Market Size of Automation Testing Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 32.08 Billion |
Market Size (2029) | USD 67.48 Billion |
CAGR (2024 - 2029) | 16.03 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Automation Testing Market Analysis
The Automation Testing Market size is estimated at USD 32.08 billion in 2024, and is expected to reach USD 67.48 billion by 2029, growing at a CAGR of 16.03% during the forecast period (2024-2029).
The need for automation testing gets propelled by increased demand for testing process automation, solutions for a smooth customer experience, and increased adoption of cutting-edge AI-enabled technologies in software testing environments. As it shortens the test lifecycle, AI is becoming more and more important in testing.
- Increased demand pushes the market for automation of testing processes and solutions for a smooth customer experience. But in the years to come, the market's expansion is anticipated to be hampered by issues, including the growing complexity of implementing the switch from manual to automated testing.
- Moreover, with the rise of the 'shift left approach,' testers started writing test cases just after the requirement was clear, and development continued parallelly with testing. However, the 'shift right approach' focuses on testing, monitoring, and updating the app in production environments rather than completely handling the product's responsibility to the Ops team.
- An increase in demand for testing process automation and solutions that offer a smooth client experience is driving the market for testing automation. However, problems like the increasing difficulty of executing the switch from manual to automated testing will hinder the market's growth in the following years.
- Instead, to safeguard data from unauthorized access, governments adopt data regulation standards from different economies as per the Health Insurance Portability and Accountability Act (HIPAA) and the Data Protection Directive. The European Union and the US are two regional laws that must be abided by regarding data storage security and privacy. However, data kept in the cloud is subject to security issues, whereas data kept on-site is entirely safe.
- During the COVID-19 epidemic, companies concentrated on automating IT activities to recover from the crisis. As firms recover from COVID-19, they will invest more in cognitive capabilities, artificial intelligence, and robotic process automation (RPA). The pandemic has made automation and testing a boardroom requirement. As the businesses increase, so is their business continuity strategies and risks. This trend is expected to grow as automated testing has its advantage in time and quality over other forms of testing.
Automation Testing Industry Segmentation
Automation testing is a technique to test and compare the actual outcome with the expected result. Automation testing automates repetitive testing tasks which are difficult to perform manually. The market scope of automation testing tracks down the adoption of different testing solutions and services used by several end-user industries such as IT & telecommunication, BFSI, healthcare, retail, energy & power, etc.
The automation Testing Market is Segmented by Component Type (Testing Solutions (Functional Testing, API Testing, Security Testing, Compliance Testing, Usability Testing), Services (Professional Services, Managed Services)), End-user Industry (IT & Telecommunication, BFSI, Healthcare, Retail, Transportation & Logistics), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are in terms of value (USD million) for all the above segments.
Component Type | ||||||||
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End-user Industry | |
IT & Telecommunication | |
BFSI | |
Healthcare | |
Retail | |
Transportation & Logistics | |
Other End-use Industries (Avaiation, Hospitality, Government, Energy & Power) |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East and Africa |
Automation Testing Market Size Summary
The automation testing market is poised for significant growth, driven by the increasing demand for testing process automation and the integration of advanced AI technologies in software testing environments. This growth is fueled by the need for enhanced customer experiences and the efficiency gains from shortening test lifecycles. However, the transition from manual to automated testing presents challenges, such as the complexity of implementation, which may hinder market expansion. The adoption of methodologies like the 'shift left' and 'shift right' approaches further influences the market dynamics, emphasizing the importance of testing early in the development process and continuously in production environments.
North America is expected to dominate the automation testing market, supported by a robust presence of technology providers and a high demand for test automation services driven by the proliferation of smart consumer electronics and software applications. The region's market growth is further bolstered by government initiatives promoting the adoption of emerging technologies such as AI, IoT, and cloud-based services. The competitive landscape is characterized by numerous global and regional players focusing on expanding their international reach through strategic partnerships, mergers, and acquisitions, as well as investing in research and development to innovate and enhance their service offerings.
Automation Testing Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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2. MARKET SEGMENTATION
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2.1 Component Type
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2.1.1 Testing Solutions
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2.1.1.1 Functional Testing
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2.1.1.2 API Testing
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2.1.1.3 Security Testing
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2.1.1.4 Compliance Testing
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2.1.1.5 Usability Testing
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2.1.1.6 Other Solutins
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2.1.2 Services
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2.1.2.1 Professional Services
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2.1.2.2 Managed Services
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2.2 End-user Industry
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Healthcare
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2.2.4 Retail
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2.2.5 Transportation & Logistics
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2.2.6 Other End-use Industries (Avaiation, Hospitality, Government, Energy & Power)
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2.3 Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 Latin America
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2.3.5 Middle East and Africa
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Automation Testing Market Size FAQs
How big is the Automation Testing Market?
The Automation Testing Market size is expected to reach USD 32.08 billion in 2024 and grow at a CAGR of 16.03% to reach USD 67.48 billion by 2029.
What is the current Automation Testing Market size?
In 2024, the Automation Testing Market size is expected to reach USD 32.08 billion.