report-bg

Penetration Testing Market Analysis by Component (Software, and Services); by Type (Web Application Penetration Testing, Mobile Application Penetration Testing, Social Engineering Penetration Testing, and Others); by Enterprise Size (Small & Medium Enterprise [SMEs], and Large Enterprise]; by Deployment (On-Premise, and Cloud); and by End User Industry (Education, BFSI, Healthcare, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2021-2031

Buy Now Report ID: 717 | Published Date: Jan 12, 2023
  1. Introduction
    1. Market definition
    2. Market segmentation
    3. Solution Overview
  2. Assumptions and Acronyms
  3. Research Methodology
    1. Research Process
    2. Primary Research
      1. Solution Providers
      2. End-Users
    3. Secondary Research
    4. Market Size Estimation
  4. Analyst Review
  5. Executive Summary
    1. Market Size and Forecast
    2. Competitive Landscape
    3. Market Dynamics
    4. Regional Opportunity Analysis
  6. Market Dynamics
    1. Drivers
    2. Challenges
    3. Trends
    4. Opportunities
  7. Regulatory & Standards Landscape
    1. Open Web Application Security Project (OWASP)
    2. Payment Card Industry Data Security Standard (PCI DSS)
    3. General Data Protection Regulation (GDPR) Article 32
    4. Others
  8. Industry Risk Analysis
  9. World Economic Outlook: Challenges for Global Recovery and its Impact on Global Penetration Testing Market
    1. Ukraine-Russia Crisis
    2. Potential US Economic Slowdown
  10. Impact of COVID-19 on Global Penetration Testing Market
  11. Analysis of Industry Trends in Penetration Testing Market
    1. DevSecOps
    2. Integrations with GRC, SIEM, and Helpdesk Systems
    3. Artificial Intelligence(AI)-Centric Cybersecurity
    4. Environment-Friendly 5G Networks
    5. User Behavior Analytics
    6. Cloud Security Testing
    7. Others
  12. End User Analysis
  13. Assessment of Stages for Penetration Testing Process
    1. Planning and Reconnaissance
    2. Scanning
    3. Gaining System Access
    4. Persistent Access
    5. Analysis and Reporting
  14. Industry Value Chain Analysis
  15. Analysis of Penetration Testing Methods
    1. External testing
    2. Internal testing
    3. Blind testing
    4. Others
  16. Assessment of Used Cases
    1. Penetration Testing Against Information Security Risks
    2. Network Security Audit
    3. Web Application Penetration Test                             
    4. IoT Penetration Test
  17. Competitive Landscape
    1. Market Share Analysis, 2021
      1. Market Share Analysis of Major Players (%), 2021
      2. Market Share Analysis by Size of Players (Large, Medium, and Small Players), 2021
    2. Competitive Positioning
    3. Competitive Benchmarking
      1. Synopsys, Inc
      2. Invicti
      3. FireEye
      4. IBM Corporation
      5. Rapid7
      6. Rhino Security Labs, Inc
      7. Bishop Fox
      8. VERACODE
      9. Secureworks, Inc.
      10. Other prominent players
  18. Global Penetration Testing Market
    1. Market Overview
    2. Cross Segmentation Analysis*
    3. By Value (USD million)
    4. Global Penetration Testing Market Segmentation Analysis 2021-2031
      1. By Component
        1. Software, 2021-2031F (USD Million)
        2. Services, 2021-2031F (USD Million)
      2. By Type
        1. Web Application Penetration Testing, 2021-2031F (USD Million)
        2. Mobile Application Penetration Testing, 2021-2031F (USD Million)
        3. Social Engineering Penetration Testing, 2021-2031F (USD Million)
        4. Network and Infrastructure Penetration Testing, 2021-2031F (USD Million)
        5. Wireless Network Security Assessment, 2021-2031F (USD Million)
        6. Others, 2021-2031F (USD Million)
      3. By Enterprise Size
        1. Small & Medium Enterprise (SMEs), 2021-2031F (USD Million)
        2. Large Enterprise, 2021-2031F (USD Million)
      4. By Deployment
        1. On-Premise, 2021-2031F (USD Million)
        2. Cloud, 2021-2031F (USD Million)
      5. By End User Industry
        1. Education, 2021-2031F (USD Million)
        2. BFSI, 2021-2031F (USD Million)
        3. Healthcare, 2021-2031F (USD Million)
        4. Retail, 2021-2031F (USD Million)
        5. IT & Telecom, 2021-2031F (USD Million)
        6. Others, 2021-2031F (USD Million)
      6. Global Penetration Testing Market by Region
        1. North America, 2021-2031F (USD million)
        2. Europe, 2021-2031F (USD million)
        3. Asia-Pacific, 2021-2031F (USD million)
        4. Latin America, 2021-2031F (USD million)
        5. Middle East & Africa, 2021-2031F (USD million)
  19. North Penetration Testing Market
    1. By Component
      1. Software, 2021-2031F (USD Million)
      2. Services, 2021-2031F (USD Million)
    2. By Type
      1. Web Application Penetration Testing, 2021-2031F (USD Million)
      2. Mobile Application Penetration Testing, 2021-2031F (USD Million)
      3. Social Engineering Penetration Testing, 2021-2031F (USD Million)
      4. Network and Infrastructure Penetration Testing, 2021-2031F (USD Million)
      5. Wireless Network Security Assessment, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    3. By Enterprise Size
      1. Small & Medium Enterprise (SMEs), 2021-2031F (USD Million)
      2. Large Enterprise, 2021-2031F (USD Million)
    4. By Deployment
      1. On-Premise, 2021-2031F (USD Million)
      2. Cloud, 2021-2031F (USD Million)
    5. By End User Industry
      1. Education, 2021-2031F (USD Million)
      2. BFSI, 2021-2031F (USD Million)
      3. Healthcare, 2021-2031F (USD Million)
      4. Retail, 2021-2031F (USD Million)
