Testing As A Service Market Size to Surpass USD 14.91 Billion by 2032 | SNS Insider

The TaaS market is growing fast as businesses adopt cloud-based and AI-driven testing to enhance software quality and efficiency.

AUSTIN, TX, UNITED STATES, February 28, 2025 /EINPresswire.com/ -- The Testing As A Service Market size was USD 4.59 Billion in 2023 and is expected to reach USD 14.91 Billion by 2032 and grow at a CAGR of 14.01% over the forecast period of 2024-2032.

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Keyplayers:
Accenture (Accenture Test Automation Suite, Accenture Cloud Testing Services)
Atos SE (Atos Managed Testing Services, Atos Cloud & Security Testing)
Capgemini (Capgemini SmartQA, Capgemini Performance Testing Services)
DeviQA Solutions (DeviQA Automated Testing, DeviQA Performance & Security Testing)
Deloitte Touche Tohmatsu Limited (Deloitte Testing Services, Deloitte Cloud Assurance & Testing)
DXC Technology Company (DXC Application Testing Services, DXC Performance Engineering)
IBM Corporation (IBM Rational Test Workbench, IBM Cloud Testing Services)
Infosys Limited (Infosys Testing as a Service (TaaS), Infosys AI-Led Testing Services)
TATA Consultancy Services Limited (TCS Quality Engineering & Testing, TCS Assurance Services)
Qualitest Group (Qualitest AI-Powered Testing, Qualitest Cybersecurity Testing)

By Test Type, Functionality Testing Dominates TaaS Market in 2023, While Security Testing Poised for Fastest Growth Amid Rising Cyber Threats
The Functionality Testing segment ruled the TaaS market in 2023, with the highest revenue share of 28%. This is driven by the increasing need for end-to-end user experiences, software reliability, and regulatory compliance. Functionality testing verifies that applications are meeting requirements and functioning as expected in varying environments.

Security Testing is anticipated to grow at the highest CAGR of 16.17% during the forecast period, led by growing fear of cyber-attacks, data breaches, and strict compliance laws. With organizations embracing cloud-based applications, IoT networks, and AI-based solutions, the need for sophisticated security testing is growing day by day.

By End-Use, IT & Telecom Dominate TaaS Market, While Healthcare Sector Grows Fastest with Rising Digitalization and Regulatory Compliance Needs
IT & Telecommunication was the biggest end-use category, accounting for a 32% revenue share in 2023. The aggressive rollout of 5G networks, cloud computing, and AI-based digital services has boosted the demand for stringent software testing. As IoT adoption, edge computing, and SDN continue to grow, telecom operators are using TaaS offerings to build network resilience and maximize the delivery of services. While, the Healthcare vertical is experiencing the highest growth rate, 16.25% CAGR, driven by the growing dependence on digital healthcare solutions, telemedicine, and AI-based diagnostics. With governments having stringent regulatory mandates like HIPAA and GDPR, healthcare businesses are finding TaaS more convenient for securing data, ensuring regulatory compliance, and deploying high-performance apps.

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By Deployment, Public Cloud Dominates TaaS Market in 2023, While Private Cloud Sees Fastest Growth Amid Rising Security and Compliance Demands
The Public Cloud segment contributed the highest revenue share in 2023, thanks to the mass adoption of cloud-based testing environments by enterprises and SMEs. Public cloud infrastructures provide flexibility, cost savings, and integration with DevOps and Agile processes, which is why they are the go-to option for software testing. Top cloud vendors like AWS, Microsoft Azure, and Google Cloud have greatly increased their cloud-based testing offerings, allowing greater flexibility and scalability. The Private Cloud segment is anticipated to register the highest CAGR, driven by data security concerns, regulatory compliance, and the requirement for tailored testing environments. BFSI, healthcare, and government organizations are increasingly adopting private cloud deployments to address stringent security and compliance needs.

North America Dominates TaaS Market in 2023, While Asia Pacific Poised for Fastest Growth with Rapid Digital Transformation
In 2023, North America held the largest share of the Testing As A Service market due to the growing adoption of cloud-based testing solutions and AI-driven automation in the region, as well as the strong IT infrastructure. The presence of prominent TaaS companies like IBM, Microsoft, Accenture, and Capgemini has helped propel the region to market leadership. The surge in demand for DevOps, Agile testing, and cybersecurity compliance solutions across various industries such as BFSI, healthcare, IT & telecom has driven the growth of the market.

The region of Asia Pacific is anticipated to be the highest CAGR contributor in the testing as a service market due to the emergence of rapid digital transformation, cloud service expansion, and the growing adoption of AI-driven testing. Leading nations like China, India, Japan, and South Korea are propelling this growth of IT sector expansion as well as increasing the use of mobile and web applications, as well as enhancements made through software development.

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