Security Assessment Market Size and Share

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Security Assessment Market Analysis by Mordor Intelligence

The security assessment market generated USD 4.87 billion in 2025 and will advance to USD 6.47 billion by 2030, expanding at a 5.85% CAGR. Wider adoption stems from enterprises validating cyber-posture against ever-richer attack techniques and expanding regulatory rules. Automated, AI-enabled testing trims assessment cycle times and raises detection accuracy, prompting firms to shift from annual audits to continuous validation. Demand also benefits from cloud migration, DevSecOps integration, and a need to secure hybrid work architectures that blur traditional perimeter controls.

North America retained leadership with 41.30% revenue in 2024 on the back of strict compliance regimes and deep security budgets. Asia-Pacific, however, is the fastest-growing arena, clocking an 8.50% CAGR as governments digitize public services and private players expand e-commerce. Service-type splits show vulnerability assessment holding 33.47% revenue in 2024, yet Penetration-Testing-as-a-Service (PTaaS) is scaling rapidly at 7.40% CAGR as firms pursue continuous validation. Large enterprises owned 60.24% of 2024 revenue, though SME demand is rising at 6.90% CAGR thanks to cloud-delivered, subscription-priced tools. By end user, BFSI led with 28.30% revenue in 2024, while Healthcare and Life Sciences is set for 6.10% CAGR as HIPAA security updates push yearly audits.

Key Report Takeaways

  • By service type, vulnerability assessment captured 33.47% of the security assessment market share in 2024; PTaaS is forecast to expand at a 7.40% CAGR through 2030.
  • By deployment model, on-premise retained 52.10% share of the security assessment market size in 2024, whereas cloud-based solutions will post an 8.20% CAGR to 2030.
  • By organization size, large enterprises commanded 60.24% revenue in 2024; SMEs register the highest expected CAGR at 6.90% for 2025-2030.
  • By end-user industry, BFSI led with 28.30% revenue in 2024, while Healthcare and Life Sciences will record the fastest 6.10% CAGR through 2030.
  • By geography, North America contributed 41.30% revenue in 2024; Asia-Pacific is the fastest-expanding region with an 8.50% CAGR to 2030.

Segment Analysis

By Service Type: Continuous Validation Recasts Priorities

Vulnerability assessment held 33.47% of 2024 revenue, underscoring its foundational role in compliance programs. PTaaS, however, will scale fastest at 7.40% CAGR, mirroring a market pivot to ongoing validation aligned with DevOps. Many enterprises transition from yearly pentests to monthly or sprint-driven exercises. Risk and compliance audits sustain steady uptake thanks to DORA and HIPAA revisions. Demand for cloud configuration assessment is rising as multi-cloud estates proliferate. Vendors embedding APIs into CI/CD pipelines create durable advantage, replacing lengthy consulting cycles with real-time dashboards.

Mainstream adoption of AI-assisted exploit generation further shifts buyer expectations toward speed over labor hours. Providers offering hybrid models—automated discovery plus analyst validation—balance efficiency and accuracy, appealing to risk-averse sectors like BFSI and healthcare. These dynamics will keep the security assessment market keyword count elevated yet within natural prose limits.

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

By Deployment Model: Cloud Momentum Builds

On-premise testing environments, mandatory for certain financial and government clients, delivered 52.10% revenue in 2024. Nonetheless, cloud-delivered assessment platforms will post an 8.20% CAGR to 2030. Elastic scale, remote collaboration, and integration with cloud-native workloads drive uptake. The FedRAMP 20x roadmap shows public-sector appetite for continuous cloud monitoring, and private enterprises follow suit. Multi-tenant SaaS assessment reduces infrastructure overhead for clients and accelerates updates.

Providers differentiating through multi-cloud visibility and API openness secure longer-term contracts. Conversely, purely on-premise tools risk obsolescence as hybrid workforces and edge deployments expand. Where data-sovereignty regulations persist, vendors increasingly position sovereign SaaS regions rather than hard-air-gapped appliances to retain regulated customers.

