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Automation Testing Market size worth around $40 Bn by 2027

  • Published Date: November 11, 2021

Automation Testing Market size is set to surpass USD 40 billion by 2027, according to a new research report by Global Market Insights Inc.

The growing adoption of AI and ML technologies in IT and telecom sectors is driving the need for automation testing services. AI offers enhanced visual validation, high accuracy & flexibility and increases the overall test performance in the testing process. The use of AI in testing provides the best coverage of the test suite and helps organizations to achieve practical outcomes such as faster results and lower business expenses. IT companies, such as IBM, Google, and Infosys, among others, are emphasizing on integrating the AI and ML technologies into their test automation tools to accelerate the time-to-market.

The adoption of AI-based automation services across diverse industrial verticals, such as retail, healthcare, automotive, and manufacturing, will further spur the automation testing market demand. This has positively influenced market players to increase their investments in AI and ML technologies to improve the automation testing process and strengthen their positions. For instance, in October 2021, Wi Labs invested USD 10 million in Autify, a Japan-based test automation startup. The company intends to use funds to expand its no code AI-based test automation platform into other core sectors.

Japan Automation Testing Market Size, By Component

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One of the major factors limiting the automation testing market is a scarcity of experienced professionals for quality testing. Due to the increased demand for high-level certified & trained professionals to conduct automation testing, the market is experiencing a resource shortage. Furthermore, it requires high setup costs that include license & subscription fees for automation tools, leading to delays in product testing, which will limit the acceptance of automation testing platforms & tools among small & medium-sized enterprise clients. The high implementation cost of automation testing instead of manual testing is limiting the growth.

Growing demand for regulatory-compliant software systems in banks

The compliance testing segment held over 3% of the revenue share in 2020 and is expected to grow at 18% CAGR through 2027. Rising usage of compliance management software systems by financial institutions and regulatory agencies is poised to fuel the compliance automation testing market revenue. Compliance testing ensures that specifications are followed, and the software system is portable & interoperable, enhancing the business operations. It provides several advantages such as implementation assurance, compliance error identification, and validation that the required standards are followed correctly.

The growing use of digital services in the BFSI sector, such as online money transfer, balance inquiry, and fund transfer, has increased the demand for compliance testing solutions. Institutions implement a risk & compliance data control framework that necessitates continuous testing to preserve & manage these financial data. Also, various government authorities are mandating BFSI compliance test to ensure that business systems adhere to the standards.

Browse key industry insights spread across 500  pages with 478 market data tables and 44 figures & charts from the report, “Automation Testing Market Size By Component (Testing Type {Functional Testing, Non-functional Testing}, Services {Advisory & Consulting, Planning & Development, Support & Maintenance, Documentation & Training, Implementation, Managed}), By End-point Interface (Mobile, Web, Desktop, Cloud, Embedded Software), By Application (IT & Telecom, BFSI [Banking, Financial Services, Insurance], Manufacturing, Retail, Transportation & Logistics, Government & Public Sector, Smart Consumer Devices, Automotive, Healthcare & Medical Devices), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:

Rising e-commerce industry to impel the mobile-based automation testing market

Mobile end point interface segment is projected to register growth rate of around 16% till 2027 driven by increased consumer interest in digital services such as online banking, online education, telemedicine, and e-commerce. These digital services are extremely flexible as companies are continuously upgrading new products & services, accelerating the requirement for continuous mobile app testing & development.

Several organizations are focusing on developing innovative test frameworks & technologies to speed up the testing process for mobile apps. For instance, in June 2021, Applitools released a new automated testing framework for mobile apps. The users can perform functional and visual tests more quickly, reliably, and securely with Visual AI-powered test cloud solutions. Such new product launches and increasing adoption of smartphones will propel the automation testing market from mobile end-use interface segment.

Proliferation of IoT technology in smart consumer devices

The smart consumer devices segment is estimated to witness about 21% gains from 2021 to 2027. Rising penetration of IoT & AI technology in smart home-connected appliances such as smart speakers, tablets, laptops, wireless security systems, smart TVs, and service robots will augment the market statistics. The increasing consumer preference toward the usage of smart devices to enhance home automation will provide market growth opportunities. Industry participants are focusing on developing new automated test platforms to address the testing of new consumer electronic devices.

Favorable government initiatives to promote digitalization in Asian countries

The Asia Pacific automation testing market size is anticipated to observe a CAGR of nearly 15% up to 2027 owing to the availability of skilled IT professionals in countries, such as India, Singapore, Malaysia, and Japan, at a comparative lower cost than North America and Europe. The enterprises in the region are offering IT outsourcing services and encouraging foreign companies to expand their operations through strategic collaboration & acquisition initiatives. For instance, in January 2021, TestingXperts (Tx), a QA & testing service provider based in London, expanded its operations in the Asia Pacific region by establishing a new office in Singapore.

Rising initiatives and funding activities by the governments in several economies will accelerate digitalization in the region. For instance, in June 2021, the Government of Singapore planned to invest USD 2.7 billion in ICT. This funding will be used to transform government digital services for residential & commercial customers, as well as re-engineering government digital infrastructure to support the modern app development.

The key players operating in the automation testing market include Atos, Accenture, Amdocs, HCL Tech., Wipro, Cognizant, IBM, TCS, Infosys, and Capgemini. Companies are constantly engaged in new strategies such as mergers & acquisitions to increase their product offerings and meet the industry's high demand.


Authors: Preeti Wadhwani, Prasenjit Saha