“Global Cloud Testing Market to reach a market value of USD 29.3 Billion by 2031 growing at a CAGR of 13.5%”
The Global Cloud Testing Market size is expected to reach $29.3 billion by 2031, rising at a market growth of 13.5% CAGR during the forecast period.
Strong functional testing solutions adapted to the particular difficulties of cloud-based deployments are becoming increasingly necessary as enterprises shift their workloads to the cloud and use cloud-native development techniques like microservices architecture and containerization. Consequently, the functional testing tools segment would acquire nearly, 30% of the total market share by 2031. The proliferation of cloud-native applications built specifically for deployment and operation in cloud environments drives demand for functional testing tools to effectively validate these applications' functionality, interoperability, and performance.
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 July, 2023, Tricentis announced the acquisition of Waldo, a SaaS-based, no-code, zero-footprint mobile test automation platform. This acquisition enhances Tricentis' mobile testing capabilities by adding native, hybrid, and web mobile application testing using virtual devices supporting iOS simulators and Android emulators. Moreover, in March, 2023, Akamai Technologies, Inc. signed an agreement to acquire Ondat, a cloud-based storage technology provider specializing in Kubernetes-native platforms for running stateful applications at scale across various cloud environments. The acquisition aimed at enhancing Akamai's cloud computing portfolio by integrating Ondat's cloud storage technology and leveraging its talented team.
Based on the Analysis presented in the KBV Cardinal matrix; Broadcom, Inc., Oracle Corporation and IBM Corporation are the forerunners in the Market. In November, 2023, Broadcom Inc. completed the acquisition of VMware, Inc., an American cloud computing and virtualization technology company. Through this acquisition, the Broadcom Software portfolio was combined with the VMware platform to provide critical infrastructure solutions to customers. Companies such as Capgemini SE, Akamai Technologies, Inc. and Open Text Corporation are some of the key innovators in Market.
Organizations operating in the modern digital landscape face immense pressure to rapidly deliver software updates and new features. Furthermore, adopting agile development methodologies and DevOps practices necessitates testing approaches that can keep pace with rapid iteration cycles. Hence, the market will expand rapidly in the coming years.
Cloud-based testing platforms address the limitations of traditional on-premises environments by providing on-demand access to scalable computing resources. Furthermore, cloud-based testing platforms eliminate the need for upfront hardware investments by providing access to virtualized infrastructure hosted in the cloud. Therefore, these aspects can help in the growth of the market.
Organizations are apprehensive about migrating sensitive data and critical applications to the cloud due to fears surrounding data breaches, unauthorized access, and adherence to regulatory mandates. Furthermore, the shared nature of cloud infrastructure introduces security risks that organizations need to contend with when deploying these testing solutions. Thus, these aspects can lead to reduced demand.
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.
On the basis of vertical, the market is divided into retail & e-commerce, telecom & IT, media & entertainment, healthcare & life sciences, transportation, BFSI, and others. In 2023, the telecom & IT segment witnessed a 23% revenue share in the market. Cloud-based infrastructure offers flexibility, resource optimization, and on-demand access to computing resources, enabling telecom and IT companies to deliver innovative services, support dynamic workloads, and meet evolving customer demands.
Based on component, the market is segmented into tools/platforms and services. In 2023, the services segment garnered a 26% revenue share in the market. Consulting firms and IT service providers offer expertise in cloud technologies, testing methodologies, and best practices, guiding organizations through the testing initiatives' planning, design, and implementation phases. Consulting services help organizations align these testing strategies with business objectives, identify opportunities for optimization, and address specific challenges related to cloud adoption and integration. Thus, these aspects can boost the demand in the segment.
Free Valuable Insights: Global Cloud Testing Market size to reach USD 29.3 Billion by 2031
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The North America segment procured 36% revenue share in the market in 2023. Some of the biggest and most powerful cloud service providers in the world are based in North America. These cloud giants provide a wide range of cloud computing services, such as cloud-based testing solutions, platform as a service (PaaS), software as a service (SaaS), and infrastructure as a service (IaaS). Hence, these factors will assist in the growth of the segment.
Competition in the Market is intense, characterized by a dynamic landscape of providers offering cutting-edge testing solutions. This competitive environment fosters innovation in test automation, security, and performance testing, providing organizations with a wide range of options to meet their testing needs effectively.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 10.8 Billion |
| Market size forecast in 2031 | USD 29.3 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 13.5% from 2024 to 2031 |
| Number of Pages | 296 |
| Number of Tables | 493 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Vertical, Region |
| Country scope |
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| Companies Included | IBM Corporation, Oracle Corporation, Broadcom, Inc. (CA Technologies, Inc.), Open Text Corporation, Cognizant Technology Solutions Corporation, Capgemini SE, Cavisson Systems Inc., Tricentis, Akamai Technologies, Inc. and Cygnet Digital |
By Component
By Vertical
By Geography
The Market size is projected to reach USD 29.3 billion by 2031.
Proliferation of agile development methodologies and DevOps practices are driving the Market in coming years, however, Rise in compliance and regulatory challenges restraints the growth of the Market.
IBM Corporation, Oracle Corporation, Broadcom, Inc. (CA Technologies, Inc.), Open Text Corporation, Cognizant Technology Solutions Corporation, Capgemini SE, Cavisson Systems Inc., Tricentis, Akamai Technologies, Inc. and Cygnet Digital
The expected CAGR of this Market is 13.5% from 2024 to 2031.
The Tools / Platforms segment led the Market by Component in 2023; thereby, achieving a market value of $20.6 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $10.1 billion by 2031.
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