Automation Testing Market Size & Share Analysis - Growth Trends & Forecasts

Automation Testing Market is Segmented by Component Type (Solutions and Services), Testing Type (Functional and Non-Functional), Deployment Mode (On-Premises and Cloud), End-User Industry (IT and Telecommunications, BFSI, and More), Organization Size (Large Enterprises and Small and Medium Enterprises), Interface (Web, Mobile, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Automation Testing Market Size and Share

Automation Testing Market (2025 - 2030)
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Automation Testing Market Analysis by Mordor Intelligence

The Automation Testing Market size is estimated at USD 35.29 billion in 2025, and is expected to reach USD 76.72 billion by 2030, at a CAGR of 16.80% during the forecast period (2025-2030).

Enterprises are turning to artificial-intelligence-driven quality engineering and fully embedded continuous-integration pipelines to shorten delivery timelines while preserving application reliability. Uptake accelerates as digital transformation programs expose the limits of manual quality-assurance processes, especially in complex microservices and edge-computing environments. Growing DevOps maturity, rapid cloud migration, and regulatory pressure for accessible digital experiences continue to enlarge the automation testing market, while the democratization of low-code and no-code toolsets invites business stakeholders into the testing lifecycle. Vendor consolidation, illustrated by acquisitions such as SmartBear–Reflect and Tricentis–SeaLights, signals intensifying competition for differentiated AI capabilities. [1]SmartBear, “SmartBear Acquires Reflect,” smartbear.com

Key Report Takeaways

By component, Solutions held 62.2% of the automation testing market share in 2024, whereas Services are projected to advance at a 19.4% CAGR through 2030.

By testing type, Functional testing commanded 52.7% of the automation testing market size in 2024; Non-Functional testing is on track for a 20.1% CAGR to 2030.

By deployment mode, On-Premises deployments retained a 54.71% share of the automation testing market size in 2024, yet Cloud deployments are forecast to climb at a 23.2% CAGR.

By end-user industry, the BFSI sector captured 27.42% of the automation testing market share in 2024, while Retail and E-Commerce show the quickest growth at 18.7% CAGR.

By organization size, Large Enterprises commanded 58.41% of the automation testing market share in 2024, while Small and Medium Enterprises showed the quickest growth at 18.2% CAGR.

By interface, Web commanded 30.21% of the automation testing market share in 2024, while Mobile showed the quickest growth at 19.2% CAGR.

By geography, North America led with 36.7% revenue share in 2024; Asia-Pacific is expected to post the fastest regional CAGR of 20.5% through 2030.

Segment Analysis

By Component: Services Adoption Accelerates

Services revenue is rising at a 19.4% CAGR as firms lean on external providers for framework design, continuous monitoring, and test-data management. Managed-service contracts supply 24/7 execution support across time zones, relieving internal teams of tool maintenance responsibilities. Meanwhile, Solution licences remain essential foundations and therefore keep a 62.2% share of the automation testing market size in 2024. Vendor roadmaps increasingly pair platform sales with value-added advisory packages, ensuring integrated uptake across large and mid-market buyers. As the installed base matures, demand shifts from perpetual licences to consumption-based SaaS, unlocking annuity streams for suppliers.

Second-order effects include tightening alliances between platform vendors and global-systems integrators who provide domain knowledge in banking, healthcare, and telecom. These alliances help customers streamline procurement and reduce multi-vendor friction while ensuring the breadth of solution coverage. The combination of scalable tooling and white-glove managed execution positions the services segment as a central pillar of long-term automation testing market growth.

Automation Testing Market
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By Testing Type: Non-Functional Emphasis Grows

Non-Functional suites—performance, security, usability, and compliance—are expanding at 20.1% CAGR, reflecting buyer recognition that speed and safety drive user satisfaction more than baseline functional correctness. Retailers simulating Black Friday peaks have measured revenue risk reduction once load-test coverage crosses 90%. Regulatory scrutiny around privacy and cyber-resilience further tilts budgets toward penetration and vulnerability testing automation.

