Global Penetration Testing Market Definition
A penetration test, commonly referred to as a pen test, simulates a cyberattack on the computer system to look for weaknesses that could be exploited. Penetration testing is frequently used to supplement a web application firewall in the context of web application security (WAF). Pen testing involves attempting to get into any number of application systems (such as frontend/backend servers, APIs, etc.) in order to find security holes such as unsanitized inputs that are vulnerable to code injection attacks.
Further, different types of penetration testing methods include, external testing, internal testing, wireless testing, blind testing, double-blind testing, targeted testing, and more. Additionally, the penetration testing is divided into three different approaches which includes, white box penetration testing, black box penetration testing, and grey box penetration testing.
Furthermore, one of the most frequent justifications for doing a pen test is to comply with security standard compliance criteria. Organizations in the financial and healthcare sectors are required by law to conduct routine penetration tests since regulations such as FINRA and HIPAA have legal force.
Global Penetration Testing Market: Key Insights
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Base Year |
2021 |
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Forecast Year |
2022-2031 |
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CAGR |
14.9% |
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Base Year Market Size (2021) |
USD 1,395.6 Million |
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Forecast Year Market Size (2031) |
USD 5,537.0 Million |
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Regional Scope |
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Global Penetration Testing Market Size, Forecast, and Trend Highlights Over 2021 – 2031
The global penetration testing market is estimated to garner a revenue of USD 5,537.0 Million by the end of 2031 by growing at a CAGR of 14.9% over the forecast period, i.e., 2022 - 2031. Further, the market generated a revenue of USD 1,395.6 Million in the year 2021. The growth of the market can be attributed to the surge in cybercrime all across the globe which needs to be controlled. Data breaches and hacks from numerous sources, including mobile and IoT (internet of things) devices, have dramatically increased as a result of a lack of data protection solutions and servers, pandemic-related consequences, and increasingly sophisticated exploits. Cybercrime, which includes data theft or embezzlement, hacking, and destruction, grew by roughly 599% during the COVID-19 epidemic. Hence the adoption of penetration testing is anticipated to increase, since it has become one of the essential parts of cyber-security strategy.
Companies integrate cybersecurity best practices into their corporate culture to successfully combat harmful intent. Organizations of all sizes are protected from cyberattacks owing to the penetration testing solution's ability to conduct tests more quickly, inexpensively, and frequently. Further, as data security and privacy concerns are dealt about more, compliance requirements have increased. Hence, regulations have been developed by industry groups and sector-specific regulatory bodies, which firms must follow alongside governments. Some of these regulations even carry fines if data is not protected from hackers. For instance, the GDPR permits fines up to USD 10 million or 2% of worldwide revenues, whichever is greater. The maximum fine for serious offences is USD 20 million, or 4% of the global turnover. Therefore, a regular penetration test is the first step toward obtaining compliance if the firm needs to adhere to particular industry norms and laws.
Global Penetration Testing Market: Growth Drivers and Challenges
Growth Drivers
- Growing Penetration of Smartphones
In India, the smartphone penetration rate was about 50 percent in 2020 and was predicted to reach approximately 95 percent in 2040, a more than twofold increase from the financial year 2016 when only about 20 percent of the population used smartphones. Mobile phones are now an even bigger part of routine everyday activities. Owing to the pandemic the penetration of smart phones increased and is expected to boost further. Thus the trend suggests that customers are using the internet more frequently, utilizing more services such as financial technology platforms, and generally exposing themselves to more information technology service providers and data security concerns. Hence, penetration testing is an essential part of modern services since it could evaluate digital infrastructure and stop dangerous attacks.
- Urge to Avoid Security Breaches
Security breaches could cost the organization millions of dollars. For instance, for the 12th consecutive year, the United States has the greatest cost of a data breach, with about USD 4 million higher than the global average. Hence avoiding security breaches is necessary in order to avoid further expenses. Hence, to avoid security breaches in the system, penetration testing could be used to detect and eliminate vulnerabilities before they arise.
- Growing Adoption of Cloud Computing
In 2019, approximately, 89% of organizations were using cloud computing, high from 2020 which was about 85% of the organization.
