Application Security Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Solution, By Services, By Testing Type, By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Application Security Market Size & Trends

The global application security market size was estimated at USD 7.57 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 18.7% from 2024 to 2030.Factors such as preserving customer data security to foster customer confidence, safeguarding sensitive data from breaches, and enhancing confidence among key lenders and investors are the primary factors driving the growth of the market. In addition, the growing number of security breaches that target business applications, the growing popularity of mobile and cloud-based technologies, and the strict compliance and regulatory requirements for application security are the factors also propelling the growth of the market. Furthermore, there is a significant opportunity for growth in the market due to the increased demand for Software as a Service (SaaS)-based application security solutions.

The growing cybersecurity threats are one of the main factors propelling the market. In addition, due to the increasing reliance on the internet and digital technology, applications are now a prime target for cyberattacks. Organizations are increasingly making significant investments in strong application security solutions to safeguard sensitive data and uphold customer confidence as cybercriminals become increasingly skilled in their techniques. Thus, application security is becoming more and more crucial as companies become more conscious of the threats that hackers pose. With increased sophistication, hackers can now readily take advantage of application vulnerabilities to steal confidential data. Consequently, the market for application security is growing.

The next-gen application security platform discovers and visualizes all services, dependencies, application programming interfaces (APIs), and data flows. Thus, companies are leveraging application security platforms. For instance, in June 2023, Bionic, an application security platform developer, launched two new product features, Business Risk Scoring and Bionic Signals, to its application security platform, to assist engineers in streamlining the security threats they manually identify on a daily basis. Using information ingested from well-known security tools, Bionic Signals contextualizes vulnerabilities that pose the greatest risks to operational applications. Based on the quantity of associated vulnerabilities, their potential to compromise sensitive data due to architecture dependencies, and their potential to be exploited within the architecture's attack surfaces, Bionic Business Risk Scoring determines the relative risk of an application. When combined, these capabilities give engineering teams the rich data, context, and visibility they need to quickly identify, prioritize, and address critical threats before they affect the business. Thus, driving the growth of the market.

Businesses are increasingly using AI-driven methods to automate security application protection against open-source and third-party dependencies. In addition, end-users can improve their security posture, protect sensitive data from software supply chain attacks, and gain a better understanding of the behavior of their open-source libraries due to the innovative solution's advanced zero-trust capabilities. Thus, driving the growth of the market.

Market Characteristics

The growth of the market is high, and the growth’s pace is accelerating. The market is characterized by a high degree of innovation owing to the rapid advancements in various technologies Artificial Intelligence (AI), Machine Learning (ML), and big data analytics, among others. Further, emerging AI and cloud platforms are disrupting the current market and creating new opportunities for the stakeholders in the market.

Several key players are acquiring companies with substantial SaaS capabilities and market-leading dynamic application security testing (DAST) technology to expand their application security testing portfolios.

The market is also subject to numerous rules and regulations such as the Central Consumer Protection Authority, Health Insurance Portability and Accountability Act, and General Data Protection Regulation. Companies are entitled to comply with these rules regardless of their industry.

There are no direct substitutes for application security solutions. Application security platforms generate risk from both internal and external sources. In addition, it fosters customer confidence and protects customer data. It also prevents leaks of confidential information.

Application security industry growth is expected to be influenced by end-user concentration. These solutions are witnessing high demand owing to their sustainability and enhanced efficiency. The high need for customizable application security solutions to address the specific needs of the end-users creates challenges for emerging market players who are trying to establish their brand image in the market.

Component Insights

The solution segment led the market and accounted for a revenue share of more than 67.0% in 2023. Application security solutions identify and manage open-source and third-party component risks in the development and production of application security platforms. In addition, application security solutions identify and concentrate on the highest-priority issues by aggregating risk scores based on software composition, and static, and dynamic analysis when users filter across multiple security tests. It uses developer trend reporting to track enhancements over time. Therefore, these factors are collectively driving the growth of the segment.

The services segment is anticipated to witness the highest CAGR from 2024 to 2030. This application security service segment ensures application security software runs efficiently through the process. In addition, the demand for organizations to outsource their security model has increased due to the lack of skill sets and experience of in-house security professionals associated with software security testing, which has fueled the growth of the industry.

End-use Insights

BFSI segment accounted for the largest revenue share in 2023.In today's digitally connected world, the BFSI vertical is among the most prevalent industries vulnerabilities to application attacks. Banks and other financial institutions handle and retain a significant volume of sensitive consumer financial data, including account numbers, trading transactions, credit card and debit card details, payment information, and money transaction details. In order to shield applications from dangers and vulnerabilities, application security solutions check for security flaws. Regulations such as The PCI Security Standards Council (PCI SSC), Sarbanes-Oxley (SOX), and Federal Information Security Management Act (FISMA) are complied with by application security solutions.

