Penetration Testing Market Size - By Offering (Solution, Services), By Deployment Model (On-Premises, Cloud), Application (Network Infrastructure, Web Applications, Mobile Applications, Social Engineering, Cloud), Enterprise Size, End-user & Forecast, 202

Penetration Testing Market Size - By Offering (Solution, Services), By Deployment Model (On-Premises, Cloud), Application (Network Infrastructure, Web Applications, Mobile Applications, Social Engineering, Cloud), Enterprise Size, End-user & Forecast, 2024 - 2032

Penetration testing market size will register over 17% CAGR between 2024 and 2032, led by the increasing frequency and sophistication of cyberattacks, which compel organizations to prioritize robust cybersecurity measures. According to a study by Cybersecurity Ventures, a cyberattack occurred every 39 seconds in 2023, leading to more than 2,200 incidents per day. As cyber threats evolve, companies across industries are recognizing the need to identify and address vulnerabilities in their systems before they can be exploited by malicious actors. Subsequently, penetration testing, which simulates cyberattacks to identify and optimize security vulnerabilities, has become an integral part of comprehensive cybersecurity strategies.

The stringent regulatory landscape along with the compliance requirements imposed by governments and industry bodies will also influence the market growth. Regulations, such as GDPR, HIPAA, and PCI DSS are mandating regular security assessments and vulnerability management practices to protect personal financial information, including penetration testing. The growing awareness among small and medium-sized enterprises (SMEs) of the need for cybersecurity measures is further driving the demand for cost-effective and capable penetration testing solutions.

The industry is segmented into offering, deployment model, application, enterprise size, end-user industry, and region.

Based on enterprise size, the penetration testing market from the SMEs segment is poised to record notable growth rate during 2024-2032 due to increasing awareness of cybersecurity threats and the need to protect sensitive business data from potential breaches. As cyberattacks become more sophisticated, SMEs, which typically have limited resources and cybersecurity expertise, are recognizing the importance of proactive security measures. Penetration testing also provides these businesses with practical solutions to identify vulnerabilities and strengthen their defenses against cyber threats.

With respect to end-user industry, the penetration testing market from the IT & telecom segment is set to grow at notable CAGR during the forecast period owing to the crucial need for securing vast amounts of sensitive data and ensuring the integrity of complex, interconnected networks. Penetration testing helps organizations to identify and mitigate vulnerabilities prior to implementation, thereby protecting their operations and customer trust. The rapid adoption of advanced technologies like 5G, cloud services and IoT in the IT & telecommunications industries will increase the potential for attacks, further driving the segment growth.

Asia Pacific penetration testing industry size will grow at significant CAGR through 2032, attributed to the rapid digital transformation and the increasing adoption of cloud services, mobile applications, and IoT devices across various industries. As businesses and governments in China, India and Japan expand their digital infrastructure, the potential for cyber threat attacks is also increasing, subsequently necessitating stronger security measures. The rise of cybercrime, coupled with growing awareness of the importance of cybersecurity has also led organizations in APAC to invest in proactive security solutions to protect sensitive information and continue to work.