Dynamic Application Security Testing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The dynamic application security testing market size is projected to be USD 3.61 billion in 2025, USD 4.18 billion in 2026, and reach USD 8.63 billion by 2031, growing at a CAGR of 15.59% from 2026 to 2031. This report is Segmented by Component (Solutions, and Services), Deployment Mode (Cloud-Based, and On-Premise), Organisation Size (Large Enterprises, and Small and Medium Enterprises), End-User Vertical (BFSI, Healthcare, IT and Telecom, Industrial and Defence, Retail and E-Commerce, Energy and Utilities, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Global Dynamic Application Security Testing Market Trends and Insights

Rising Volume of API-Centric Attacks

API endpoints generated 48% of all web-application attacks in 2024, equal to 150 billion events that Akamai traced across its global network. Wallarm cataloged 1,602 unique API vulnerabilities in Q3 2025, a 20% sequential rise, dominated by broken object-level authorization and excessive data exposure flaws. The shift to microservices means a modern commerce application now surfaces 200-500 APIs, magnifying the runtime surface that only the dynamic application security testing market can probe effectively. Traceable AI reported that 57% of organizations suffered an API breach in the prior year, yet just 34% deployed API-specific defenses. Regulatory pressure compounds the urgency, as PSD2 and open-banking rules enforce third-party access that must be validated for authorization integrity.

Shift-Left DevSecOps Adoption

GitLab’s 2024 survey showed 58% of developers already run dynamic tests during development pipelines, up from 41% two years earlier. Despite this progress, only one-third include dedicated API scans, largely because authentication credentials and ephemeral test environments complicate automation. Datadog found that 15% of live services still contained vulnerabilities cataloged in CISA’s Known Exploited list, reinforcing the need for earlier discovery. Incremental scanners that test changed endpoints in five-minute cycles now align with sub-10-minute build targets, encouraging broader adoption.

Signal-to-Noise (False-Positive) Fatigue

Security teams face a significant challenge in managing the overwhelming volume of alerts generated by their systems, with 70-90% of these alerts being false positives. This high rate of irrelevant alerts forces teams to spend considerable time and resources triaging thousands of notifications just to identify the critical 10-30% that genuinely require attention. Over time, developers tend to disregard alerts due to the persistent noise, which ultimately compromises the achievement of essential security objectives. To address this issue, instrumented proof-based scanning solutions offered by vendors like Invicti have proven effective in reducing irrelevant findings by up to 60%. This improvement not only enhances efficiency but also allows security teams to focus on actionable insights. As a result, buyers are increasingly emphasizing precision as a critical requirement, often listing it as a mandatory feature in their requests for proposals.

Other drivers and restraints analyzed in the detailed report include:

• Mandatory SBOM and Supply-Chain Disclosure Rules
• AI-Enabled Exploit Automation
• Scarcity of AppSec Skill-Sets

Segment Analysis

Solutions generated 68.30% of 2025 revenue, showing that enterprises still license full-featured platforms to cover broad asset inventories. Yet the services slice is growing at 15.62% CAGR, faster than the overall dynamic application security testing market. Providers integrate scanners with CI/CD systems, tune authentication flows, and interpret findings for business units. Global consultancies, including Accenture, expanded application-security headcount through 2025 to meet this demand.

Services also appeal to organizations that struggle with false positives; a managed team validates exploitability before escalating, trimming alert queues. As a result, the dynamic application security testing market size attached to services is projected to expand steadily through 2031. Vendors respond by bundling onboarding, custom policy creation, and regular health checks inside subscription tiers, aligning economic incentives with customer outcomes.

In 2025, spending on cloud-hosted scanners accounted for 73.50%, and they continue to outpace on-premise solutions, growing at a rate of 15.76% CAGR. Cloud engines possess the capability to discover and test containerized microservices and serverless functions, which are redeployed dozens of times daily, in near real-time. This ability to handle frequent redeployments efficiently is a key factor driving the adoption of cloud-hosted solutions. The extension of Amazon Inspector to Lambda and container workloads further highlights the growing preference of buyers for fully managed offerings, as these solutions reduce operational overhead and enhance scalability.

In industries with stringent regulations, on-premise deployment remains a critical requirement due to data sovereignty policies that limit external processing. These policies ensure sensitive data remains within controlled environments, making on-premise solutions indispensable for compliance. As a result, hybrid architectures are emerging as a practical solution: the scan engine operates in the vendor's cloud, but credentials and other sensitive data are securely stored on the customer's hardware. This setup ensures compliance requirements are met without compromising the breadth of security coverage. Such a mixed model underscores the adaptability and flexibility required in the dynamic application security testing market, enabling it to cater to both cloud-centric developers seeking innovation and risk-averse incumbents prioritizing regulatory compliance and data security.

Complete Report Scope:

• By Component
  • Solutions
  • Services
• By Deployment Mode
  • Cloud-Based
  • On-Premise
• By Organisation Size
  • Large Enterprises
  • Small and Medium Enterprises
• By End-User Vertical
  • BFSI
  • Healthcare
  • IT and Telecom
  • Industrial and Defence
  • Retail and E-Commerce
  • Energy and Utilities
  • Manufacturing
  • Other End-User Vertical
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • New Zealand
    • Rest of Asia-Pacific
  • Middle East and Africa
    • Middle East
      • United Arab Emirates
      • Saudi Arabia
      • Turkey
      • Rest of Middle East
    • Africa
      • South Africa
      • Nigeria
      • Kenya
      • Rest of Africa

Geography Analysis

North America led with 42.80% of 2025 revenue because Executive Order 14028 forces federal contractors to demonstrate runtime vulnerability validation. Adoption depth is highest, but teams also experience the greatest alert fatigue, spurring premium demand for proof-based scanning and AI triage. Canada’s Critical Cyber Systems Protection Act, enacted in 2024, widened mandatory testing to provincially regulated utilities, adding incremental demand.

Europe contributed roughly 29% of spending in 2025, propelled by the progressive rollout of NIS2, DORA, and the Cyber Resilience Act. German and French financial institutions extend scans to every third-party API, aligning with 24-hour incident-report deadlines. Post-Brexit divergence obliges United Kingdom firms that serve EU clients to follow both regulation sets, inflating test volume and complexity.

Asia-Pacific is the fastest growing region at a 17.10% CAGR. China’s Multi-Level Protection Scheme 2.0 now mandates dynamic assessments for Level 3 systems or higher, covering most enterprise applications. India’s Digital Personal Data Protection Act enforces fines up to INR 2.5 billion (USD 30 million) for breaches, encouraging exporters to certify security posture to global customers. Japan, South Korea, Australia, and New Zealand together make sizeable contributions where breach-notification laws tighten annually.

List of Companies Covered in this Report:

• IBM Corporation
• Synopsys Inc.
• Veracode Inc.
• Checkmarx Ltd.
• OpenText Corporation (Fortify)
• Rapid7 Inc.
• Qualys Inc.
• Invicti Security Ltd.
• Contrast Security Inc.
• HCLTech Ltd. (AppScan)
• GitLab Inc.
• Snyk Ltd.
• Tenable Holdings Inc.
• PortSwigger Ltd. (Burp Suite)
• Indusface Pvt Ltd.
• NowSecure Inc.
• Appknox Pte Ltd.
• CyCognito Inc.
• WhiteHat Security Inc. (NTT)
• Cobalt Labs Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support