Functional testing will keep its foundational role and 52.7% share of the automation testing market size in 2024 because every release still requires regression across core workflows. Yet, tooling convergence now lets architects trigger both functional and non-functional scripts inside a single pipeline, consolidating dashboards and enhancing traceability. Vendors embedding AI-driven prioritisation in their schedulers make suites leaner, thus saving compute cycles and decreasing execution windows.

By Deployment Mode: Cloud Gains Momentum

The shift toward cloud delivery supports dynamic scaling, reducing idle infrastructure and aligning cost with consumption. Public-cloud grids provide broad browser-OS matrices, whereas private installations retain data sovereignty for regulated workloads. The hybrid model emerges as the fastest sub-segment because it accommodates legacy investments while allowing spiky load tests to burst into public-cloud capacity on demand. Although On-Premises still controls 54.71% share, the 23.2% CAGR attached to cloud deployments indicates inevitable rebalancing.

Cloud-native execution also fuels analytics layers; telemetry streamed from tests meets data-warehousing capabilities to reveal flake rates, environmental drift, and defect clusters. These insights feed back into development sprints, closing the loop between production incidents and lower-environment validation.

By End-User Industry: Retail and E-Commerce Surges

Retailers integrating omnichannel experiences cannot tolerate transaction failures during seasonal traffic spikes. Automation allows them to run thousands of scenario permutations across devices and fulfilment pathways, underpinning the segment’s 18.7% CAGR. BFSI’s 27.42% share of the automation testing market in 2024 underlines its entrenched investment driven by compliance, fraud prevention, and high-availability mandates. Medical-device manufacturers automate regression to satisfy FDA reporting, while discrete-manufacturing firms adopt automated visual inspection to guarantee tolerances on the production floor.

Every vertical now confronts customer-experience benchmarks set by native-digital brands, pressing traditionally slower adopters to accelerate. Consequently, cross-industry consortiums, such as ETSI’s UCAAT working group, share reference architectures to standardise quality-engineering best practices.

By Organization Size: SME Uptake Narrows the Gap

Cloud subscriptions and intuitive UI builders compress entry barriers, enabling SMEs to match release cadences once exclusive to tech giants. Small and medium enterprises, therefore, post an 18.2% CAGR while large organisations, though still responsible for 58.41% of spend, record slower percentage growth as they confront diminishing marginal returns on mature automation estates. Vendor go-to-market strategies adjust by bundling starter kits that combine platform, onboarding, and community support at predictable monthly rates.

That democratisation also broadens the addressable automation testing market. Independent software vendors, digital-first retailers, and even public-sector agencies adopt SaaS-based test grids to elevate citizen-facing digital services. This momentum accelerates the diffusion of automation know-how beyond traditional enterprise IT departments.

Automation Testing Market
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By Interface: Mobile Complexity Drives Investment

Mobile apps must operate flawlessly across a fragmented hardware ecosystem and variable latency conditions. The interface category therefore grows at 19.2% CAGR as buyers prioritise automated device-cloud testing, biometric verification scripts, and geolocation mocking. Mobile-first banking and same-day delivery platforms rely on these suites to prevent cart abandonment and login failures. Web interfaces remain vital at 30.21% share, reflecting the enduring centrality of browser-based applications. API/microservice test volume expands as headless commerce and composable architectures proliferate, demanding deeper validation of service contracts and schema drift.

IoT and embedded firmware scenarios introduce hardware-in-the-loop complexities, prompting partnerships between automation vendors and chip suppliers to produce simulators aligned with emerging post-quantum cryptography modules.

Geography Analysis

North America leads the automation testing market, claiming 36.7% revenue share in 2024. Mature DevOps cultures, strong cloud-infrastructure penetration, and stringent sectoral regulations—especially within healthcare and finance—propel sustained investment. Ongoing federal initiatives to integrate AI across public-health programmes formalise quality-assurance requirements, further stimulating spending. Vendor ecosystems clustered in Silicon Valley and the Eastern corridor deliver a steady pipeline of innovation and specialised services.

