June 12, 2024

The global adoption of Security standards to drive growth in the Penetration Testing Market.

The global Penetration Testing Market is estimated to be valued at US$1.59 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Penetration testing, also known as pentesting, involves evaluating the security of IT systems by simulating attacks on networks, applications, and employees with the goal of finding security vulnerabilities. It identifies methods that attackers could use to access corporate systems and sensitive data. Businesses use pentesting to identify vulnerabilities and weaknesses in order to strengthen their security and reduce cyber risks. With growing compliance requirements and rising security threats, more organizations are adopting pentesting services to test and audit their IT infrastructure on a regular basis.

Market key trends:
One of the major trends in the penetration testing market is the growing adoption of security compliance standards such as ISO 27001, PCI DSS, etc. which mandate businesses to conduct regular security audits and penetration tests. Furthermore, there is an increase in advanced attacks such as ransomware and supply chain vulnerabilities which is driving the need for comprehensive pentesting services. Many organizations are also integrating pentesting into their DevSecOps processes to find and fix vulnerabilities early. Continuous penetration testing approach is gaining popularity as it allows testing security throughout application development lifecycles. The market is also witnessing the emergence of new testing techniques like red teaming which evaluates organizations’ security defenses from an attacker’s perspective.
Porter’s Analysis

Threat of new entrants: The penetration testing market requires high initial capital investments and established customer relationships which pose significant barriers for new entrants.

Bargaining power of buyers: Individual buyers have moderate bargaining power due to the presence of many vendors offering penetration testing services. However, large enterprises are able to negotiate better prices and terms of service.

Bargaining power of suppliers: The presence of many tool providers and testers/consultants gives buyers options and limits the bargaining power of suppliers.

Threat of new substitutes: No direct substitute exists for penetration testing services which helps maintain the threat of substitution at a low level.

Competitive rivalry: The market is highly fragmented with many global and regional players. Price competition is intense.

Key Takeaways

The global penetration testing market is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing stringent regulatory compliances for information security across industries.

Regionally, North America dominated the global penetration testing market in 2023 with a share of over 35%, owing to stringent security policies and compliance standards in the region. Asia Pacific is expected to be the fastest growing market, driven by the growing need to safeguard critical data from cyberattacks in developing economies like China and India.

Key players operating in the penetration testing market include IBM Corporation, Rapid7, Inc., Microfocus, Qualys, Inc., Synopsys Inc., Core Security SDI Corporation, Whitehat Security, Trustwave Holdings, Inc., Checkmarx.com LTD, VERACODE, Inc., Secure Works Inc., Acunetix, Contrast Security, and Paladion Network Private Limited. The market sees frequent new product launches, mergers and acquisitions by these prominent players to strengthen their service capabilities and global presence.