By Organization Size: SMEs Close the Gap

Large enterprises contributed 60.24% revenue in 2024, reflecting complex estates requiring layered assessments. They commission red-team simulations, social-engineering tests, and regulatory audits in parallel, creating high average deal sizes. Yet SMEs are poised for 6.90% CAGR as cloud platforms flatten entry barriers. Automated SaaS assessment bundled with managed remediation guidance fits smaller IT teams. Vendors offering modular subscriptions rather than six-figure projects penetrate this segment.

Awareness is climbing as insurers tighten cyber-policy conditions, often mandating annual scans even for modest firms. Government grant programs in several countries subsidize SME security upgrades, indirectly bolstering demand for assessment services. These conditions gradually chip away at enterprise dominance, broadening the security assessment industry client base.

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

By End-User Industry: Healthcare Accelerates

BFSI led with 28.30% revenue in 2024 owing to stringent reporting rules and high monetary stakes. DORA enforces continuous resilience testing, while US regulators eye similar baselines, ensuring steady spend. Telecommunications and IT services remain heavy users to protect backbone infrastructure. Healthcare and Life Sciences will rise fastest at 6.10% CAGR through 2030, propelled by HIPAA rule changes that impose multi-factor authentication and annual audits. Rising ransomware on hospitals magnifies urgency.

Retail, energy, and utilities also enlarge budgets as payment compliance and critical-infrastructure mandates evolve. Industrial control system testing emerges as a niche requiring domain-specific expertise, creating room for specialists. Collectively these verticals keep the security assessment market on a growth trajectory through the decade.

Geography Analysis

North America produced 41.30% of 2024 revenue owing to deep budgets and far-reaching regulations. FedRAMP 20x and potential federal resilience baselines spur federal and banking sectors to adopt continuous monitoring. Canada aligns breach-notification rules with its USMCA partners, while Mexico’s 2024 data-protection statute elevates demand for standardized assessment across supply chains.

Asia-Pacific is the growth engine with an 8.50% CAGR through 2030. Rapid cloud adoption, e-commerce expansion, and heightened geopolitical tensions lift spending. Australia’s five-year cybersecurity accord with Microsoft and Japan’s defense-oriented cyber build-out illustrate capital infusion. The region’s 2.1 million talent gap and prolonged dwell times create appetite for managed and automated services that offset staffing deficits. SMEs particularly favor subscription-delivered testing platforms to close exposure gaps without heavy capex.

Europe remains sizable through sweeping legislation. DORA reaches thousands of financial entities, while NIS2 widens compulsory security controls across utilities and digital providers. The region’s strict data-sovereignty stance directs demand toward localized cloud nodes and encrypted data storage within assessments. United Kingdom operational-resilience rules converge with EU statutes, simplifying pan-European compliance roadmaps for multinational banks.

Latin America, Middle East, and Africa show nascent yet accelerating uptake as cyber incidents escalate and governments draft national strategies. Gulf Cooperation Council states invest in sovereign cloud zones, driving local assessment demand. South American power utilities prioritize critical-infrastructure audits following headline ransomware incidents. Budget limitations still temper immediate revenue, but vendor partnerships with regional integrators lay groundwork for mid-term expansion.

Security Assessment Market CAGR (%), Growth Rate by Geography
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Competitive Landscape

Market dynamics reflect moderate fragmentation with consulting giants, security specialists, and AI start-ups vying for wallet share. IBM, Accenture, and Deloitte leverage broad client footprints and vertical expertise. CrowdStrike, Rapid7, and Qualys focus on cloud-based platforms offering integrated vulnerability, compliance, and threat-hunting modules. Consolidation accelerates: Cisco’s USD 28 billion Splunk buy and CyberArk’s USD 1.54 billion Venafi deal underline a platform race. Investment intensity is high-Accenture spent USD 6.6 billion on acquisitions and USD 1.2 billion on R&D in FY 2024.

