May 25, 2024

The Global Penetration Testing Market is driven by rising need for cybersecurity

 

Penetration testing plays a crucial role in evaluating and auditing the security of a network, web applications and other systems. It involves legally performing hacking attempts to test for cyber vulnerabilities that a hacker could potentially exploit. Penetration testing tools and technologies have evolved significantly over the years to perform deep analysis of networks and applications, fulfilling widespread demand across industries for robust cybersecurity measures.

The global penetration testing market is estimated to be valued at US$ 1.59 billion in 2024 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 key trends

Vulnerability assessment and management are seeing increased prioritization across enterprises to proactively identify and patch existing security issues and reduce the risk of cyberattacks. Regular vulnerability scans and analysis through automated penetration testing tools allows organizations to be notified in real-time of new vulnerabilities and proactively fix them before threats can materialize. Furthermore, compliance with regulations around data privacy such as GDPR are driving many businesses to conduct rigorous vulnerability testing periodically and validate the security of their digital assets. The market is also witnessing growing adoption of cloud-based penetration testing solutions that deliver continuous vulnerability monitoring and automated remediation, allowing businesses 24/7 visibility into threats. Such comprehensive approaches are helping organizations strengthen overall security posture and incident response capabilities.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the penetration testing market is moderate. Requirement of highly skilled professionals, expertise, and certifications increases the entry barriers for new players in this market.

Bargaining power of buyers: The bargaining power of buyers in the penetration testing market is high. Buyers have high bargaining power due to availability of numerous service providers offering similar solutions at competitive prices.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many players providing similar testing tools and services. However, switching costs for buyers are low.

Threat of new substitutes: Threat of new substitutes for penetration testing solutions is low as there are no direct substitutes for these services. However, existing alternative cybersecurity solutions can pose a potential threat.

Competitive rivalry: The competitive rivalry among existing players is high due to presence of numerous global and regional players competing on basis of capabilities, expertise, and certifications.

Key Takeaways

The global penetration testing market is expected to witness high growth over the forecast period driven by increasing incidences of cybercrimes and stringent regulatory mandates regarding data security across various industries worldwide. The global penetration testing market is estimated to be valued at US$ 1.59 billion in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.

Regional analysis: North America held the largest share of the penetration testing market in 2023 owing to stringent data security regulations and increasing spending on cybersecurity solutions by government and private organizations in the U.S. and Canada. Asia Pacific is expected to witness fastest growth in penetration testing market over the forecast period on back of increasing digitization and rapidly growing IT sector across countries like India and China.

Key players: Key players operating in the penetration testing market are Rapid7, Secureworks, FireEye, Checkmarx, Veracode, Cigital, and Context Information Security. Major players are focusing on expanding their global footprint and providing end-to-end cybersecurity services to diverse industry verticals through strategic partnerships and collaborations.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it