According to the latest market research study published by P&S Intelligence, the U.S. application security market is experiencing strong momentum, with revenue reaching USD 3,010.4 million in 2024 and projected to grow at a 12.0% CAGR from 2025 to 2030, ultimately hitting USD 5,869.8 million by 2030. This rapid expansion is supported by the country’s intense reliance on mobile and computer applications, which has significantly amplified the surface area for cyber threats. As businesses accelerate their digital transformation and adopt cloud-based systems, the need for flexible, advanced, and proactive security mechanisms has become essential.
Cyber incidents continue to rise at an alarming pace—3,205 cyberattack cases were recorded in 2023, affecting over 353 million individuals through data compromises and exposure. This surge has elevated the urgency for organizations to strengthen their security posture and deploy solutions capable of detecting vulnerabilities early in the development cycle.
Vendors across the ecosystem are responding by designing developer-friendly application security tools that integrate seamlessly into existing workflows. With businesses increasingly developing proprietary applications and introducing open-source code, the risk of vulnerabilities has multiplied. As a result, the demand for modern, automated, and efficient AppSec solutions is climbing steadily across industries.
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Key Insights
- The market is led by static application security testing (SAST), contributing 40% revenue in 2024, owing to its early-stage integration in the SDLC and ability to detect code issues before execution.
- Dynamic application security testing (DAST) is set to record notable growth during 2025–2030, driven by the increasing prevalence of web and mobile application vulnerabilities that often result in data breaches.
- Additional testing categories included in the market landscape are IAST and RASP, both supporting enhanced runtime and interactive security capabilities.
- Within application segments, web applications hold the largest share as organizations prioritize safeguarding APIs, websites, and online interfaces from cyberattacks and data theft.
- Mobile applications represent the fastest-growing category, projected to witness a 12.5% CAGR from 2025 to 2030, fueled by rising concerns over malware, financial fraud, and personal data security.
- By component, solutions dominate with a 70% share in 2024, reflecting the growing need to manage open-source risks and integrate developer-friendly security platforms into the development lifecycle.
- The services segment is poised for the fastest growth, as companies increasingly outsource application security management due to the shortage of in-house expertise in software testing and security strategy.
- Solutions offered across the market span security testing tools, API security, container security, and other application-focused technologies, while services include professional and managed offerings.
- Deployment-wise, on-premises solutions lead the market, supported by enterprises seeking complete control over sensitive data and internal security policies.
- Cloud-based deployments are expected to expand at a higher CAGR through 2030, benefitting from affordable hosting, remote accessibility, and reduced dependency on physical infrastructure.
- Regionally, the West dominates due to its concentration of tech giants—Google, Apple, Microsoft, and Amazon—and strong presence of universities and research centers specializing in cybersecurity.
- The South is projected to be the fastest-growing region, supported by emerging tech hubs in Austin, Atlanta, and Miami, and a policy environment favorable to digital innovation.
- The market remains highly fragmented, with leading players including IBM Corporation, Synopsys Inc., Require Security Inc., Open Text Corporation, Onapsis Inc., Cloudflare Inc., Guardsquare nv, Checkmarx Ltd., New Relic Inc., Broadcom Inc., Qualys Inc., and Rapid7 Inc.
- Strategic activities such as mergers, acquisitions, and product launches continue to shape the competitive landscape, strengthening vendor portfolios and expanding advanced security offerings.
- Notable developments include Require Security’s 2023 launch of Falcon, a next-generation RASP solution; New Relic’s 2023 debut of an IAST solution with enhanced detection accuracy; and Synopsys’ 2023 partnership with NowSecure and Secure Code Warrior to broaden its application testing capabilities.
- Additional market progression is driven by Qualys’ acquisition of Blue Hexagon’s assets in 2022, reinforcing its cloud platform and bolstering real-time threat detection capabilities.