Application Security Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-premise), By Type (Mobile Application Security and Web Application Security), By Enterprise Type (SMEs and Large Enterprise), By End-user (IT & Telecom, BFSI, Healthcare, Government, Retail & e-commerce, Manufacturing, and Others), and Regional Forecast, 2023-2030

The global application security market size was valued at USD 8.86 billion in 2022 and is projected to grow from USD 9.95 billion in 2023 to USD 25.30 billion by 2030 at a CAGR of 14.3%. North America dominated the global application security market share of 34.42% in 2022.

Application security measures the application level to prevent code or data within the app from being stolen. It contains the security concerns that occur during application design and development. It also involves systems and methods to protect apps after they are deployed.

Moreover, the solution is essential because applications are frequently available above various networks and connected to the cloud, growing vulnerabilities to security threats and breaches. In addition, there is increasing stress to ensure security at the network level but also within the applications themselves. For instance,

• According to the research analysis, 34% of enterprises are already using or employing artificial intelligence (AI) application security tools to moderate the risks of generative AI, while 56% of respondents are planning to use and explore solutions.

COVID-19 IMPACT

Growth in Data Breaches in the Application Amid COVID-19 Pandemic Impelled the Market Growth

Markets around the globe were affected by the COVID-19 pandemic, which further led to a drastic change in conversations between customers and companies. The unusual outbreak of the pandemic resulted in a rise in the adoption of security solutions. It compelled companies to deploy the solutions in their workforces to protect them from data thefts. For instance,

• According to the Identity Theft Resource Center Data Breach Report 2021, the number of data breaches that occurred during the pandemic was around 1,108 in 2020, and it increased to 1,862 in 2021.

Moreover, many companies shifted the focus of their security efforts toward endpoint protection for the equipment used in remote working arrangements. In addition, a circulated working environment and leveraging of cloud technology facilitated rapid touchless deployments without the need for conventional on-premise solutions. Various enterprises moved forward with adopting cloud security solutions while others focused on a cloud-first strategy.

Thus, the COVID-19 pandemic had a positive impact on the market due to a rise in the demand by organizations to improve application processes and businesses.

Application Security Market Trends

Adoption of AI and Machine Learning in Solutions for Threat Detection to Propel the Market Growth

Various organizations are shifting their focus toward AI-based solutions by integrating with application security solutions for threat detection and prevention. It has developed as a key technology in the fight against these threats, offering the ability to detect and respond to security incidents in real-time.

AI-based threat detection helps organizations classify and react to threats in real-time, reducing the risk of data breaches and other security incidents. Moreover, AI-based threat detection can detect anomalies and patterns that may indicate a security threat.

In addition, organizations are integrating AI in the application security solutions to respond quickly and effectively in order to mitigate the damage caused by these incidents. AI-powered security solutions detect and analyze potential threats in real-time, providing organizations with the ability to respond quickly and proactively. For instance,

• In October 2023, Digital.ai Software Inc. launched Denali, a DevSecOps security platform for web applications. This platform aims for organizations to control the power of AI to automate software delivery govern and orchestrate code from AI-assisted development.

The deployment of AI/ML is expected to further aid developers in leveraging machine learning algorithms, analyzing huge amounts of data and identifying vulnerabilities in real-time, boosting the growth of the market during the forecast period.

Application Security Market Growth Factors

Increasing Requirements of Regulatory Compliance for the Solution Propels the Market Growth

Organizations develop and use apps of the highest importance to meet various requirements and protect them from malicious attacks. Compliance regulations safeguard the websites and applications to set standards that developers must follow. These regulations ensure that technology and its outcomes meet an established level of privacy, data protection, and complete security.

In addition, various organizations are setting some standards that address the solution, with the Open Web Application Security Project, ASVS standard being the most applicable because of its focus on applications specifically. Various organizations also provide standards, such as ISO, NIST, and CIS, for application security controls as part of governing IT security as a whole. For instance,

• In April 2023, Security Journey, a secure coding training provider, launched Recommended Learning Paths designed for individuals within development and wider software development life cycle (SDLC) teams to advance software security knowledge and accomplish compliance requirements.

