. In recent years, the mobile sector in India has had the fastest growth. In 2019, there were over 19 billion downloads of mobile apps. Also, there are more than 28,000 Indian publishers on Google Play, and India's app sector currently leads the globe in terms of downloads.

Europe Market Forecast

Further, the market in Europe, amongst the market in all the other regions, is projected to hold a significant share by the end of 2035. The growth of the market can be attributed majorly to the rising investment in artificial technologies. By 2025, European spending on AI systems will have increased from USD 17 billion to more than USD 50 billion. During the next five years, the industries that will invest in AI solutions the most are banking and manufacturing, with healthcare spending expected to expand the quickest overall.

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Companies Dominating the Automation Testing Landscape

    • Sauce Labs Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis 
    • IBM Corporation
    • Micro Focus International Plc
    • Capgemini SE
    • SmartBear Software
    • Tricentis
    • Parasoft
    • Cigniti Technologies Limited
    • Keysight Technologies Inc.
    • Invensis Technologies Pvt. Ltd.


In The News

  •  Tricentis announce the launch of Vision AI, to power the Tosca. This new technology is the onset of a new era of automated testing. It is the most cutting-edge AI-based test design and automation technology available today in the market.

  •  Keysight Technologies, Inc. announces the launch of Nemo Device Application Test Suite. This software uses AI and automation to test the actual interaction of people with their smartphone applications which is further leveraged by application developers and wireless service providers.

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 4740
  • Published Date: Mar 20, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing penetration of smartphones, rising use of AI in businesses, rising sales of smart cars, and higher use of the mobile application are the major factors driving the market growth.

The market is anticipated to attain a CAGR of 15% over the forecast period, i.e., 2023-2035.

Lack of skilled professionals, slow adoption of automation in the manual world, and high need for investment are estimated to be the growth hindering factors for the market expansion.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the market are IBM Corporation, Micro Focus International Plc, Capgemini SE, SmartBear Software, Tricentis, Parasoft, Cigniti Technologies Limited, Keysight Technologies Inc., Invensis Technologies Pvt. Ltd., and Sauce Labs Inc.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by component type, service, endpoint interface, end user, and by region.

The IT & telecom segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Automation Testing Market Report Scope

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