Application Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Application Security Market is segmented by Application (Web, Mobile), Component (Services (Managed and Professions), Deployment (Cloud, On-Premise)), Organization Size (SMEs, Large Enterprises), Type of Security Testing (SAST, DAST, IAST, RASP), End-user Vertical (Healthcare, BFSI, Education, Retail, Government), and Geography.

Market Snapshot

application security market
Study Period: 2018- 2026
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 16.4 %

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Market Overview

The Application Security Market was valued at USD 6.38 billion in 2020 and is expected to reach USD 15.76 billion by 2026, at a CAGR of 16.4% over the forecast period 2021 - 2026. Application security has become a necessity with an increasing number of companies looking to develop their own apps, in addition to purchasing a record number of applications and incorporating open source code into their applications, as the vulnerabilities and risks associated with these applications have also risen exponentially.

  • The application security systems reduce the security risks involved in the different operations of various applications, such as web and mobile applications. It has been anticipated that web applications would remain the most frequent cause of confirmed breaches. With organizations increasingly connecting to various business-critical applications via. On the internet, a breach's risk has been continuously increasing.
  • According to a report by Imperva, another area seeing more vulnerabilities emerge in content management systems. That platform saw a 30% growth in the number of reported vulnerabilities. The report noted that the Drupal content management system, despite being far less prevalent than WordPress, had become a target for attackers due to two vulnerabilities: Drupalgeddon2 (CVE-2018-7600) and Drupalgeddon3 (CVE-2018-7602). Both enable attackers to connect to back-end databases, scan and affect networks and clients with malware. Imperva claims to have blocked more than a half-million of attacks that use these vulnerabilities in 2018. With the increase in vulnerabilities, the market for application security has been witnessing an increased demand for web applications.
  • Despite the increasing frequency of data breaches and cybercrime, several researches indicate that there is still not enough money or attention given to information security, specifically cybersecurity, in the workplace. When applications are not used beyond business-critical activities, such as payment-related activities or to order goods and services, enterprises leave thousands of applications unused.
  • With the outbreak of the COVID-19, almost the majority ofthe organization has shifted to the work from the home model due to the lockdown ad social distancing measures that have created a significant demand for managing the application and monitoring the application aspect remotely. For instance, in January 2021, OpsRamp expanded its network, UC monitoring for the WFH world with new functionality in the OpsRamp platform that offers solutions providers a way to help customers manage hybrid and multi-cloud IT environments and meet the needs of work-from-home employees as demand for cloud applications, unified communications (UC) and collaboration tools, video conferencing, and other IT resources had increased significantly.

Scope of the Report

Application security encompasses measures taken to improve the security of an application often by finding, fixing, and preventing security vulnerabilities. Different techniques are used to surface such security vulnerabilities at different stages of an application's lifecycle, such as design, development, deployment, upgrade, maintenance.

Application
Web Application Security
Mobile Application Security
Component
Service
Managed
Professional
Deployment (Solution)
Cloud
On-premise
Organization Size
Small and Medium Enterprises
Large Enterprises
Types of Security Testing
Static Application Security Testing (SAST)
Dynamic Application Security Testing (DAST)
Interactive Application Security Testing (IAST)
Run-Time Application Self Protection (RASP)
End-user Industry
Healthcare
BFSI
Education
Retail
Government
Other End-user Verticals
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Retail will show a significant growth in the Market

  • Advancements in technology have completely revolutionized the retail industry as retailers provide personalized shopping experiences on a global scale with the help of technology. According to Think with Google, 84% of shoppers in physical stores use their smartphones to get information about products and comparison shop.
  • Mobile app technology has become a critical component for boosting customer engagement and giving customers multiple choices when it comes to personalized shopping experiences for all. Moreover, it is anticipated that the retailers will continue to improve the online shopping experience by investing in mobile apps, beacons for in-store use, in-app shopping capabilities, mobile payments in stores, and mobile advertisements. Such instances are driving the market growth in the retail sector.
  • Moreover, the retail industry is aided by thousands of specialty software applications designed for specific needs. According to IBM, an average retail chain uses about 450 such applications, which is higher than many other industries. With the increasing shift to digitization, several other applications are expected to surface.​ Additionally, the supportive government regulations across the world are further encouraging retail players to deploy API's. This is further expected to promote the growth of the application security market in the retail sector.
  • Further, the global pandemic has accelerated the trend of mobile e-commerce (sometimes called m-commerce), whether buyers are using their phones to schedule pick-up curbside or have items delivered to avoid the risks of in-person shopping. Thus, shopping from phones and tablets has been on the rise for a long time and is expected to remain high in the future.
application security market

