by
Market Overview:
Penetration testing, also known as pen testing, is a method of evaluating the security of IT infrastructures, such as applications, networks, and people. It helps identify both technical vulnerabilities and procedural weaknesses which could be exploited by hackers or malicious actors. It works by simulating an attack with the intent of exposing vulnerabilities, with the permission and cooperation of the system owner. Penetration testing products scan for vulnerabilities, circumvent security controls, escalate privileges, make unauthorized system modifications, and simulate other cyber-attacks. In addition to software tools, penetration testing also involves manual techniques to evaluate an organization’s overall security posture.
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 from 2023 to 2030.
Increasing instances of hacking and cybercrime are driving the demand for advanced security testing and vulnerability assessment tools. Continuous assessment of systems helps enterprises secure data, comply with regulations, and minimize risks of major cyber incidents.
Key Takeaways
Key players
Key players operating in the penetration testing market are 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.
Growing demand
The growing frequency and sophistication of cyber-attacks is compelling more organizations to conduct regular penetration testing of their network infrastructure and applications. With remote working becoming commonplace, the attack surface has widened significantly in recent years. This is expected to further boost spending on penetration testing solutions.
Global expansion
Major players in the market are focusing on partnerships and expansion strategies to increase their international footprint. Further, adoption of penetration testing is also increasing across industry verticals such as BFSI, government, healthcare, and telecom to ensure compliance with data privacy and security regulations. The market is expected to witness high growth in the Asia Pacific region over the coming years.
Market key trends
One of the key trends gaining momentum in the penetration testing market is the increasing adoption of managed security services. This involves third party security testing vendors managing an organization’s security requirements completely. It helps companies fill capability gaps and focus on their core business operations. Automation is also being incorporated to enhance the efficiency of penetration testing and vulnerability scanning processes.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to a well-established market players occupying a large market share. However, the threat remains high due to technology advancements and low costs.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of a variety of products from different vendors at competitive pricing. Buyers can negotiate on price and demand additional services.
Bargaining power of suppliers: Suppliers have low bargaining power due to the presence of a large number of suppliers and raw material providers. Switching costs are also low.
Threat of new substitutes: The threat of substitutes is moderate as alternative security testing techniques like vulnerability management tools can be used.
Competitive rivalry: The competitive rivalry is high due to the presence of multiple global and regional players catering to a large customer base worldwide. Players compete on pricing, features, and services.
Geographical Regions
North America accounts for the largest share of around 40% of the penetration testing market in terms of value owing to stringent regulatory standards for data security. The region witnessed an early adoption of penetration testing tools and services across sectors.
The Asia Pacific region is expected to grow at the fastest CAGR during the forecast period due to the rising adoption of digital technologies and increasing investment toward cybersecurity by entities to protect their networks and IT infrastructure from cyber-attacks. Countries like China, Japan, and India contribute to the high growth in APAC.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