Moreover, with the growing digital technology and the internet, applications have become a prime target for cyberattacks. Organizations are compelled to invest in robust app security solutions with cybersecurity companies to protect their sensitive data and maintain customer trust. This is the primary factor driving the market growth.

RESTRAINING FACTOR

Lack of Technical Knowledge and Skilled Professionals May Limit the Market Growth

Organizations are finding it difficult to find qualified individuals who possess the necessary skill sets to develop and implement security systems. The shortage of skilled professionals has created a competitive job market, with companies competing for a limited pool of individuals with the expertise needed to leverage the solutions. This shortage can hamper organizations' ability to control security technologies and navigate developing threats effectively and fully. For instance,

• According to the application security report 2022 by Fortra, the challenges that organizations face as key barriers to defense include lack of budget (35%), low-security awareness among employees (35%), lack of skilled personnel (39%), followed by a lack of collaboration between departments (29%).

In addition, the complexity of modern application environments, including containers and multi-cloud setups, ensuring comprehensive security across dynamic application landscapes can be complex and requires continuous monitoring, thus creating a significant challenge.

Thus, the more complex nature of deploying this type of security challenge restrains the global market growth.

Application Security Market Segmentation Analysis

By Deployment Analysis

Increasing Use of On-premise Solutions across the Organizations to Drive the Segment Growth

By deployment, the market is classified into cloud and on-premise.

The on-premise segment holds the largest market share. Businesses are protecting the accessibility and security of computer networks, including hardware and software, at an organization’s facilities. This factor is bolstering the on-premise segment growth. The on-premise solutions offer access to the platforms, systems, applications, and data by the organization's internal team. Moreover, organizations' information is critical for business operations, and on-premise deployment of solutions moderately secures external attacks as access to the information is controlled by the internal security teams.

The cloud segment is slated to register the highest CAGR during the forecast period as organizations increasingly adopt cloud computing. Cloud solution refers to the security and governance controls to protect data across the entire cloud environment. Migrating data and assets from on-premises locations to the cloud helps organizations reduce their IT operational expenditure.

Various players are rapidly migrating huge stores of their data into cloud infrastructure while increasing the potential for security vulnerabilities. Many cloud providers provide the option of building, testing, and deploying with continuous integration/continuous deployment to accelerate the software development lifecycle by integrating the solution into the cloud migration. For instance,

• In November 2023, Snyk expanded its solutions with new integrations by partnering with Amazon Web Services (AWS) to enable global enterprises to deploy developer security from code to cloud. Snyk has launched a new integration with AWS services, including Amazon EventBridge, AWS Security Hub, and AWS CloudTrail Lake, to give customers a unified experience and modernize vulnerability management across code.

Owing to this factor, the adoption of cloud-based security has become an essential tool for detecting threats and protecting data, thus driving the market growth.

By Type Analysis

Protection Delivered by the Solution to Escalate the Web Application Security Segment Expansion

Based on type, the market is segmented into web application security and mobile application security.

The web application security segment captures the largest market share. The application security refers to a variety of processes, technologies, or methods for protecting web applications, web servers, and services from attack by internet-based threats. Apps running on websites such as online banking, remote work apps, and e-commerce are a primary target for attackers that exploit vulnerabilities as well as weaknesses in open-source code and third-party widgets. It further helps customers and organizations to protect data from theft, interruptions in business continuity, or other cybercrime.

The mobile application security segment is poised to grow with the highest CAGR during the forecast period owing to consumers reaching first for mobile apps to complete personal and professional objectives. Organizations and consumers are fully migrating to the mobile app channel to buy, save, share, and support the brands. For instance,

• According to an industry report, 51.8% of global consumers preferred to use mobile applications over web channels. In comparison, 14.4% of global consumers reported buying more things via mobile apps, and 7.5% of global consumers reported doing more of everything via mobile apps.

Moreover, according to an industry report, 61.6% of global consumers advise mobile brands and developers that features and security are equally important, and 24% prioritize security more than other features. Thus, the adoption of security features in mobile applications will drive organizational transformation and create a better market opportunity.

By Enterprise Type Analysis

Large Enterprise Segment to Lead Due to Rising Demand for Application Security Solutions

On the basis of enterprise type, the market is segregated into large enterprise and SMEs. Owing to quick changes in enterprises, the need for solutions for cyber threats and vulnerabilities has increased.

The large enterprises segment is expected to capture a leading market share because enterprises increasingly depend on software applications to streamline operations and gain a competitive edge. However, with the increase in cyber threats and security vulnerabilities, it efficiently identifies and addresses specific security issues within an application.

The deployment of solutions by small and mid-sized enterprises (SMEs) to grow with the highest CAGR during the forecast period due to the companies getting benefitted in many ways. The adoption of the platform will enable SMEs to increase their dependency on complex applications to manage operations while securing these applications from potential threats. This information enables the SMEs to safeguard applications from data breaches, security threats, and other vulnerabilities.

By End-user Analysis

IT & Telecom Segment Exhibits the Largest Market Share Due to the Development of Software Application

In terms of end-user, the market is divided into BFSI, healthcare, IT & Telecom, government, retail & e-commerce, manufacturing, and others.

The IT & telecom segment holds the largest market share. Application developers in the organizations execute application testing for the software development process to detect security vulnerabilities and protect a new or updated version of a software application from cyber criminals.

The BFSI segment is slated to witness the highest CAGR during the forecast period. The increasing shift toward a digital-centric approach drives the segment growth. Many financial operations are operated through a mobile or web app without any disturbance while having a great user experience. Banking applications hold various sensitive information, including personal, financial, and any other critical information. The adoption of security solutions with the integration of machine learning scans the security gaps. It protects them from vulnerabilities, which helps in the quick and adequate resolution of customer queries by agents. For instance,

• In December 2023, Cleafy introduced a platform to detect, classify, and react to new malware variants in banking and financial security. This platform detects and chains signals within mobile and web applications or on the device network, presenting complete prominence in digital channels.

The adoption of application security solutions is expected to aid organizations in the security of customers' sensitive data while improving business growth.

REGIONAL INSIGHTS

Based on region, the market is divided into five key regions: North America, Europe, the Asia Pacific, South America, and the Middle East & Africa.

North America holds the largest application security market share. It is slated to maintain its dominance during the forecast period due to the rise in the adoption of several software and network security practices, which has increased the demand for the solution across the region. The North America market is further divided into the U.S., Canada, and Mexico.

The U.S. is expected to hold the highest CAGR in the region during the forecast period due to the presence of key regional market players and a high level of DevSecOps development in the country. Similarly, dependence on cross-functional DevSecOps teams in the U.S. get benefitted from groundbreaking technologies by advancing the seamless integration of solutions. For instance,

• In November 2023, Radware announced that it would provide the solution to protect the data centers for North America’s 20 busiest airports. The company will provide its Cloud Application Protection Services and Cloud DDoS Protection Service to increase data center and application defenses and speed time to protection.

In addition, Canada market is slated to witness prominent growth over the forecast period. This can be attributed to the reliance of Canadian businesses on software applications to employ customers, manage operations, and provide organizations with an enhanced view of their cyber risk posture in business language.

The Europe market is expected to hold a significant market share during the forecast period. This growth is due to the European Union (EU) introducing new sets of rules and regulations for organizations in the region to migrate or develop their applications securely in the cloud, with the knowledge that their data will be handled within European regulatory standards. For instance,

• In October 2023, CodeSecure, a provider of application security testing products, announced new distribution partners Captura Electronica, ANTYCIP Technologies, and EVOCEAN to expand its existing footprint in key European markets. This expansion will extend CodeSecure's reach to several countries, including Germany, France, Austria, Portugal, and Spain.

The Asia Pacific market is witnessing a prominent growth due to DevOps' accelerating innovation and application delivery with the aim toward integrating security early in the development cycle into the application among enterprises in nations such as India, China, Indonesia, Australia, and the Philippines to improve efficiency through technology. For instance,

• In February 2023, AZ Asia-Pacific, Singapore-based Cybersecurity Distribution Services collaborated with Synopsys, Inc. by deploying Synopsys Software Integrity Group's application security testing solutions throughout ASEAN countries, Singapore, Malaysia and the Philippines markets.

The market growth in the Middle East & Africa and South America is mainly driven by the increasing economic value of queries, services, and integrated software security in the development life cycle, which has been gaining traction at different levels of development on the journey to DevSecOps.

