• In May 2024, GRC Group acquired UK’s Pentest People—a leading penetration-testing-as-a-service provider—integrating it with Bulletproof and Target Defense under Inflexion-backed cyber division.

• In March 2024, F5 Inc. acquired Denmark’s Heyhack ApS, bringing its automated security reconnaissance and penetration-testing SaaS under F5’s Distributed Cloud Services platform.

In this report, the Penetration Testing Market has been segmented by Components, Deployment Mode , Organization Size , Verticals, Application, and Geography.

Penetration Testing Market, Segmentation by Components

The Penetration Testing Market has been segmented by Components into Solutions and Services.

Solutions

The Solutions segment accounts for nearly 60% of the Penetration Testing Market. These include automated tools, vulnerability scanners, and penetration testing software used to identify and mitigate security gaps. With increasing threats targeting enterprise networks, demand for scalable and real-time threat detection solutions continues to rise significantly.

Services

Comprising approximately 40% of the market, the Services segment plays a critical role in offering manual penetration testing, consulting, and compliance assessments. These services help organizations meet regulatory standards and proactively identify security vulnerabilities. Growing reliance on third-party expertise is driving expansion in this segment.

Penetration Testing Market, Segmentation by Deployment Mode

The Penetration Testing Market has been segmented by Deployment Mode into Cloud and On-Premises.

Cloud

The Cloud segment represents around 58% of the Penetration Testing Market, driven by growing adoption of cloud-native applications and increased reliance on remote infrastructure. Organizations are deploying cloud-based security tools to enable scalable, on-demand, and cost-effective penetration testing solutions. This trend is accelerating due to the rise in multi-cloud environments.

On-Premises

On-premises deployment holds nearly 42% of the market, preferred by businesses that prioritize data sovereignty and internal infrastructure control. These solutions offer enhanced customization and are widely used in sectors with strict regulatory compliance needs. Despite the cloud shift, on-premises models remain vital for high-security environments.

Penetration Testing Market, Segmentation by Organization Size

The Penetration Testing Market has been segmented by Organization Size into Large Enterprises and Small & Medium-Sized Enterprises (SMEs).

Large Enterprises

Large enterprises make up about 63% of the Penetration Testing Market, driven by their expansive IT infrastructures and strict compliance requirements. These organizations prioritize robust cybersecurity strategies and conduct regular penetration tests to identify vulnerabilities. Their larger budgets also support adoption of advanced testing tools and third-party services.

Small & Medium-sized Enterprises (SMEs)

SMEs account for nearly 37% of the market, with growing adoption of cost-effective penetration testing solutions to mitigate rising cybersecurity threats. Cloud-based testing platforms and managed security services are making it easier for smaller organizations to implement proactive security measures. Budget-conscious yet increasingly aware, SMEs are becoming active participants in the market.

Penetration Testing Market, Segmentation by Verticals

The Penetration Testing Market has been segmented by Verticals into Banking, Financial Services and Insurance (BFSI), Healthcare, Information Technology (IT), Telecom, Retail & eCommerce, and Education.

Banking, Financial Services and Insurance (BFSI)

The BFSI sector dominates the Penetration Testing Market with an estimated 29% share. Financial institutions rely on penetration testing to secure online banking platforms, protect customer data, and ensure compliance with strict regulatory frameworks. Increasing cyberattack incidents are pushing banks to invest heavily in proactive security measures.

Healthcare

Healthcare contributes approximately 18% to the market, driven by the need to protect electronic health records, connected medical devices, and telehealth systems. Penetration testing is crucial in this sector to detect vulnerabilities and maintain HIPAA compliance while safeguarding patient privacy.

Information Technology (IT)

The IT sector holds around 22% of the market, as tech firms seek to secure software platforms, cloud services, and infrastructure solutions. Frequent code releases and agile development cycles necessitate continuous vulnerability assessments and penetration testing protocols.

Telecom

Telecom companies account for close to 11% of the market, focusing on securing network infrastructure, 5G deployments, and communication gateways. Penetration testing plays a critical role in mitigating DDoS attacks, data breaches, and unauthorized intrusions.

Retail & eCommerce

This vertical represents nearly 13% of the market, driven by the need to secure payment gateways, user credentials, and transaction data. Penetration testing is essential to prevent fraudulent activities and protect digital storefronts from evolving cyber threats.

Education

The Education sector contributes about 7% of the market as institutions digitize learning environments and expand online services. Penetration testing helps secure student information systems, protect intellectual property, and ensure network integrity across campus and remote platforms.

Penetration Testing Market, Segmentation by Application

The Penetration Testing Market has been segmented by Application into Web Application, Mobile Application, Network Infrastructure, Social Engineering, and Cloud.

Web Application

The Web Application segment leads the market with nearly 36% share, driven by the growing volume of online platforms and web-based services. Organizations rely on penetration testing to detect injection flaws, authentication gaps, and access control vulnerabilities in dynamic websites and APIs.

Mobile Application

Mobile Application penetration testing accounts for around 20% of the market, as the use of smartphone apps for banking, healthcare, and eCommerce continues to surge. Testing is focused on identifying data leakage, insecure storage, and unauthorized access to mobile user data and device features.

Network Infrastructure

This segment holds approximately 25% of the market, targeting firewalls, routers, switches, and other networking equipment. Penetration testing in this domain helps organizations uncover configuration flaws, weak protocols, and unpatched systems that expose internal and external assets.

Social Engineering

Social Engineering testing contributes close to 10% of the market, simulating phishing attacks, pretexting, and physical intrusion tactics. This application segment evaluates employee awareness and organizational resilience to manipulation-based threats.

