Global Penetration Testing Market Grows at a Staggering CAGR of 12.5%

Introduction

The global penetration testing market is propelled by increasing cybersecurity threats and rigorous laws such as GDPR, HIPAA, and PCI DSS that require comprehensive security evaluations.  The growing utilisation of cloud computing, IoT devices, and digital transformation within the BFSI, healthcare, and IT sectors drives the need for penetration testing to detect vulnerabilities.  Prominent trends encompass the incorporation of artificial intelligence and machine learning for automated testing, the emergence of Penetration Testing as a Service (PTaaS), and cloud-based testing solutions that improve scalability.  

North America leads because of its sophisticated cybersecurity infrastructure, whereas Asia-Pacific is the most rapidly expanding region, propelled by swift digitisation in China and India.  Nonetheless, elevated expenses and a deficiency of qualified personnel present obstacles.  The market's expansion underscores the essential demand for proactive cybersecurity strategies to safeguard digital assets in a progressively interconnected and vulnerable landscape, assuring industry compliance and resilience.

Market Dynamics

Increasing cybersecurity dangers and regulatory adherence drive market growth

The increase in cybersecurity risks and rigorous regulatory mandates is a key factor propelling the worldwide penetration testing industry.  In 2023, data breaches had an average cost of USD 4.45 million, and 2.6 billion incidents were recorded in 2024, prompting organisations to prioritise proactive testing to limit risks.  Regulations such as GDPR, HIPAA, and PCI DSS impose non-compliance penalties of up to 4% of annual turnover and require frequent security evaluations.

• For instance, in February 2024, the National Cyber Security Agency in Qatar initiated a Penetration Testing Accreditation program to bolster cyber service security, mirroring global legislative trends.

North America excels because of strong compliance frameworks, whilst Asia-Pacific experiences significant growth due to escalating cyber fraud.  The increasing intricacy of IT settings, encompassing cloud and IoT, needs sophisticated testing to ensure continuous market expansion while organisations protect digital assets from emerging dangers.

Expansion in cloud-based testing and PTaaS creates tremendous opportunities

The emergence of cloud-based penetration testing and Penetration Testing as a Service (PTaaS) offers a substantial opportunity for the worldwide penetration testing market.  Cloud-based testing, anticipated to see a superior CAGR compared to on-premises solutions, provides scalability and cost efficiency, with 80% of organisations implementing cloud solutions.  PTaaS offers ongoing, automated testing that is attractive to SMEs.

• For example, in March 2024, F5 included automated penetration testing into its Distributed Cloud Services following the Heyhack purchase, improving vulnerability discovery in multi-cloud systems.
• Similarly, BreachLock's February 2024 extension of AI-driven PTaaS products enhanced attack surface management for companies, providing scalable security evaluations.

North America, holding a 39% market share, and Asia-Pacific, propelled by India's Digital India plan, are pivotal growth regions.  The growing utilisation of cloud computing and regulatory demands generate a need for accessible, efficient testing solutions, establishing cloud-based PTaaS as a pivotal possibility for market growth.

Regional Analysis

North America remained the preeminent region, possessing a 39% share of the worldwide penetration testing industry.  The region's prominence is derived from its sophisticated cybersecurity infrastructure, which hosts prominent entities like IBM, Rapid7, Cobalt, and CrowdStrike.  Prominent cyberattacks and regulatory frameworks such as HIPAA, PCI DSS, and the U.S. National Cybersecurity Strategy persist in propelling market expansion.  BFSI and healthcare organisations in the U.S. are experiencing a surge in attack volumes, leading to the extensive use of powerful AI-driven testing platforms.  Strategic alliances, such as Cobalt's cooperation with NTT DATA, illustrate regional initiatives to enhance testing capabilities.  Moreover, robust technology innovation, established DevSecOps procedures, and elevated awareness levels guarantee that North America leads penetration testing adoption, tackling the increasing complexity of multi-cloud and hybrid IT settings.

Key Highlights

• The global penetration testing market size was valued at USD 2.45 billion in 2024 and is projected to grow from USD 2.74 billion in 2025 to USD 6.25 billion by 2033, exhibiting a CAGR of 12.5% during the forecast period (2025–2033).
• By Offering, the market is segmented into solutionsand The solutions segment, encompassing penetration testing software, tools, and automated platforms, dominated the market with over 65% revenue share in 2024.
• By Deployment Mode, the market is segmented into cloud-basedand on-premises. The on-premises segment held a significant market share in 2024, driven by its appeal to large enterprises requiring high security and control, particularly in BFSI and government sectors.
• By Vertical, the market is segmented into Banking, Financial Services, Insurance (BFSI), healthcare, IT & IT-enabled Services (ITES), telecommunications, retail & e-commerce, government & defence, manufacturing, education, and The BFSI segment led the market with a significant share in 2024, driven by the high volume of sensitive financial data and stringent regulations like PCI DSS and GLBA.
• Based on region, the global penetration testing market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America dominates the global market.

Competitive Players

1. Rapid7
2.  Inc.
3.  IBM Corporation
4.  Cisco Systems
5.  Inc.
6.  CrowdStrike
7.  Inc.
8.  FireCompass
9.  Synack
10.  Inc.
11.  Checkmarx
12.  Veracode
13.  Fortinet
14.  Inc.
15.  Coalfire Systems
16.  Inc.
17.  Trustwave Holdings
18.  Inc.
19.  HackerOne
20.  Bugcrowd
21.  Secureworks
22.  Inc.
23.  Netsparker
24.  others.

Recent Developments

• In March 2025, F5 acquired LeakSignal, a specialist in real-time data protection for AI applications. The move enhances F5’s Application Delivery & Security Platform with AI-driven data classification and compliance features.
• In March 2025, FireCompass released updates to its PTaaS platform, adding features like a new CISO dashboard, ~800 vulnerability detections, and 50+ attack trees.
• In September 2024, Oracle introduced a Penetration Testing service for Oracle Cloud Infrastructure (OCI) across AWS, Azure, Google, OCI region, and supercluster environments, reflecting growth in AI and cloud pentesting needs.

Segmentation

1. By Offering
   1. Solutions
   2. Services
2. By Deployment Mode
   1. Cloud-Based
   2. On-Premises
3. By Vertical
   1. Banking, Financial Services, and Insurance (BFSI)
   2. Healthcare
   3. IT & IT-enabled Services (ITES)
   4. Telecommunications
   5. Retail & E-commerce
   6. Government & Defense
   7. Manufacturing
   8. Education
   9. Others