North America Accounts for the Largest Market Share

  • In the digital age, financial crimes against banks and other financial services institutions are accelerating rapidly. By 2020, globally, card fraud is expected to increase to USD 183.29 billion. Furthermore, hacking via the use of stolen credentials was most commonly seen, which are then used to hack into web-based email and other web applications utilized by the enterprise.
  • According to the 2020 data breach investigations report by Verizon, the region of North America accounted for 69% of all incidents and 55% of all breaches in the company’s dataset for 2020. In addition, around 20% of attacks were against web application infrastructure. With the growing trend of businesses moving toward cloud-based solutions, we could expect the use of stolen credentials to increase proportionally.
  • There have been multiple cases where enterprises in North America have been a victim of cyber-attack. Such attacks have impacted most of the end-user industries, including the government, BFSI, and others. Recently, in December 2020, the United States was hit by a large-scale hacking of government agencies. According to FireEye, a cybersecurity company, around 18,000 organizations had malicious code in their networks, of which 50 suffered major breaches. The departments of Homeland Security and the state and defense were targeted.
  • The government authorities in the region are also working to decrease cybercrimes in the region. The government influence also encourages the use of application security solutions. For instance, in July 2020, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency brought on two cyber risk experts to help it grapple with shifting cyber infrastructure risks as the Covid-19 crisis grinds ahead.
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Competitive Landscape

The application security market is highly fragmented due to the presence of a large number of players in the market. Many players in the market are making innovations to differentiate themselves from their competitors. Some key players in the market include IBM, Oracle, Synopsys Inc., among others. Some key recent developments in the market include:

  • February 2021 - Qualys Inc. launched Qualys SaaS Detection and Response (SaaSDR) to further its offerings in the application security platform for SaaS applications.
  • February 2021 - Checkmarx launched Keeping Infrastructure as Code Secure for cloud-native applications which provide developers with increased security in Infrastructure as Code. KICS is an open-source static analysis solution.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Impact of COVID-19 on the Market

    3. 4.3 Market Drivers

      1. 4.3.1 Favorable Government Regulations

      2. 4.3.2 Increased Number of Sophisticated Attacks

      3. 4.3.3 Increased Number of Third-party Applications

    4. 4.4 Market Restraints

      1. 4.4.1 Budget Constraints and Unused Applications Restrict Companies from Adoption

      2. 4.4.2 Negligence of Application Security by Industries

    5. 4.5 Porters Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Web Application Security

      2. 5.1.2 Mobile Application Security

    2. 5.2 Component

      1. 5.2.1 Service

        1. 5.2.1.1 Managed

        2. 5.2.1.2 Professional

      2. 5.2.2 Deployment (Solution)

        1. 5.2.2.1 Cloud

        2. 5.2.2.2 On-premise

    3. 5.3 Organization Size

      1. 5.3.1 Small and Medium Enterprises

      2. 5.3.2 Large Enterprises

    4. 5.4 Types of Security Testing

      1. 5.4.1 Static Application Security Testing (SAST)

      2. 5.4.2 Dynamic Application Security Testing (DAST)

      3. 5.4.3 Interactive Application Security Testing (IAST)

      4. 5.4.4 Run-Time Application Self Protection (RASP)

    5. 5.5 End-user Industry

      1. 5.5.1 Healthcare

      2. 5.5.2 BFSI

      3. 5.5.3 Education

      4. 5.5.4 Retail

      5. 5.5.5 Government

      6. 5.5.6 Other End-user Verticals

    6. 5.6 Geography

      1. 5.6.1 North America

      2. 5.6.2 Europe

      3. 5.6.3 Asia-Pacific

      4. 5.6.4 Latin America

      5. 5.6.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 IBM Corporation

      2. 6.1.2 Oracle Corporation

      3. 6.1.3 Micro Focus International PLC

      4. 6.1.4 Checkmarx Ltd

      5. 6.1.5 Veracode (Thoma Bravo)

      6. 6.1.6 Synopsys Inc.

      7. 6.1.7 WhiteHat Security Inc.( NTT Security Corporation)

      8. 6.1.8 Rapid7 Inc.

      9. 6.1.9 Qualys Inc.

      10. 6.1.10 SiteLock LLC

      11. 6.1.11 Contrast Security

      12. 6.1.12 Positive Technologies

      13. 6.1.13 Fasoo.com Inc.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Application Security Market market is studied from 2018 - 2026.

The Application Security Market is growing at a CAGR of 16.4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

IBM Corporation, Oracle Corporation, Veracode (Thoma Bravo), Synopsys Inc., Qualys Inc. are the major companies operating in Application Security Market.

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