The Global Application Security Market size is expected to reach $26.94 billion by 2031, rising at a market growth of 18.1% CAGR during the forecast period.
With the rapid adoption of digital banking, fintech applications, and mobile payment solutions, financial institutions face increasing risks from phishing attacks, credential stuffing, and API vulnerabilities. Compliance with stringent regulations such as PCI-DSS, GDPR, and FFIEC has further accelerated the demand for advanced security solutions. Thus, the BFSI segment garnered more than 1/4 revenue share in the market in 2023. Additionally, the rising popularity of cryptocurrency transactions and blockchain-based financial platforms has necessitated robust application security frameworks to prevent unauthorized access, identity theft, and ransomware attacks.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In January, 2025, Veracode acquired certain assets of Phylum, Inc., including its malicious package analysis and mitigation technology. The acquisition enhances Veracode’s ability to block malicious open-source packages in real-time, providing customers with advanced tools to prevent attacks and secure their software supply chains from emerging threats. Additionally, In August, 2024, Fortinet, Inc. acquired Lacework, a pioneer in cloud-native application protection platforms (CNAPP). This integration enhances Fortinet’s Security Fabric with AI-driven, full-stack cloud security. The acquisition strengthens Fortinet’s position in delivering comprehensive security across on-premises and cloud environments, empowering customers with innovative protection solutions.
Organizations are increasingly investing in application security tools to meet these legal obligations. These solutions help detect and mitigate vulnerabilities, ensuring that applications remain secure from cyber threats while staying compliant with industry regulations. Security frameworks like Zero Trust Architecture (ZTA) and Secure DevOps (DevSecOps) are also being adopted to integrate security into the software development lifecycle, reducing the risk of regulatory violations. Thus, the demand for application security tools will increase as regulatory frameworks evolve, and new privacy laws emerge across different regions.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions.
The Application Security Market is highly competitive, driven by the rising threat of cyberattacks and the need for secure software development. Providers focus on delivering AI-powered threat detection, automated vulnerability assessments, and DevSecOps integration. Growth is fueled by increasing cloud adoption, stringent regulatory compliance, and the demand for real-time security monitoring. Intense competition pushes vendors to enhance scalability, ease of deployment, and comprehensive protection across web, mobile, and cloud applications while ensuring minimal impact on performance.
With the rapid adoption of digital banking, fintech applications, and mobile payment solutions, financial institutions face increasing risks from phishing attacks, credential stuffing, and API vulnerabilities. Compliance with stringent regulations such as PCI-DSS, GDPR, and FFIEC has further accelerated the demand for advanced security solutions. Thus, the BFSI segment garnered more than 1/4 revenue share in the market in 2023. Additionally, the rising popularity of cryptocurrency transactions and blockchain-based financial platforms has necessitated robust application security frameworks to prevent unauthorized access, identity theft, and ransomware attacks.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In January, 2025, Veracode acquired certain assets of Phylum, Inc., including its malicious package analysis and mitigation technology. The acquisition enhances Veracode’s ability to block malicious open-source packages in real-time, providing customers with advanced tools to prevent attacks and secure their software supply chains from emerging threats. Additionally, In August, 2024, Fortinet, Inc. acquired Lacework, a pioneer in cloud-native application protection platforms (CNAPP). This integration enhances Fortinet’s Security Fabric with AI-driven, full-stack cloud security. The acquisition strengthens Fortinet’s position in delivering comprehensive security across on-premises and cloud environments, empowering customers with innovative protection solutions.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Cisco Systems, Inc. and IBM Corporation are the forerunners in the Application Security Market. In April, 2024, Cisco Systems, Inc. completed the acquisition of Isovalent, Inc., a leader in open source cloud-native networking and security. This integration bolsters Cisco's Security Cloud vision, leveraging Isovalent’s technologies like eBPF, Cilium, and Tetragon to enhance application protection and multicloud security. Companies such as Hewlett Packard Enterprise Company, HCL Technologies Ltd., Fortinet, Inc. are some of the key innovators in Application Security Market.
Market Growth Factors
In light of the increasing cybersecurity threats, organizations are adopting DevSecOps and Zero Trust security frameworks to guarantee that security measures are embedded throughout the software development lifecycle. By combining static and dynamic security testing (SAST and DAST), doing real-time vulnerability assessments, and putting automated security compliance evaluations into place, organizations may proactively find and fix security flaws before they are exploited. Hence, the demand for application security tools will increase as cyber threats evolve.Organizations are increasingly investing in application security tools to meet these legal obligations. These solutions help detect and mitigate vulnerabilities, ensuring that applications remain secure from cyber threats while staying compliant with industry regulations. Security frameworks like Zero Trust Architecture (ZTA) and Secure DevOps (DevSecOps) are also being adopted to integrate security into the software development lifecycle, reducing the risk of regulatory violations. Thus, the demand for application security tools will increase as regulatory frameworks evolve, and new privacy laws emerge across different regions.