Asia-Pacific records the fastest CAGR of 20.5% to 2030. Japan’s anticipated USD 170 billion AI economy and China’s push for smart-factory upgrades amplify demand for robust testing frameworks capable of covering both consumer apps and industrial automation scenarios. India’s sizeable developer workforce accelerates offshore services growth, turning the region into both a consumer and supplier of testing solutions. APAC governments commonly offer cloud-first guidelines and funding schemes to fast-track digital public services, indirectly expanding the automation testing market.

Europe maintains stable growth despite its fragmented regulatory landscape. The GDPR regime compels privacy-by-design test artefacts, and WCAG 3 mandates are driving automated accessibility audits. Post-Brexit divergence adds extra layers of compliance that require multi-jurisdictional regression workflows. Germany and the Nordics show steady industrial IoT adoption, integrating automated firmware verification into smart-manufacturing rollouts. Overall spending in the automation testing industry tracks broader initiatives under the EU’s Digital Decade policy, which earmarks resources for secure, high-performance digital infrastructure.

Automation Testing Market
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Competitive Landscape

More than 25 vendors contest the automation testing market across platforms, point solutions, and services layers. IBM, Microsoft, and Accenture anchor the enterprise segment with integrated suites and global delivery networks. Tricentis, SmartBear, and Micro Focus differentiate through AI-enabled analytics, native SAP coverage, and broad protocol support. Disruptors such as Functionize and mabl exploit cloud-native architectures to deliver rapid onboarding and consumption-based pricing attractive to high-growth digital brands.

Mergers and acquisitions concentrate expertise in AI-first capabilities. SmartBear’s purchase of Reflect extends autonomous test-creation features, while Tricentis’s SeaLights deal injects predictive quality intelligence into its platform. Patent activity indicates a strategic emphasis on AI-assisted optimization and self-healing logic, with the USPTO reporting climbing volumes of filings related to automated defect prediction. White-space opportunities persist in IoT and accessibility niches, where domain-specific requirements outpace generic platform functionality.

Vendor strategy now tilts toward integrated ecosystems that bundle SaaS platforms, professional services, and curated marketplaces of extensions. This approach aims to lock in customers by reducing tool sprawl and offering single-pane-of-glass observability across the entire software delivery value chain. As adoption broadens, price-based competition is giving way to metrics-based contracting, wherein payment is tied to tangible outcomes such as reduced defect escape rate or accelerated release frequency.

Automation Testing Industry Leaders

  1. IBM Corporation

  2. OpenText Corporation (Micro Focus)

  3. Capgemini SE

  4. Tricentis USA Corp

  5. SmartBear Software Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Automation Testing Market Concentration
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Recent Industry Developments

  • April 2025: ETSI announced the 11th UCAAT User Conference on Advanced Automated Testing, with focus areas including model-based, cloud, mobile, and security testing.
  • March 2025: Cognizant detailed a USD 1 billion AI enablement plan targeting automation testing and embedded engineering productivity gains.
  • March 2025: SEALSQ Corp shifted toward Quantum-Resistant chips, reshaping security-test requirements for next-gen applications.
  • February 2025: Cognizant reported USD 19.7 billion in 2024 revenue and highlighted 29 large deals centred on AI-led automation testing frameworks.
  • January 2025: SmartBear finalised its acquisition of Reflect, expanding AI-powered test-maintenance capability.
  • December 2024: Accenture disclosed USD 3 billion in generative-AI bookings, signalling enterprise appetite for automated testing services.

Table of Contents for Automation Testing Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising adoption of Agile / DevOps for continuous testing
    • 4.2.2 AI-driven test-creation and maintenance tools
    • 4.2.3 Expansion of cloud-native and micro-services architectures
    • 4.2.4 Low-code / no-code automation democratising QA
    • 4.2.5 Digital-accessibility mandates (WCAG 3) spurring automated accessibility testing
    • 4.2.6 Edge and IoT firmware regression needs
  • 4.3 Market Restraints
    • 4.3.1 High up-front tool and skills investment
    • 4.3.2 Legacy-system integration complexity
    • 4.3.3 Data-privacy hurdles for cloud-based testing
    • 4.3.4 Rapid AI-framework obsolescence risk
  • 4.4 Industry Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Industry Attractiveness – Porter’s Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Consumers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Impact of Macroeconomic Factors on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUES)

