Penetration Testing Market - Forecast 2020 - 2025
Global Penetration Testing Market size is forecast to reach $2.87 billion by 2025, growing at a CAGR of 15.87% during 2020-2025. The growing penetration of software across diversified industries are expected to accelerate the penetration testing market. Industry control and factory automation market is expected to reach $286 billion by 2025 at a CAGR of 8.87% during 2020-2025. This rapid pace of growth in automation across industries is likely to create opportunity for penetration testing market. Similarly, in recent time the rising popularity of IoTs and rising number of data centers are making the cyberspace more vulnerable to hacking. In addition to this, the growing number of cloud based services are increasing the database security and application security concern for businesses. Hence, in recent days, the penetration testing market has become inevitable for achieving security in web, mobile, and cyber space.
Key Takeaways
North America dominated the Penetration Testing Market owing to rising number of data centers and cloud based applications in 2018.
The rising penetration IoT based devices, large volume of data generation, high demand for network analysis, and shifting focus of enterprises to use cloud computing are creating new opportunity for penetration testing market.
Mobile and industrial control penetration testing services are the fastest growing segment of penetration testing market owing to growing digitization worldwide.
High cost will hinder the growth of penetration testing market.
Increasing use of Cloud Computing Platform
Since 2016, cloud computing platform is offering new business capabilities and opportunities to various industries and enterprises. Cloud-based storage are now being preferred by industries over traditional physical servers due to low cost and having the ability to scale up or scale down the business at a minimal investment. Apple is spending more than $306 million on Amazon’s cloud every year. Similarly, in 2018 Amazon generated a revenue of approximately $25 billion from its AWS cloud computing services. However, these cloud based solutions are vulnerable to hacking and need to be secured from malicious code. In 2019, Capital One, a financial corporation faced a cloud computing vulnerability due to which 106 million credit card customer’s data were exposed. Thus, the demand for penetration testing is becoming an integral part of cloud computing platform to ensure additional security and is expected to witness rapid pace of growth along with cloud computing market.
Challenges – Penetration Testing Market
High cost of performing the test
A typical penetration vulnerability testing is priced around $3000/ month, while a high quality penetration testing could cost approximately $15000-$30000/month. Due to high cost of testing, penetration testing is considered as “point in time” exercises. Thus, performing penetration testing once or twice a year will leave new application code untested for months. Similarly, due to high cost of penetration testing, small enterprises are hesitating to perform this test. In 2018, approximately 5%-10% of small enterprises were using this testing procedure.
Key Takeaways
North America dominated the Penetration Testing Market owing to rising number of data centers and cloud based applications in 2018.
The rising penetration IoT based devices, large volume of data generation, high demand for network analysis, and shifting focus of enterprises to use cloud computing are creating new opportunity for penetration testing market.
Mobile and industrial control penetration testing services are the fastest growing segment of penetration testing market owing to growing digitization worldwide.
High cost will hinder the growth of penetration testing market.
Request SampleServices Type - Segment Analysis
Industrial control and mobile based services are expected to provide fast pace growth to penetration testing market, with an expected CAGR of 16.44% during 2020-2025. Rising adoption of IoT based equipment in industrial application are continuously increasing the data consumption in industries and hence, the industries are taking adequate measures to save their data from vulnerable cyber-attack. Similarly, the rising penetration of mobile based app are significantly increasing the need for penetration testing services. Worldwide mobile app revenue is expected reach $188 billion by 2020 growing at a CAGR of 19.65%. The availability of affordable smartphone and increased internet speed are the major drivers for mobile app market. With the increase usage of mobile app, the generated data are getting more vulnerable to cyber-attack and hence, penetration testing is finding large application in this segment.
Deployment Type - Segment Analysis
Cloud based deployment of penetration testing is expected to accelerate the penetration testing market at CAGR of 17.88% during 2020-2025. The rising adoption of cloud based solutions by enterprises are making it more convenient for penetration testing service providers to carry out the cloud based testing. In 2019, approximately 80% of companies using some form of cloud based services. Cloud Computing market is expected to reach $375 billion by 2025, growing at a CAGR of 18.45% during 2020-2025. It is also expected that by 2020, 60% enterprise software will be cloud based. Thus, cloud based deployment of penetration testing market is likely to follow the growth of cloud computing market.
Industrial control and mobile based services are expected to provide fast pace growth to penetration testing market, with an expected CAGR of 16.44% during 2020-2025. Rising adoption of IoT based equipment in industrial application are continuously increasing the data consumption in industries and hence, the industries are taking adequate measures to save their data from vulnerable cyber-attack. Similarly, the rising penetration of mobile based app are significantly increasing the need for penetration testing services. Worldwide mobile app revenue is expected reach $188 billion by 2020 growing at a CAGR of 19.65%. The availability of affordable smartphone and increased internet speed are the major drivers for mobile app market. With the increase usage of mobile app, the generated data are getting more vulnerable to cyber-attack and hence, penetration testing is finding large application in this segment.
Deployment Type - Segment Analysis
Cloud based deployment of penetration testing is expected to accelerate the penetration testing market at CAGR of 17.88% during 2020-2025. The rising adoption of cloud based solutions by enterprises are making it more convenient for penetration testing service providers to carry out the cloud based testing. In 2019, approximately 80% of companies using some form of cloud based services. Cloud Computing market is expected to reach $375 billion by 2025, growing at a CAGR of 18.45% during 2020-2025. It is also expected that by 2020, 60% enterprise software will be cloud based. Thus, cloud based deployment of penetration testing market is likely to follow the growth of cloud computing market.
