Automation Testing Market Size, Share, and Trends 2024 to 2033

Automation Testing Market Size and Forecast

The global automation testing market size was USD 30.28 billion in 2023, accounted for USD 35.52 billion in 2024 and is expected to reach around USD 149.45 billion by 2033, expanding at a CAGR of 17.31% from 2024 to 2033. Businesses' growing readiness to use innovative automation testing techniques like DevOps and Agile methodologies drive the market's growth.

Automation Testing Market Key Takeaways

• The North America automation testing market size reached USD 12.11 billion in 2023 and is expected to attain around USD 60.53 billion by 2033, poised to grow at a CAGR of 17.45% between 2024 and 2033.
• North America dominated the automation testing market with the highest revenue share of 40% in 2023.
• Asia Pacific is estimated to grow at a solid CAGR of 20.03% over the forecast period.
• By component, the service segment has held the largest revenue share of 58% in 2023.
• By component, the testing type segment is anticipated to grow at the fastest CAGR of 18.02% during the forecast period.
• By organization size, the large enterprises segment has contributed more than 69% of revenue share in 2023.
• By organization size, the small- and medium-sized enterprises segment is predicted to expand at a notable CAGR of 19.84% over the forecast period.
• By vertical, the BFSI segment led the market in 2023 by holding the largest market share.
• By vertical, the healthcare segment is the fastest-growing segment throughout the projected period.

U.S. Automation Testing Market Size and Growth 2024 to 2033

The U.S. automation testing market size was exhibited at USD 9.08 billion in 2023 and is projected to be worth around USD 45.70 billion by 2033, poised to grow at a CAGR of 17.53% from 2024 to 2033.

North America dominated the automation testing market and is observed to sustain as a significant contributor during the forecsat period. The market in the region is propelled by a wide array of technology vendors. In the US, increasing demand stems from the growing adoption of smart consumer devices such as smart TVs, home appliances, and laptops. These devices are closely interconnected with web applications, operating systems (OS), and software. As the usage of these smart consumer electronics expands, there will be an increased need for test automation services in the region.

Asia Pacific is anticipated to witness a CAGR of 20.03% over the forecast period in the automation testing market. Several factors are driving this strong growth trend, such as rapid digitalization across various sectors, growing use of automation testing to improve software quality and speed up product launches and expanding investments in IT infrastructure and technological advancements.

The region is expected to grow at the highest rate during the forecast period. This region includes significant economies such as India and China, which boast large customer bases. Additionally, governments are actively promoting the smooth adoption of new technologies such as AI, ML, automation, IoT, mobile and web-based applications, cloud services, and other advancements.

• The article published by Techcrunch in February 2024 says that Antithesis, a cloud platform service, raises $47M to launch an automated testing platform for software. Antithesis’ product continuously scans the newest version of the software under development for bugs inside a separate-from-production, simulated environment

Market Overview

In order to quickly and effectively assess software applications in emergency scenarios, the automation testing market offers automated testing solutions and services. The demand for dependable software functionality and performance under time limitations, such as during crisis response, catastrophe recovery, or urgent deployments, is addressed by this market. Robust capabilities for accelerated testing cycles are provided by emergency automation testing systems, allowing enterprises to rapidly evaluate and address software integrity, resilience, and compliance in high-pressure settings.

Automation Testing Market Growth Factors

• Increasing demand for quicker and more effective testing procedures is expected to fuel market growth.
• Automation testing is a much-cost and time-saving technology that can positively impact the market's growth.
• Increased test coverage to make sure that software components are extensively tested can boost market growth further.
• The evolving nature of work arrangements can contribute to the expansion of the automation testing market.

Automation Testing Market Scope

Automation Testing Market Dynamics

Driver

Integration of ML and AI in cloud automation

The quick uptake of cutting-edge technology is the main driver anticipated to propel the growth of the automation testing market over the forecast period. Further driving market expansion is expected to be the growing use of AI-enabled technologies in software testing settings, as well as the growing need for automated testing methods and solutions to guarantee a smooth user experience. Moreover, the incorporation of artificial intelligence and machine learning into cloud-based automation testing solutions is making their use easier and may help to grow the industry.

•  In April 2024, Yethi Consulting, a pioneer in the sphere of software quality assurance and testing, announced the launch of the latest version of their enterprise-class testing workbench Tenjin 4.0, an all-in-one test-management & codeless test automation platform. The product comes with advanced AI capabilities that help organizations manage, plan, design, and execute software tests for complex enterprise applications with ease & simplicity.

Restraint

Initial Investment and Implementation Costs

Implementing automation testing requires an initial investment in tools, infrastructure, and skilled personnel. The costs associated with acquiring automation testing tools and licenses, setting up testing environments, and training the workforce can be significantly high. For smaller organizations with limited budgets, these upfront expenses can create a barrier to adopting automation testing.

