Market Perspective

The global Automation Testing Market was valued at USD 25.12 billion in 2022 and is projected to reach USD 56.87 billion by 2030, growing at a CAGR of 12.30% from 2023 to 2030.

The test automation sector has immense potential to evaluate advanced technological applications. AI, in particular, is gaining widespread popularity in testing due to its ability to shorten the test cycle. It is utilized for various types of testing, including regression testing, performance testing, functional testing, and test automation. With the increasing use of AI in the development of testing tools, test tools can now self-heal at runtime. As a result, self-healing automation testing is expected to be one of the most popular testing trends over the forecast period. To maximize the benefits of adding AI into testing, it is crucial for AI to become an integral component of software testing tools. The data generated from each test cycle can be analyzed using AI algorithms to identify and correct test failures. Therefore, the need for test automation technologies has increased significantly.

Analyst’s Review on Automation Testing Market

The industry growth can be attributed to the widespread availability of smartphones, a plethora of web-based applications, the decreasing cost of data, and the increasing purchasing power of consumers. Mobile applications, in particular, have a shorter development phase and life cycle than other applications. Therefore, automating the testing process for mobile applications can significantly contribute to their development life cycle. By automating mobile application testing, companies can enhance testing productivity, improve regression test cases, and reduce time spent on testing.

Market Definition

Automation testing is a software testing approach that involves the use of tools and scripts to perform testing tasks that were previously carried out manually. The primary goal of automation testing is to increase the efficiency and accuracy of software testing while reducing the time and effort required for testing activities.

There are several types of automation testing, including unit testing, functional testing, integration testing, regression testing, load testing, API testing, and GUI testing. Each type of testing is designed to address specific software testing requirements. Furthermore, automation testing is catering to many industries, including IT and telecommunications, BFSI, healthcare, retail, energy and utilities, automotive, and government and public sectors. In these industries, automation testing helps ensure that software is reliable, secure, and meets the needs of customers. In conclusion, automation testing is an essential component of modern software development. It enables organizations to improve the quality of their software while reducing the time and cost of testing. By leveraging automation testing, businesses can stay ahead of their competition and deliver high-quality software that meets the needs of their customers.

Market Dynamics

The automation testing industry has made significant advancements in recent years, as evidenced by strategic business moves such as Tricentis' acquisition of Neotys in March 2021. By incorporating NeoLoad into its portfolio, the company has expanded its enterprise-grade performance analysis capabilities, providing customers with a more comprehensive solution. Similarly, the strategic relationship between QBS Software and martBear in May 2021 is expected to enhance the efficiency of corporate software solutions for over 240,000 businesses across EMEA. These key developments and acquisitions are driving market expansion and are expected to continue to shape the industry in the forecast period.

The scarcity of qualified automation testers, especially in the agile development cycle, is impeding the industry's ability to focus on details, maintain delivery frequency, and enhance overall customer satisfaction. To participate in various interactions between teams and automation technologies in agile development, testers must possess strong technical skills. Additionally, there is a shortage of experts in test environments and test data. Despite these challenges, the overall acceptance of advanced digital testing services in businesses has increased, highlighting the growing need for skilled professionals in this field.

Segmentation Analysis

The global automation testing market is segmented based on component, endpoint interface, vertical, and geography.

Based on endpoint interface, the automation testing market is categorized into mobile, web, desktop, and embedded software. The mobile segment accumulated the largest market share in 2022. The growth in demand for Android, iOS, Windows, and other mobile operating systems and smartphones is credited for this increase. The low cost of smartphones, abundance of mobile-based applications, declining data costs, and increased purchasing power of consumers are key factors driving the high demand for mobile automation testing. To shorten the testing cycle, well-known mobile automation tools such as Frank, Appium, Robotium, and Selendroid are widely used.

Based on vertical, the automation testing market is bifurcated into IT & telecommunications, BFSI, transportation, government, healthcare, retail, and others. The IT & telecommunications segment accumulated the highest revenue in 2022. Automated testing can provide IT & telecom organizations with fast feedback on mainframe systems, enabling them to drive innovation without the risk of bottlenecks that can disrupt operations, impact customer experiences, or lead to revenue loss. By leveraging automated testing, enterprises can improve quality, velocity, and efficiency on the mainframe, while also addressing the challenges posed by the shortage of experienced developers. Moreover, the automation industry presents a significant opportunity for testing modern technologies such as IoT, AI, and machine learning, which are rapidly expanding. As most business processes are now digitally managed and rule-based, automated testing can play a pivotal role in ensuring that these systems operate efficiently and effectively, while also enabling organizations to stay ahead of the competition by embracing cutting-edge technologies and applications.

Geography Analysis

Based on region, the global automation testing market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America dominated the market in 2022, driven by the widespread presence of technology providers in the region. To remain competitive on a regional and global scale, these firms are focusing on mergers and acquisitions, partnerships and collaborations, and the development of innovative solutions. Additionally, the growing popularity of innovative consumer electronics, such as smart TVs, home appliances, and laptops, in the US is driving market demand in the region. The widespread dispersion of technology suppliers in North America is further contributing to the growth of the market. As the demand for automated testing solutions continues to rise, businesses in the region are poised to capitalize on these trends by offering cutting-edge technologies and forging strategic partnerships to stay ahead of the competition.

Competitive Landscape

The global automation testing industry report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolios and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization which could pose new opportunities for the market. The major players in the automation testing market are:

• IBM Corporation
• Open Text
• Capgemini
• Tricentis USA Corp
• SmartBear Software
• Parasoft Corporation
• Cigniti Technologies Limited
• Keysight Technologies
• Invensis Technologies Pvt Ltd
• Sauce Labs Inc.

Key Developments

• October 2022 (Partnership): SmartBearentered into a strategic partnership with China-based DragonSoft to expand the reach of its software development tools throughout China. This partnership aimed to improve software quality and promote innovation, leading to faster releases for organizations in China. By leveraging DragonSoft's expertise and local network, SmartBear is well-positioned to meet the increasing demand for high-quality software and innovative solutions in China's rapidly growing tech industry.
• October 2022 (Launch): Keysight Technologies updated its Nemo Device Application Test Suite, which uses automation and artificial intelligence (AI) to speed up the assessment of smartphone users' real-world interactions with native applications. This software-centric solution is designed to help wireless service providers and application developers improve the quality of their services while saving time and reducing costs.
• June 2021 (Partnership): Razorleaf Corporation partnered with Eggplant, a subsidiary of Keysight Technologies, to provide top-tier test automation solutions. Eggplant's cutting-edge software platform utilizes artificial intelligence (AI) and analytics to streamline the test creation and execution processes

The global Automation Testing Market is segmented as:

By Component

• Testing Type
• Services

By Endpoint Interface

• Mobile
• Web
• Desktop
• Embedded Software

By Vertical

• IT & Telecommunications
• BFSI
• Transportation
• Government
• Healthcare
• Retail
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America