Automation Testing Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 35.29 Billion |
| Market Size (2030) | USD 76.72 Billion |
| Growth Rate (2025 - 2030) | 16.80% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Automation Testing Market Analysis by Mordor Intelligence
The Automation Testing Market size is estimated at USD 35.29 billion in 2025, and is expected to reach USD 76.72 billion by 2030, at a CAGR of 16.80% during the forecast period (2025-2030).
Enterprises are turning to artificial-intelligence-driven quality engineering and fully embedded continuous-integration pipelines to shorten delivery timelines while preserving application reliability. Uptake accelerates as digital transformation programs expose the limits of manual quality-assurance processes, especially in complex microservices and edge-computing environments. Growing DevOps maturity, rapid cloud migration, and regulatory pressure for accessible digital experiences continue to enlarge the automation testing market, while the democratization of low-code and no-code toolsets invites business stakeholders into the testing lifecycle. Vendor consolidation, illustrated by acquisitions such as SmartBear–Reflect and Tricentis–SeaLights, signals intensifying competition for differentiated AI capabilities. [1]SmartBear, “SmartBear Acquires Reflect,” smartbear.com
Key Report Takeaways
- By component, Solutions held 62.2% of the automation testing market share in 2024, whereas Services are projected to advance at a 19.4% CAGR through 2030.
- By testing type, Functional testing commanded 52.7% of the automation testing market size in 2024; Non-Functional testing is on track for a 20.1% CAGR to 2030.
- By deployment mode, On-Premises deployments retained a 54.71% share of the automation testing market size in 2024, yet Cloud deployments are forecast to climb at a 23.2% CAGR.
- By end-user industry, the BFSI sector captured 27.42% of the automation testing market share in 2024, while Retail and E-Commerce show the quickest growth at 18.7% CAGR.
- By organization size, Large Enterprises commanded 58.41% of the automation testing market share in 2024, while Small and Medium Enterprises showed the quickest growth at 18.2% CAGR.
- By interface, Web commanded 30.21% of the automation testing market share in 2024, while Mobile showed the quickest growth at 19.2% CAGR.
- By geography, North America led with 36.7% revenue share in 2024; Asia-Pacific is expected to post the fastest regional CAGR of 20.5% through 2030.
Global Automation Testing Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising adoption of Agile / DevOps for continuous testing | +4.2% | Global, North America and Europe lead | Medium term (2-4 years) |
| AI-driven test-creation and maintenance tools | +3.8% | Global, tech hubs | Short term (≤ 2 years) |
| Expansion of cloud-native and microservices architectures | +3.1% | Global, APAC rapid uptake | Medium term (2-4 years) |
| Low-code / no-code automation democratising QA | +2.4% | Global, SME-focused regions | Short term (≤ 2 years) |
| Digital-accessibility mandates (WCAG 3) | +1.8% | North America and EU | Long term (≥ 4 years) |
| Edge and IoT firmware regression demands | +1.5% | APAC core, global spill-over | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rising Adoption of Agile / DevOps for Continuous Testing
Continuous integration and deployment pipelines shift testing from end-stage gatekeeping to always-on quality validation. Cognizant notes that 20% of newly written code now comes from AI generators, increasing the cadence of change and requiring test automation capable of adapting in real time. [2]Cognizant Technology Solutions, “2024 Annual Report,” sec.gov Banks such as TPBank and HDBank cut defect-resolution latency after integrating automated test suites in their DevOps streams, reporting 3-hour daily reductions in manual test labor. These tangible efficiency gains, combined with regulatory expectations for uninterrupted service availability, cement continuous testing as a foundational driver of automation testing market growth.
AI-Driven Test-Creation and Maintenance Tools
Machine-learning algorithms now author test cases 80% faster than manual scripting while boosting edge-case coverage by 40%. [3]TestFort, “AI in Software Testing: QA & Artificial Intelligence Guide,” testfort.com Self-healing capabilities adjust locators and assertions when user interfaces evolve, reducing maintenance budgets that have historically consumed up to 60% of automation spend. mabl’s platform adds automated accessibility audits inside functional suites, driving compliance earlier and harmonising release cycles. As vendors embed natural-language processing, business analysts can phrase requirements in plain English and allow the tool to translate them into executable scripts, broadening user adoption across non-technical roles.
