Application Testing Services Market - Forecasts from 2024 to 2029

The application testing services market is evaluated at US$49.488 billion for the year 2022 and is projected to grow at a CAGR of 13.21% to reach a market size of US$117.317 billion by the year 2029.

Application testing services are a comprehensive portfolio of solutions that help enterprises across different industries reduce the risk of application or system failure while ensuring the effective, efficient, and consistent operation of the organization's systems to meet the expectations of both business users and customers. With growing competition, enterprises cannot risk the performance of applications and systems. As such, robust and standardized quality assurance and testing procedures of software and systems are invaluable in providing a level of confidence and enhancing the enterprise's reputation. As technology becomes more complex, the addition of mobility, analytics, and the cloud is fundamentally changing the way businesses do business while opening up new channels to customers.

As such, the business demands the highest level of application availability and stability. Testing teams are constantly under pressure to test applications quickly and thoroughly to support a wide range of end-user devices such as laptops, smartphones, and tablets without compromising quality or speed of delivery while managing their digital transformation. Application testing services help companies improve their financial position through cost reduction with an end-to-end testing strategy.

MARKET TRENDS:

The growing popularity of mobile applications, web applications, and software is encouraging businesses to invest in advanced technologies such as artificial intelligence (AI) and machine learning in order to provide high-quality software and applications. Since these technologies aid in the collection and analysis of data used to perform testing services, the demand for application testing services backed by AI and machine learning is increasing to improve accuracy and predict failure points, thereby positively impacting the overall market growth.

The increasing adoption of automation across various industries is driving up demand for test automation services, which in turn is driving up the market for application testing services. As a large volume of data aids in testing and verification, the growing volume of big data is also contributing to the growth of the application testing services market. However, security concerns associated with the successful running of applications are currently hindering the application testing services market from reaching its full potential. The number of cases of cyber-attacks via web applications has steadily increased in recent years, making security a major concern for application testing service providers.

MARKET DRIVERS:

• The rising complexity of applications is anticipated to propel the market.

The application testing services market is significantly impacted by the growing complexity of programs, which calls for a more advanced and all-encompassing approach to quality assurance. Testing services need to change to provide a wider testing scope as applications become more complex with sophisticated features, integrations, and varied capabilities. As sophisticated applications need to be thoroughly examined from several angles, there is an increasing need for a variety of testing kinds, such as functional, performance, security, and usability testing. The necessity of testing services to guarantee smooth interactions and interoperability is further highlighted by integration issues brought on by a number of components and external services.

• Increased adoption of agile and DevOps practices might impact market growth.

The application testing services market has seen a dramatic change as a result of the growing use of Agile and DevOps methodologies. Testing is incorporated early in the development lifecycle due to Agile techniques' emphasis on iterative development and quick releases, which calls for a paradigm change towards continuous testing. Testing services must be in perfect sync with the accelerated development cycles of Agile and DevOps approaches to provide faster feedback loops and guarantee software quality throughout. In this situation, automation becomes essential since automated testing technologies make it possible to execute tests at different phases of development quickly and effectively. Agile and DevOps' collaborative approach highlights how important it is for testing services to collaborate well with development and operations teams to promote a culture of continuous improvement.

• The IT and Telecom sectors are projected to witness substantial market growth.

By industry vertical, the IT and telecom sectors are anticipated to grow at a noteworthy pace during the forecast period. Large telecom service providers are increasingly demanding application testing services to reduce application development and maintenance costs while enhancing application performance by streaming their quality assurance and testing processes. The BFSI sector might also witness good market growth to ensure seamless services to its customers while simplifying the application portfolio. The increasing use of mobile and online banking applications is significantly boosting the demand for application testing services across this sector to reduce the risk of migration and ensure error-free applications.

North America is anticipated to hold a sizable market share throughout the forecast period.

Geographically, the application testing services market is segmented into North America, South America, Europe, the Middle East, and Africa (MEA), and Asia Pacific (APAC). Early adoption of new advanced technologies, as well as the presence of major market players in the North American region, support the growth of this regional market. Strict quality control and inspection regulations in North American countries drive the demand for application testing services across a variety of end-use industries. As a result, growing industries such as retail, healthcare, telecom, and information technology in countries such as the United States and Canada are contributing to the overall growth of the regional market.

The APAC application testing services market is also predicted to experience a significant CAGR during the forecast period. The increasing adoption of digitalization across various industries is increasing the demand for application testing services to ensure the smooth operation of the production process, as these services help improve the performance, usability, functionality, and consistency of various applications. The APAC application testing services market is expected to grow significantly during the forecast period owing to the increasing investments across industries, especially BFSI, and retail, in digitalization and using various applications to run their operations smoothly and efficiently.

Key Developments:

• In August 2023, the introduction of Synopsys Software Risk Manager, a potent new application security posture management (ASPM) solution, was announced by Synopsys, Inc. Security and development teams may simplify, unify, and streamline application security testing across projects, teams, and application security testing (AST) solutions with the help of a Software Risk Manager.
• In February 2023, the most prominent awards event in the industry, the AI R&D Awards, recognized Audacix, a major supplier of cutting-edge software solutions, as the Best Global Software Testing Company.
• In April 2022, a customized and all-inclusive blockchain testing services solution was introduced by QASource, the top provider of software quality assurance services globally, to test blockchain applications for integrity, authorization, non-repudiation, access, secrecy, and authentication.
• In February 2022, the world's top software testing platform, BrowserStack, announced the introduction of BrowserStack Champions, a community initiative to identify, honor, and unite the best figures in software development and testing.

Segmentation:

By Testing Type

• Functionality Testing
• Security Testing
• Performance Testing
• Compliance Testing
• Others

By Service Type

• Professional Services
• Managed Services

By Delivery Model

• Onshore
• Offshore
• Nearshore
• Hybrid

By Enterprise Size

• Small
• Medium
• Large

By Industry Vertical

• BFSI
• IT and Telecom
• Healthcare
• Retail
• Media and Entertainment
• Logistics and Transportation
• Government
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others