Latest global application security market trends reveal the possibility of reaching a $10.26 billion value by 2023 growing at a CAGR of 23.4% from 2016 to 2023. The application security market is seeing a rapid growth primarily fuelled by the increase in the number of cyber-attacks and their sophistication, strict government regulations and growing smartphone penetration and adoption. Additionally, the space has seen a lot of investments by venture capitalists and private equity investors giving rise to a bunch of rising cybersecurity startups in the world.
A few other factors have also contributed to the growth of the application security market including the development and adoption of Internet of Things (IoT), digitization and automation in the industrial space, and technological development in the finance space especially in the emerging economies such as the Asia Pacific and the Middle East.
Key Application Security Marketing Trends
Rising data repositories in the top organizations around the world
Organizations and governments today are collecting unimaginable amounts of data and consumers, users and citizens. With the increasing pile of data, there is significant requirement to also keep it robust and secure. In order to do that businesses often have to reply on a variety of security systems to be able to have a 360 degree view of their threat landscape. Identifying, rectifying, securing loopholes, and preventing future attacks all fall under the scope of application security testing providers.
Increase in smartphone adoption
Smartphones have seen rapid growth and adoption in less than a decade. With the increase in smartphones there has been a rapid increase of the variety of applications that run on smartphones as well. Protection of these applications is vital and cannot be ignored. Risk factors have only increased and that has increased the demand for security of these applications as well.
Interactive Application Security Testing (IAST) is expected to grow at the highest CAGR during the forecast period.
As seen in increasing cyber attacks, the application layer is a prime target for hackers to get access to sensitive information. As the market sees an upward trend, the Interactive Application Security Testing sub-segment is expected to grow at the highest CAGR during the forecast period.
Banking, Financial Services, and Insurance (BFSI) vertical is expected to have the largest market size by the end of the forecast period.
The Banking, Financial Services, and Insurance sector has always been one of the early adopters of new technology. The BFSI sector will continue to see the higher adoption in the application security market as well. With increasing use of web and mobile application for banking operations and transactions, it is essential for the sector to invest heavily in cybersecurity systems.
Additionally, the government sector, defense, retail and telecom sectors will also be major contributors to the growth of the application security market.
North America is expected to dominate the application security market during the forecast period.
North America is estimated to hold the largest share in the global application security market in 2017 due to its fast adoption of latest technologies, the presence of major application security solution vendors, and strict government and industry regulations with respect to the deployment of IT tools for business processes. This results in the extensive implementation of security policies to prevent cyber threats.
Mobile application security segment will grow faster
Among the various segments of application security, mobile application security testing is anticipated to have a higher growth rate during the period 2018-2023. Increasing smartphone users, popularity of Bring Your Own Device (BYOD) and increasing needs in the enterprise mobility space are catalysts to the growth of the mobile application security segment.
Asia Pacific region is poised for significant growth
Rising digitalization of businesses, new cloud services and rise of fin-tech companies have put Asia Pacific on a significant growth curve. Protecting the largest population of smartphone users is definitely going to be a key driving factor in this region’s growth going ahead.
Application Security Market Trends Summary
The major driving factors of the Global Application Security Market are as follows:
• Increase in security breaches targeting businesses and governments
• Growth of mobile and web based applications
• Strong regulatory and compliance requirements
Due to the rapid increase in attacks on business systems and government services around the world, organizations are rapidly exploring and deploying combinations of security solutions to keep themselves and their users safe. The need to protect data and applications from sophisticated attacks, need to adhere to compliance and regulatory requirements, and increased use and adoption of third-party applications will all continue to contribute to the rapid growth of the application security market.