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 & Public Sector), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Software Testing Market size exceeded USD 40 billion in 2020 and is estimated to grow at over 7% CAGR from 2021 to 2027. Growing technological developments in artificial intelligence, machine learning, and CI/CD for the IT sector are likely to boost the industry growth. AI improves the overall test performance by providing enhanced visual validation, high accuracy, and flexibility in the software testing process.

In the software industry, the growing adoption of web-based applications for remote working is augmenting the demand for AI-based solutions. Various companies are engaged in integrating these technologies into their software testing tools to ensure software efficiency, fueling market growth. Major industry players are investing in the integration of AI technology to provide high-quality software solutions to clients and improve their market position.
 

Get more details on this report - Request Free Sample PDF
 

Increasing consumer interest in digital services such as online banking, online education, telemedicine, and online shopping will support the software testing market demand. These digital services are highly dynamic as they are constantly updating their products & services, necessitating continual testing and development of the mobile apps. Several companies are working on developing new test frameworks and tools to reduce the time taken to test mobile apps. The increased need for efficient and cost-effective procedures to detect software flaws in IT firms is expected to drive the market revenue.
 

The COVID-19 pandemic has accelerated software testing solutions in IT, telecom, BFSI, retail, and manufacturing, among other industries to achieve faster delivery times and better customer experience. Lockdowns have resulted in increased adoption of cloud computing solutions, both in terms of cloud software testing and SaaS services. The pandemic has positively influenced the market trend toward working from home, creating a high growth opportunity for AI-based automated software testing for various remote software applications and IT infrastructure maintenance.
 

Growing demand for mobile-based software applications will spur the market growth for regression testing

Get more details on this report - Request Free Sample PDF
 

The regression testing under the functional application testing segment held more than 8.5% of the market share in 2020 and is anticipated to register growth rate of around 8% through 2027. Rising penetration of smartphones and increased demand for integrated mobile applications will propel the regressive software testing market demand. Regression testing reintroduces previously addressed bugs and aids in the discovery of new bugs while updating apps, increasing its demand in mobile applications. This has encouraged several companies to adopt regression testing as a service in their offerings.
 

For instance, in October 2020, Application Software Technology (AST) LLC, an U.S.-based company, launched its new automated Testing-as-a-Service (TaaS) platform, which aids in the speeding up of test cycles for Oracle Cloud applications. By enabling robotic regression testing, this platform ensures cross-browser compatibility.
 

Increasing usage of secured software systems in BFSI will create market opportunities for software testing service providers

Get more details on this report - Request Free Sample PDF
 

The BFSI application captured over 28.5% of the software testing market share in 2020 and is projected to witness 5.5% CAGR till 2027. Growing adoption of digital software services in banking applications will fuel the industry demand. Rising complexities and a wide range of dependencies on software applications are encouraging the acceptance of the software testing process for continuous monitoring in banking institutes.

Furthermore, the rising adoption of mobile wallets for connected banking systems and financial transactions across Europe will propel the demand for testing services in the banking industry. According to Capgemini’s World Payment report 2020, the number of mobile wallets in 2019 was 2.3 billion, which is expected to cross the 4 billion mark by 2024 with 50% of the world’s total population.

Favorable government initiatives to promote digitalization in Asia Pacific will accelerate market size software testing

In 2020, Asia Pacific software testing market accounted for about 20% of the revenue share and is set to observe 8.5% gains during 2021 to 2027. Growing government initiatives and investments to promote digitalization in countries such as India, China, and Japan. For instance, in March 2021, the South Korean government announced plans to invest USD 267 million to support the country's growing trend of online retail services. This investment is attributed to the coronavirus epidemic as consumer shopping habits have shifted toward digital shopping.

Focus on new strategic initiatives to remain competitive in the industry

Prominent players in the software testing market include Wipro Limited, TCS, Tech Mahindra Limited, Siemens AG, Robert Bosch GmbH, Qualitest, Microsoft, Infosys, IBM Corp., HCL Technologies, Google LLC, and Cognizant, among others. These industry participants are extensively engaged in new strategies, such as mergers and acquisitions, to drive their product offerings and stay competitive in the market.
 

In February 2021, Qualitest acquired QA InfoTech, an independent quality assurance company. The company aims to strengthen its testing capabilities and enhance its client delivery services. Similarly, in February 2021, Denim Group collaborated with NowSecure, a provider of mobile application testing software and services. With this collaboration, the company aims to offer a scalable & uniform approach to ingest security test data from any tool in the pipeline, prioritizing vulnerabilities, and driving the remediation process for companies & organizations.
 

This software testing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Component

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

Market, By Application

• IT & Telecom
• BFSI
• Manufacturing
• Retail
• Healthcare
• Transportation & logistics
• Government & public sector
• Others

The above information has been provided for the following regions and countries:

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