Europe Security Testing Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Europe Security Testing Market Trends and Insights

Heightened Post-2023 Critical-Infrastructure Cyber-Attacks

A succession of sophisticated attacks on European power grids and rail systems in 2024 pushed critical-infrastructure operators to overhaul testing blueprints. ENISA logged a 38% rise in incidents, with OT infiltration techniques bypassing legacy perimeter controls. Security budgets have been redirected toward services capable of mapping vulnerabilities across converged IT-OT environments, especially in distribution networks handling supervisory control and data acquisition traffic. Providers responding with combined red- and blue-team engagements are benefiting from contract sizes that now extend across multi-country footprints. Expansion of mandatory incident reporting regimes further cements demand, as real-time testing evidence becomes essential for regulatory filings. ^{[1] European Union Agency for Cybersecurity, “2024 Report on the State of Cybersecurity in the Union,” enisa.europa.eu}

Accelerated EU NIS2 & DORA Compliance Deadlines

NIS2 enforcement in October 2024 and DORA’s go-live in January 2025 compressed compliance windows and forced organizations to institutionalize recurring security assessments. DORA’s three-year threat-led penetration-testing cycle for banks has already triggered multiyear framework agreements with external testers, while NIS2’s supply-chain focus is driving downstream validation of third-party code repositories. Cross-border conglomerates are centralizing test orchestration to avoid audit duplication, spurring uptake of unified platforms that schedule, execute, and document evidence for multiple regulators. 

Shift-Left DevSecOps Adoption in the Software Supply Chain

DevSecOps is advancing across European CI/CD pipelines as firms attempt to counter supply-chain exploits. Eighty-five percent of enterprises boosted pen-testing allocations in 2024, and runtime-integrated tools such as IAST are shrinking remediation expenditure by detecting defects during build stages. Continuous validation is becoming customary in BFSI and healthcare, where certification audits now request proof of in-pipeline controls. Early adopters report cost savings of up to 100-fold when addressing design-phase flaws compared with post-deployment fixes. ^{[2]Velibor Cekic, “Embracing DevSecOps: A Path to Improved Software Security,” nortal.com}

Industrial IoT Penetration in German Mittelst and Factories

German mid-sized manufacturers are digitizing shopfloors through IIoT sensors linked to enterprise resource planning applications. This convergence introduces cyber-physical risks that standard IT scanners cannot surface. Targeted EU funds of EUR 40 million (USD 44 million) are accelerating development of frameworks capable of validating both safety and cyber integrity of robotic cells and edge gateways. Demand is spilling into Central Europe as subcontractors harmonize test regimes with German parent companies. ^{[3]European Commission, “Secure solutions for the Internet of Things,” digital-strategy.ec.europa.eu}

Shortage of CREST-Certified Security Testers

Europe’s talent deficit remains acute, with the United Kingdom alone needing 7,000 additional professionals every year. The gap is especially sharp in cloud and OT disciplines, delaying project kick-offs for large transformation programs. Automation mitigates routine tasks yet cannot replace the contextual analysis clients expect from senior testers, thereby constraining the absolute delivery capacity of the Europe security testing market. ^{[4]European Commission, “Secure solutions for the Internet of Things,” digital-strategy.ec.europa.eu}

Budget Freeze Across EU-27 SMEs Amid 2024 Credit-Tightening

Higher funding costs have forced SMEs to defer discretionary spending, including penetration-testing renewals. While top-tier banks and energy utilities press ahead with schedules, mid-market retailers and logistics firms often opt for scope reductions or biennial testing cadences. This creates uneven security baselines in supply chains and complicates compliance audits for prime contractors that depend on SME partners. 

Segment Analysis

By Deployment: Cloud Dominates Despite Sovereignty Concerns

Cloud-based models delivered 61% of the Europe security testing market in 2024 and are on track for a 26.01% CAGR through 2030. The Europe security testing market size for cloud deployment is projected to reach USD 54 billion by 2030, reflecting mounting demand for elastic test environments that replicate attacker geographies within minutes. United Kingdom enterprises typically launch weekly external attack simulations from cloud-native platforms, while German firms favour hybrid configurations that retain encryption keys on-premises. Providers now bundle sovereign-cloud controls such as in-region key management and dedicated SOC staffing to satisfy France’s strict data-locality statutes. On-premises installations remain relevant where classified information is processed, notably in defense ministries, yet even these agencies pilot secure “compute-out, data-in” patterns that keep test logs offsite while restricting raw data exfiltration. As European hyperscalers pledge multibillion-euro investments in regional zones, hybrid orchestration has emerged as a pragmatic bridge for organizations balancing operational agility with national-security mandates. The Europe security testing market therefore continues to pivot toward integrated deployment portfolios that shift workloads seamlessly between private racks and regulated clouds without disrupting audit trails. 