The healthcare segment is projected to witness the highest growth rate over the forecast period. Cybersecurity risks associated with web-based email services, cloud storage services, dentists' computer-aided design (CAD) systems, hospital inventory management systems, and other related services also pose a threat to healthcare-specific web applications, clinics, and hospitals. Attacks on an organization's most vulnerable infrastructure, usually a web server, are frequently coupled with attacks on healthcare web applications. By using programs, data, or commands, an attacker can exploit flaws in a web application, web server, or associated infrastructure. To develop secure healthcare web applications, administrators must implement web application firewalls (WAF), strong authentication systems, encryption, and vulnerability scanning.

Solution Insights

Web application security segment accounted for the largest revenue share in 2023. The web application security defends APIs, apps, and websites against cyberattacks. The main objectives are to maintain the smooth operation of web applications and safeguard companies against cyber-attacks, data theft, unethical competition, and other unfavorable outcomes. Due to the high current Internet threat, organizations are increasingly prioritizing web application security services that are tailored to the unique requirements of their industry. Thus, driving the market growth of the segment.

Mobile application security segment is expected to register the fastest CAGR during the forecast period. Mobile application security solution is developed to protect applications from outside threats like malware and other digital frauds that put hackers' vital financial and personal data at risk A vulnerability in mobile security can provide hackers instant access to a user's personal data and reveal a variety of information, such as the user's current location, bank account details, personal information, and a host of other details. The mobile application security solutions can be used on tablets and smartphones and are optimized for a variety of operating systems, including Windows Phone, iOS, and Android. These solutions prevent unauthorized access to mobile applications and restrict access to private information. Thus, driving the growth of the segment.

Services Insights

Professional services segment accounted for the largest revenue share in 2023. Application security professional services provide users with programming and experience that can help them anticipate and address the complicated and quickly evolving security and compliance risks associated with End-users' software portfolios. It develops and expedite end-user application security programs with the assistance of professionals. Moreover, it helps end-users prioritize funding for security programs, optimize resource usage, and lower the overall risk of application vulnerabilities by providing a detailed plan with practical advice. In addition, it offers a security roadmap that covers open source, CI/CD, cloud, DevSecOps, and new software security programs (SSPs) with design and implementation guidelines. Consequently, propelling the segment's market expansion.

Managed services segment is expected to register the fastest CAGR during the forecast period. With advice from a committed security advisor and appsec experts, it manages appsec risk and minimizes complexity. The comprehensive managed services approach entails configuration, scheduling, and monitoring of scans, as well as collaboration with the end-user team to advance the program. Managed services security teams can more precisely and consistently check for potential vulnerabilities like SQL injection, XSS, and CSRF in modern web apps and APIs by using managed application security services. The ability to evaluate and report on web app security is used by managed application security to attackers and any potential compliance risk end-users may encounter. Thus, driving the market growth of the segment.

Testing Type Insights

Static Application Security Testing (SAST) segment accounted for the largest revenue share in 2023. SAST happens very early in the software development life cycle (SDLC) as it can occur without any code being executed and doesn't require a functioning program. It assists developers in finding vulnerabilities early in the development process and swiftly fixing problems without interfering with builds or transferring vulnerabilities to the application's final release. Consequently, propelling the segment's market expansion.

Dynamic Application Security Testing (DAST) is expected to register the fastest CAGR during the forecast period. The increasing reliance of businesses on web and mobile applications has led to a rise in application security vulnerabilities as the most common cause of data breaches. As a result, enterprises are increasingly protecting their application security. The objective is to identify results that an attacker could exploit to compromise an application. DAST tools attack similarly to an external hacker would as they lack internal knowledge of the application or the source code. Thus, driving market growth of the segment.

Deployment Insights

On premise segment accounted for the largest revenue share in 2023. End-users are increasingly preferring on premise application security system to take total control over the data. Moreover, they can implement the required procedures and policies to optimize security. In addition, certain sensitive information types may need to be protected in accordance with industry rules or client contracts. The end-users are in charge of the management and upkeep if the in systems at all times. The IT staff would typically be in charge of this, so it is critical that team members be proficient in managing internal networks as well as the infrastructure. Thus, this also grants the company complete command and supervision over its security. Thus, driving the growth of the industry.

Cloud segment is expected to register the fastest CAGR during the forecast period. There is no need for infrastructure or physical servers to be present when using a cloud application security system. The cloud environment, which is often run by a third party, houses the storage and management systems. The amount of distinct security feeds that can be kept in the cloud is unlimited, contingent upon the subscription. An internal network is not needed for storage in cloud security systems because data is transferred over the Internet straight from the security source to the cloud. Mobile devices with a remote connection or an on-site monitor can both be used to review data. Consequently, the market for cloud application security is expanding.

