Software Testing Market Size By Component (Application Testing, [By Type (Functional and Non-Functional)], Services [Professional and Managed], By Application (IT & Telecom, BFSI, Manufacturing, Retail, Healthcare, Transportation & Logistics, Government), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Dec 2019  |  Report ID: GMI3382  |  Authors: Preeti Wadhwani, Shubhangi Yadav

Report Format: PDF   |   Pages: 220   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Software Testing Market size exceeded USD 40 billion in 2019 and is expected to grow at a CAGR of over 6% from 2020 to 2026. Introduction of innovative approaches in software development, such as agile testing and agile methodologies is projected to drive the market demand.
 

Agile testing offers several benefits such as quick bugs removal, reduces post-deployment troubleshooting, and incorporates sudden changes. Companies are focusing on agile testing methods to deliver high-quality software applications and reduce the time-to-market. Agile testing requires higher resources that may distract the software development process; hence, the companies outsource their testing requirements with software testing service providers.
 

For example, Invensis Technologies provides quality software testing services to companies that help them to reduce the overall cost and enhance the software development life cycle. Agile software testing also helps to accelerate the quality of cloud services and develop solutions with minimum error percentage, which will boost the opportunity for software testing market revenue.
 

Software Testing Market
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Software testing is the process to evaluate & investigate the quality of software and identify gaps, error & missing requirement. It is a detailed methodology to validate and verify the software code and helps to develop efficient software that can meet the business requirement. The rising demand for efficient and cost-effective mechanisms to detect software errors in IT organizations is projected to drive the software testing market globally.
 

Growing digitalization across retail, banking, and manufacturing sectors is driving the demand for high-performance software applications to provide utmost user interactivity to make work more productive and efficient. IT companies are majorly focusing to develop bug-free software applications to gain competitive edge in the market by outsourcing many IT services to cut down their operating costs and enhance customer satisfaction, which will accelerate the demand for software testing in the forecasted years.
 

Software Testing Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 40 Billion
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 6% 2026 Value Projection: USD 60 Billion
Pages: 220 Tables, Charts & Figures: 426
Geographies covered (18): U.S., Canada, UK, Germany, France, Italy, Russia, Spain, China, India, Japan, South Korea, ANZ, Brazil, Mexico, Argentina, South Africa, Israel
Segments covered: Component, Application
Companies covered (21): Atos, Capgemini, CGI, Cigniti, Cognizant, CSC, HCL Tech, HPE, IBM, Infosys, NTT Data, Qualitest, SQS, TCS, Tech Mahindra, Wipro
Growth Drivers:
  • Growing adoption of AI and ML in software testing
  • Increasing agile testing
  • Growing digitalization in developing economies
  • Increasing adoption of DevOps
  • Growing consumption of mobile based applications
Pitfalls & Challenges:
  • Lack of skilled professionals

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Growing mobile applications to drive the demand for regression testing

The software testing market is segmented based on components into application testing and services. Application testing is sub-segmented by type into functional and non-functional. Application testing is performed through a script to find defects and errors in the software. It improves the quality of application, maximizes ROI, reduces cost, and helps to save time. Functional application testing includes system testing, unit testing, integration testing, smoke testing, regression testing, and others.
 

In North America, regression testing is the fastest-growing segment with a CAGR of over 8%. This is due to rising market trend for mobile applications, which require continuous upgrades. Regression testing confirms that the recent code or program is not affected by upgraded features. For instance, Apple is performing complete regression test automation for iOS 13 and iPad iOS to review security features and popups in the application. The rising evolution of mobile technologies is likely to accelerate the market opportunity for software testing.
 

The increasing demand for mobile applications among consumers for purchasing, money transaction, and entertainment requires continual upgrades in application to enhance the user experience, which will accelerate the software testing market growth.
 

Software testing helps to ensure functionality, quality, consistency, and integrity of the app, which will increase the demand among mobile application providers. Moreover, the rising usage of smartphones worldwide provides opportunities for mobile app developers and accelerates the demand for testing services.
 

Software testing market holds majority of share in BFSI application in Asia Pacific

Asia Pacific Software Testing Market By Application

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In Asia Pacific, the BFSI segment accounts for over 32% share in 2018. This is owing to rising demand for reliable software in banking applications, which is likely to propel the market share. Banking software offers various functions, such as deposit and transfer of funds, withdrawal, and balance enquiry, which require safeguard software system with zero error detection, accelerating the software testing market valuation.
 

The testing process in banking software requires more resources, time, and continuous monitoring owing to high complexities and a wide range of dependencies. Moreover, significant digitalization and growing market trend toward mobile services are influencing banking entities to develop enhanced applications for customers, which will boost the market size.
 

Growing digitalization in Asian countries in the software testing industry

Asia Pacific Software Testing Market By Region

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Asia Pacific is the fastest-growing region in the software testing market with a CAGR of over 8% through 2026 driven by rising adoption of digitalization in China and India. The government initiative in India has drafted investment and schemes to encourage digitalization in the country.
 

National Digital Literacy Mission or Digital Saksharta Abhiyan by the Indian government to promote digital literacy is projected to drive the market size in future. The scheme involves IT training of 52.5 lakh personals in the country. The presence of skilled IT professionals at low wages makes India the largest hub for outsourcing IT software and services.
 

Furthermore, the growth in online retail sector in China, Malaysia, and India due to rise in consumer income and lifestyle, adds an opportunity for companies in software testing market to enhance the user experience. The presence of major online retail players in the region such as Alibaba and Amazon is likely to generate more opportunity for web and application testing services. Alibaba has generated a revenue of USD 768 Billion in China retail sector, with an upsurge of 28% in 2018.
 

Business acquisitions are the major industry growth strategies

The software testing market is highly competitive due to presence of major market leaders worldwide with their broad service network. The prominent players in the market are Accenture, Cognizant, IBM, TCS, Infosys, Amdocs, HCL Tech. Wipro, Capgemini, and Atos.
 

The companies operating in the market are focusing on strategic merger & acquisitions to strengthen their presence in the industry. For example, in October 2018, Atos announced the acquisition of Syntel for USD 3.4 billion, which will enhance its BFSI offerings and footprint in North America. Also, in June 2019, Accenture has announced the acquisition of Deja vu Security to enhance its position in network development services and testing enterprises software.
 

The software testing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

By Component

  • Application testing 
    • By Type
      • Functional
        • System Testing
        • Unit Testing
        • Integration Testing
        • Smoke Testing
        • Regression Testing
        • Others
      • Non-Functional
        • Security Testing
        • Performance Testing
        • Usability Testing
        • Other 
  • Services
    • Professional
    • Managed

By Application

  • IT & Telecom
  • BFSI
  • Manufacturing
  • Retail
  • Healthcare
  • Transportation & Logistics
  • Government                                                                   

The above information is provided for the following regions and countries:

  • North America 
    • U.S.
    • Canada 
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia 
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ 
  • Latin America
    • Brazil
    • Mexico
    • Argentina 
  • Middle East & Africa
    • South Africa
    • Israel 

 

Frequently Asked Questions (FAQ) :

The rising demand for efficient and cost-effective mechanisms to detect software errors in IT organizations is projected to drive the demand for software testing globally.
In North America, regression testing is the fastest-growing segment with a CAGR of over 8% to 2026 due to rising market trend for mobile applications, which require continuous upgrades.
The Asia Pacific software testing market will grow at a CAGR of over 8% from 2020 to 2026 impelled by rising adoption of digitalization in China and India.
In Asia Pacific, the BFSI segment dominates the market with over 32% share in 2018 owing to rising demand for reliable software in banking applications.

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