Market Restraining Factors
Beyond initial acquisition costs, businesses must also account for integration and operational expenses. Implementing security solutions within existing infrastructures often requires customization, increasing development and deployment costs. Moreover, organizations are required to consistently update and sustain these security measures in order to effectively address the evolving landscape of cyber threats. This maintenance demands regular software updates, security patches, and ongoing monitoring, increasing operational expenditures. This cost-driven compromise renders businesses susceptible to security vulnerabilities, which may result in data loss, reputational harm, and financial penalties stemming from non-compliance with regulatory requirements. Hence, the high implementation costs may hamper the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions.
Driving and Restraining Factors
Drivers
- Increasing Incidents of Cyberattacks Across the World
- Stringent Regulatory & Compliance Requirements
- Growth of IoT & Connected Devices
Restraints
- High Cost of Implementing Application Security Solutions
- Increasing Sophistication of Cyber Threats
Opportunities
- Rise of DevSecOps & Shift-Left Security Approach
- Expanding Mobile & Web Application Ecosystem
Challenges
- Shortage of Skilled Cybersecurity Professionals
- False Positives and Security Overheads
Deployment Outlook
On the basis of deployment, the market is bifurcated into cloud and on-premise. The cloud segment witnessed 38% revenue share in the market in 2023. Businesses are shifting to cloud-based security solutions for their scalability, flexibility, and cost-efficiency, allowing them to deploy and update security measures in real-time. The proliferation of multi-cloud and hybrid cloud environments has significantly increased the demand for cloud-native security architectures, artificial intelligence-driven threat intelligence, and zero-trust security frameworks. Additionally, organizations benefit from automated security updates, threat detection analytics, and centralized security management, making cloud-based security solutions a preferred choice for startups and enterprises.Vertical Outlook
By vertical, the market is segmented into BFSI, retail, IT & telecom, healthcare, manufacturing, government & defense, media & entertainment, and others. The government & defense segment procured 14% revenue share in the market in 2023. Government agencies manage sensitive citizen data, national security intelligence, and defense systems, making them prime targets for nation-state actors, hacktivists, and cybercriminal organizations. The push for digital governance, e-government services, and cloud-based public infrastructure has further amplified the need for advanced security measures. Governments worldwide enforce strict cybersecurity policies, such as the NIST Cybersecurity Framework, FedRAMP, and ISO 27001, requiring agencies to adopt zero-trust architectures, endpoint security solutions, and AI-powered threat detection.Enterprise Size Outlook
Based on enterprise size, the market is bifurcated into large enterprises and small & medium enterprises (SMEs). The small & medium enterprises (SMEs) segment garnered 47% revenue share in the market in 2023. SMEs often lack in-house cybersecurity expertise and dedicated IT teams, making them vulnerable to ransomware attacks, phishing scams, and data breaches. However, the availability of cloud-based security solutions, managed security services, and Security-as-a-Service (SECaaS) allow SMEs to adopt enterprise-grade security without significant capital investment.
Testing Type Outlook
Based on testing type, the market is segmented into static application security testing (SAST), dynamic application security testing (DAST), interactive application security testing (IAST), and runtime application self-protection (RASP). The static application security testing (SAST) segment procured 39% revenue share in the market in 2023. Organizations are increasingly adopting DevSecOps and Shift-Left security approaches, integrating SAST tools into their continuous integration/continuous deployment (CI/CD) pipelines to identify and remediate security flaws before applications are deployed. The rising demand for compliance with regulatory standards further fuels SAST adoption, as these tools ensure adherence to secure coding practices.Services Outlook
By services, the market is divided into professional services and managed services. The professional services segment witnessed 54% revenue share in the market in 2023. As cyber threats continue to get more complex, organizations are increasingly looking for consulting services, compliance audits, security assessments, and training programs to ensure that their security policies are in line with industry best practices. Regulatory frameworks require businesses to conduct regular security audits and adopt secure coding practices, further fueling demand for professional security services.Component Outlook
Based on component, the market is bifurcated into solution and services. The solution segment garnered 66% revenue share in the market in 2023. The increasing adoption of automated security tools such as SAST, DAST, and RASP drives the solution segment. Organizations prioritize these solutions to proactively detect vulnerabilities, prevent cyberattacks, and enhance application resilience. The integration of AI-powered threat detection and DevSecOps practices has further fueled the demand for robust security tools that ensure seamless protection throughout the software development lifecycle (SDLC). Additionally, the rise in regulatory compliance requirements like GDPR and PCI-DSS has prompted businesses to invest in scalable, real-time security frameworks, solidifying the dominance of this segment in the market.Market Competition and Attributes
The Application Security Market is highly competitive, driven by the rising threat of cyberattacks and the need for secure software development. Providers focus on delivering AI-powered threat detection, automated vulnerability assessments, and DevSecOps integration. Growth is fueled by increasing cloud adoption, stringent regulatory compliance, and the demand for real-time security monitoring. Intense competition pushes vendors to enhance scalability, ease of deployment, and comprehensive protection across web, mobile, and cloud applications while ensuring minimal impact on performance.
