Global Penetration Testing Market to Grow at 17.2% CAGR Through 2030

According to the latest market research study published by P&S Intelligence, the global penetration testing market is experiencing rapid expansion as organizations intensify efforts to safeguard digital assets against rising cyber threats. In 2024, the market is generating revenue of USD 1,818.2 million and is projected to grow at a robust CAGR of 17.2% during 2024–2030, reaching USD 4,707.8 million by 2030. This strong growth reflects the escalating frequency and sophistication of cyberattacks across industries, making penetration testing a critical component of modern cybersecurity strategies.

As digitalization accelerates worldwide, enterprises are becoming increasingly vulnerable to data breaches, phishing attacks, and system intrusions. Safety, privacy, and regulatory compliance have emerged as top priorities, pushing organizations to proactively identify and address weaknesses in their IT infrastructure. Governments and regulatory bodies are also playing a crucial role by enforcing data protection standards, which further drives demand for regular and comprehensive penetration testing.

Technological innovation continues to reshape the market, with vendors investing in advanced testing tools and automated solutions. The integration of artificial intelligence is enhancing the accuracy and efficiency of vulnerability assessments, while new testing approaches are enabling organizations to simulate real-world attack scenarios more effectively. Together, these factors are positioning penetration testing as an indispensable defense mechanism in an increasingly complex digital ecosystem.

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Key Insights

• The market is segmented by deployment mode into on-premises and cloud, with on-premises accounting for around 70% of revenue in 2024 due to the need for complete control, high-level security, and data privacy, especially among multinational organizations handling sensitive information.
• Cloud-based deployment is the faster-growing segment, projected to register a CAGR of 17.5% during 2024–2030, supported by flexible cloud models—public, private, and hybrid—that allow organizations to balance cost, scalability, and control.
• Based on organization size, large enterprises dominate the market with approximately 75% revenue share in 2024, driven by their extensive IT infrastructure, higher cybersecurity budgets, and early adoption of advanced security technologies.
• Small and medium enterprises are expected to grow at a higher CAGR of 17.4% as rising cyber risk awareness and affordable cloud-based penetration testing solutions make advanced security more accessible.
• By testing tools, vulnerability scanners represent the largest and fastest-growing category, holding about 40% market share in 2024, due to their automated nature, cost-effectiveness, and ability to provide continuous monitoring.
• Other important testing tools in the market include reconnaissance tools, proxy tools, exploitation tools, and post-exploitation tools, each supporting different phases of penetration testing.
• In terms of breach level, gray box testing holds the largest share and is forecast to be the fastest-growing category with a CAGR of 17.8%, supported by its cost efficiency and suitability for web application testing.
• Black box and white box testing continue to be used for specific security requirements, depending on access levels and testing depth.
• By testing type, network infrastructure remains the largest category, reflecting the need to secure core IT systems and enterprise networks.
• Mobile application testing is the fastest-growing segment, with a CAGR of 18.0%, fueled by BYOD policies and the growing reliance on mobile apps, particularly in banking and financial services.
• Other testing types include web applications, cloud, APIs, social engineering, embedded devices, and additional specialized areas.
• From an end-user perspective, BFSI leads the market with a 35% share in 2024, as financial institutions face high exposure to cyber fraud and are mandated to comply with regulations such as GDPR and PCI DSS.
• Healthcare is the fastest-growing end-user segment, driven by increasing digital health adoption and the sensitivity of patient data.
• Regionally, North America dominates the market with nearly 50% share, supported by a strong presence of technology companies and rapid adoption of AI, IoT, and cloud computing.
• Asia-Pacific is the fastest-growing region, with a CAGR of 17.6%, led by rising cloud adoption, expanding SME presence, and growth in e-commerce activities.
• The market remains highly fragmented and competitive, with key players including Rapid7, Secureworks, Synopsys, CrowdStrike, IBM, Cisco Systems, Fortinet, Bugcrowd, and Invicti Security, alongside ongoing partnerships and acquisitions to strengthen market positioning.