Product Code: 67369
The penetration testing market was valued at USD 580 million in 2019 and anticipated to register a CAGR of 24.3% during the forecast period (2020-2025).
- The increasing number of cyber-attacks, coupled with the growing need to meet the compliance measures, is anticipated to be a growth driver for the global penetration testing market during the forecast period.
- The increasing demand for the protection of software-based properties such as mobile and web applications is anticipated to boost the growth of the global penetration testing market. Additionally, the increasing use of cloud-based security solutions is expected to fuel the demand for penetration testing.
- This, in turn, is anticipated to foster the growth of the global penetration testing market. Moreover, the increasing digitization in developing countries is expected to increase the trend of IoT based connected devices. This, in turn, drives the demand for penetration testing.
- The growing internet activities across the globe, coupled with the increased security compulsion is driving the market growth of the global penetration testing market during the forecast period.
- Moreover, an increasing number of wireless networks and the growing number of connected devices are also generating demand for penetration testing across various industry verticals. However, the lack of skilled personnel and lack of awareness in various developing and underdeveloped countries is likely to restrain the growth of the penetration testing market during the forecast period.
Scope of the Report
Penetration testing, also called pen testing or ethical hacking, is the practice of testing a computer system, network or web application to find security vulnerabilities that an attacker could exploit. Different types of testing services such as Network Penetration Testing, Web Application Penetration Testing, Mobile Application Penetration Testing, IoT and Internet-Aware Device Testing, Social Engineering Penetration Testing Services and Wireless Network Penetration Testing Services are considered under the scope of the report.
Key Market Trends
Government and Defense to Hold a Significant Share
- The government and its agencies have the authority to access and manage large amounts of sensitive citizen information. Further, with the advent of the digital age, governments have leveraged online web portals, as well as mobile applications, to enhance government procedures and processes. For instance, the government of India has begun a digital movement, "Digital India," intending to digitize all government processes and payments.
- Infrastructure development is emerging as one of the priorities for the governments, which include the deployment of public Wi-Fi and connected public transport. As a result, there is a need for government organizations to secure the network and its applications to protect the integrity of citizen information on a large scale. This has created a greater vulnerability to sensitive data.
- Further, technologies, such as Commercial off-the-shelf (COTS), are used by federal governments to enable broad functional capabilities to the government applications. Since these solutions were developed for commercial purposes, government systems are vulnerable to certain unique risks, which need to be addressed.
- Thus, software vendors that are developing technology for the government have been pushed to ensure security for both static and dynamic applications, through compliance measures and mandates, such as the NIST Risk Management Framework and the DoD's DIACAP. These mandates demand that vendors guarantee testing services and verification of their applications. The factors mentioned above are expected to propel the growth of the market studied over the forecast period.
North America to Hold Major Share
- The region is a technology hub. Therefore, the Federal government has made rules very stringent regarding security testing services. Moreover, it is made compulsory for industries, such as BFSI, to adhere to compliance testing.
- According to ITU, North America features as the most pro-active and committed region in terms of cyber security-based initiatives. The GCI score is given to the major countries (United States - 0.91 and Canada - 0.81) further reinforces their commitment toward building a robust cybersecurity framework coupled with enhanced security testing methodologies.
- The increasing security concerns of data has primarily driven the demand for According to WeSecure App, in 2018, we witnessed 1244 cyber breaches that exposed 446.52 Mn records in the United States alone. While the number of US data breaches dipped as compared to 2017, the exposure of Personal Identifiable Information increased by a whopping 126%.
- Companies across the region are anticipated to double down on necessary security arrangements such as a layered defense with firewall, filtered DNS, segmented networks, security clients, and so on. However, employee awareness and training might be the investment that brings the highest RoI for companies.
- As 2018 was a record year for publicized data breaches both in terms of scope and number, companies now might focus on strengthening their security controls over cloud services and implement encryption in transit and at rest, for instance. This is anticipated to offer growth for penetration testing in the market.
The penetration testing market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic innovations and collaborative initiatives to increase their market shares and increase their profitability. Security giants like Symantec and FireEye have offered pen testing for years, and other bug bounty players like Bugcrowd and Synack also conduct crowdsourced pen tests.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Increasing Security Threats
- 4.3.2 Stringent Government Regulations Regarding Data Security
- 4.4 Market Restraints
- 4.4.1 Lack of Awareness Regarding Penetration Testing
- 4.5 Industry Attractiveness - Porter's Five Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Type
- 5.1.1 Network Penetration Testing
- 5.1.2 Web Application Penetration Testing
- 5.1.3 Mobile Application Penetration Testing
- 5.1.4 Social Engineering Penetration Testing
- 5.1.5 Wireless Network Penetration Testing Services
- 5.1.6 Other Type
- 5.2 By Deployment
- 5.2.1 On-premise
- 5.2.2 Cloud
- 5.3 By End-user Industry
- 5.3.1 Government and Defense
- 5.3.2 BFSI
- 5.3.3 IT and Telecom
- 5.3.4 Healthcare
- 5.3.5 Retail
- 5.4 Geography
- 5.4.1 North America
- 5.4.2 Europe
- 5.4.3 Asia Pacific
- 5.4.4 Latin America
- 5.4.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Synopsys Inc.
- 6.1.2 Acunetix Ltd.
- 6.1.3 Checkmarx Ltd.
- 6.1.4 IBM Corporation
- 6.1.5 Rapid7, Inc.
- 6.1.6 FireEye Inc.
- 6.1.7 VERACODE Inc,
- 6.1.8 BreachLock Inc.
- 6.1.9 Broadcom Inc. (Symantec Corporation)
- 6.1.10 Clavax Technologies LLC
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS