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

The Penetration Testing Market Report is Segmented by Testing Type (Network Penetration Testing, and More), Deployment Mode (On-Premise, and Cloud), Organization Size (Large Enterprises, and SMEs), Service Delivery Mode (In-House Testing Teams, and Third-Party Managed Services), End-User Industry (Government and Defense, BFSI, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Penetration Testing Market Size and Share

Penetration Testing Market Summary
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Penetration Testing Market Analysis by Mordor Intelligence

The penetration testing market was valued at USD 2.35 billion in 2025 and is forecast to reach USD 4.83 billion in 2030, advancing at a 15.51% CAGR over 2025-2030. Growth is propelled by sharper cyber-attack tactics, tighter privacy statutes, and rising cyber-insurance prerequisites that make independent security validation a board-level priority. New mandates under HIPAA, PCI DSS 4.0, and the Digital Operational Resilience Act are expanding the addressable spend as organizations must prove continuous control efficacy to regulators.[1]DLA Piper, “HHS Proposes Major Overhaul of the HIPAA Security Rule,” dlapiper.com Investment is shifting toward AI-enabled, API-driven test automation that cuts cycle time and broadens access for resource-constrained teams. Cloud adoption, embedded DevSecOps practices, and aggressive digitalization across banking, healthcare, and manufacturing create fresh revenue pools for providers willing to bundle consulting, tooling, and managed services. The competitive field is responding through platform acquisitions, talent roll-ups, and venture funding aimed at scaling global delivery and shortening time-to-value.

Key Report Takeaways

  • By type, Web Application Penetration Testing led with 36% penetration testing market share in 2024, while Mobile Application Penetration Testing is projected to grow at a 19.23% CAGR to 2030.  
  • By deployment model, on-premise solutions held 61% of the penetration testing market size in 2024, whereas cloud-based testing is set to expand at a 20.27% CAGR through 2030.  
  • By organization size, large enterprises accounted for 66% of demand in 2024; SMEs are seeing the fastest uptake at an 18.58% CAGR thanks to subscription-based platforms.  
  • By service delivery, third-party managed services captured 72% revenue share in 2024, but in-house teams are on track for a 21.37% CAGR over the forecast window.  
  • By end user, BFSI commanded 29% of the penetration testing market size in 2024; healthcare is expected to climb at a 17.46% CAGR to 2030 on incoming HIPAA revisions.  
  • By geography, North America dominated with 39% revenue in 2024, while Asia-Pacific is forecast to log a 17.04% CAGR through 2030 on accelerating cyber-insurance adoption.  

Segment Analysis

By Testing Type: Web Applications Lead, Mobile Tests Accelerate

Web application projects generated 36% penetration testing market share in 2024 as companies fortified e-commerce portals and SaaS workloads. Demand stays stable because every customer-facing service stack now includes browser-based interfaces needing recurring exploit validation. Mobile application testing, however, is scaling at a 19.23% CAGR, reflecting the migration of banking and retail interactions to Android and iOS channels.  

Intensifying scrutiny from app-store gatekeepers and financial supervisors forces developers to integrate mobile-specific threat modeling, session management checks, and runtime protections. Cloud and API-centric architectures further enlarge the attack surface, pushing security teams toward unified platforms that scan web, mobile, and micro-services in a single engagement cadence.

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

By Deployment Model: Cloud Momentum Challenges On-Premise Prevalence

On-premise programs retained 61% of 2024 revenues, a testament to data-residency mandates and comfort with in-house test orchestration. Yet cloud-based subscriptions are growing 20.27% annually, buoyed by the ability to spin up agents instantly and stream findings back into DevSecOps dashboards.  

Providers are adding zero-trust connectors, anonymized data chambers, and regionally segregated workloads to reassure highly regulated buyers. Hybrid delivery—local test harnesses coupled with cloud analytics—emerges as the transitional state for firms balancing sovereignty with efficiency.

By Organization Size: SME Uptake Builds on Enterprise Base

Large enterprises continue to anchor the penetration testing market, contributing 66% of 2024 revenue. Their compliance budgets cover red-team campaigns, adversary simulations, and layered code review cycles. Meanwhile, SME spend is climbing at an 18.58% CAGR as insurers, lenders, and supply-chain partners begin to mandate attestation letters.  

