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Computer software assurance, also known as cybersecurity assurance, refers to the practices, processes, and tools used to ensure that software functions as intended and is free of vulnerabilities, errors, and bugs that can be exploited by malicious threat actors. With the growing frequency and severity of cyber attacks targeting software vulnerabilities, organizations across industries have ramped up investments in CSA solutions and services to protect their digital assets and ensure business continuity. Features like vulnerability assessment, penetration testing, code review, application security testing help organizations identify weaknesses in their software applications and develop mitigation strategies.
The global Computer Software Assurance (CSA) market is estimated to be valued at US$ 58 Billion 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. The market growth can be attributed to the increasing digitization of business processes and pandemic-driven shift towards remote working models which have expanded the attack surface for cyber criminals. Moreover, stringent data privacy regulations like GDPR necessitate regular audits and assurances of software for compliance. Vulnerability assessment and penetration testing segments currently dominate the market due to growing deployments of these proactive security measures by enterprises.
Market Key Trends:
Increased Spending on Preventive Controls: With high-profile data breaches costing companies billions in damages, regulatory fines and loss of trust, organizations are allocating more budget to implementing preventive security controls like application security testing, code reviews and threat modeling. This is evident from surging demand for managed security services and outsourcing of application security programs to specialized CSA firms.
Multi-Layered Software Security Programs: Leading enterprises are taking a holistic, defense-in-depth approach to safeguard their software assets and platforms. This includes strategies like adopting security-oriented development practices, conducting security assessments at various stages of the SDLC, deploying runtime application self-protection controls and continuous security monitoring of operational software.
Porter’s Analysis
Threat of new entrants: The CSA market requires high initial investments and possesses strong network effects making it difficult for new players to enter.
Bargaining power of buyers: Large enterprises have significant bargaining power over CSA vendors due to their high spending ability.
Bargaining power of suppliers: A few big tech companies dominate the CSA market giving them strong bargaining power over buyers.
Threat of new substitutes: Open-source security tools pose a potential threat; however, they lack comprehensive capabilities of commercial CSA solutions.
Competitive rivalry: The CSA market is highly competitive with vendors differentiating based on features, innovations and pricing.
Key Takeaways
The global Computer Software Assurance (CSA) market is expected to witness high growth over the forecast period. Rapid digital transformation among enterprises is driving the need for robust CSA solutions to secure critical applications and infrastructure.
Regional analysis: North America currently dominates the CSA market owing to stringent data security regulations and early adoption of advanced technologies among organizations in the region. Asia Pacific is expected to grow at the fastest pace led by growth in IT spending and rising cybersecurity threats in major economies of China and India.
Key players: Key players operating in the CSA market are Microsoft, Oracle, IBM, Google and SAP. Microsoft continues to lead the market underpinned by its comprehensive suite of security and compliance tools for developers. Oracle’s strong footprint in the enterprise applications market also gives it an edge in cross-selling CSA solutions.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