Expansion of Cloud-Native and Microservices Architectures
Containerised, distributed systems introduce ephemeral infrastructure and versioned APIs that manual procedures cannot cover at scale. Organisations migrating workloads to Kubernetes environments report 23.2% CAGR in cloud-based testing adoption. [4]Testkube, “Continuous Testing for the Cloud Native Era,” testkube.io Automation platforms must replicate real-world latencies, auto-scaling events, and cross-region failovers. The result is heightened demand for scalable pay-as-you-go test grids that align with continuous delivery's elastic resource patterns, further enlarging the automation testing market.
Low-Code / No-Code Automation Democratising QA
BrowserStack’s low-code interface lets domain experts drag-and-drop flows, cutting script-authoring times while allowing small and medium enterprises to bypass shortages of specialised engineers. Subscription-based pricing and cloud execution eliminate heavy upfront capital outlays. SMEs, previously locked out of advanced tooling, now record 18.2% CAGR adoption rates, contributing disproportionately to the automation testing industry’s expansion.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High up-front tool & skills investment | -2.1% | Global, SME impact | Short term (≤ 2 years) |
| Legacy-system integration complexity | -1.8% | North America & Europe | Medium term (2-4 years) |
| Data-privacy hurdles for cloud-testing | -1.2% | EU GDPR, CCPA regions | Long term (≥ 4 years) |
| Rapid AI-framework obsolescence | -0.9% | Global early adopters | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
High Up-Front Tool and Skills Investment
Enterprise platforms often cost USD 50,000–200,000 per year, while per-user licences such as Visual Studio Test Professional add USD 1,300 in recurring spend. Adoption projects also demand months of training before productivity kicks in, leaving organisations to shoulder dual operating costs. These outlays dampen short-term uptake among cost-sensitive buyers and temper the overall automation testing market’s near-term acceleration.
Legacy-System Integration Complexity
Mainframe-oriented core banking platforms lack modern APIs, forcing custom harnesses or partial manual fallbacks. Financial institutions still reliant on COBOL report spending more on integration development than on automation licences themselves. Hybrid landscapes that include both monoliths and microservices increase orchestration complexity, which slows full-scale automation rollouts and marginally drags the forecast CAGR.
Segment Analysis
By Component: Services Adoption Accelerates
Services revenue is rising at a 19.4% CAGR as firms lean on external providers for framework design, continuous monitoring, and test-data management. Managed-service contracts supply 24/7 execution support across time zones, relieving internal teams of tool maintenance responsibilities. Meanwhile, Solution licences remain essential foundations and therefore keep a 62.2% share of the automation testing market size in 2024. Vendor roadmaps increasingly pair platform sales with value-added advisory packages, ensuring integrated uptake across large and mid-market buyers. As the installed base matures, demand shifts from perpetual licences to consumption-based SaaS, unlocking annuity streams for suppliers.
Second-order effects include tightening alliances between platform vendors and global-systems integrators who provide domain knowledge in banking, healthcare, and telecom. These alliances help customers streamline procurement and reduce multi-vendor friction while ensuring the breadth of solution coverage. The combination of scalable tooling and white-glove managed execution positions the services segment as a central pillar of long-term automation testing market growth.
By Testing Type: Non-Functional Emphasis Grows
Non-Functional suites—performance, security, usability, and compliance—are expanding at 20.1% CAGR, reflecting buyer recognition that speed and safety drive user satisfaction more than baseline functional correctness. Retailers simulating Black Friday peaks have measured revenue risk reduction once load-test coverage crosses 90%. Regulatory scrutiny around privacy and cyber-resilience further tilts budgets toward penetration and vulnerability testing automation.
Functional testing will keep its foundational role and 52.7% share of the automation testing market size in 2024 because every release still requires regression across core workflows. Yet, tooling convergence now lets architects trigger both functional and non-functional scripts inside a single pipeline, consolidating dashboards and enhancing traceability. Vendors embedding AI-driven prioritisation in their schedulers make suites leaner, thus saving compute cycles and decreasing execution windows.