      5. IT & Telecom, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    6. By Country
      1. US, 2021-2031F (USD Million)
      2. Canada, 2021-2031F (USD Million)
  20. Europe Penetration Testing Market
    1. By Component
      1. Software, 2021-2031F (USD Million)
      2. Services, 2021-2031F (USD Million)
    2. By Type
      1. Web Application Penetration Testing, 2021-2031F (USD Million)
      2. Mobile Application Penetration Testing, 2021-2031F (USD Million)
      3. Social Engineering Penetration Testing, 2021-2031F (USD Million)
      4. Network and Infrastructure Penetration Testing, 2021-2031F (USD Million)
      5. Wireless Network Security Assessment, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    3. By Enterprise Size
      1. Small & Medium Enterprise (SMEs), 2021-2031F (USD Million)
      2. Large Enterprise, 2021-2031F (USD Million)
    4. By Deployment
      1. On-Premise, 2021-2031F (USD Million)
      2. Cloud, 2021-2031F (USD Million)
    5. By End User Industry
      1. Education, 2021-2031F (USD Million)
      2. BFSI, 2021-2031F (USD Million)
      3. Healthcare, 2021-2031F (USD Million)
      4. Retail, 2021-2031F (USD Million)
      5. IT & Telecom, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    6. By Country
      1. UK, 2021-2031F (USD Million)
      2. Germany, 2021-2031F (USD Million)
      3. France, 2021-2031F (USD Million)
      4. Italy, 2021-2031F (USD Million)
      5. Spain, 2021-2031F (USD Million)
      6. Russia, 2021-2031F (USD Million)
      7. Netherlands, 2021-2031F (USD Million)
      8. Rest of Europe, 2021-2031F (USD Million)
  21. Asia Pacific Penetration Testing Market
    1. By Component
      1. Software, 2021-2031F (USD Million)
      2. Services, 2021-2031F (USD Million)
    2. By Type
      1. Web Application Penetration Testing, 2021-2031F (USD Million)
      2. Mobile Application Penetration Testing, 2021-2031F (USD Million)
      3. Social Engineering Penetration Testing, 2021-2031F (USD Million)
      4. Network and Infrastructure Penetration Testing, 2021-2031F (USD Million)
      5. Wireless Network Security Assessment, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    3. By Enterprise Size
      1. Small & Medium Enterprise (SMEs), 2021-2031F (USD Million)
      2. Large Enterprise, 2021-2031F (USD Million)
    4. By Deployment
      1. On-Premise, 2021-2031F (USD Million)
      2. Cloud, 2021-2031F (USD Million)
    5. By End User Industry
      1. Education, 2021-2031F (USD Million)
      2. BFSI, 2021-2031F (USD Million)
      3. Healthcare, 2021-2031F (USD Million)
      4. Retail, 2021-2031F (USD Million)
      5. IT & Telecom, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    6. By Country
      1. China, 2021-2031F (USD Million)
      2. India, 2021-2031F (USD Million)
      3. Japan, 2021-2031F (USD Million)
      4. South Korea, 2021-2031F (USD Million)
      5. Australia, 2021-2031F (USD Million
      6. Singapore, 2021-2031F (USD Million)
      7. Rest of Asia-Pacific, 2021-2031F (USD Million
  22. Latin America Penetration Testing Market
    1. By Component
      1. Software, 2021-2031F (USD Million)
      2. Services, 2021-2031F (USD Million)
    2. By Type
      1. Web Application Penetration Testing, 2021-2031F (USD Million)
      2. Mobile Application Penetration Testing, 2021-2031F (USD Million)
      3. Social Engineering Penetration Testing, 2021-2031F (USD Million)
      4. Network and Infrastructure Penetration Testing, 2021-2031F (USD Million)
      5. Wireless Network Security Assessment, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    3. By Enterprise Size
      1. Small & Medium Enterprise (SMEs), 2021-2031F (USD Million)
      2. Large Enterprise, 2021-2031F (USD Million)
    4. By Deployment
      1. On-Premise, 2021-2031F (USD Million)
      2. Cloud, 2021-2031F (USD Million)
    5. By End User Industry
      1. Education, 2021-2031F (USD Million)
      2. BFSI, 2021-2031F (USD Million)
      3. Healthcare, 2021-2031F (USD Million)
      4. Retail, 2021-2031F (USD Million)
      5. IT & Telecom, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    6. By Country
      1. Mexico, 2021-2031F (USD Million)
      2. Brazil, 2021-2031F (USD Million)
      3. Argentina, 2021-2031F (USD Million)
      4. Rest of Latin America, 2021-2031F (USD Million)
  23. Middle East & Africa Penetration Testing Market
    1. By Component
      1. Software, 2021-2031F (USD Million)
      2. Services, 2021-2031F (USD Million)
    2. By Type
      1. Web Application Penetration Testing, 2021-2031F (USD Million)
      2. Mobile Application Penetration Testing, 2021-2031F (USD Million)
      3. Social Engineering Penetration Testing, 2021-2031F (USD Million)
      4. Network and Infrastructure Penetration Testing, 2021-2031F (USD Million)
      5. Wireless Network Security Assessment, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    3. By Enterprise Size
      1. Small & Medium Enterprise (SMEs), 2021-2031F (USD Million)
      2. Large Enterprise, 2021-2031F (USD Million)
    4. By Deployment
      1. On-Premise, 2021-2031F (USD Million)
      2. Cloud, 2021-2031F (USD Million)
    5. By End User Industry
      1. Education, 2021-2031F (USD Million)
      2. BFSI, 2021-2031F (USD Million)
      3. Healthcare, 2021-2031F (USD Million)
      4. Retail, 2021-2031F (USD Million)
      5. IT & Telecom, 2021-2031F (USD Million)
      6. Others, 2021-2031F (USD Million)
    6. By Country
    7. GCC, 2021-2031F (USD Million)
    8. Israel, 2021-2031F (USD Million)
    9. South Africa, 2021-2031F (USD Million)
    10. Rest of the Middle East & Africa, 2021-2031F (USD Million)