Inquiry Before BuyingGeography - Segment Analysis
In 2018, North America dominated the penetration testing market with a market share of more than 38.57%, followed by APAC and Europe. The region of North America accounts for majority of the cloud traffic globally. According to the Cisco Global Cloud Index, the cloud traffic in the region is poised to grow at a CAGR of 24% during 2016-2021 and will account for nearly 40% of the global traffic by 2020. This will also impact the growth of the hyper scale datacenters positively in the region, thereby boosting the demand for penetration testing market. Additionally, the existing datacenter facilities in North America are also witnessing expansions, which will prominently increase the usage of penetration testing. In the latest of developments, Cyxtera in March 2019, announced the expansion of its datacenters in Phoenix, Silicon Valley, New York, Metro Atlanta, and Toronto, which are part of the ten biggest datacenters in North America. Similarly, Data center colocation is also on the rise in the U.S. with the burgeoning office space costs and the increasing costs to maintain datacenter infrastructure. Hence, with rise of data center in North America region, the penetration testing market will grow at a faster pace in this region.
Drivers – Penetration Testing Market
The rising number of data centers
Penetration testing is an important element to ensure high level of security in data center. This test is also useful for companies during security audit and security assessment. In recent time, the volume of data consumption have increased significantly in the wake high speed internet connection, rising industrial automation, and increasing penetration of mobile devices. The rise of the data volume are creating enormous opportunity for data center market. Colocation data center installations are expected to be driven by the industrial sector, which is one of the largest generators of data. The companies in this sector are increasingly digitizing their operations and services, resulting in their increased dependence on data centers. Process and manufacturing industries are taking the path of industrial IoT to improve operational efficiencies, which will result in generation of large amount of data and have a positive impact on penetration testing market. The Industrial IoT market is expected to reach $100 billion by 2025 growing at CAGR of 18.56% during 2020-2025. Thus, with the growth of data centers, the penetration testing market is likely to find opportunity during the forecast period.
In 2018, North America dominated the penetration testing market with a market share of more than 38.57%, followed by APAC and Europe. The region of North America accounts for majority of the cloud traffic globally. According to the Cisco Global Cloud Index, the cloud traffic in the region is poised to grow at a CAGR of 24% during 2016-2021 and will account for nearly 40% of the global traffic by 2020. This will also impact the growth of the hyper scale datacenters positively in the region, thereby boosting the demand for penetration testing market. Additionally, the existing datacenter facilities in North America are also witnessing expansions, which will prominently increase the usage of penetration testing. In the latest of developments, Cyxtera in March 2019, announced the expansion of its datacenters in Phoenix, Silicon Valley, New York, Metro Atlanta, and Toronto, which are part of the ten biggest datacenters in North America. Similarly, Data center colocation is also on the rise in the U.S. with the burgeoning office space costs and the increasing costs to maintain datacenter infrastructure. Hence, with rise of data center in North America region, the penetration testing market will grow at a faster pace in this region.
Drivers – Penetration Testing Market
The rising number of data centers
Penetration testing is an important element to ensure high level of security in data center. This test is also useful for companies during security audit and security assessment. In recent time, the volume of data consumption have increased significantly in the wake high speed internet connection, rising industrial automation, and increasing penetration of mobile devices. The rise of the data volume are creating enormous opportunity for data center market. Colocation data center installations are expected to be driven by the industrial sector, which is one of the largest generators of data. The companies in this sector are increasingly digitizing their operations and services, resulting in their increased dependence on data centers. Process and manufacturing industries are taking the path of industrial IoT to improve operational efficiencies, which will result in generation of large amount of data and have a positive impact on penetration testing market. The Industrial IoT market is expected to reach $100 billion by 2025 growing at CAGR of 18.56% during 2020-2025. Thus, with the growth of data centers, the penetration testing market is likely to find opportunity during the forecast period.
Increasing use of Cloud Computing Platform
Since 2016, cloud computing platform is offering new business capabilities and opportunities to various industries and enterprises. Cloud-based storage are now being preferred by industries over traditional physical servers due to low cost and having the ability to scale up or scale down the business at a minimal investment. Apple is spending more than $306 million on Amazon’s cloud every year. Similarly, in 2018 Amazon generated a revenue of approximately $25 billion from its AWS cloud computing services. However, these cloud based solutions are vulnerable to hacking and need to be secured from malicious code. In 2019, Capital One, a financial corporation faced a cloud computing vulnerability due to which 106 million credit card customer’s data were exposed. Thus, the demand for penetration testing is becoming an integral part of cloud computing platform to ensure additional security and is expected to witness rapid pace of growth along with cloud computing market.
Challenges – Penetration Testing Market
High cost of performing the test
A typical penetration vulnerability testing is priced around $3000/ month, while a high quality penetration testing could cost approximately $15000-$30000/month. Due to high cost of testing, penetration testing is considered as “point in time” exercises. Thus, performing penetration testing once or twice a year will leave new application code untested for months. Similarly, due to high cost of penetration testing, small enterprises are hesitating to perform this test. In 2018, approximately 5%-10% of small enterprises were using this testing procedure.
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