Penetration Testing Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Penetration Testing Market is Segmented By Offering (Solution, Services), By Application Area (Web Applications, Mobile Applications, Network Infrastructure, Social Engineering, Cloud, Others), By Deployment Mode (Cloud-Based, On-Premises), By Organization Size (Small and Medium-Sized Enterprises, Large enterprises), By End-User (BFSI, Healthcare, IT and ITeS, Telecom, Retail and eCommerce, Manufacturing, Education, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Penetration Testing Market Overview

The Global Penetration Testing Market is expected to reach at a high CAGR during the forecast period 2023-2030. Penetration testing is a variant of ethical hacking known as pen testing, security pen testing, and security testing. It refers to the deliberate deployment of simulated cyberattacks by "white hat" penetration testers employing tactics and technologies to access or exploit computer systems, networks, websites, and apps. Although the primary goal of penetration testing is to identify exploitable to implement adequate security controls, security professionals also use penetration testing techniques and testing tools to test the robustness of an organization's security policies, employee security awareness, regulatory compliance, and the organization's ability to respond and identify security issues and unauthorized access.

Penetration Testing Market Scope and Summary

Penetration Testing Market Dynamics and Trends

The increased demand for flexible penetration testing products and the rise in technological innovations are major market drivers for the global penetration testing market. Nevertheless, growing environmental concerns and stringent regulations restrain the market’s growth.

Stringent regulations

GDPR, PCI DSS, OWASP, and NIS, among others, are some regulations that instruct the employment of penetration testing regularly, and noncompliance results in substantial fines imposed on enterprises. According to GDPR Article 32, enterprises must develop a methodology for regular testing and reviewing the efficacy of technological and organizational measures to maintain data processing security. ISO 27001 Objective A.12.6.1 requires gathering information about technical security vulnerabilities, assessing exposure to these vulnerabilities, and taking suitable measures to resolve the associated risks quickly. Requirement 11 of PCI DSS 3.2 additionally requires penetration testing on an annual basis or after any significant modifications to infrastructure.

According to the 2020 Pen Testing Report, compliance is the key motivation for undertaking penetration tests by 67 percent of polled cybersecurity experts. As a result, stringent rules requiring regular penetration testing boost the demand for penetration testing across enterprises in various industries.

High cost

A penetration test is expensive and can even cost up to US$ 4,000 for a small, non-complicated business to more than US$ 100,000 for a large, sophisticated one. According to Security Metrics experts, any penetration test offered for less than US$ 4,000 is most likely not a legitimate penetration test but just a vulnerability scanning. A high-quality, professional penetration test costs range from US$ 15,000 toUS$ 30,000, depending on several criteria such as the size of the firm, the scope and complexity of the test, the methodology used, the testers' experience, and the cost of remediation.

These costs are prohibitively expensive for many firms and as a result, many organizations run testing less frequently than necessary.

For instance, SMEs with limited cybersecurity budgets may execute a penetration test annually or biennially, even if rules call for the test to be performed biannually. As a result, the costs associated with conducting penetration tests may limit market expansion.

COVID-19 Impact on Penetration Testing Market

Cloud computing has emerged as a crucial ally for remote work and collaboration development businesses. The COVID-19 scenario has increased the demand for cloud solutions. Before this epidemic, many businesses were concerned that transferring sensitive data stored in the cloud could be hazardous. Because of collaborations with AWS, Microsoft Azure, the Google Cloud Platform (GCP), and Alibaba Cloud, organizations may swiftly migrate data to the cloud by embracing BYOD and mobility in a hybrid IT environment.

Businesses are increasingly storing sensitive information in the cloud. However, the growing use of the cloud presents security risks. With the growing need for cloud computing, there is a potential for cloud security services and solutions to emerge.

The danger of data breaches in security and access patterns and processes required to regulate cloud environments while working from home has increased with the advent of new gadgets. The demand for security technologies has increased significantly as remote workers have increased. As a result, the penetration testing market will likely rise dramatically even after the pandemic.

Penetration Testing Market Segmentation Analysis

The global penetration testing market is classified based on the application area, offering,  deployment mode, organization size, end-user, and region.

The widespread digitalization of the BFSI sector post-COVID-19 and the rising number of cybercrimes globally

During the COVID-19 outbreak, banks and financial organizations migrated more of their data and services to an online environment. With the increased integration of AI and cloud computing finance and insurance adoption, firms must adhere to the highest security standards mandated by financial regulatory agencies. As a result, financial institutions are expanding their collaborations with penetration testing service providers to establish a comprehensive security environment that meets global and regional regulatory requirements, enabling the BFSI sector to expand extensively and dominate the vertical segment of the worldwide penetration testing market.

Penetration Testing Market Geographical Share

The normalcy of digitalization in North American markets and stringent government regulations associated with cyber safety

North America dominates the regional segment of the market as it is a highly regulated region, with multiple rules and compliances across verticals, including the Federal Energy Regulatory Commission (FERC), HIPAA, PCI DSS, and SOX. North American businesses are quite advanced in installing security, penetration testing, and vulnerability management solutions and they have best practices for their daily business activities, which drives the adoption of penetration testing solutions. Other factors driving the region's increased demand for penetration testing solutions include regulatory compliance, growing security concerns, and developing threats. As the region's largest economies, the U.S. and Canada are major contributors to the North American penetration testing market.

Penetration Testing Companies and Competitive Landscape

The penetration testing market is quite active in terms of the number and scope of global and local producers. The industry has been fragmented due to multiple manufacturers such as IBM, Hackerone, Immuniweb, Raxis, Rhino Security Labs, Rapid7, Fireeye, Micro Focus, Acunetix, and Netsparkar. Mergers, acquisitions, product launches, investments, and partnerships are common market strategies employed by major market players to obtain a competitive advantage and boost their reputation.

Rapid7 Inc

Overview: Rapid7 Inc is an analytics solution and security data provider that allow businesses to be active against cyber vulnerabilities. The company provides security data and analytics platforms that provide cyber security solutions that enable organizations to identify and eliminate major gaps and detect assaults in their information technology (IT) environments. Nexpose, Metasploit, Appspider, and Threat Intelligence are among its offerings. Geographically, it operates throughout North America and generates revenue through subscriptions, maintenance and support services, and the provision of other professional services. The company is publically-owned and was founded in 2000. The company is currently headquartered in Boston, U.S.

Product Portfolio:

• Penetration Testing Services: Rapid7's Penetration Testing Services team will mimic a real-world assault on networks, apps, devices, and people to illustrate the security level of critical systems and infrastructure and what it will take to reinforce it.

Key Development:

• Rapid7, Inc., a supplier of security analytics and automation, said on April 21, 2021, that it acquired Velociraptor, a leading open-source technology, and community used for endpoint monitoring, digital forensics, and incident response.

Why Purchase the Report?

• To visualize the global penetration testing market segmentation based on offering, application area, deployment mode, organization size, end-user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global penetration testing market by analyzing trends and co-development.
• Excel data sheet with numerous data points of penetration testing market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global penetration testing market report would provide approximately 77 tables, 81 figures, and almost 200 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies