The application testing services market was valued at US$38.090 billion in 2020. Application testing services are a comprehensive portfolio of solutions that help enterprises across different industries reduce the risk of application or system failure while ensuring the effective, efficient, and consistent operation of the organization’s systems to meet the expectations of both business users and customers. With growing competition, enterprises cannot risk the performance of applications and systems. As such, robust and standardized quality assurance and testing procedures of software and systems are invaluable in providing a level of confidence and enhancing the enterprise's reputation. As technology becomes more complex, the addition of mobility, analytics, and the cloud is fundamentally changing the way businesses do business while opening up new channels to customers. As such, the business demands the highest level of application availability and stability. Testing teams are constantly under pressure to test applications quickly and thoroughly in order to support a wide range of end-user devices such as laptops, smartphones, and tablets without compromising quality or speed of delivery while managing their digital transformation. Application testing services help companies improve their financial position through cost reduction with an end-to-end testing strategy.
The growing popularity of mobile applications, web applications, and software is encouraging businesses to invest in advanced technologies such as artificial intelligence (AI) and machine learning in order to provide high-quality software and applications. Since these technologies aid in the collection and analysis of data used to perform testing services, the demand for application testing services backed by AI and machine learning is increasing in order to improve accuracy and predict failure points, thereby positively impacting the overall market growth. The increasing adoption of automation across various industries is driving up demand for test automation services, which in turn is driving up the market for application testing services. As a large volume of data aids in testing and verification, the growing volume of big data is also contributing to the growth of the application testing services market.
However, security concerns associated with the successful running of applications are currently hindering the application testing services market from reaching its full potential. The number of cases of cyber-attacks via web applications has steadily increased in recent years, making security a major concern for application testing service providers.
The application testing services market is segmented by testing type, service type, delivery model, enterprise size, industry vertical, and geography. By testing type, the global application testing services market is segmented into functionality, security, performance, compliance, and others. The market is also segmented by service type into professional services and managed services. The global application testing services market is segmented by the delivery models of onshore, offshore, nearshore, and hybrid. The market is divided into three categories based on enterprise size: small, medium, and large. The global application testing services are also bifurcated by industry verticals such as BFSI, IT and Telecom, healthcare, retail, media and entertainment, logistics and transportation, government, and others.
The IT and Telecom sectors are projected to witness substantial market growth
By industry vertical, the IT and telecom sectors will grow at a noteworthy CAGR during the forecast period. Large telecom service providers are increasingly demanding application testing services to reduce application development and maintenance costs while enhancing application performance by streaming their quality assurance and testing processes. The BFSI sector will also witness good market growth in order to ensure seamless services to its customers while simplifying the application portfolio. The increasing use of mobile and online banking applications is significantly boosting the demand for application testing services across this sector in order to reduce the risk of migration and ensure error-free applications.
North America holds a sizable market share throughout the forecast period
Geographically, the application testing services market is segmented into North America, South America, Europe, the Middle East, and Africa (MEA), and Asia Pacific (APAC). North America accounted for the major market share in 2020 and will remain in its position until the end of the forecast period. Early adoption of new advanced technologies, as well as the presence of major market players in the region, support the growth of this regional market. Strict quality control and inspection regulations in North American countries drive the demand for application testing services across a variety of end-use industries. As a result, growing industries such as retail, healthcare, telecom, and information technology in countries such as the United States and Canada are contributing to the overall growth of the regional market. The APAC application testing services market will experience a significant CAGR during the forecast period. The increasing adoption of digitalization across various industries is increasing the demand for application testing services to ensure the smooth operation of the production process, as these services help improve the performance, usability, functionality, and consistency of various applications. The APAC application testing services market will witness a noteworthy CAGR during the forecast period owing to the increasing investments across industries, especially BFSI and retail, in digitalization and using various applications in order to run their operations smoothly and efficiently.
Recent development and expansion
The onset of the COVID-19 pandemic had a significant impact on the application testing services market. The pandemic altered how businesses operate securely and remotely. Work-from-home (WFH) and remote working mandates compelled users to rely more and more on various apps. In addition, the pandemic increased the commercial sector's use of smartphones, tablets, and laptop computers.
Many commercial businesses began focusing on apps to improve productivity, safety, and mobility in order to assist their employees in providing better customer service while working remotely by staying in touch with customers and suppliers. As a result, the number of downloads of various apps to run the business efficiently increased.
|Market Size Value in 2020||US$38.090 billion|
|Growth Rate||CAGR during the forecast period|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Testing Type, Service Type, Delivery Model, Enterprise Size, Industry Vertical, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Amazon Web Services, Inc., IBM, Capgemini, Cognizant Technology Solutions, Accenture, Tata Consultancy Services Limited, Infosys Limited, Xoriant Corporation, Wipro, HCL Technologies Limited|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global application testing services market?
A1. The application testing services market was valued at US$38.090 billion in 2020.
Q2. Who are the major players in the application testing services market?
A2. Prominent key market players in the application testing services market include Amazon Web Services, Inc., IBM, Capgemini, Cognizant Technology Solutions, and Accenture, among others.
Q3. How is the global application testing services market segmented?
A3. Application Testing Services Market is segmented by testing type, service type, delivery model, enterprise size, industry vertical, and geography.
Q4. What factors are anticipated to drive the application testing services market growth?
A4. The growing adoption of automation across various industries is increasing the demand for test automation services which, in turn, is driving the application testing services market growth.
Q5. Which region holds the largest share of the application testing services market?
A5. North America accounted for the major share of the application testing services market.
1.1. Market Overview
1.2. Covid 19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.4. Industry Value Chain Analysis
5. Application Testing Services Market Analysis, By Testing Type
5.2. Functionality Testing
5.3. Security Testing
5.4. Performance Testing
5.5. Compliance Testing
6. Application Testing Services Market Analysis, By Service Type
6.2. Professional Services
6.3. Managed Services
7. Application Testing Services Market Analysis, By Delivery Model
8. Application Testing Services Market Analysis, By Enterprise Size
9. Application Testing Services Market Analysis, By Industry Vertical
9.3. IT and Telecom
9.6. Media and Entertainment
9.7. Logistics and Transportation
10. Application Testing Services Market Analysis, By Geography
10.2. North America
10.3. South America
10.4.3. United Kingdom
10.5. Middle East and Africa
10.5.1. Saudi Arabia
10.6. Asia Pacific
10.6.3. South Korea
11. Competitive Environment and Analysis
11.1. Major Players and Strategy Analysis
11.2. Emerging Players and Market Lucrativeness
11.3. Mergers, Acquisitions, Agreements, and Collaborations
11.4. Vendor Competitiveness Matrix
12. Company Profiles
12.1. Amazon Web Services, Inc.
12.4. Cognizant Technology Solutions
12.6. Tata Consultancy Services Limited
12.7. Infosys Limited
12.8. Xoriant Corporation
12.10. HCL Technologies Limited
Cognizant Technology Solutions
Tata Consultancy Services Limited
HCL Technologies Limited
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