  • 5.1 By Component
    • 5.1.1 Solutions
    • 5.1.1.1 Functional Testing
    • 5.1.1.2 API Testing
    • 5.1.1.3 Security Testing
    • 5.1.1.4 Compliance Testing
    • 5.1.1.5 Usability Testing
    • 5.1.1.6 Load and Performance Testing
    • 5.1.1.7 Other Solutions
    • 5.1.2 Services
    • 5.1.2.1 Professional Services
    • 5.1.2.2 Managed Services
  • 5.2 By Testing Type
    • 5.2.1 Functional
    • 5.2.2 Non-Functional
    • 5.2.2.1 Performance
    • 5.2.2.2 Security
    • 5.2.2.3 Usability
  • 5.3 By Deployment Mode
    • 5.3.1 On-Premises
    • 5.3.2 Cloud
    • 5.3.2.1 Public
    • 5.3.2.2 Private
    • 5.3.2.3 Hybrid
  • 5.4 By End-User Industry
    • 5.4.1 IT and Telecommunications
    • 5.4.2 BFSI
    • 5.4.3 Healthcare and Life Sciences
    • 5.4.4 Retail and E-Commerce
    • 5.4.5 Transportation and Logistics
    • 5.4.6 Manufacturing
    • 5.4.7 Government and Public Sector
    • 5.4.8 Energy and Utilities
    • 5.4.9 Other End-user Industries
  • 5.5 By Organization Size
    • 5.5.1 Large Enterprises
    • 5.5.2 Small and Medium Enterprises
  • 5.6 By Interface
    • 5.6.1 Web
    • 5.6.2 Mobile
    • 5.6.3 Desktop
    • 5.6.4 API / Micro-services
    • 5.6.5 IoT / Embedded
  • 5.7 By Geography
    • 5.7.1 North America
    • 5.7.1.1 United States
    • 5.7.1.2 Canada
    • 5.7.1.3 Mexico
    • 5.7.2 South America
    • 5.7.2.1 Brazil
    • 5.7.2.2 Argentina
    • 5.7.2.3 Chile
    • 5.7.2.4 Rest of South America
    • 5.7.3 Europe
    • 5.7.3.1 Germany
    • 5.7.3.2 United Kingdom
    • 5.7.3.3 France
    • 5.7.3.4 Spain
    • 5.7.3.5 Italy
    • 5.7.3.6 Russia
    • 5.7.3.7 Rest of Europe
    • 5.7.4 Asia-Pacific
    • 5.7.4.1 China
    • 5.7.4.2 India
    • 5.7.4.3 Japan
    • 5.7.4.4 South Korea
    • 5.7.4.5 Australia
    • 5.7.4.6 Singapore
    • 5.7.4.7 Malaysia
    • 5.7.4.8 Rest of Asia-Pacific
    • 5.7.5 Middle East and Africa
    • 5.7.5.1 Middle East
    • 5.7.5.1.1 United Arab Emirates
    • 5.7.5.1.2 Saudi Arabia
    • 5.7.5.1.3 Turkey
    • 5.7.5.1.4 Rest of Middle East
    • 5.7.5.2 Africa
    • 5.7.5.2.1 South Africa
    • 5.7.5.2.2 Nigeria
    • 5.7.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 IBM Corporation
    • 6.4.2 OpenText Corporation (Micro Focus)
    • 6.4.3 Capgemini SE
    • 6.4.4 Tricentis USA Corp
    • 6.4.5 SmartBear Software Inc.
    • 6.4.6 Parasoft Corporation
    • 6.4.7 Cigniti Technologies Ltd.
    • 6.4.8 Keysight Technologies Inc.
    • 6.4.9 Sauce Labs Inc.
    • 6.4.10 Accenture plc
    • 6.4.11 Microsoft Corporation
    • 6.4.12 Katalon Inc.
    • 6.4.13 BrowserStack Inc.
    • 6.4.14 LambdaTest Inc.
    • 6.4.15 Leapwork A/S
    • 6.4.16 Applitools Ltd.
    • 6.4.17 Ranorex GmbH
    • 6.4.18 Worksoft Inc.
    • 6.4.19 Perfecto (Perforce Software Inc.)
    • 6.4.20 Functionize Inc.
    • 6.4.21 Testim.io Ltd.
    • 6.4.22 Virtuoso QA Ltd.
    • 6.4.23 Eggplant (Keysight)
    • 6.4.24 mabl Inc.
    • 6.4.25 HeadSpin Inc.