Pay-as-you-go portals, template-driven scopes, and AI-curated exploit playbooks lower entry barriers. Vendors that combine automated reconnaissance with on-call consultants are winning early share by speaking the risk-language familiar to non-technical founders.

By Service Delivery Mode: Managed Services Dominate, In-House Teams Gain Momentum

Third-party Managed Services command 72.0 percent market share in 2024, reflecting organizational preferences for specialized expertise and independent security validation required by regulatory frameworks and cyber insurance providers. In-house Testing Teams demonstrate the highest growth rate at 21.37 percent CAGR through 2030, driven by the need for continuous security validation within DevSecOps workflows and the availability of automated testing platforms that reduce skill requirements. 

The integration of AI-powered testing tools enables organizations to develop internal capabilities while maintaining access to external expertise for complex assessments and compliance validation. Hybrid service delivery models are emerging as organizations seek to balance cost efficiency with security expertise, combining internal automated testing with periodic third-party validation for comprehensive security coverage. The trend toward continuous penetration testing requires service providers to offer flexible engagement models that support both scheduled assessments and on-demand testing based on development cycles and threat intelligence.

Penetration Testing Market: Market Share by Service Delivery Mode
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By End-User Industry: Healthcare Catches Up to BFSI Lead

BFSI organizations held 29% of the penetration testing market size in 2024 thanks to transaction-centric regulations. Looking forward, healthcare shows the steepest slope with a 17.46% CAGR after draft HIPAA rules introduced obligatory annual tests and semi-annual vulnerability scans.  

High breach penalties, surging telehealth traffic, and convergence with IoT-enabled medical devices sharpen the sector’s risk calculus. Providers rely on specialist testers versed in protected health information segregation, life-safety system integrity, and FDA pre-market security documentation.

Geography Analysis

North America generated 39% of 2024 revenues, supported by federal directives such as FedRAMP test guidance for cloud vendors and IRS production-environment rules. Healthcare overhaul proposals alone could inject USD 4.6 billion in fresh security outlays once finalized. An advanced vendor ecosystem, mature cyber-insurance market, and venture funding concentration reinforce regional leadership.

Asia-Pacific is the fastest-growing arena, charting a 17.04% CAGR as insurers premium-price untested environments and governments formalize critical-infrastructure audit schedules. Japan’s Cyber Colosseo training pipeline, China’s push for self-reliant security stacks, and India’s fintech surge combine to elevate test frequency requirements. Tier-2 economies in ASEAN are also commissioning managed services to plug local talent gaps.

Europe records steady expansion under GDPR and the Digital Operational Resilience Act, compelling banks and insurers to validate controls across cross-border entities. Incumbent telecom and manufacturing clusters add depth by commissioning industrial-control and 5G-network test scopes. Eastern European firms, confronted with supply-chain spillovers from nearby conflicts, are moving quickly toward continuous engagement models.

Penetration Testing Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The market displays moderate concentration as incumbent specialists and broader cybersecurity vendors acquire capabilities to own more of the value chain. NetSPI absorbed Silent Break Security and nVisium in 2024, boosting talent density and enabling enterprise-scale delivery roadmaps. The firm’s USD 410 million Series C deepens R&D budgets for automation accelerators.  

F5 captured Heyhack to fold automated testing into its Distributed Cloud Services suite, highlighting how application-delivery vendors now bundle offensive validation directly into workload-protection offerings. PortSwigger secured growth capital to expand its Burp Suite ecosystem, while Detectify welcomed a majority investment from Insight Partners to globalize its attack-surface management model.  

Strategic partnerships increasingly revolve around AI integration, industry-specific reporting templates, and channel alliances with insurers and compliance auditors. Providers differentiate on depth of manual adversary simulation, coverage of API and containerized workloads, and ability to wrap findings into board-ready risk dashboards. Niche entrants focusing on SME price points or regulated-industry blueprints attract funding but must scale sales execution rapidly before incumbents replicate similar bundles.

