Software Testing Market size valued at USD 45 billion in 2022 and is anticipated to grow at 5% CAGR from 2023 to 2032. Driven by the surging usage of mobile-based applications.
Increasing demand for mobile-based applications for transactions, entertainment, gaming, and other purposes has increased the need for continuous application updates for a seamless user experience. In this regard, testing the software of mobile applications helps optimize the functionality, performance, and appearance of apps across multiple devices. It also helps identify bugs in the development process which can be fixed before launching an app.
|Market Size in 2022:||USD 45 billion|
|Forecast Period:||2023 to 2032|
|Forecast Period 2023 to 2032 CAGR:||5%|
|2032 Value Projection:||USD 90 billion|
|Historical Data for:||2018 to 2022|
|No. of Pages:||430|
|Tables, Charts & Figures:||489|
|Segments covered:||Component, Type, Application|
|Pitfalls & Challenges:|
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In fact, due to growing demand for mobile applications, many companies are emphasizing extending their footprint in the mobile testing space which is likely to supplement software testing market growth. Citing an instance, in October 2022, Keysight Technologies, Inc., a U.S.-based electronics company, announced the launch of AI-driven testing by enhancing its Nemo Device Application Test Suite to optimize experience on 5G smartphones.
Prohibitive implementation cost of automation testing may constrain industry growth
High setup cost including subscription fees and licensing for automation tools adds to the overall cost of automation testing, which may make it out of reach for many organizations, restraining the software testing market demand. In addition, automation testing incurs high initial investment and maintenance costs, which compel many organizations to turn to manual testing. Moreover, such tests also require highly trained people with technical expertise for continuous management, which makes it difficult for many organizations to manage such resources.
Rise in spending by firms in software development to spur the demand for application testing
Based on component, software testing market from the application testing segment is poised to reach USD 50 billion by 2032, on account of rising spending by organizations in software development for product safety and data security. In fact, in October 2022, Tricentis, an Austrian software company, expanded its test automation, performance testing, and test management capabilities through the launch of Tricentis Test Management for Jira, Tricentis Test Automation for Salesforce, and Tricentis NeoLoad 9.0 for application quality improvement. Moreover, automating application testing offers a host of benefits to an organization such as fewer expenses, quick outcomes, and others.
Growing number of online transactions to impel demand for software testing for BFSI applications
With respect to application, software testing market from the BFSI segment is expected to cross USD 20 billion by 2032.Banking software applications are used for money transfers, withdrawals, deposits, balance inquiries, and other operations. Customers can access these services through different channels including customer care, ATM, and online banking which call for a dependable software application. Moreover, software testing allows checking a banking application’s performance, security, and functionality, which favors its adoption in BFSI space.
Furthermore, the growing number of online transactions has also bolstered the demand for software testing for BFSI applications. In fact, during 2020-21, the share of online transactions in total volume of non-cash payments rose to 98.5% in India.
Surging adoption of electric vehicles to strengthen the North America software testing market
North America software testing market is slated to surpass USD 40 billion by 2032, due to rising adoption of electric vehicles has propelled the demand for reliable testing solutions in the region. In fact, the Federal government has a target of making 50% of new vehicles sold in the U.S. in 2030 zero-emission vehicles, which is likely to hasten the market demand.
The segment expansion can also be attributed to growing usage of smart consumer products including smart home appliances such as gaming consoles, smart TVs, gaming consoles, and others. Moreover, software testing can detect errors, which is crucial in checking whether the appliance meets compliance requirements.
Product innovations to outline competitive landscape for market
Some of the leading companies operating in the software testing market include Infosys Limited, L&T Technology Services Limited, Micro Focus International plc, HCL Technologies Limited, International Business Machines (IBM) Corp., and Accenture. Many of these firms are emphasizing product innovations to outperform their competitors. Citing an instance, in June 2022, Cyient, an Indian multinational technology company, released AI-Powered Framework for Automated System and Software Testing (CyFAST) for the acceleration of end-to-end test automation.
The platform offers a comprehensive ecosystem for the management of testing projects while enabling end-to-end test automation across mobile, web, desktop, and embedded application and hardware devices. The new launch will strengthen the company’s V&V capability while reducing test cycles.
Impact of COVID-19 on software testing market trends
The COVID-19 pandemic had a positive impact on software testing industry on account of rising number of online transactions which required software testing for security of banking applications. Moreover, surging number of online purchases also proliferated the demand for software testing for mobile-based applications. In fact, in 2020, online sales increased to a record high of over 33.9% as a share of overall retail investments in the UK alone.
Furthermore, the industry is set to witness lucrative gains in the post-COVID-19 era as well owing to growing investments by organizations in software development which will necessitate testing.
This software testing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032, for the following segments:
Market, By Component
- Application testing
- Functional Testing
- System testing
- Unit testing
- Integration testing
- Smoke testing
- Regression testing
- Non-Functional Testing
- Security testing
- Performance testing
- Usability testing
- Functional Testing
Market, By Application
- Transportation & logistics
- Government & public sector
- Consumer electronics
Market, By Type
- System integrator
- Pureplay Software testing
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Saudi Arabia
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