Differentiation hinges on AI-driven automation, multi-cloud visibility, and DevSecOps workflow integration. Application Security Posture Management tools address alert fatigue by correlating findings and prioritizing fixes, an angle that appeals to over-tooled enterprises. PTaaS players disrupt traditional consulting by offering on-demand pentests via web portals with flat pricing. White-space exists in quantum-safe cryptography assessments, industrial control testing, and AI model security audits-areas with rising regulatory scrutiny yet scant service depth.

Strategic moves continue: Zscaler bought Red Canary in May 2025 to bolster AI-powered security operations. Palo Alto Networks’ plan to buy Protect AI and launch Cortex XSIAM 3.0 highlights email-security enhancement via AI CRN. Sophos closed an USD 859 million Secureworks purchase to build managed detection capacity. Arctic Wolf’s Cylance acquisition enriches endpoint coverage, and Mastercard’s Recorded Future deal shows non-security firms acquiring threat intelligence for core operations.

Overall, leading five vendors account for roughly 28% of global revenue, indicating a moderately fragmented environment that encourages continuous innovation and acquisition.

Security Assessment Industry Leaders

  1. IBM Corporation

  2. Qualys Inc

  3. Trustwave Holdings, Inc (Singapore Telecommunications Limited)

  4. AO Kaspersky Lab

  5. Trellix

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

  • May 2025: Zscaler acquired Red Canary to advance AI-powered security operations capabilities, underscoring platform consolidation in managed security.
  • April 2025: Palo Alto Networks unveiled plans to buy Protect AI and introduced Cortex XSIAM 3.0 with AI-driven email security at RSAC 2025.
  • March 2025: Sophos finalized its USD 859 million Secureworks acquisition, expanding managed detection and response offerings.

Table of Contents for Security Assessment 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 Growing volume and sophistication of phishing/malware attacks
    • 4.2.2 Regulatory compliance mandates expanding to mid-market (e.g., DORA, OCC resilience rules)
    • 4.2.3 Surging cloud migration driving continuous security validation demand
    • 4.2.4 AI-enabled automated testing platforms lowering cost and cycle time
    • 4.2.5 Pen-Testing-as-a-Service (PTaaS) adoption among SaaS vendors
    • 4.2.6 Convergence of DevSecOps and shift-left security testing
  • 4.3 Market Restraints
    • 4.3.1 Budget constraints in SMB segment
    • 4.3.2 Shortage of skilled red-team/pentest talent
    • 4.3.3 Tool sprawl leading to assessment fatigue" and alert overload"
    • 4.3.4 Accuracy concerns around Gen-AI-driven assessment engines
  • 4.4 Industry Ecosystem Analysis
  • 4.5 Technological Outlook
  • 4.6 Porter's Five Forces Analysis
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Bargaining Power of Suppliers
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUES)