Note: Segment shares of all individual segments available upon report purchase

By Type: Application Security Testing Accelerates with Cloud Focus

Application security testing (AST) generated 39% of the Europe security testing market revenue in 2024 and leads adoption curves as web, mobile, and serverless workloads multiply. Within AST, cloud-specific assessments post the steepest climb at 31% CAGR, propelled by DORA clauses obliging financial entities to review both legacy and containerized code. The Europe security testing market share for AST is bolstered by continuous integration tools that embed dynamic scans into commit pipelines, enabling risk triaging before production. Network security testing still anchors zero-trust rollouts, particularly for segmenting flat networks amassed through M&A activity. VPN assessments gained urgency following publicized remote-access exploits that bypassed multi-factor authentication. Firewall testing, formerly a ruleset hygiene exercise, now incorporates evasive-traffic emulation to gauge inspection depth against adversaries using domain fronting. As cloud, mobile, and API surfaces converge, enterprises increasingly commission unified engagements that cross-reference findings from multiple test types, maximizing coverage without inflating budgets. 

By End-User Industry: BFSI Leads While Manufacturing Accelerates

Financial institutions absorbed 22% of 2024 revenues, compelled by unequivocal regulatory triggers. DORA’s operational-resilience stipulations require red-team exercises alongside business-continuity war-games, elevating security testing from a compliance checkbox to a board-level performance metric. Banks with cross-border operations are consolidating vendor panels to maintain audit consistency across subsidiaries. Manufacturing, however, is expanding faster than any other vertical at 25.2% CAGR as robotics, predictive maintenance, and edge analytics blur lines between corporate IT and plant-floor OT. European grants such as the Cyber Resilience Act intensify scrutiny of firmware updates and sensor authentication schemes. Healthcare follows closely, driven by European Medical Device Regulation clauses that obligate secure lifecycle management. Hospital procurement tenders increasingly embed language mandating third-party verification of both software and hardware modules, signalling durable demand. 

By Testing Tool: Penetration Testing Tools Lead While IAST Grows Fastest

Penetration-testing suites secured 27% revenue in 2024, reflecting the broad applicability of offensive security across endpoints, networks, and embedded devices. Open-source toolchains such as Kali Linux remain prevalent, yet commercial platforms that streamline reporting and evidence collection are expanding inside regulated verticals. Hardware-assisted kits, including RFID cloners and side-channel analysers, are shipping in greater volumes as clients extend scopes to physical access controls. Interactive application security testing, however, is registering the sharpest upswing at 27.8% CAGR. Its in-runtime instrumentation reduces false positives, a pain point that previously discouraged frequent scans and contributed to alert fatigue. Integration with DevOps dashboards allows product owners to accept or reject findings in real time, tightening feedback loops. Consequently, the Europe security testing industry is migrating to blended toolchains that couple automated reconnaissance with targeted manual exploitation to confirm impact, a hybrid model that optimizes both coverage and tester hours. 

Geography Analysis

The United Kingdom captured 23.11% of the Europe security testing market in 2024 on the strength of an advanced cybersecurity ecosystem and proactive legislative stance. Domestic revenue reached GBP 13.2 billion (USD 17.1 billion), with telecom regulation widening mandatory testing to network operators. A potent public-private partnership fosters rapid commercialization of academic research, giving rise to start-ups that automate scenario generation for penetration tests. London’s financial district serves as a testbed for combined DORA and PCI DSS engagements, positioning local vendors at the center of complex regional rollouts. 

Germany ranks second, buoyed by its industrial base. Mittelstand manufacturers commission end-to-end assessments that span programmable logic controllers, cloud dashboards, and safety interlocks. Regional innovation hubs in Munich and Stuttgart host purpose-built OT test labs equipped to replicate entire production lines. The Europe security testing market size specific to German industrial clients is projected to grow at a double-digit clip as nationwide 5G campus networks come online, introducing new radio-access vectors that must be stress-tested against denial-of-service exploits. 

France, while smaller today, is the fastest mover with a 26.4% CAGR forecast to 2030. Strategic sovereignty funds fuel domestic cloud infrastructure, and the newly launched Global AI Hub anchors a cluster of security-focused AI research projects. Government procurement policies that favor in-country data processing accelerate local provider revenues, while the country’s role in shaping EU cyber standards enhances first-mover advantage for firms that internalize fresh compliance codes early. 

The Rest-of-Europe cohort displays heterogeneous maturity. Nordics routinely integrate security tests into agile sprints, reflecting a DevOps culture ingrained across public services. Eastern European software houses apply offensive-testing expertise honed in capture-the-flag competitions to international contracts, though pricing pressures remain. Southern Europe still trails, constrained by SME budget freezes; however, co-funded regional grants are beginning to narrow the gap. Overall, harmonization under NIS2 gradually levels expectations, yet enforcement velocity will likely continue to vary by member-state resourcing.