Penetration Testing Industry Leaders

  1. IBM Corporation

  2. Rapid7, Inc.

  3. FireEye Inc.

  4. Broadcom Inc. (Symantec Corporation)

  5. Veracode, Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Penetration Testing Market Concentration
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Recent Industry Developments

  • April 2025: Palo Alto Networks confirmed it is exploring a Protect AI acquisition valued near USD 700 million to deepen AI-security coverage.
  • January 2025: HHS proposed HIPAA Security Rule revisions mandating yearly penetration tests and twice-yearly vulnerability scans, projecting USD 4.6 billion in new annual compliance spend.
  • October 2024: Insight Partners bought a majority stake in Detectify to speed attack-surface product innovation and extend global reach.
  • July 2024: Beryllium launched Nebula Pro, an AI-guided PenTest Ops platform automating engagement orchestration.

Table of Contents for Penetration Testing Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising cybersecurity risks across sectors
    • 4.2.2 Increasing demand for security assessments and compliance audits
    • 4.2.3 Government mandates and industry‐specific regulations
    • 4.2.4 AI-driven automated testing platforms lower cost and frequency
    • 4.2.5 DevSecOps pipelines require continuous pen-testing integration
    • 4.2.6 Cyber-insurance underwriting now demands third-party pen tests
  • 4.3 Market Restraints
    • 4.3.1 Lack of awareness among SMEs
    • 4.3.2 Shortage and high cost of skilled testers
    • 4.3.3 Tool-sprawl and false-positive fatigue reduce ROI
    • 4.3.4 Legal/liability concerns over active exploitation in some nations
  • 4.4 Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter’s Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry
  • 4.8 Assessment of Macro Economic Trends on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUES)

  • 5.1 By Testing Type
    • 5.1.1 Network Penetration Testing
    • 5.1.2 Web Application Penetration Testing
    • 5.1.3 Mobile Application Penetration Testing
    • 5.1.4 Social Engineering Penetration Testing
    • 5.1.5 Wireless Network Penetration Testing
    • 5.1.6 Cloud Penetration Testing
    • 5.1.7 Other Types
  • 5.2 By Deployment Model
    • 5.2.1 On-premise
    • 5.2.2 Cloud-based
  • 5.3 By Organization Size
    • 5.3.1 Large Enterprises
    • 5.3.2 Small and Medium Enterprises (SMEs)
  • 5.4 By Service Delivery Mode
    • 5.4.1 In-house Testing Teams
    • 5.4.2 Third-party Managed Services
  • 5.5 By End-user Industry
    • 5.5.1 Government and Defense
    • 5.5.2 Banking, Financial Services and Insurance (BFSI)
    • 5.5.3 IT and Telecom
    • 5.5.4 Healthcare and Life Sciences
    • 5.5.5 Retail and E-Commerce
    • 5.5.6 Manufacturing
    • 5.5.7 Energy and Utilities
    • 5.5.8 Other End-user Industries
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 Europe
    • 5.6.2.1 United Kingdom
    • 5.6.2.2 Germany
    • 5.6.2.3 France
    • 5.6.2.4 Russia
    • 5.6.2.5 Rest of Europe
    • 5.6.3 Asia-Pacific
    • 5.6.3.1 China
    • 5.6.3.2 Japan
    • 5.6.3.3 India
    • 5.6.3.4 South Korea
    • 5.6.3.5 Australia and New Zealand
    • 5.6.3.6 Rest of Asia-Pacific
    • 5.6.4 South America
    • 5.6.4.1 Brazil
    • 5.6.4.2 Argentina
    • 5.6.4.3 Rest of South America
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 Middle East
    • 5.6.5.1.1 GCC
    • 5.6.5.1.2 Turkey
    • 5.6.5.1.3 Israel
    • 5.6.5.1.4 Rest of Middle East
    • 5.6.5.2 Africa
    • 5.6.5.2.1 South Africa
    • 5.6.5.2.2 Nigeria
    • 5.6.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves and Funding
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 IBM Corporation
    • 6.4.2 Rapid7, Inc.
    • 6.4.3 Synopsys, Inc.
    • 6.4.4 Checkmarx Ltd.
    • 6.4.5 Acunetix Ltd. (Invicti Security)
    • 6.4.6 Broadcom Inc. (Symantec Corporation)
    • 6.4.7 FireEye Inc.
    • 6.4.8 Veracode, Inc.
    • 6.4.9 Qualys, Inc.
    • 6.4.10 Tenable Holdings, Inc.
    • 6.4.11 Palo Alto Networks, Inc. (Unit 42)
    • 6.4.12 Offensive Security, LLC
    • 6.4.13 Core Security (Fortra)
    • 6.4.14 Pentera Security Ltd.
    • 6.4.15 HackerOne, Inc.
    • 6.4.16 Trustwave Holdings, Inc.
    • 6.4.17 IOActive, Inc.
    • 6.4.18 NCC Group plc
    • 6.4.19 Cofense Inc.
    • 6.4.20 Bishop Fox, Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Penetration Testing Market Report Scope