By Deployment Mode: Cloud Gains Momentum
The shift toward cloud delivery supports dynamic scaling, reducing idle infrastructure and aligning cost with consumption. Public-cloud grids provide broad browser-OS matrices, whereas private installations retain data sovereignty for regulated workloads. The hybrid model emerges as the fastest sub-segment because it accommodates legacy investments while allowing spiky load tests to burst into public-cloud capacity on demand. Although On-Premises still controls 54.71% share, the 23.2% CAGR attached to cloud deployments indicates inevitable rebalancing.
Cloud-native execution also fuels analytics layers; telemetry streamed from tests meets data-warehousing capabilities to reveal flake rates, environmental drift, and defect clusters. These insights feed back into development sprints, closing the loop between production incidents and lower-environment validation.
By End-User Industry: Retail and E-Commerce Surges
Retailers integrating omnichannel experiences cannot tolerate transaction failures during seasonal traffic spikes. Automation allows them to run thousands of scenario permutations across devices and fulfilment pathways, underpinning the segment’s 18.7% CAGR. BFSI’s 27.42% share of the automation testing market in 2024 underlines its entrenched investment driven by compliance, fraud prevention, and high-availability mandates. Medical-device manufacturers automate regression to satisfy FDA reporting, while discrete-manufacturing firms adopt automated visual inspection to guarantee tolerances on the production floor.
Every vertical now confronts customer-experience benchmarks set by native-digital brands, pressing traditionally slower adopters to accelerate. Consequently, cross-industry consortiums, such as ETSI’s UCAAT working group, share reference architectures to standardise quality-engineering best practices.
By Organization Size: SME Uptake Narrows the Gap
Cloud subscriptions and intuitive UI builders compress entry barriers, enabling SMEs to match release cadences once exclusive to tech giants. Small and medium enterprises, therefore, post an 18.2% CAGR while large organisations, though still responsible for 58.41% of spend, record slower percentage growth as they confront diminishing marginal returns on mature automation estates. Vendor go-to-market strategies adjust by bundling starter kits that combine platform, onboarding, and community support at predictable monthly rates.
That democratisation also broadens the addressable automation testing market. Independent software vendors, digital-first retailers, and even public-sector agencies adopt SaaS-based test grids to elevate citizen-facing digital services. This momentum accelerates the diffusion of automation know-how beyond traditional enterprise IT departments.
By Interface: Mobile Complexity Drives Investment
Mobile apps must operate flawlessly across a fragmented hardware ecosystem and variable latency conditions. The interface category therefore grows at 19.2% CAGR as buyers prioritise automated device-cloud testing, biometric verification scripts, and geolocation mocking. Mobile-first banking and same-day delivery platforms rely on these suites to prevent cart abandonment and login failures. Web interfaces remain vital at 30.21% share, reflecting the enduring centrality of browser-based applications. API/microservice test volume expands as headless commerce and composable architectures proliferate, demanding deeper validation of service contracts and schema drift.
IoT and embedded firmware scenarios introduce hardware-in-the-loop complexities, prompting partnerships between automation vendors and chip suppliers to produce simulators aligned with emerging post-quantum cryptography modules.
Geography Analysis
North America leads the automation testing market, claiming 36.7% revenue share in 2024. Mature DevOps cultures, strong cloud-infrastructure penetration, and stringent sectoral regulations—especially within healthcare and finance—propel sustained investment. Ongoing federal initiatives to integrate AI across public-health programmes formalise quality-assurance requirements, further stimulating spending. Vendor ecosystems clustered in Silicon Valley and the Eastern corridor deliver a steady pipeline of innovation and specialised services.
Asia-Pacific records the fastest CAGR of 20.5% to 2030. Japan’s anticipated USD 170 billion AI economy and China’s push for smart-factory upgrades amplify demand for robust testing frameworks capable of covering both consumer apps and industrial automation scenarios. India’s sizeable developer workforce accelerates offshore services growth, turning the region into both a consumer and supplier of testing solutions. APAC governments commonly offer cloud-first guidelines and funding schemes to fast-track digital public services, indirectly expanding the automation testing market.
Europe maintains stable growth despite its fragmented regulatory landscape. The GDPR regime compels privacy-by-design test artefacts, and WCAG 3 mandates are driving automated accessibility audits. Post-Brexit divergence adds extra layers of compliance that require multi-jurisdictional regression workflows. Germany and the Nordics show steady industrial IoT adoption, integrating automated firmware verification into smart-manufacturing rollouts. Overall spending in the automation testing industry tracks broader initiatives under the EU’s Digital Decade policy, which earmarks resources for secure, high-performance digital infrastructure.