List of Key Companies in Application Security Market

Market Leaders Focus on Expanding Their Product Offerings to Gain Competitive Edge

Key players in the global market, such as Veracode, Qualys, Inc., HCL Technologies Limited, Synopsys, Inc., Open Text (CyberRes), Imperva and others, are focused on expanding their geographical presence. The players are introducing specific solutions and new products to attract a vast customer base, improving revenue.

List of Key Companies Profiled:

• Veracode. (U.S.)


• Qualys, Inc. (U.S.)


• HCL Technologies Limited (India)


• Synopsys, Inc. (U.S.)


• Open Text (CyberRes) (U.S.)


• Imperva (U.S.)


• Checkmarx Ltd. (U.S.)


• Rapid7 (U.S.)


• GuardRails (Singapore)


• Snyk Limited (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 - Snyk launched its new product, Snyk AppRisk, a solution aimed to enable application security teams with the inclusive Application Security Posture Management to manage and scale their security programs, as well as minimize risk arising from applications.


• December 2023 - Help AG, the cybersecurity company and the security advisor of the Middle East, partnered with Imperva by integrating the Imperva Data Security Platform to gain complete visibility into all data sources. Help AG will also provide access to Imperva Application Security products and solutions to accommodate the needs of developers.


• August 2023 - Synopsys, Inc. announced a collaboration with NowSecure, an expert in mobile security and privacy, and Secure Code Warrior, a provider of the agile learning platform, to develop its Software Integrity Group's application security testing solutions. Through the collaboration, Synopsys will introduce two new security solutions, Synopsys Developer Security Training and Synopsys Mobile Application Security Testing, to provide an unparalleled level of coverage and scalability.


• July 2023 - Veracode Inc. launched new product features that integrate security into the software development lifecycle and application security techniques in the developers' environments. Veracode’s DAST Essentials is an application security testing solution that addresses the significant risks associated with web applications and the increasing frequency of application programming attacks. The tool allows developers and security teams to detect and moderate vulnerabilities in runtime environments.


• May 2023 - HCLSoftware partnered with the Scuderia Ferrari racing team by deploying HCL Volt MX. Ferrari will implement AppScan application security solutions to enhance employee experience and security by accelerating their digital journey.

REPORT COVERAGE

The research report includes prominent regions across the globe to gain a better knowledge of the solution. Furthermore, it provides insights into the most recent industry and market trends and an analysis of technologies adopted on a global scale. It also emphasizes some of the growth stimulating elements, allowing the reader to obtain a thorough understanding of the industry. In addition, the report also provides a study of this type of security solutions provided by companies such as Veracode, Qualys, Inc., HCL Technologies Limited, Synopsys, Inc., Open Text (CyberRes), Imperva, and others.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2017-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2017-2021
Growth Rate	CAGR of 14.3% from 2023 to 2030
Unit	Value (USD billion)
Segmentation	By Deployment Cloud On-premise By Type Mobile Application Security Web Application Security By Enterprise Type SMEs Large Enterprise By End-user IT & Telecom BFSI Healthcare Government Retail & e-commerce Manufacturing Others (Education, Energy & Utilities, and others) By Region North America (By Deployment, Type, Enterprise Type, End-user, and Country) U.S. (By End-user) Canada (By End-user) Mexico (By End-user) South America (By Deployment, Type, Enterprise Type, End-user, and Country) Brazil (By End-user) Argentina (By End-user) Rest of South America Europe (By Deployment, Type, Enterprise Type, End-user, and Country) U.K. (By End-user) Germany (By End-user) France (By End-user) Italy (By End-user) Spain (By End-user) Russia (By End-user) Benelux (By End-user) Nordics (By End-user) Rest of Europe Middle East & Africa (By Deployment, Type, Enterprise Type, End-user, and Country) Turkey (By End-user) Israel (By End-user) GCC (By End-user) North Africa (By End-user) South Africa (By End-user) Rest of the Middle East & Africa Asia Pacific (By Deployment, Type, Enterprise Type, End-user, and Country) China (By End-user) India (By End-user) Japan (By End-user) South Korea (By End-user) ASEAN (By End-user) Oceania (By End-user) Rest of the Asia Pacific