Penetration Testing Market - Size, Growth & Trends

Name: Penetration Testing Market - Size, Growth & Trends
Creator: Mordor Intelligence
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Penetration Testing Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 2.35 Billion
Market Size (2030)	USD 4.83 Billion
Growth Rate (2025 - 2030)	15.51% 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.

Penetration Testing Market Summary — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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.

Global Penetration Testing Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Rising cybersecurity risks across sectors	+3.2%	Global	Short term (≤ 2 years)
Increasing demand for security assessments and compliance audits	+2.8%	North America & EU	Medium term (2-4 years)
Government mandates and industry-specific regulations	+4.1%	Global, with early gains in US, EU, Japan	Long term (≥ 4 years)
AI-driven automated testing platforms lower cost and frequency	+2.9%	APAC core, spill-over to MEA	Medium term (2-4 years)
DevSecOps pipelines require continuous pen-testing integration	+1.8%	North America & EU	Short term (≤ 2 years)
Cyber-insurance underwriting now demands third-party pen tests	+1.3%	Global	Medium term (2-4 years)

Source: Mordor Intelligence

Government Mandates and Industry-Specific Regulations

Revised frameworks such as FedRAMP’s 2024 guidance and forthcoming HIPAA updates now specify annual or even continuous penetration tests, obliging covered entities and cloud vendors to hard-wire offensive assessments into security programs.^{[2]FedRAMP, “FedRAMP Penetration Test Guidance,” fedramp.gov} PCI DSS 4.0 alone introduces 63 new control statements that explicitly reference deeper, scenario-based testing for cardholder data environments. Financial entities in the EU face similar scrutiny under DORA, guaranteeing a multi-year tailwind for specialist service providers.

AI-Driven Automated Testing Platforms Lower Cost and Frequency

Machine-learning engines embedded in modern testing platforms detect exploitable paths with near-real-time accuracy, trimming manual effort and widening market reach to cash-strapped SMEs. Early adopters report cycle-time reductions of up to 70% and subscription entry points under USD 100 per month, converting one-off engagements into recurring revenue streams for vendors.

DevSecOps Pipelines Require Continuous Pen-Testing Integration

Shift-left security places penetration tests inside CI/CD tooling, delivering vulnerability findings before code promotion. Enterprises blending automated scans with targeted manual exploits shorten remediation loops, align with agile release cadences, and stay audit-ready for regulators demanding proof of ongoing control efficacy.

Cyber-Insurance Underwriting Now Demands Third-Party Tests

Insurers are conditioning preferred premiums on validated penetration-test reports, with underwriters citing up to 15% policy savings for applicants that prove resilient controls.^{[3]Insureon, “Why Pen Testing Is Key to Cyber Insurance Eligibility,” insureon.com} As global cyber-loss ratios climb, these actuarial pressures institutionalize third-party testing and move the penetration testing market deeper into risk-finance workflows.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Lack of awareness among SMEs	-1.9%	Global, particularly emerging markets	Long term (≥ 4 years)
Shortage and high cost of skilled testers	-2.4%	Global	Medium term (2-4 years)
Tool-sprawl and false-positive fatigue reduce ROI	-1.1%	North America & EU	Short term (≤ 2 years)
Legal/liability concerns over active exploitation in some nations	-0.8%	APAC, MEA	Long term (≥ 4 years)

Source: Mordor Intelligence

Lack of Awareness Among SMEs

Budget limits and staffing shortages continue to dampen penetration testing uptake among smaller firms despite evidence of rising breach exposure. Education campaigns, bundled insurance discounts, and lower-priced automated suites are gradually narrowing the gap, but the segment still lags larger enterprises on maturity metrics.

Shortage and High Cost of Skilled Testers

Specialist talent remains scarce as certification programs struggle to meet demand. Providers answer with managed-service pools, global delivery centers, and greater use of AI to scale limited expertise. Nations such as Japan have launched training initiatives like Cyber Colosseo to widen the labor funnel, yet wage inflation and churn persist.

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.

Penetration Testing Market: Market Share by Testing Type — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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 — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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 — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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

IBM Corporation
Rapid7, Inc.
FireEye Inc.
Broadcom Inc. (Symantec Corporation)
Veracode, Inc.
*Disclaimer: Major Players sorted in no particular order

Penetration Testing Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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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