Software Testing Market Size - By Component (Application, Services), By Type (System Integrator, Pureplay Software Testing), By Industry (Mobile, Web-based), By Business Type (B2B, B2C), By Application & Forecast, 2024 - 2032

Software Testing Market Size

Software Testing Market size was valued at USD 51.8 billion in 2023 and is estimated to register a CAGR of over 7% between 2024 and 2032, driven by increasing product launches and innovations by big companies. As technology evolves rapidly, companies are constantly under pressure to provide superior software solutions to meet the dynamic needs of their users. This increasing demand for error-free software has stimulated the market for advanced testing tools and techniques.
 

For instance, in May 2024, application security (AppSec) innovator NightVision offered a new software testing security solution designed to help developers identify, analyze, and fix exploitable vulnerabilities throughout the software development lifecycle (SDLC).
 

Companies have previously invested in sophisticated testing frameworks and automation tools to streamline the software development life cycle. Innovations such as AI-driven testing, continuous integration, and delivery of continuous use (CI/CD) pipelines are changing the industry by increasing the accuracy and effectiveness of defect detection.
 

Additionally, the adoption of agile DevOps practices has created a need for continuous testing to ensure that new software is properly tested before deployment. This trend could continue as organizations seek to deliver increased competitive advantage by providing reliable and robust software products. Consequently, the software testing market is poised for sustained growth, driven by leading companies’ relentless demand for innovation and excellence.
 

Despite the potential growth of the software testing market, there are several constraints. The high costs associated with advanced test equipment and automation can be prohibitive for SMEs. In addition, the lack of experienced staff in modern testing methods hinders effective implementation. Rapidly evolving technologies also pose challenges in keeping testing systems up to date. Furthermore, it is difficult to seamlessly integrate testing into agile DevOps methodologies, further limiting market expansion. Addressing these challenges is critical to sustainable development.
 

Software Testing Market Trends

The software testing industry will record commendable growth, with an increasing number of events and seminars playing a crucial role in advancing industry practices and know-how. These events provide professionals with ways to share insights, discuss emerging trends, and share tools. Major industry events such as the International Conference on Software Testing, Testing and Certification (ICST) and Agile Testing Days have become key venues for networking and collaboration.
 

Such conferences highlight significant factors, such as the widespread adoption of AI, in testing and machine learning, which increases accuracy and efficiency in defect detection. They also highlight the transition to continuous testing on agile and DevOps environments and emphasize the importance of seamlessly integrating testing into the software development lifecycle. Additionally, this information generates internal stakeholders who set new standards and best practices, leading to the adoption of automated analytical methods. As a result, the software testing market benefits from new ideas and constant technological developments, moving the industry forward.
 

Citing an instance, in May 2024, a software testing session in collaboration with software company DCKAP QA Touch was held at the technical park of Prathidwani, a welfare organization for IT professionals at Technopark. The event marked the 112th edition of a program aimed at enhancing the technical skills of IT professionals.
 

Software Testing Market Analysis

Based on the component, the market is divided into application and services. The application segment accounted for a market share of over 54% in 2023 and is set to exceed USD 53.6 billion by 2032. Businesses today consist of many components, including microservices, APIs, and third-party integrations, each of which requires careful testing to ensure seamless functionality.
 

While businesses require efficient and secure applications, the need for robust testing solutions becomes critical. Organizations are increasingly adopting automated testing tools to meet the complex testing needs of these products, ensuring efficiency in large systems. Furthermore, providing error-free implementation is driving the demand for thorough testing in all aspects of the application. This trend highlights the importance of effective software testing to maintain application reliability, security, and performance, thus driving market growth.
 

Based on type, the software testing market is categorized into system integrator and pureplay software testing. The system integrator segment accounted for around 68% of the market share in 2023. System integrators are responsible for ensuring interoperability between software components and platforms, which requires rigorous testing to identify and fix problems before deployment.
 

