In 2023, the global penetration testing market was valued at USD 1.82 billion, and it is forecast to reach USD 5.24 billion by 2030, growing at a compound annual growth rate (CAGR) of 16.6 % from 2024 to 2030. The accelerating adoption of cloud computing platforms and the rising number of data centres are primary drivers behind this expansion.

Key Market Trends & Insights; Market Size & Forecast

• In 2023, North America dominated the market with over 38 % of global revenue.
• In the United States, the penetration testing sector is expected to expand at a CAGR of 12.5 % over 2024-2030.
• By deployment mode, the cloud segment held the largest share in 2023.
• In terms of organization size, large enterprises accounted for the majority share in 2023.
• By vertical, the BFSI (banking, financial services, insurance) segment led in revenue share in 2023.
• Looking further at the forecast, the market is projected to grow from USD 1.82 billion in 2023 to USD 5.24 billion in 2030 (CAGR of 16.6 %). While North America currently leads in absolute revenue, Asia Pacific is predicted to register the fastest growth rate over the forecast period.

Regulations imposed by governments are strengthening security requirements and encouraging increased deployment of penetration testing tools and services. Moreover, the integration of machine learning (ML) and artificial intelligence (AI) into penetration testing, the shift toward penetration testing as a service (PTaaS), and the rise of remote assessment services present significant growth opportunities.

Modern IT environments are increasingly interconnected: devices, applications, and systems constantly exchange data. That complexity raises the attack surface and introduces hidden vulnerabilities. Legacy code, custom integrations, and configuration drift further amplify risks. Penetration testing simulates real-world attacks to identify gaps that conventional safeguards may miss, thereby improving resilience.

PTaaS is emerging as a disruptive model — particularly among smaller organizations. Traditional penetration testing engagements tend to be expensive and one-off. PTaaS offers a subscription-style approach, lowering costs and allowing businesses to scale testing needs. It abstracts management and recruitment of specialist talent, making advanced testing more accessible and flexible.

In 2023, the solutions segment accounted for over 65 % of total market revenue. As cyber threats grow in sophistication, organizations increasingly demand comprehensive vulnerability detection and mitigation technologies. The rapid adoption of cloud and IoT environments further increases the need for such testing tools. Meanwhile, the services segment is expected to grow robustly, because the complexity of modern IT—combined with limited in-house expertise—pushes organizations to rely on external testing expertise.

Evaluating by type: web applications dominated revenue share in 2023, driven by rapid digital transformation, and the corresponding rise in threats like cross-site scripting, SQL injection, and remote code execution. The mobile applications segment is projected to post strong growth, fueled by the ubiquity of mobile apps and the sensitivity of user data handled by them.

Within deployment models, cloud remained the largest share in 2023 as organizations continue migrating core systems to cloud platforms due to scalability, cost efficiency, and agility benefits. However, on-premises deployment is expected to see substantial growth in regulated sectors like finance, healthcare, and government, where tight control and compliance are essential.

Among organization size, large enterprises commanded most of the market in 2023, driven by their high exposure to cyberattacks and heavy investments in security. But SMEs are forecast to achieve the highest CAGR over the forecast period — as these smaller firms increasingly become targets and move toward digital operations, testing becomes vital and more affordable.

On verticals, BFSI led in 2023 owing to the financial sector’s high stakes and strict regulatory standards. Over time, healthcare is expected to register the highest growth rate, due to the sensitive nature of health data, the rise of connected medical devices, and stricter data protection requirements.

Regionally, North America (especially the U.S. and Canada) led in 2023 thanks to mature cybersecurity markets, high awareness, and a concentration of globally active enterprises. In the U.S., the market is projected to grow at 12.5 % CAGR until 2030. Europe is also expected to expand significantly, spurred by regulatory pressures such as GDPR and proactive cybersecurity frameworks. Meanwhile, Asia Pacific is anticipated to be the fastest-growing region, as digital infrastructure expands and security needs intensify across emerging economies.

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Key Companies & Market Share Insight

These firms collectively hold substantial market influence and often lead competition through expansion strategies. They regularly engage in partnerships, mergers & acquisitions, technology development, and collaborations to gain market share and improve service offerings.

For example, in February 2024, a national cybersecurity agency began accepting applications for accreditation of penetration testing providers — a move aimed at strengthening security standards across the supply chain. In March 2024, Pentera launched Pentera Cloud, expanding its automated security validation platform. Also during that period, F5 integrated new penetration testing and automated reconnaissance capabilities through its Distributed Cloud Services via the acquisition of Heyhack. In August 2023, Appdome initiated a Mobile App Defense Project, collaborating with over 50 testers globally to raise standards in mobile security.

Key Companies List

• Cisco Systems, Inc.
• Coalfire Systems, Inc.
• CrowdStrike, Inc.
• Fortinet, Inc.
• International Business Machines Corporation (IBM)
• Isecurion
• Rapid7
• Secureworks, Inc.
• Synopsys, Inc.
• Trustwave Holdings, Inc.

Conclusion

In summary, the penetration testing market is on a strong growth trajectory, driven by cloud adoption, regulatory pressures, and evolving threat landscapes. While solutions currently dominate revenue, service offerings are set to gain momentum as organizations seek expert support. Geographically, North America retains leadership now, but Asia Pacific is emerging as a hotspot for future expansion. Major cybersecurity firms are actively consolidating their positions through strategic initiatives, ensuring that competition remains dynamic. Overall, the outlook remains positive, with sustained demand for assessment, protection, and resilience across sectors.

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