Penetration Testing Market by Testing Service (Network penetration testing, Web Application Penetration Testing, Mobile Application Penetration Testing, Social Engineering, Wireless Penetration testing, and Others), by Deployment Mode (Cloud and On-premises), by Organization Size (Small and Medium Enterprises and Large Enterprises), by Industrial Vertical (Government and Defense, Banking, Financial Services, and Insurance (BFSI), IT and Telecom, Healthcare, Retail, and Others) by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2018 – 2026

  • To Be Published : Sep 2018 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Penetration testing is also known as pen testing. It is a simulated process used to test a computer system, application or a network to check for security weaknesses, which could be easily capitalized on by hacker. They are designed in such way that they will be useful in security assessments and security testing. For penetration testing, a wide variety of security assessment tools are used, which can be hardware-software, websites and (PEA) proprietary enterprise applications. There are various methods under the ambit of penetration testing, which include external testing, internal testing, blind testing, and double blind testing.

Increasing incidence of cyber-attacks and need to secure vulnerable data are key drivers for penetration testing market growth

Major driving factor for growth of the penetration testing market is the ability of penetration testing to provide security to industries from various cyber-attacks, as increasing incidence of cyber-attacks can increase the vulnerability of critical data stored by organizations and adversely impact the revenue. For instance, according to a report published by Academy and Industry Research Collaboration Center (AIRCC) in 2016, the number of web attacks in the U.S. in 2015, increased by 36% with over 4,500 new attacks each day. Moreover, increasing adoption of advance technologies such as Internet of Things (IoT), cloud computing, Bring Your Own Device (BYOD), and rise in disposable income has contributed to growth of the penetration testing market. For instance, according to a June 2018, report by Bureau of Economic Analysis (BEA), Disposable Personal Income (DPI) in the U.S. increased by US$ 39.8 billion (0.3 %) in April 2018 as compared to 2017. The same report stated that personal disposable income of Americans increased at an average rate of 2.8% year on year from the second quarter of 2015 to the second quarter of 2017. Adoption of cloud computing has increased over the last decade as this technology is highly scalable, efficient in operation, and cost effective in comparison to other data storage and transfer technologies but is highly vulnerable and provides easy access to unauthorized users. This makes the deployment of penetration technologies very important. For instance, according to 2016, report by United States International Trade Commission (USITC) US$ 43.3 billion was invested by the U.S. in cloud computing services in 2015.

Furthermore, use of computers and mobile devices have increased over the last few years. Computers or laptops are used for storing or handling large amount of critical data and applications, which are used by government and defense agencies. It is highly important to equip systems with security software, which can counter data theft. Moreover, security of Banking, Financial Services, and Industries (BFSI) are most important as critical web applications used in BFSI are at high risk of cyber-attacks. This makes the deployment of penetration testing indispensable.

Lower adoption of penetration testing systems by smaller organizations is hindering market growth

The adoption rate of penetration testing systems is very low in smaller enterprises, as these companies allocate lesser budget on cyber security solutions and penetration testing. Lack of knowledge and awareness regarding the use of security services in various industries coupled with shortage of skilled labor to carry out penetration testing exercises is adversely impacting growth of the penetration testing market.

Regional analysis of penetration testing market

North America and Europe dominated the market with respect to penetration testing and are expected to maintain their dominance during forecast period, owing to increasing adoption of cloud services and Bring Your Own Device (BYOD) technology. For instance, according to Coherent Market Insights, in 2018, the U.S invested around US$ 95 billion on cloud services, accounting for more than 58% of the amount spent on cloud services worldwide. Furthermore, the UK and Germany collectively spent over US$ 14 billion on cloud services in 2018.  Another factor which is contributing to the growth of the market in the region is presence of many key players (such as IBM Corporation, Synopsys, and WhiteHat Security among others) serving the penetration testing market in the region.

Asia Pacific is expected to register rapid growth during the forecast period in the penetration testing market due to increased adoption of cloud-based services, primarily in India and China. For instance, according to Coherent Market Insights, the digital transformation in Asia Pacific is driving multi-cloud and hybrid environments, which allows enterprises to create a more agile and cost-effective IT frameworks. Heavily regulated industries such as banking and finance are increasingly adopting Software as a Service (SaaS) for non-core functionality, Platform as a service (PaaS) for app development and testing, and Infrastructure as a Service (IaaS) for workload trial runs and testing for their new service offerings. Drivers of IaaS growth in the Asia Pacific include the increasing demand for more rapid processing infrastructure, as well as increasing requirement of better data backup and disaster recovery systems.

Global Penetration Testing Market: Competitive Landscape

The key players operating in penetration sensing market include 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.

Global Penetration Testing Market: Taxonomy

On the basis of Testing Service

  • Network penetration testing
  • Web application penetration testing
  • Mobile application penetration testing
  • Social engineering
  • Wireless penetration testing
  • Others

On the basis of Deployment Mode

  • Cloud
  • On-premises

On the basis of Organization Size

  • Small and Medium Enterprises (SMEs)
  • Large enterprises

On the basis of Industrial Vertical

  • Government and defense
  • Banking, Financial Services, and Insurance (BFSI)
  • IT and telecom
  • Healthcare
  • Retail
  • Others

On the basis of Regions

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East
  • Africa

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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