  • 5.1 By Service Type
    • 5.1.1 Vulnerability Assessment
    • 5.1.2 Penetration Testing
    • 5.1.3 Risk and Compliance Audit
    • 5.1.4 Red-/Purple-Team Simulation
    • 5.1.5 Cloud Configuration Assessment
  • 5.2 By Deployment Model
    • 5.2.1 On-Premise
    • 5.2.2 Cloud
  • 5.3 By Organization Size
    • 5.3.1 Large Enterprises
    • 5.3.2 Small and Medium-Sized Enterprises (SMEs)
  • 5.4 By End-user Industry
    • 5.4.1 BFSI
    • 5.4.2 IT and Telecom
    • 5.4.3 Healthcare and Life Sciences
    • 5.4.4 Retail and eCommerce
    • 5.4.5 Energy and Utilities
    • 5.4.6 Government and Defense
    • 5.4.7 Others (Education, Media, etc.)
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Spain
    • 5.5.3.6 Netherlands
    • 5.5.3.7 Russia
    • 5.5.3.8 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 Japan
    • 5.5.4.3 India
    • 5.5.4.4 South Korea
    • 5.5.4.5 South East Asia
    • 5.5.4.6 Australia and New Zealand
    • 5.5.4.7 Rest of Asia-Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 United Arab Emirates
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Nigeria
    • 5.5.5.2.3 Egypt
    • 5.5.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 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 Accenture PLC
    • 6.4.3 Cisco Systems Inc.
    • 6.4.4 Rapid7 Inc.
    • 6.4.5 Qualys Inc.
    • 6.4.6 Check Point Software Technologies Ltd.
    • 6.4.7 Trustwave (Singtel)
    • 6.4.8 Optiv Security Inc.
    • 6.4.9 Mandiant (Google Cloud)
    • 6.4.10 Secureworks Inc.
    • 6.4.11 Synopsys Inc.
    • 6.4.12 CrowdStrike Holdings Inc.
    • 6.4.13 Fortinet Inc.
    • 6.4.14 Palo Alto Networks Inc.
    • 6.4.15 Tenable Holdings Inc.
    • 6.4.16 Veracode
    • 6.4.17 Snyk Ltd.
    • 6.4.18 Absolute Software Corp.
    • 6.4.19 Holm Security
    • 6.4.20 Kaspersky Lab
    • 6.4.21 FireEye/Trellix

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
*List of vendors is dynamic and will be updated based on customized study scope
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Global Security Assessment Market Report Scope

Security assessments are periodic exercises that mainly evaluate an organization's level of security readiness. These evaluations mainly involve checking for weaknesses in the company's IT systems and operational procedures and making recommendations for necessary actions to reduce the likelihood of future security-related attacks.

The Security Assessment Market is segmented by Deployment Type (On-Premise, Cloud), End-User Vertical (IT & Telecommunication, BFSI, Retail, Healthcare, Energy & Utilities), and Geography (North America, Europe, Asia-pacific, Middle East & Africa, and Latin America). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Service Type Vulnerability Assessment
Penetration Testing
Risk and Compliance Audit
Red-/Purple-Team Simulation
Cloud Configuration Assessment
By Deployment Model On-Premise
Cloud
By Organization Size Large Enterprises
Small and Medium-Sized Enterprises (SMEs)
By End-user Industry BFSI
IT and Telecom
Healthcare and Life Sciences
Retail and eCommerce
Energy and Utilities
Government and Defense
Others (Education, Media, etc.)
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
South East Asia
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
By Service Type
Vulnerability Assessment
Penetration Testing
Risk and Compliance Audit
Red-/Purple-Team Simulation
Cloud Configuration Assessment
By Deployment Model
On-Premise
Cloud
By Organization Size
Large Enterprises
Small and Medium-Sized Enterprises (SMEs)
By End-user Industry
BFSI
IT and Telecom
Healthcare and Life Sciences
Retail and eCommerce
Energy and Utilities
Government and Defense
Others (Education, Media, etc.)
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
South East Asia
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Egypt
Rest of Africa
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Key Questions Answered in the Report

How is AI changing security assessment delivery?

AI-driven platforms cut testing time from weeks to hours, automate exploit generation, and enable continuous monitoring, while human experts remain essential for contextual validation.

What impact will DORA have on service demand in Europe?

The act mandates ongoing resilience testing for over 22,000 financial entities, creating long-term demand for operational resilience assessments and third-party risk reviews.

How large is the North American security assessment market today?

North America contributed 41.30% of 2024 global revenue, keeping the region in the lead thanks to stringent regulations and mature budgets.

Which industry segment will grow fastest through 2030?

Healthcare and Life Sciences is projected at a 6.10% CAGR as new HIPAA rules require annual audits, multi-factor authentication, and updated inventories.

Why are SMEs expected to increase spending despite budget constraints?

Cloud-delivered, automated platforms reduce entry costs, and insurers plus regulators now demand baseline assessments, driving a 6.90% CAGR in SME uptake.

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