Competitive Landscape
More than 25 vendors contest the automation testing market across platforms, point solutions, and services layers. IBM, Microsoft, and Accenture anchor the enterprise segment with integrated suites and global delivery networks. Tricentis, SmartBear, and Micro Focus differentiate through AI-enabled analytics, native SAP coverage, and broad protocol support. Disruptors such as Functionize and mabl exploit cloud-native architectures to deliver rapid onboarding and consumption-based pricing attractive to high-growth digital brands.
Mergers and acquisitions concentrate expertise in AI-first capabilities. SmartBear’s purchase of Reflect extends autonomous test-creation features, while Tricentis’s SeaLights deal injects predictive quality intelligence into its platform. Patent activity indicates a strategic emphasis on AI-assisted optimization and self-healing logic, with the USPTO reporting climbing volumes of filings related to automated defect prediction. White-space opportunities persist in IoT and accessibility niches, where domain-specific requirements outpace generic platform functionality.
Vendor strategy now tilts toward integrated ecosystems that bundle SaaS platforms, professional services, and curated marketplaces of extensions. This approach aims to lock in customers by reducing tool sprawl and offering single-pane-of-glass observability across the entire software delivery value chain. As adoption broadens, price-based competition is giving way to metrics-based contracting, wherein payment is tied to tangible outcomes such as reduced defect escape rate or accelerated release frequency.
Automation Testing Industry Leaders
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IBM Corporation
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OpenText Corporation (Micro Focus)
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Capgemini SE
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Tricentis USA Corp
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SmartBear Software Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: ETSI announced the 11th UCAAT User Conference on Advanced Automated Testing, with focus areas including model-based, cloud, mobile, and security testing.
- March 2025: Cognizant detailed a USD 1 billion AI enablement plan targeting automation testing and embedded engineering productivity gains.
- March 2025: SEALSQ Corp shifted toward Quantum-Resistant chips, reshaping security-test requirements for next-gen applications.
- February 2025: Cognizant reported USD 19.7 billion in 2024 revenue and highlighted 29 large deals centred on AI-led automation testing frameworks.
- January 2025: SmartBear finalised its acquisition of Reflect, expanding AI-powered test-maintenance capability.
- December 2024: Accenture disclosed USD 3 billion in generative-AI bookings, signalling enterprise appetite for automated testing services.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the automation testing market as the annual revenue generated by commercial off-the-shelf software tools and allied professional or managed services that automatically design, execute, and analyze functional as well as non-functional test cases across web, mobile, desktop, API, and embedded interfaces. The valuation captures licenses, subscriptions, support fees, and service billings accrued throughout the software development life cycle by vendors and service providers selling to enterprises of every size.
Scope exclusion: spend on purely manual testing engagements or proprietary frameworks used only for in-house cost recovery is kept outside the boundary.
Segmentation Overview
- By Component
- Solutions
- Functional Testing
- API Testing
- Security Testing
- Compliance Testing
- Usability Testing
- Load and Performance Testing
- Other Solutions
- Services
- Professional Services
- Managed Services
- Solutions
- By Testing Type
- Functional
- Non-Functional
- Performance
- Security
- Usability
- By Deployment Mode
- On-Premises
- Cloud
- Public
- Private
- Hybrid
- By End-User Industry
- IT and Telecommunications
- BFSI
- Healthcare and Life Sciences
- Retail and E-Commerce
- Transportation and Logistics
- Manufacturing
- Government and Public Sector
- Energy and Utilities
- Other End-user Industries
- By Organization Size
- Large Enterprises
- Small and Medium Enterprises
- By Interface
- Web
- Mobile
- Desktop
- API / Micro-services
- IoT / Embedded
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Chile
- Rest of South America
- Europe
- Germany
- United Kingdom
- France
- Spain
- Italy
- Russia
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- Singapore
- Malaysia
- Rest of Asia-Pacific
- Middle East and Africa
- Middle East
- United Arab Emirates
- Saudi Arabia
- Turkey
- Rest of Middle East
- Africa
- South Africa
- Nigeria
- Rest of Africa
- Middle East
- North America
Detailed Research Methodology and Data Validation
Primary Research
Interviews with tool vendors, QA service providers, DevOps leads, and software architects across North America, Europe, Asia-Pacific, and the Middle East validate adoption metrics, price realization bands, and pain points around test coverage. Structured surveys with BFSI, healthcare, and retail technology heads add demand-side granularity and confirm the pace at which manual suites are being displaced.