Cloud

The Cloud segment represents about 9% of the market, focusing on testing the security configurations, access controls, and data integrity of cloud platforms. As more enterprises adopt hybrid and multi-cloud infrastructures, demand for cloud-specific penetration testing continues to rise.

Penetration Testing Market, Segmentation by Geography

In this report, the Penetration Testing Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Penetration Testing Market Share (%), by Geographical Region

North America

North America dominates the Penetration Testing Market with a share of approximately 38%, driven by stringent cybersecurity regulations and high awareness of data protection. The presence of leading security solution providers and widespread adoption of cloud infrastructure bolster market growth across the U.S. and Canada.

Europe

Europe holds nearly 26% of the market, supported by strong emphasis on GDPR compliance and cyber risk mitigation. Countries such as Germany, the UK, and France are actively investing in penetration testing services to secure enterprise networks and sensitive user data.

Asia Pacific

Asia Pacific contributes close to 21% of the market, led by rapid digital transformation in countries like China, India, and Japan. Increasing demand for cloud adoption, IoT security, and regulatory enforcement is fueling the uptake of penetration testing solutions across industries.

Middle East and Africa

This region represents around 8% of the market, where growing awareness of cyber threats and increased investments in critical infrastructure protection are contributing to adoption. Sectors such as oil & gas and financial services are key drivers of market growth in the region.

Latin America

Latin America holds roughly 7% of the global market, with countries like Brazil and Mexico leading demand. Expanding digital services, rising cybercrime incidents, and focus on regulatory compliance are accelerating the penetration testing landscape in this region.

This report provides an in depth analysis of various factors that impact the dynamics of Penetration Testing Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Cybersecurity awareness and regulations
• Increasing cyber threats and attacks
• Adoption of cloud computing services

• Emphasis on data protection laws - The increasing significantly influencing enterprise operations, especially those involving digital platforms and customer data. Regulations such as the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and others have created a framework where companies must prioritize data security, user consent, and compliance transparency. These laws are not just regulatory obligations but also essential for maintaining customer trust.

  Organizations must now adopt more stringent data governance policies, enhance their encryption protocols, and invest in compliance software to meet these evolving standards. Failure to comply can result in heavy financial penalties and severe damage to brand reputation. As a result, there's a surge in demand for privacy-focused platforms and secure enterprise architecture that aligns with legal mandates.

  The rise of data protection also impacts how organizations manage cross-border data transfers and interact with third-party service providers. Enterprises must reassess contracts, implement data residency solutions, and ensure real-time monitoring for breach detection. The legal environment has thus become a driving force behind the adoption of robust digital frameworks.

  In the long run, focusing on data protection not only helps mitigate legal risks but also serves as a market differentiator. Companies that lead with privacy-first strategies are more likely to attract customers, especially in industries handling sensitive information such as healthcare, finance, and legal services.

Restraints

• Lack of skilled cybersecurity professionals
• High costs associated with testing
• Complexity of testing methodologies

• Resistance to change traditional practice - A major obstacle to digital transformation across industries. Many organizations still rely on legacy systems and manual workflows, making them reluctant to adopt new models like cloud computing, model-based enterprise solutions, or automated analytics platforms. This resistance stems from organizational inertia, cultural reluctance, and perceived disruption to established workflows.

  Older systems are often deeply embedded in daily operations, and transitioning to modern solutions may require extensive retraining, process redesign, and temporary productivity loss. Additionally, senior leadership hesitance or lack of digital awareness can stall efforts to introduce innovative technologies. This reluctance can result in missed opportunities and lower operational efficiency.

  For digital transformation to succeed, change management strategies must be in place. This includes fostering a digital-first mindset, providing comprehensive training, and offering incentives for innovation. By aligning technological upgrades with business outcomes, resistance can gradually shift toward acceptance.

  This barrier is essential, as organizations that cling to outdated systems are more vulnerable to market disruptions, cybersecurity threats, and regulatory non-compliance. Encouraging a culture of adaptation and continuous improvement is key to long-term competitiveness in the digital age.

Opportunities

• Rise in IoT and BYOD trends
• Growth of mobile applications
• Emerging markets cybersecurity needs

• Integration with AI and automation - The growing enterprise workflows is reshaping how organizations operate, compete, and scale. Businesses are embedding artificial intelligence algorithms into processes such as predictive analytics, customer service automation, and real-time decision-making. This shift is driven by the need for greater efficiency, accuracy, and scalability.

  Automation tools such as robotic process automation (RPA) are being used to handle repetitive tasks like data entry, invoice processing, and compliance monitoring. AI-powered platforms enhance this by enabling smart recommendations, natural language processing, and automated learning capabilities. These technologies reduce human error, improve operational consistency, and allow employees to focus on value-added tasks.

  The synergy between AI and automation is also unlocking advanced capabilities in areas like predictive maintenance, fraud detection, and personalized marketing. Integration with existing enterprise systems, including ERP, CRM, and PLM platforms, ensures that intelligence is embedded across the full digital thread.

  As AI and automation technologies become more accessible and cost-effective, they will continue to be a central force in enterprise innovation. Companies that embrace this integration are better positioned for agile transformation, data-driven decision-making, and long-term growth in increasingly complex markets.

Key players in Penetration Testing Market include:

• IBM Security
• Rapid7
• FireEye Mandiant
• Trustwave
• Qualys
• NCC Group
• Coalfire
• Secureworks
• Check Point Software Technologies
• Synopsys

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis