Application Security Market

Market Definition

Application security refers to the practice of implementing measures, tools, and processes to protect software applications from security threats, vulnerabilities, and unauthorized access throughout their lifecycle. 

It encompasses secure coding practices, authentication mechanisms, data encryption, security testing, and continuous monitoring to safeguard applications from cyberattacks, ensuring the confidentiality, integrity, and availability of data.

Application Security Market Overview

The global application security market size was valued at USD 32.38 billion in 2023 and is projected to grow from USD 35.63 billion in 2024 to USD 73.59 billion by 2031, exhibiting a CAGR of 10.92% during the forecast period. 

The market is expanding, due to rising cyber threats, increased adoption of cloud-based applications, and stringent regulatory compliance requirements. Businesses are integrating AI-driven security solutions, adopting DevSecOps practices, and investing in mobile and web application security. 

Organizations prioritize robust security frameworks to protect applications, driving the market amid evolving cyber risks and regulatory mandates.

Major companies operating in the application security market are IBM Corporation, Qualys, Inc., Veracode, Hewlett Packard Enterprise Development LP, Synopsys, Inc, Rapid7, HCL Technologies Limited, Snyk Limited, Trustwave Holdings, Inc., Black Duck Software, Inc. (WhiteHat Security), Checkmarx Ltd., Open Text Corporation, Broadcom, Imperva, and Oracle.

The increasing awareness of cybersecurity risks is fueling the market. Governments recognize the financial and reputational impact of data breaches, leading to higher investments in security infrastructure. 

Enterprises are prioritizing security spending to protect applications from cyberattacks and regulatory violations. Security budgets are expanding across industries, with organizations adopting proactive threat management solutions.

• In January 2024, the Indian government launched the National Cybersecurity Reference Framework (NCRF), a strategic guideline aimed at standardizing cybersecurity practices nationwide. The framework focuses on critical sectors, including telecom, power, transportation, finance, strategic entities, government agencies, and healthcare, providing directives to strengthen cybersecurity infrastructure. It recommends that organizations allocate at least 10% of their total IT budget to cybersecurity, with oversight from senior management or the board of directors to ensure effective implementation.

Advanced security tools, including zero-trust architecture and runtime application self-protection (RASP), are gaining traction. Strengthening security frameworks enhances business resilience, ensuring long-term sustainability. The demand for comprehensive application security solutions continues to grow, driven by the need for enhanced cybersecurity strategies.

Key Highlights:

1. The market size was valued at USD 32.38 billion in 2023.
2. The application security industry is projected to grow at a CAGR of 10.92% from 2024 to 2031.
3. North America held a market share of 27.88% in 2023, with a valuation of USD 9.03 billion.
4. The solution segment garnered USD 17.58 billion in revenue in 2023.
5. The cloud-based segment is expected to reach USD 40.28 billion by 2031.
6. The large enterprises segment secured the largest revenue share of 57.14% in 2023.
7. The static application security testing (SAST) segment is poised for a robust CAGR of 10.96% through the forecast period.
8. The BFSI segment is expected to reach USD 15.83 billion by 2031.
9. The market in Asia Pacific is anticipated to grow at a CAGR of 11.03% during the forecast period.

Market Driver

"Rising Cybersecurity Threats and Data Breaches"

The increasing frequency of cyberattacks is driving the application security market. Businesses across industries face a growing number of security threats, including ransomware, SQL injection, and cross-site scripting. 

Attackers exploit vulnerabilities in applications to gain unauthorized access, steal sensitive data, and disrupt operations. Organizations are prioritizing investment in application security solutions to mitigate financial losses and reputational damage.

• A 2024 study by the National University reports a 75% rise in cloud environment intrusions compared to the previous year. In 2023, ransomware attacks affected over 72% of businesses globally, with cloud-based data involved in 82% of data breaches, making ransomware the dominant threat. Additionally, 52% of organizations experienced ransomware incidents that severely disrupted their business systems and operations.

The demand for advanced security tools, such as web application firewalls, runtime protection, and automated threat detection, is increasing. Strengthening security frameworks has become a strategic priority, accelerating the adoption of application security solutions across enterprises.

Market Challenge

"High Complexity in Implementing Security Solutions"

The complexity of integrating application security solutions within existing IT infrastructures poses a significant challenge to the growth of the application security industry. Organizations struggle with compatibility issues, increased deployment costs, and the need for specialized expertise.

Companies are adopting automated security testing, AI-driven threat detection, and cloud-native security solutions that streamline implementation. Businesses are also investing in DevSecOps frameworks, embedding security within the software development lifecycle to minimize disruptions. 

Additionally, organizations are leveraging managed security services and security-as-a-service (SECaaS) models to enhance protection while reducing the burden on internal IT teams.

Market Trend

"Expansion of DevSecOps Practices"

The growing emphasis on secure software development is driving the application security market. Organizations are integrating security within the software development lifecycle (SDLC) through DevSecOps practices. 

Embedding security controls at each development stage enhances application resilience against cyber threats. Security testing tools such as static application security testing (SAST) and dynamic application security testing (DAST) enable developers to identify vulnerabilities early. 

Automated security testing reduces remediation costs and strengthens application security. Businesses are prioritizing DevSecOps frameworks to align security with agile development processes.

• In May 2024, PlaxidityX introduced the PlaxidityX Development Security Operations Platform (DevSecOps platform), designed to tackle the complex security challenges faced by software-defined vehicle (SDV) manufacturers and their suppliers. By adopting a "shift left" strategy, the platform detects security vulnerabilities early in the development process, reducing costs and enhancing efficiency compared to identifying defects at later stages.

Application Security Market Report Snapshot

Market Segmentation:

• By Component (Solution, Services): The solution segment earned USD 17.58 billion in 2023, due to the rising demand for advanced security tools that detect vulnerabilities, ensure compliance, and protect applications from evolving cyber threats.
• By Deployment (Cloud-based, On-premises): The cloud-based segment held 54.80% share of the market in 2023, due to its scalability, flexibility, and ability to provide robust security solutions that protect cloud-native applications from evolving cyber threats.
• By Organization (Small and Medium Enterprises, Large Enterprises): The large enterprises segment is projected to reach USD 42.00 billion by 2031, owing to their extensive IT infrastructures, higher exposure to cyber threats, and increased regulatory compliance requirements.
• By Security Testing (Static Application Security Testing (SAST), Dynamic Application Security Testing (DAST), Interactive Application Security Testing (IAST), Run-Time Application Self Protection (RASP)): The static application security testing (SAST) segment is poised for significant growth at a CAGR of 10.96% through the forecast period, due to its ability to identify vulnerabilities early in the software development lifecycle, enabling cost-effective risk mitigation before deployment.
• By Industry Vertical (IT & Telecommunications, BFSI, Healthcare, Government, Retail & e-commerce, Manufacturing, Others): The BFSI segment earned USD 6.95 billion in 2023, due to the high volume of sensitive financial data processed, increasing cyber threats, and stringent regulatory compliance requirements, driving significant demand for advanced security solutions.

Application Security Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America accounted for around 27.88% share of the application security market in 2023, with a valuation of USD 9.03 billion. In North America, the increasing frequency and sophistication of cyberattacks, such as ransomware and data breaches, are driving the market. 

High-profile breaches across industries, including finance, healthcare, and retail, have exposed vulnerabilities in applications, making security a critical priority. The need to protect sensitive customer data, intellectual property, and financial assets has led to a surge in demand for advanced security solutions. 

Companies are increasingly investing in application security tools to prevent unauthorized access and minimize the risk of cyberattacks.

• The FBI’s Internet Crime Report 2023 indicates that the public filed 880,418 cybercrime complaints, reflecting a 10% rise from 2022. Total potential losses soared to USD 12.5 billion in 2023, up from USD 10.3 billion the previous year. California, Texas, and Florida reported the highest number of cybercrime victims.

Additionally, North American businesses face strict data protection regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which mandate that organizations adopt robust cybersecurity measures to safeguard sensitive data. 

These regulations have prompted increased investments in application security to ensure compliance and avoid hefty penalties.

The market in Asia Pacific is poised for significant growth at a robust CAGR of 11.03% over the forecast period. The accelerating pace of digital transformation across industries in Asia Pacific (APAC) is a key factor driving the application security industry. 

Businesses are increasingly adopting digital technologies, including cloud computing, IoT, and mobile applications, to enhance operational efficiency and customer engagement.

• As per the World Economic Forum's 2023 reports, South Asian nations are rapidly adopting digitalization in a strategic and comprehensive manner. Southeast Asia's internet economy is expected to reach USD 1 trillion by 2030, driven by a rapidly growing population of digital consumers and applications.

