Imagine the pressure on a tech team racing to launch a major update for an app that millions rely on daily. Every minute counts and every minor bug could mean frustrated users or security risks. To keep up with this demand, companies have turned to automation testing.
Since the early 2010s, automation testing has evolved from a helpful tool to an essential industry, growing at a remarkable annual rate of 17.31%. This fast growth reflects how crucial automation testing has become in a world where speed and reliability are non-negotiable in software development.
What’s fueling this impressive growth? In this article, we’ll dive into the size, share, and key trends shaping the automation testing market and examine the role of test automation platforms in the industry’s growth.
| Key TakeawaysThe automation testing market is growing rapidly at a 17.31% annual rate, reflecting its essential role in modern software development. North America leads with a 40% market share, driven by high demand for automation tools and consumer tech adoption. Major players like IBM, Accenture, Microsoft, and Parasoft are innovating to make testing easier and more efficient for all skill levels. Key trends shaping the industry include AI-driven testing, scriptless automation, and the Shift Left approach, which brings testing earlier in development. The global software testing market, valued at $87.42 billion in 2023, is set to reach $512.3 billion by 2032. |
Automation Testing Market Size: How Much Has the Industry Grown?
The automation testing market is rapidly progressing, growing at 17.31% annually. In perspective, a 10% to 12% growth rate is impressive in most industries—but automation testing is growing at almost twice that speed.
Note: Data sourced from Precedence Research
Several factors are propelling this growth, including:
- Demand for Faster Testing
With today’s fast-paced digital expectations, users want quick, reliable, and glitches-free software. Testing as a Service (TaaS), a $4.54 billion industry, has gained traction as businesses seek faster testing solutions.
- Adoption of Agile and DevOps
Agile is now a mainstay, with 94% of organizations practicing it and 65% using it for over three years. Agile adoption surged from 37% in 2020 to 86% by 2021, driven by its alignment with quick, iterative development.
- Need to Reduce Human Errors
In 2023, 73% of data breaches were linked to human error, costing businesses an average of $3.33 million. Automation can reduce these risks by removing human intervention from repetitive tasks.
- Rising Demand for AI and ML
AI and machine learning are booming, with LinkedIn reporting a 74% increase in related jobs. This highlights the demand for these skills in automating complex processes.
- Increasing Digitization
From April 2020 to December 2022, micro firms doubled their investment in digital tools from 10% to 20%, while large companies tripled theirs from 20% to 60%. This digital shift is pushing the need for robust automation testing.
Automation Testing Market Share
Regionally, North America takes the lead, holding about 40% of the automation testing market—a strong indication of the region’s commitment to automation technologies. In the U.S., consumer demand for smart devices, such as TVs and home appliances, has risen steadily. By 2020, 28% of American households owned one or more smart devices.
Europe follows with a 28% market share, backed by increasing investments in AI. According to the Worldwide AI and Generative AI Spending Guide, Europe’s AI spending is projected to hit $113 billion by 2028.
The Asia-Pacific region captures around 22% of the market, largely due to high smartphone adoption in countries like China and India. In China alone, smartphone penetration is expected to increase from 72% in 2022 to 83% by 2027.
At the lower end, Latin America and the Middle East & Africa hold 7% and 3% of the market, respectively. These regions are moving slower in their digital transformations, but they have substantial potential for growth in automation testing.
Key Players in the Automation Testing Industry
Some of the top companies in automation testing are simplifying the testing process with tools designed for teams of varying expertise levels. As demand for faster, more reliable software grows, these industry leaders are shaping the future of automation testing:
IBM
IBM has pioneered automation testing with innovations like record-and-playback tools and Robotic Process Automation (RPA). These tools simplify testing by automating repetitive tasks, leading to higher efficiency and fewer errors. In Q3 2024, IBM reported a 13% revenue boost in its Automation division.
| Did You Know? In March 2023, IBM introduced its latest automation testing platform: IBM Rational Functional Tester. This tool simplifies testing processes and improves software quality, making overall functional testing more efficient. |
Accenture
Holding a substantial market share alongside IBM, Accenture’s Codeless Test Automation Suite (CTAS) simplifies testing with AI-driven insights. By reducing testing costs and efforts by 90%, CTAS has helped boost Accenture’s client engagement and led to a 2% revenue increase in FY2024.
Microsoft
Microsoft’s Azure DevOps suite offers tools like Azure Test Plans, enabling companies to automate and speed up software testing. This service contributed to a 21% revenue increase in Microsoft’s server products and cloud services in FY2024.
Parasoft
Known for its Industrial Automation Software Testing solutions, Parasoft supports high-stakes industries by catching critical code errors. Its strong reputation led to impressive financial growth, with revenue climbing from $27.4 million in 2023 to $39.3 million in 2024.
Automation Testing Trends & Predictions
The automation testing industry continues to evolve, with trends that are likely to reshape it in the years ahead:
- AI in Testing
AI transforms software quality, from simulating user interactions to creating more secure applications by mimicking cyberattacks.
- Scriptless Automation
Scriptless tools enable low-code or no-code test creation and make automation accessible to teams regardless of coding expertise. The market for these tools is projected to grow from $2 billion in 2023 to $8.6 billion by 2033.
- Shift Left Testing
By conducting tests earlier in the development cycle, teams can reduce costs, catch issues sooner, and foster collaboration. This “Shift Left” approach is expected to become a mainstay in software testing.
Automation testing will likely become more collaborative, accessible, and efficient, with advances in AI, scriptless tools, and “Shift Left” methodologies leading the way.
Conclusion
The automation testing industry is growing quickly, driven by a demand for reliable software and streamlined development. Companies worldwide are adopting automation to keep up with digital demands.
As the industry continues to evolve, it’s clear that automation testing will play an increasingly central role in quality assurance, ensuring that software meets the high standards users expect.
Source
FAQs
What percentage of testing is automated?
Around 33% of companies aim to automate 50% to 70% of their testing processes, and roughly 20% targeting 75% automation.
How big is the software testing market?
The global software testing market was valued at $87.42 billion in 2023 and is projected to grow to $512.3 billion by 2032, with a CAGR of 21.71%.
What is the 80-20 rule in test automation?
The 80-20 rule suggests that automating the most crucial 20% of tests yields 80% of the benefits, maximizing impact and efficiency.
With a master's degree in telecommunications and over 15 years of working experience in telecommunications, networking, and online security, he deeply understands cybersecurity's value and importance. Max leverages his vast experience and knowledge to research the latest cyber threats, scams, malware, and viruses in-depth.