Opportunity

Rising Demand for Test Automation Consulting and Services

Businesses in a variety of sectors are realizing how crucial automation testing is to maintaining software quality, cutting development costs, and speeding time to automation testing market. But in order to create strategies that work, choose the right technologies, and incorporate automation testing into current processes with ease, deploying automation testing calls for specific knowledge. Test automation assessment, plan creation, tool evaluation, framework implementation, and training are just a few of the useful services offered by test automation consulting companies. These services aid businesses in overcoming obstacles. Thereby, the rising demand for test automation consulting is observed to offer various opportunities for the automation testing market.

•  In October 2023, IBM launched Watson Code Assistant, a generative AI-powered assistant that helps enterprise developers and IT operators code more quickly and more accurately using natural language prompts. The product currently delivers on two specific enterprise use cases. First IT Automation and second mainframe application.

Component Size Insights

The services segment dominated the automation testing market in 2023. Implementation services facilitate the integration of automation into existing software testing infrastructures. These services seamlessly incorporate automation into current testing setups. To properly integrate automated analysis solutions, various hardware components must be connected, and the system's functionality must be evaluated.

The testing type segment is anticipated to grow at the fastest rate during the forecast period. Automated testing is a technique that automates the validation of software functionality; it should meet requirements before release into production. This approach allows organizations to run specific software tests more quickly without the need for human testers. Documents such as software requirements specifications, designs, and test cases are analyzed during this process.

• In April 2024, LeadingMile launches the Salesforce test automation tool TARA. A new solution that helps financial services institutions streamline the way they update or refurbish their Salesforce systems.

Organization Size Insights

The large enterprises segment dominated the automation testing market in 2023. Automation testing services are essential for enterprises to ensure the smooth functioning of their business operations. These services also help to reduce operational costs and improve customer satisfaction. Test planning should prioritize selecting test cases for automation by considering critical functionalities, high-risk areas, and frequently executed scenarios.

The small and medium-sized enterprises segment is observed to grow at a significant rate during the forecast period in the automation testing market. Small-sized businesses should prioritize automation testing since it improves testing process efficiency, conserves time and money, and guarantees software application quality. Furthermore, it is imperative to give priority to the selection of test cases for automation in contexts with constrained resources and time. Market expansion is fueled by concentrating on high-risk domains, frequently carried out scenarios, and essential features. Additionally, this method increases coverage with the least amount of work and resources.

Vertical Insights

The BFSI segment led the automation testing market in 2023 by holding the largest market share. This can be attributed to the adoption of digitalization in the BFSI sector, which is driving significant demand for automation testing of application software. Meanwhile, the retail sector is expected to experience the highest growth rate due to the increasing penetration of e-commerce. Automation testing helps in ensuring that all applications comply with these regulations by systematically and consistently testing for compliance, which manual testing might not achieve efficiently.

BFSI organizations are increasingly adopting Agile and DevOps methodologies to enhance their development cycles and reduce time-to-market. Automation testing is integral to these practices as it allows for continuous integration and continuous deployment (CI/CD), ensuring that new code changes do not disrupt existing functionalities.

•  In January 2024, Temenos launched LEAP the AI-Powered Offering to Help Banks Modernize Faster.LEAP enables banks to seamlessly and quickly move to the latest cloud-native Temenos technology complete with the latest banking capabilities using AI and a standardized methodology.

The healthcare segment is the fastest-growing segment throughout the projected period in the automation testing market. This is because Automation testing is vital in the healthcare industry, where the accuracy, reliability, and security of software applications are paramount. Electronic Health Record (EHR) systems are essential for managing patient information in healthcare organizations. Automation testing ensures these systems integrate smoothly by facilitating data exchange, interoperability, and compliance with industry standards like HL7 or DICOM.

Healthcare applications, including electronic health records (EHR), patient management systems, and diagnostic tools, are critical and directly impact patient care and safety. Ensuring the reliability and accuracy of these systems is paramount. Automated testing provides thorough and repeatable testing processes that can detect errors early, reducing the risk of software failures in a live environment.

Automation Testing Market Companies

• IBM Corporation
• Apexon
• Accenture
• Cigniti Technologies
• Capgemini SE
• Microsoft
• Tricentis
• Keysight technologies
• Sauce Labs
• Parasoft

Recent Developments

• In March 2023, IBM announced the launch of its new automation testing platform, IBM Rational Functional Tester. The platform is designed to help businesses automate their functional testing and improve their software quality.
• In February 2023, Microsoft announced the launch of its new automation testing service, Microsoft Azure DevOps. The service is designed to help businesses automate their software development and testing processes.
• In January 2023, Oracle announced the launch of its new automation testing platform, Oracle Test Complete. The platform is designed to help businesses automate their functional, performance, and security testing.

Segments covered in the report

By Component Size

• Testing Type
  • Static Testing
  • Dynamic Testing
  • Functional Testing
  • Non-functional Testing
  • Performance Testing
  • API Testing
  • Security Testing
  • Load Testing
  • Regression testing
  • Others
• Service
  • Managed services
  • Professional services
  • By Organization Size 
  • Small And Medium-Sized Enterprises
  • Large Enterprises

By Vertical

• Healthcare
• IT & Telecommunication
• Energy & Utilities
• BFSI
• Government
• Defense And Aerospace
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa