North America Security Testing Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

The North American security testing market is anticipated to register a CAGR of 22.6% over the forecast period 2021-2026.

- North America is a highly regulated region globally with numerous regulations and compliances, such as the Federal Energy Regulatory Commission (FERC), HIPAA, PCI DSS, and SOX, across verticals. North American companies are quite advanced at deploying security, penetration testing, and vulnerability management solutions and have best practices for everyday business processes, thereby driving the adoption of penetration testing solutions.

- The North American region is a technology hub. Therefore, the federal government has made very stringent rules regarding security testing services. Moreover, it is compulsory for industries, such as BFSI, to adhere to compliance testing.

- More than 90% of the small and medium-sized Canadian enterprises revealed that they survey for potential cyberattacks; however, only a little more than 50% test the effectiveness of their cyber-defenses, and less than 40% feel they can fully detect and defend against cyberattacks.

- In December 2020, former NSS Labs CEO announced the launch of CyberRatings.org, a member-based organization in Texas, aimed at generating ratings, analysis, and reports, for security products and services.

Key Market Trends

Penetration Testing Tools Segment Anticipated to Register Significant Growth

- With so many cyberattacks occurring globally, cybersecurity continues to grow in importance. Companies need to prioritize their security more than ever before with proactive tactics such as those offered by penetration testing.

- The cybersecurity sector is experiencing a growing trend of cloud-based penetration testing, also referred to as penetration testing as a service. It provides IT professionals with the required resources to conduct and act upon penetration testing. This service encompasses a continuous cycle of testing and remediation. It indicates that to combat the changing security stance of an organization, there must be an ongoing testing and management program. This service ensures ongoing security management and frequent vulnerability scanning. The automatic tracking of feature changes in the service ensures traceability of improvements in the application security.

- According to Red Team Collaborative LLC, the average cost of a penetration test can range from USD 4,000 for a small, non-complex organization to over USD 100,000 for a large, complex organization.

- In May 2021, CDW Canada, a technology solutions and service provider for Canadian organizations, announced the release of its 2021 cybersecurity study. The study revealed that regular penetration testing, multi-layer framework-based approaches to cloud consumption, and third-party risk management increasingly play a vital role in mitigating cybersecurity incidents for Canadian businesses.

The US to Hold the Majority Market Share

- The US is increasingly focusing on cybersecurity at both the national and state levels, notably for financial services firms. In addition, the region is home to prominent cloud service providers, such as Microsoft and Amazon. This factor is expected to play a significant role in the growth of the cloud-based security testing market.

- In July 2021, Sparrow Co. Ltd, an application security testing provider, announced the introduction of its two security solutions, Sparrow SCA and Sparrow Cloud. Sparrow Cloud is application security as a service. This cloud-based service helps users diagnose application security and quality by performing static and dynamic analysis anytime and anywhere at minimum cost.

- In August 2021, the Office of Management and Budget (OMB) released a memorandum in response to the Executive Order (EO) 14028, focused on improving the nation’s cybersecurity. The EO acknowledges the importance of software security to protect against malicious cyberattacks that threaten the security and privacy of American individuals.

- In December 2021, Trustwave, which provides managed security services focused on managed detection and response, announced its accreditation by CREST, the internationally recognized professional certification board, for its vulnerability assessment services.

Competitive Landscape

The market studied is competitive, with various players present in the market. The region is also marked with various large and established players such as Hewlett Packard Enterprise Development LP, Cisco Systems Inc., IBM, and others. These companies are well established in the market and are widely recognized as providers of quality solutions. Various companies are competing to increase their presence and revenue share in the market by acquiring more customers.

- In November 2021, Appsian Security, an ERP data security & compliance provider, announced that the company had acquired Q Software. The acquisition provides a strategic opportunity for both companies to expand their existing capabilities while delivering additional value to their customers.

- In January 2021, Sysnet Global Solutions, a cyber security and compliance solutions provider, announced the acquisition of NuArx Inc. The acquisition aims to further enhance Sysnet’s technology platform and propel its market growth. NuArx Inc., headquartered in the US state of Michigan, is a provider of PCI compliance, managed security, and digital transformation solutions for the convenience, restaurant, grocery, and retail sectors across North America.

Additional Benefits:

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