Desk Research
Mordor analysts begin with public datasets that signal software delivery intensity and test demand, such as OECD ICT investment tables, U.S. Bureau of Labor Statistics developer employment trends, and national broadband penetration records that proxy digital service proliferation. Industry associations like the Cloud Native Computing Foundation, ETSA, and the World Quality Report supplement these with adoption ratios for Agile, DevOps, and CI/CD practices. Company 10-Ks, investor decks, and product catalogs expose pricing tiers and contract sizes, while patent libraries parsed through Questel reveal shifts toward AI-enabled self-healing frameworks. Paid databases, including D&B Hoovers for vendor financials and Dow Jones Factiva for deal flow, round out the desk work.
These sources let us benchmark tool shipments, service day rates, and regional digitalization baselines before any modeling; the list above is illustrative, and many other repositories are referenced to cross-check values, fill gaps, and sharpen assumptions.
Market-Sizing & Forecasting
A top-down build starts by reconstructing the potential spend pool from enterprise software outlays and developer workforce counts, which are mapped to test automation penetration rates discussed during primary calls. Select bottom-up roll-ups, sampled license shipments, channel checks, and average selling price ranges stress test the totals before reconciliation. Key variables tracked include CI/CD pipeline density, average number of releases per app, cloud migration ratio, AI-driven feature additions, and typical service hours per project. Multivariate regression against these drivers underpins the 2025-2030 forecast; scenario analysis adjusts for macro spending swings and currency shifts when needed.
Data Validation & Update Cycle
Outputs undergo variance checks against independent spend trackers, quarterly vendor earnings, and regional ICT indicators. Findings move through senior analyst review, after which we re-contact high-impact sources if anomalies persist. Models refresh every twelve months, with interim updates triggered by major M&A, pricing pivots, or regulation that materially alters demand.
Why Mordor's Automation Testing Baseline Is Dependable
Published estimates often differ because each firm chooses unique market boundaries, price stacks, and refresh cadences. Our disciplined scope, dual-path modeling, and annual recalibration minimize those variances and give clients a figure they can trace back to verifiable drivers.
Key gap drivers include: some publishers fold manual testing or broader quality assurance services into totals; others apply flat price escalators without sampling live contracts; a few project growth on historical CAGR norms rather than pipeline density and release frequency. Mordor reports the base case, aligns currencies to calendar year averages, and updates variables every cycle.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 35.29 B (2025) | Mordor Intelligence | - |
| USD 20.60 B (2025) | Global Consultancy A | Excludes managed services and uses conservative DevOps penetration assumptions |
| USD 41.67 B (2025) | Trade Journal B | Blends manual testing revenues and applies aggressive price inflation across tool tiers |
The comparison shows that when scope creep or overly narrow definitions are stripped away, Mordor's balanced approach delivers a reliable, transparent baseline that decision makers can reproduce with clear variables and repeatable steps.
Key Questions Answered in the Report
What is the current value of the automation testing market?
The automation testing market stands at USD 35.29 billion in 2025 and is projected to reach USD 76.72 billion by 2030 at a 16.8% CAGR.
Which region is growing the fastest for automation testing adoption?
Asia-Pacific is the fastest-growing region with a forecast 20.5% CAGR, supported by large-scale AI programmes in Japan and manufacturing automation in China.
Why are services outpacing solutions in growth?
Companies increasingly outsource complex quality-engineering tasks to managed-service providers that supply expertise, tooling, and 24 / 7 support, resulting in a 19.4% CAGR for the Services segment.
How is AI transforming test automation?
AI generates test cases more quickly, provides self-healing for UI changes, and enhances coverage, cutting maintenance cost and improving release velocity.
What challenges restrict wider automation testing uptake?
High initial licence fees, skills shortages, legacy-system integration hurdles, and data-privacy concerns for cloud testing remain the primary restraints.
Which industry vertical leads in spending on automation testing?
The BFSI sector holds 27.42% of automation testing market share in 2024 due to stringent regulatory mandates and the need for uninterrupted service delivery.
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