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Cigniti, Astra and Rapid7 to dominate fast-growing penetration testing market


As the number of cyber-attacks are rapidly increasing and the financial services space faces more and more other digital threats, the global penetration testing market is set to swell to $5.3 billion in the next seven years, according to a new report shared with QA Financial.

The booming sector, in which authorized simulated cyberattacks on computer systems are performed to evaluate the security of software and systems, is expected to be dominated by a handful of key players, including Cigniti, Astra and Rapid7, the researchers found.

Valued at only $1.6 billion two years ago, the global penetration testing market is expected to grow by 13% per year, to hit $5.3 billion by 2031, the Allied Market Research data showed.

Key drivers in the growing market space are the rapid rise in the number of data centres and high adoption of cloud computing solutions and services.

Furthermore, strict government regulations to boost the adoption of penetration testing solutions supplemented the market growth.

The report highlighted that a rise in popularity of PTaaS and security assessment for remote workers would further open new opportunities in the future.

A number of companies are expected to thrive in the coming years, the researchers found, singling out Cigniti, Astra and Rapid7 as the firms that are expected to dominate the market.

Other key players will be Breachlock, Bugcrowd, Cisco, CovertSwarm, Rebot Security, SecurityMetrics, TrustWave Holdings, Vumetric Cybersecurity and Astra Security, according to the report.

Market share

The financial services segment held the largest share in the market last year, contributing to more than one-fifth of the global penetration testing market, although the healthcare sector is expected to take up a significant share in the coming years.

By component, the solution segment held the lion’s share in recent years, accounting for nearly two-thirds of the global penetration testing market, as it assists organizations in detection zero-day attacks and predicts any future loopholes.

However, the services segment is estimated to register the highest CAGR of 13.7% in the next seven years.

By region, the North American market held the lion’s share up to now, accounting for more than one-third of the global penetration testing market, due to a rapid increase in the adoption of advanced technologies such as cloud technology, big data, artificial intelligence, and machine learning for automation across industries.

However, Asia-Pacific is estimated to register the highest growth, of about 14.5% annually in the next seven years, owing to a rise in penetration testing awareness and growth in the number of banks, financial services firms, TMT firms and SMEs adopting cloud-based security testing in the region.

Pandemic boost

In their report, the researchers singled out market trends during the Covid-19 pandemic.

“The market witnessed a positive response during the Covid-19 pandemic, due to rapid adoption of work from home by various government, public, and other organizations,” they wrote.

Moreover, IT and telecom industries had been using PTaaS for improving the loss suffered during the pandemic, due to rise in cyber-crime and data breaches during the lockdown, they concluded.

However, a lack of skilled IT professionals and highly skilled hackers increased the rate of cyber-crimes and security breaches.

“This has increased the demand for penetration testing services and solutions,” the report concluded.