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.


RN
Get more information on this report: Request Free Sample PDF

Global Penetration Testing Market: Key Insights

Base Year 

2021

Forecast Year 

2022-2031

CAGR 

14.9%

Base Year Market Size (2021)

USD 1,395.6 Million

Forecast Year Market Size (2031)

USD 5,537.0 Million

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, So
  • uth Africa, Rest of Middle East and Africa)


Global Penetration Testing Market: Growth Drivers and Challenges

Market-Growth-Drivers

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:

By Component

  • Software
  • Services

By Type

  • Web Application Penetration Testing
  • Mobile Application Penetration Testing
  • Social Engineering Penetration Testing
  • Network and Infrastructure Penetration Testing
  • Wireless Network Security Assessment
  • Others

By Enterprise Size

  • Small & Medium Enterprise [SMEs]
  • Large Enterprise

By Deployment

  • On-Premise
  • Cloud

By End User Industry

  • Education
  • BFSI
  • Healthcare
  • Retail
  • IT & Telecom
  • Others


Global Penetration Testing Market Regional Synopsis 

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.


Author Credits:  Abhishek Verma, Hetal Singh


Key Questions Answered in the Report

1) What are the major factors driving the growth of the penetration testing market?

Ans: The major factors driving the growth of the market are growing penetration of smartphone, urge to avoid security breaches, growing adoption of cloud computing, and others.

2) What would be the CAGR of penetration testing market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~14.9% over the forecast period, i.e., 2022 – 2031.

3) What are the challenges affecting the penetration testing market growth?

Ans: High cost of penetration test solution, lack of skilled professionals to operate the penetration testing system, and large number of tools used by pentester are some of the major factors estimated to hinder the growth of the market.

4) Which region will provide more business opportunities for growth of penetration testing market in future?

Ans: The market in North America is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.

5) Who are the major players dominating the penetration testing market?

Ans: The major players in the market are Synopsys, Inc., Invicti, FireEye, and others.

6) How are the company profiles selected?

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

7) What are the segments in the penetration testing market?

Ans: The market is segmented by component, type, enterprise size, deployment, end user industry, and by region.

8) Which segment captures the largest market size in enterprise type in the penetration testing market?

Ans: The small & medium enterprise [SMEs] segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.

Let Us Hear About Your Requirements:

Submit Your Request For Proposal (RFP)

 Request Free Sample Copy