Penetration testing, also called pen testing or ethical hacking, is the practice of testing a computer system, network, or web application to find security vulnerabilities that an attacker could exploit.

The penetration testing market is segmented by type (network penetration testing, web application penetration testing, mobile application penetration testing, social engineering penetration testing, wireless network penetration testing, and other types), deployment (on-premises and cloud), end-user vertical (government and defense, BFSI, IT and telecom, healthcare, and retail), and geography (North America, Europe, Latin America, Asia-Pacific, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD ) for all the above segments.

By Testing Type Network Penetration Testing
Web Application Penetration Testing
Mobile Application Penetration Testing
Social Engineering Penetration Testing
Wireless Network Penetration Testing
Cloud Penetration Testing
Other Types
By Deployment Model On-premise
Cloud-based
By Organization Size Large Enterprises
Small and Medium Enterprises (SMEs)
By Service Delivery Mode In-house Testing Teams
Third-party Managed Services
By End-user Industry Government and Defense
Banking, Financial Services and Insurance (BFSI)
IT and Telecom
Healthcare and Life Sciences
Retail and E-Commerce
Manufacturing
Energy and Utilities
Other End-user Industries
By Geography North America United States
Canada
Mexico
Europe United Kingdom
Germany
France
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa Middle East GCC
Turkey
Israel
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
By Testing Type
Network Penetration Testing
Web Application Penetration Testing
Mobile Application Penetration Testing
Social Engineering Penetration Testing
Wireless Network Penetration Testing
Cloud Penetration Testing
Other Types
By Deployment Model
On-premise
Cloud-based
By Organization Size
Large Enterprises
Small and Medium Enterprises (SMEs)
By Service Delivery Mode
In-house Testing Teams
Third-party Managed Services
By End-user Industry
Government and Defense
Banking, Financial Services and Insurance (BFSI)
IT and Telecom
Healthcare and Life Sciences
Retail and E-Commerce
Manufacturing
Energy and Utilities
Other End-user Industries
By Geography
North America United States
Canada
Mexico
Europe United Kingdom
Germany
France
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa Middle East GCC
Turkey
Israel
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
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Key Questions Answered in the Report

What is the current size of the penetration testing market?

The market is valued at USD 2.35 billion in 2025 and is projected to reach USD 4.83 billion by 2030.

Which segment holds the largest penetration testing market share?

Web application testing leads with a 36% share as of 2024.

Why is healthcare showing faster growth than other sectors?

Draft HIPAA revisions will require annual penetration tests, pushing healthcare toward a 17.46% CAGR through 2030.

How are AI tools influencing the penetration testing industry?

AI-enabled platforms cut manual effort by up to 70% and enable continuous testing, broadening adoption among SMEs.

What geographic region is expanding most rapidly?

Asia-Pacific is growing at a 17.04% CAGR driven by cyber-insurance expansion and new governmental mandates.

How do insurance requirements affect demand?

Insurers are now tying premium discounts to independent test results, making penetration testing a prerequisite for favorable cyber-policy terms.

Penetration Testing Market Report Snapshots