As these digital ecosystems expand, so does the attack surface, creating new vulnerabilities. Organizations are investing in advanced application security solutions to safeguard sensitive data, maintain customer trust, and ensure business continuity amidst the growing digitalization of services across industries such as finance, healthcare, and manufacturing.

Regulatory Framework Also Plays a Significant Role in Shaping the Market

• In the U.S., the Federal Information Security Modernization Act (FISMA) mandates federal agencies to secure information systems. The Health Insurance Portability and Accountability Act (HIPAA) sets standards for protecting health information, while the Gramm-Leach-Bliley Act (GLBA) focuses on the protection of consumer financial information. Additionally, California's Consumer Privacy Act (CCPA) enhances privacy rights and consumer protection for the residents of California, influencing application security practices.
• In the European Union (EU), the General Data Protection Regulation (GDPR) establishes data protection and privacy standards for all individuals within the EU, directly influencing application security by enforcing the protection of personal data.
• In the UK, the Data Protection Act 2018 aligns with the GDPR, setting guidelines for data processing, while in Germany, the Federal Data Protection Act (BDSG) complements the GDPR, regulating the protection of personal data and ensuring application security compliance.
• In China, the Cybersecurity Law implements security measures for protecting critical information infrastructure and personal data, impacting application security in various sectors.
• Japan enforces the Act on the Protection of Personal Information (APPI), regulating the handling of personal data, which affects how companies approach application security.
• India's Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules set standards for the protection of sensitive personal data, directly influencing application security practices within the country.
• South Korea's Personal Information Protection Act (PIPA) regulates the collection, use, and protection of personal information, which has a strong influence on application security policies.

Competitive Landscape:

The application security industry is characterized by a large number of participants, including both established corporations and rising organizations. Major market participants are focusing on securing funding and making strategic investments to strengthen the resilience of critical infrastructure sectors such as finance, healthcare, and energy. 

Many firms are receiving funding from both government agencies and private investors to develop advanced security technologies, such as AI-driven security solutions and blockchain-based systems, which help protect against evolving cyber threats. These investments are accelerating the development of cutting-edge security solutions and enabling companies to scale their operations.

• In July 2024, IBM Corporation secured a five-year contract with an initial funding of USD 26 million from the U.S. Agency for International Development (USAID) to support its Cybersecurity Protection and Response (CPR) program. This initiative aims to bolster and expand USAID’s cybersecurity response capabilities for host governments in the Europe and Eurasia (E&E) region.

List of Key Companies in Application Security Market:

• IBM Corporation
• Qualys, Inc.
• Veracode
• Hewlett Packard Enterprise Development LP
• Synopsys, Inc
• Rapid7
• HCL Technologies Limited
• Snyk Limited
• Trustwave Holdings, Inc. 
• Black Duck Software, Inc. (WhiteHat Security)
• Checkmarx Ltd. 
• Open Text Corporation
• Broadcom
• Imperva
• Oracle

Recent Developments (M&A/Collaboration/ New Product Launch)

• In January 2025, Veracode acquired select assets from Phylum, Inc., including its technology for analyzing, detecting, and mitigating malicious packages. This acquisition strengthens Veracode’s capacity to identify and block malicious code in open-source libraries, further advancing its investment in software supply chain risk management.
• In August 2024, Veracode launched platform innovations designed to help organizations identify, prioritize, and mitigate security debt across its expanding attack surface. The latest features, Universal Connector and Application Security Heatmap, powered by Longbow and Veracode, enable organizations to swiftly integrate findings from any source and pinpoint the applications that pose the highest risk.
• In April 2024, Synopsys, Inc. launched Polaris Assist, an AI-powered application security assistant on the Synopsys Polaris Software Integrity Platform. Combining Large Language Model (LLM) technology with Synopsys' extensive security expertise and Black Duck's open-source knowledge, Polaris Assist delivers clear summaries of detected vulnerabilities, AI-generated code fix recommendations, and other insights to help security and development teams build more secure software faster.
• In December 2024, HCL Technologies collaborated with Google Cloud Security to offer AI-driven Managed Detection and Response (MDR) solutions, providing enterprises with extensive security coverage to effectively address cyber threats.
• In January 2023, OpenText acquired Micro Focus International plc, a prominent provider of mission-critical software technology and services aimed at accelerating digital transformation. This acquisition extends OpenText's corporate mission to assist enterprise professionals in securing their operations, gaining deeper insights into their information, and effectively managing an increasingly hybrid and complex digital environment.