May 18, 2024
Application Security Market

Application Security Market Estimated To Witness Significant Growth Owing To Rising Cyber Threats

The application security market is estimated to be valued at US$7.35 Bn or Billion in 2021 and is expected to exhibit a CAGR of 18.5% over the forecast period between 2023 and 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:-

Application security helps protect web and mobile applications from being exploited by malicious actors. It verifies user inputs, prevents injections and encoding errors, handles exceptions properly without revealing sensitive details, authenticates users, encrypts sensitive data, and monitors applications for anomaly detection. With the growing number of applications and adoption of digital technologies, application security has become essential to build trust with customers and users.

Market key trends:-

One of the major trends driving the application security market growth is the rising concerns around cyber threats and data breaches. Cybercriminals are adopting sophisticated techniques and zero-day exploits to compromise applications and steal sensitive user data. This has increased awareness among organizations about implementing application security solutions and assessing vulnerabilities proactively. Another key trend is the shift left approach where application security testing is integrated into the development process itself rather than as a separate phase. This helps detect and fix vulnerabilities early before code is shipped to production. Continuous application scanning and runtime protection solutions are also gaining popularity as they allow monitoring applications in production for new threats.

Porter’s Analysis:-

  • Threat of new entrants: The application security market requires high initial investments in research and development, which creates entry barriers for new players. However, crowdfunding and venture capital funding allows startups to enter the market.
  • Bargaining power of buyers: There is a relatively high bargaining power of buyers in this market since application security solutions are heterogeneous in nature with various options available. Buyers can negotiate on price and payment terms.
  • Bargaining power of suppliers: The suppliers of application security solutions have moderate to low bargaining power as there are a number of solution developers in the market. Buyers can easily switch to substitutes with minimal switching costs.
  • Threat of new substitutes: The threat of substitutes is moderate as DevOps and inline security solutions are emerging as threat to conventional web application firewalls and infrastructure-as-code solutions.
  • Competitive rivalry: Intense as the key players compete on features, performance and pricing of security solutions.

SWOT Analysis:-

  • Strengths: Scalable solutions, ongoing maintenance and updates, expertise in cybersecurity.
  • Weaknesses: High upfront costs, complex implementation, security skills shortage.
  • Opportunities: Growing digital transformation initiatives, remote working adoption, increasing regulatory mandates.
  • Threats: Budget constraints due to economic slowdown, open source and freemium solutions.

Key Takeaways:-

The Global Application Security Market Growth is expected to witness high, exhibiting CAGR of 18.5% over the forecast period, due to increasing digital transformation initiatives and cloud adoption. The market was valued at US$ 7.35 Bn in 2021 and is projected to reach US$ 30.32 Bn by 2030.

North America currently dominates the application security market, owing to stringent data privacy regulations like GDPR and CCPA, and large presence of application security vendors in the US. The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to rising investments by key players and growing cyber attacks in the region.

Key players operating in the application security market are IBM Corporation, WhiteHat Security, Inc.( NTT Security Corporation), Oracle Corporation, Veracode (Thoma Bravo), Qualys Inc., Micro Focus International PLC, Positive Technologies, Checkmarx Ltd, Fasoo.com Inc., Synopsys Inc., Contrast Security, Rapid7 Inc. and SiteLock LLC. The players are focusing on new product launches and partnerships to gain higher market share. For instance, in 2022, Black Duck acquired Synopsys Software Integrity Group including Code Sight and Code Dx to enhance its application security testing capabilities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it