Security Testing Is Estimated To Witness High Growth Owing To Growing Need To Comply With Regulations
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| Security Testing |
Security testing is the process of evaluating a system
or its component to detect vulnerabilities, flaws, bugs or any other issues
that can compromise the security of the overall system. There has been a rise in
the frequency and sophistication of cyberattacks globally. This has compelled
organizations to implement stringent security practices and comply with various
privacy and data protection regulations. Security testing helps companies
validate their applications against security risks and leaks, and also ensures
compliance with standards.
The global security testing market is estimated to be
valued at US$ 4.18 Bn in 2023 and is
expected to exhibit a CAGR of 5.1%
over the forecast period 2023 to 2030, as highlighted in a new report published
by Coherent Market Insights.
Market Opportunity:
The growing need to comply with regulations presents a major market
opportunity. With recent laws and frameworks like GDPR and CCPA coming into
effect, organizations need to be compliant and thoroughly validate their
security controls. Non-compliance can result in heavy fines and loss of
customer trust. Security testing helps assess various aspects like data
exposure, unauthorized access, malware/virus protection etc. and identify gaps
if any. This gives organizations confidence that their apps and systems meet
regulatory standards. The market is witnessing increased spending on security
validation solutions to ensure compliance and avoid penalties. Vendors are also
developing testing tools that integrate with workflows to simplify compliance
assessment. This growing compliance requirement is driving significant demand
for security testing solutions.
Porter's Analysis
Threat of new entrants: The security testing market requires high initial
investments and has economies of scale which make it difficult for new
companies to enter. There are also a few well established players dominating
the market making it difficult for new players to gain market share.
Bargaining power of buyers: Buyers
have moderate bargaining power due to the presence of many vendors offering
similar security testing solutions. However, switching costs when changing
vendors provides some bargaining power to existing vendors.
Bargaining power of suppliers:
Software and service providers have low bargaining power due to fewer
specialists and the availability of alternative suppliers in the market.
Threat of new substitutes: There is
a moderate threat from substitute products as new techniques for securing applications
are continuously emerging. However, security testing continues to be an
essential process for most organizations.
Competitive rivalry: The market is
competitive with some major players dominating. Focus is on new technology,
partnerships and service expansions to gain market share.
SWOT Analysis
Strengths: Established global
presence and brand recognition of key players. Growing instances of cyber
threats increase need for security testing.
Weaknesses: Shortage of skilled
security professionals. High initial investments and switching costs required.
Opportunities: Rising security
budgets of organizations. Adoption of new techniques like IoT, cloud and
DevSecOps presents opportunities.
Threats: Customers choosing
alternative validation techniques. Economic slowdowns can impact security
spending. Increasing complexities of applications pose challenges.
Key Takeaways
The Global
Security Testing Market Demand is expected to witness high growth over
the forecast period owing to increasing investments in application security by
organizations across all industries and regions amid growing cyber threats.
Regional analysis: North America dominates the market currently owing to
stringent data privacy regulations and increasing security budgets of
organizations in the region. Asia Pacific is expected to grow at the fastest
pace during the forecast period due to rapid digitalization and the presence of
many online businesses in countries like India and China adopting security
testing solutions.
Key players operating in the security testing market include Turner
Construction Company, Jacobs Engineering Group Inc., HOK Group, Inc., Skanska
AB, AECOM, Balfour Beatty plc, Gensler, Lendlease Group, ISG plc, DPR
Construction, PCL Construction Enterprises, Inc., Structure Tone, Clark
Construction Group, LLC, HBA, JLL (Jones Lang LaSalle). Major players are
focusing on partnerships, collaborations and service expansions to gain market
share.
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