With enterprise systems becoming increasingly complex, integrating new technologies such as cloud services, IoT, and AI requires careful testing to ensure compatibility and functionality. System integration needs experimentation of advanced solutions to validate integration points, increase security, and improve overall system performance. The push for digital transformation in the industry further increases the need for robust testing frameworks, driving the demand for specialized testing services from integration systems. This trend highlights the critical role of software testing and further its emphasis on achieving seamless system integration and efficiency.
 

North America is the fastest-growing region in the global software testing market with a major share of around 47% in 2023. As businesses across industries embrace digital transformation initiatives, the need for robust testing solutions to ensure software reliability, security, and performance has become paramount.
 

In North America, industries such as healthcare, finance, and retail are particularly focused on integrating advanced software systems, requiring full testing frameworks for Agile and high-level DevOps methodologies. This is an ongoing requirement for ongoing testing to ensure that new software and implementations are free from complications and errors. Furthermore, stringent regulations and a focus on cybersecurity have increased the importance of comprehensive testing. This regional requirement highlights the critical role that software testing plays in maintaining competitive advantage and business excellence in a rapidly evolving technological environment.
 

Demand for software testing is growing tremendously in the U.S. due to the nation's strong focus on technological innovation and digital transformation. Companies in this industry, including finance, healthcare, and retail, are investing in software systems as they advance internally to ensure reliability, security, and optimal performance. The adoption of Agile and DevOps methodologies emphasizes continuous testing, driving demand. Additionally, stringent regulations and increased cybersecurity concerns require appropriate testing protocols. This growing demand highlights the increasing importance of software testing in ensuring complex software systems work seamlessly in the US market to maintain a competitive advantage.
 

Software Testing Market Share

Accenture, Cognizant and IBM hold a significant share of over 29% in software testing industry, these companies offer end-to-end testing solutions, including manual and automated testing, performance testing, and security testing, tailored to diverse industry needs. Their extensive client bases across various sectors, such as finance, healthcare, and retail, provide them with a consistent demand for testing services.
 

Additionally, their significant investments in advanced technologies like AI and machine learning enhance their testing capabilities, ensuring higher efficiency and accuracy. Their strong focus on innovation, combined with robust delivery frameworks and extensive expertise, solidifies their leadership positions in the market.
 

Software Testing Market Companies

Major companies operating in the software testing industry are:

• Accenture
• Capgemini
• Cognizant
• IBM
• NTT Data
• TCS
• Wipro
   

Software Testing Industry News

• In 2023, Wipro won two prestigious awards at The North American Software Testing Awards (NASTA). The awards were presented for "Best Test Automation Project – Functional" in recognition of Wipro's Argobima collaboration and "Best Advanced Software Testing Practice", in recognition of Wipro's partnership with TJX.
   
• In April 2024, TestGrid, an innovator in automation testing in cloud and on-premises environments, proudly introduced CoTester. This groundbreaking AI technology represented a major advance in software testing, offering unparalleled potential.
   
• In October 2023, Volvo Cars opened a state-of-the-art software testing facility in Gothenburg, Sweden, to develop comprehensive software testing capabilities at all levels. The project had an initial investment of approximately SEK 300 million (~US$ 27.4 million).
   

The software testing market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipments (Units) from 2021 to 2032, for the following segments:

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Market, By Component

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

Market, By Application

• IT
• Telecom
• BFSI
• Manufacturing
• Retail
• Healthcare
• Transportation & Logistics
• Government & Public sector
• Consumer electronics
• Media
• Others

Market, By Type

• System integrator
• Pureplay software testing

Market, By Industry

• Mobile
• Web-based

Market, By Business Type

• B2B
• B2C

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Chile
  • Rest of Latin America 
• MEA
  • South Africa
  • Israel
  • Bahrain
  • Kuwait
  • Oman
  • Qatar
  • UAE
  • Saudi Arabia
  • Rest of MEA