- Rise in Adoption of Penetration Testing System
In April 2022, the Australian business Bugcrowd introduced project-based pen testing for quick deployment and real-time findings. It also offered a crowdsourced security platform. Additionally, the business unveiled a brand-new product called "Basic Pen Test and Standard Pen Test—purpose," which is accessible via the Bugcrowd platform and has a number of features that are intended to make compliance-based testing quick, simple, and, most importantly, efficient.
- Rapid Transition to Work from Home
About 25% of workers in America were working remotely in 2021. It is also believed that, by 2025, approximately 35 Million employees in America would work remotely.
Challenges
- High Cost of Penetration Testing Solutions - Penetration testing comes at a significant price. This price might varies depending on the organization size, scope, and complexities. However, not all businesses could afford the fees, hence further reducing the frequency of tests than necessary. Therefore, this factor is expected to restrain the growth of the market over the forecast period.
- Lack of Skilled Professionals to Operate the Penetration Testing System
- Large Number of Tools Used by Pentester
Market Segmentation
The global penetration testing market is segmented and analyzed for demand and supply by enterprise size into small & medium enterprise [SMEs], and large enterprise. Out of which the small & medium enterprise [SMEs] segment is anticipated to grow at a highest CAGR of 15.9% over the forecast period. This growth can be attributed to rise in data breach activities faced by the organization. Data breach is one of the major concerns for the small & medium enterprise. In actuality, about 50% of small businesses fail within six months of suffering a data breach or cyberattack. Hence, it is vital for enterprises of all sizes to implement steps to monitor suspicious network behavior. Additionally, penetration testing for small & medium enterprise may be necessary for present or potential clients. A larger company are frequently expected to confirm that security of small & medium enterprise is strong enough, as they would be availing services. As by employing the product and services of respected enterprise, they risk damaging their brand and their reputation, further which could ultimately affect the SMEs growth. Hence, the adoption of penetration testing is growing in SMEs
The global penetration testing market is also segmented and analyzed for demand and supply by end user industry into education, BFSI, healthcare, retail, IT & telecom, and others. Amongst these segments, the BFSI segment is anticipated to hold the largest market revenue of USD 1,725.6 Million by the end of 2031, up from a revenue of USD 412.9 Million in the year 2021. The growth of this segment can be attributed to growing cyber-attack on this sector. Compared to other industries, the financial sector always faces risks from innovative applications. The rise in cyberattacks is also attributed to platform advertising. Additionally, as a result of their migration to digital transactions and e-commerce platforms, banks and other financial institutions have become lucrative targets for hackers. For instance, the two main types of attacks against the BFSI sector in India were data breaches and digital banking threats, with data breaches accounting for more than 49% of reported occurrences in both years (2021 and 2022). About 17% of all attacks against this industry in 2022 were malware-based cyber events. Hence, these factors are estimated to boost the demand for penetration testing market. However, the IT & telecom segment is anticipated to grow at a highest CAGR of 15.8% over the forecast period.
Our in-depth analysis of the global penetration testing market includes the following segments:
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By Component |
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By Type |
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By Enterprise Size |
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By Deployment |
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By End User Industry |
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Global Penetration Testing Market Regional Synopsis
The North America penetration testing market, amongst the market in all the other regions, is projected to hold the largest market revenue of USD 2,104.1 Million by the end of 2031, up from a revenue of USD 531.7 Million in the year 2021. This growth of the market in this region is attributed by growing adoption of DevOps, and growing pace of quality assurance (QA) tools. Additionally, the government in North America has set stringent regulation for penetration testing, has this region is the center for technology and hence it is more prone to cybercrime. Organizations in this area are frequently the target of cyberattacks. Phishing attacks were the most frequent cyberattacks that American businesses encountered in 2019. According to estimates from IT security professionals, successful phishing attempts via email, social media, or phone affected about 60 percent of U.S. firms in that year. However, the market in Asia Pacific region is estimated to grow at a highest CAGR of 15.6% over the forecast period.
Top Featured Companies Dominating the Global Penetration Testing Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global penetration testing market that are included in our report are, Synopsys, Inc., Invicti, FireEye, IBM Corporation, Rapid7, Rhino Security Labs, Inc., Bishop Fox, VERACODE, Secureworks, Inc., and others.