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  • 7.1 White-Space and Unmet-Need Assessment
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Global Automation Testing Market Report Scope

Automation testing is a technique to test and compare the actual outcome with the expected result. Automation testing automates repetitive testing tasks which are difficult to perform manually. The market scope of automation testing tracks down the adoption of different testing solutions and services used by several end-user industries such as IT & telecommunication, BFSI, healthcare, retail, energy & power, etc.

Automation Testing Market is Segmented by component type (testing solutions [functional testing, API testing, security testing, compliance testing, usability testing), services [professional services, managed services]), by end-user industry (IT & telecommunication, BFSI, healthcare, retail, transportation & logistics, other end-use industries [aviation, hospitality, government, energy & power]), and geography ((North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.

By Component Solutions Functional Testing
API Testing
Security Testing
Compliance Testing
Usability Testing
Load and Performance Testing
Other Solutions
Services Professional Services
Managed Services
By Testing Type Functional
Non-Functional Performance
Security
Usability
By Deployment Mode On-Premises
Cloud Public
Private
Hybrid
By End-User Industry IT and Telecommunications
BFSI
Healthcare and Life Sciences
Retail and E-Commerce
Transportation and Logistics
Manufacturing
Government and Public Sector
Energy and Utilities
Other End-user Industries
By Organization Size Large Enterprises
Small and Medium Enterprises
By Interface Web
Mobile
Desktop
API / Micro-services
IoT / Embedded
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Chile
Rest of South America
Europe Germany
United Kingdom
France
Spain
Italy
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Australia
Singapore
Malaysia
Rest of Asia-Pacific
Middle East and Africa Middle East United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
By Component
Solutions Functional Testing
API Testing
Security Testing
Compliance Testing
Usability Testing
Load and Performance Testing
Other Solutions
Services Professional Services
Managed Services
By Testing Type
Functional
Non-Functional Performance
Security
Usability
By Deployment Mode
On-Premises
Cloud Public
Private
Hybrid
By End-User Industry
IT and Telecommunications
BFSI
Healthcare and Life Sciences
Retail and E-Commerce
Transportation and Logistics
Manufacturing
Government and Public Sector
Energy and Utilities
Other End-user Industries
By Organization Size
Large Enterprises
Small and Medium Enterprises
By Interface
Web
Mobile
Desktop
API / Micro-services
IoT / Embedded
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Chile
Rest of South America
Europe Germany
United Kingdom
France
Spain
Italy
Russia
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Australia
Singapore
Malaysia
Rest of Asia-Pacific
Middle East and Africa Middle East United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
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Key Questions Answered in the Report

What is the current value of the automation testing market?

The automation testing market stands at USD 35.29 billion in 2025 and is projected to reach USD 76.72 billion by 2030 at a 16.8% CAGR.

Which region is growing the fastest for automation testing adoption?

Asia-Pacific is the fastest-growing region with a forecast 20.5% CAGR, supported by large-scale AI programmes in Japan and manufacturing automation in China.

Why are services outpacing solutions in growth?

Companies increasingly outsource complex quality-engineering tasks to managed-service providers that supply expertise, tooling, and 24 / 7 support, resulting in a 19.4% CAGR for the Services segment.

How is AI transforming test automation?

AI generates test cases more quickly, provides self-healing for UI changes, and enhances coverage, cutting maintenance cost and improving release velocity.

What challenges restrict wider automation testing uptake?

High initial licence fees, skills shortages, legacy-system integration hurdles, and data-privacy concerns for cloud testing remain the primary restraints.

Which industry vertical leads in spending on automation testing?

The BFSI sector holds 27.42% of automation testing market share in 2024 due to stringent regulatory mandates and the need for uninterrupted service delivery.

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