Enterprise Size Insights

Large enterprises segment accounted for the largest revenue share in 2023. Numerous business-critical tasks, like ordering goods and services or processing payments, are used by large enterprises, leading to various applications’ security vulnerable. Business-critical applications that are not used are dangerous because they are not updated on a regular basis. Thus, large enterprises are increasingly spending money on application security system applications. Thus, driving the growth of the segment.

Small and medium-sized enterprises segment is expected to register the fastest CAGR during the forecast period. The number of cyberattacks is rising for small and medium-sized businesses. Customers in the small and medium-sized business sectors are investing in application security applications due to the swift adoption of new technologies and the rise in hybrid work. As a result, enterprise-grade security for End-users applications, identity, data, and devices replaces outdated antivirus software for small and medium-sized businesses. Thus, market players are providing simple-to-use standalone products as well as fully featured packages and customized application security solutions for SMEs. Thus, driving the market growth of the segment.

Regional Insights

North America dominated the market in 2023. The main factors driving this segment's growth are the increase in cloud-based networking and mobile device usage, and the presence of major players such as International Business Machines Corporation, Cisco Systems, Inc., and Synopsis, Inc. Furthermore, more security breaches that target business applications, North America is anticipated to grow at the fastest rate during the projection period. In addition, it is projected that the number of SMEs in the region will increase.

Asia Pacific is anticipated to witness significant growth in the market. Application security in Asia Pacific is predicted to increase with the adoption of SaaS-based security solutions and the BYOD trend among enterprises. Moreover, the market's adoption rate of application security solutions is also being driven by the growing use of Al and ML in security to quickly identify threats and vulnerabilities.

Key Companies & Market Share Insights

Some of the key players operating in the market include Cisco Systems, Inc., International Business Machines Corporation, and F5, Inc.

• Cisco Systems, Inc. offers various application security solutions, such as Cisco Umbrella,Cisco Secure Cloud Analytics, Cisco Secure Cloud Analytics to automate and orchestrate all Cisco Secure solutions for web applications, networking, and cloud. These solutions work seamlessly with third-party products.

• F5, Inc. offers various application security platforms to protect against the most prevalent attacks on End-users apps, without having to update the apps themselves such as, Advanced Web Application Firewall (WAF). Moreover, to stop high-capacity DDoS attacks that can overwhelm firewalls and networks, it provides Advanced Firewall Manager (AFM). Without affecting legitimate traffic, it automatically triggers mitigation, notifies security administrators, and configures or modifies thresholds in response to changes in traffic patterns.

CAST Software, Rapid7, and GitLab are some of the emerging market participants in the application security market.

• Cast Software provides CAST Security Dashboard, and application security solutions, to assist enterprises in enhancing the security and stability of mission-critical software. The solution offers a single view across the entire application or business transaction currently on the market with development teams, architects, product owners, and management teams. The system can design security in advance and identify the most serious software flaws with the CAST Security Dashboard.

• Rapid7 is rapidly altering the application security landscape by offering DevOps Security Automation, which integrates security into DevOps processes.

Recent Developments

• In November 2023, Require Security Inc., a cybersecurity company, launched Falcon, Runtime Application Security Protection application. For companies that depend on open-source libraries, the solution offers the highest level of security, protecting them against potential threats and vulnerabilities.

• In October 2023, Checkmarx Ltd., a cloud-based application security provider announced its Checkmarx Technology Partner program, to provide businesses quick access to various technology partner features that let them expand the AppSec platform. With the launch of its Checkmarx Technology Partner program, the business made it simple for enterprises to add various technology partner capabilities to the AppSec platform.

• In July 2023, New Relic, Inc., a web tracking and analytics company, launched the Interactive Application Security Testing (IAST). In addition to offering guided remediation and advanced detection accuracy, Relic IAST also facilitates visibility and context to security findings.

Application Security Market Report Scope

Global Application Security Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global application security market report based on component, solution, services, testing type, deployment, enterprise size, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Solution

  • Services

• Solution Outlook (Revenue, USD Billion, 2018 - 2030)

  • Web Application security

  • Mobile Application security

• Services Outlook (Revenue, USD Billion, 2018 - 2030)

  • Professional Services

  • Managed Services

• Testing Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Static Application Security Testing (SAST)

  • Dynamic Application Security Testing (DAST)

  • Interactive Application Security Testing (IAST)

  • Runtime Application Self-Protection (RASP)

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cloud

  • On-premise

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • BFSI

  • Retail

  • IT & Telecom

  • Healthcare

  • Manufacturing

  • Government & Defense

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • UAE

    • South Africa