By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment procured 38% revenue share in the market in 2023. The presence of major cybersecurity vendors, such as IBM, Microsoft, Palo Alto Networks, and Cisco, has strengthened the region’s application security ecosystem. The increasing frequency of ransomware attacks, data breaches, and nation-state cyber threats has compelled businesses and government agencies to prioritize advanced security solutions, including AI-driven threat detection, DevSecOps adoption, and zero-trust security frameworks. The rapid growth of cloud computing, fintech applications, and IoT adoption has fueled web and mobile application security investments.Recent Strategies Deployed in the Market
- Nov-2024: Cisco Systems, Inc. partnered with AppOmni, a leader in SaaS security, to combine AppOmni’s Zero Trust Posture Management (ZTPM) solution with Cisco’s Security Service Edge (SSE) technology suite. This partnership extends zero trust principles to the application layer of Security-as-a-Service (SaaS) applications, enhancing security and providing greater visibility into configurations and user behaviors.
- Oct-2024: Check Point Software Technologies Ltd. acquired Cyberint Technologies Ltd., an innovative provider of external risk management solutions. The integration of Cyberint's capabilities into Check Point's Infinity Platform enhances application and digital asset protection with AI-driven threat intelligence, exposure analysis, and proactive vulnerability management.
- Aug-2024: Hewlett Packard Enterprise (HPE) finalized the acquisition of Morpheus Data, a leading software platform for managing multicloud and hybrid IT environments. This acquisition expands HPE GreenLake’s capabilities, providing enterprises with advanced multicloud automation, orchestration, and self-service provisioning. By integrating Morpheus Data’s platform with its existing offerings, including the AI-driven IT operations management from the 2023 OpsRamp acquisition, HPE will offer a unified hybrid cloud management experience. The combination also enhances FinOps capabilities, enabling customers to optimize cloud spending, set usage guardrails, and manage workloads effectively.
- May-2024: IBM Corporation partnered with Palo Alto Networks, a global cybersecurity leader, to integrate AI-powered threat protection into security operations, leveraging IBM's watsonx platform and Palo Alto’s Cortex XSIAM. This partnership focuses on advanced threat management, DevSecOps, and data security, enhancing application and hybrid cloud protection.
- Apr-2024: Synopsys, Inc. introduced Polaris Assist, an AI-driven application security assistant on the Polaris Software Integrity Platform®. Leveraging Synopsys' expertise in security intelligence and large language models, Polaris Assist offers developers AI-generated vulnerability summaries and code fix recommendations. This innovation simplifies addressing security weaknesses and accelerates secure software development, highlighting Synopsys' commitment to integrating AI into application security.
List of Key Companies Profiled
- Check Point Software Technologies Ltd.
- Fortinet, Inc.
- Rapid7, Inc.
- Hewlett Packard Enterprise Company
- IBM Corporation
- Synopsys, Inc.
- Cisco Systems, Inc.
- Veracode, Inc. (Thoma Bravo)
- HCL Technologies Ltd.
- Qualys, Inc.
- Tenable Holdings, Inc.
Market Report Segmentation
By Component
- Solution
- Services
- Professional Services
- Managed Services
By Deployment
- On premise
- Cloud
By Testing Type
- Static Application Security Testing (SAST)
- Dynamic Application Security Testing (DAST)
- Runtime Application Self-Protection (RASP)
- Interactive Application Security Testing (IAST)
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises (SMEs)
By Vertical
- BFSI
- IT & Telecom
- Government & Defense
- Retail
- Manufacturing
- Healthcare
- Media & Entertainment
- Other Vertical
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Application Security Market by Component
Chapter 6. Global Application Security Market by Deployment
Chapter 7. Global Application Security Market by Testing Type
Chapter 8. Global Application Security Market by Enterprise Size
Chapter 9. Global Application Security Market by Vertical
Chapter 10. Global Application Security Market by Region
Chapter 11. Company Profiles
Companies Mentioned
- Check Point Software Technologies Ltd.
- Fortinet, Inc.
- Rapid7, Inc.
- Hewlett Packard Enterprise Company
- IBM Corporation
- Synopsys, Inc.
- Cisco Systems, Inc.
- Veracode, Inc. (Thoma Bravo)
- HCL Technologies Ltd.
- Qualys, Inc.
- Tenable Holdings, Inc.
Methodology
LOADING...
