Automation Testing Market

According to a research report "Automation Testing Market by Offering (Testing Types (Static Testing and Dynamic Testing) and Services), Endpoint Interface (Mobile, Web, Desktop, and Embedded Software), Vertical (BFSI, Automotive, IT & ITeS) and Region - Global Forecast to 2028" published by MarketsandMarkets, the automation testing market is estimated at USD 28.10 billion in 2023 and is projected to reach USD 55.26 billion by 2028, at a CAGR of 14.5% from 2023 to 2028.

Browse 327 market data Tables and 54 Figures spread through 295 Pages and in-depth TOC on "Automation Testing Market by Offering (Testing Types (Static Testing and Dynamic Testing) and Services), Endpoint Interface (Mobile, Web, Desktop, and Embedded Software), Vertical (BFSI, Automotive, IT & ITeS) and Region - Global Forecast to 2028"
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The increasing emphasis on API-first development places automation testing tools at the forefront of validating crucial aspects such as APIs' functionality, security, and performance. In this scenario, where APIs are the backbone for seamless integration and communication between software components, automation testing is critical. Everything functions according to requirement when an API server correctly verifies information exchange between two pieces of software, while security and performance tests check the reaction under different circumstances. Automating these essential checks regarding different aspects of API testing makes software components more reliable and interoperable and puts faster integration cycles in place so that even stronger applications can be delivered fast in an API-driven development environment. The role of automation testing tools in this context not only ensures the quality of individual APIs but also contributes significantly to the overall success of API-first development strategies.

By 2028, the Automation Testing market is expected to have a robust growth trajectory in terms of value.

The substantial growth of the automation testing market is being fueled by the fast rate of digital transformation and the growing demand for rapid, high-quality software delivery across industries. Advancements in artificial intelligence, machine learning, and cloud-based platforms are enabling the integration of automated testing into development pipelines, significantly enhancing testing efficiency. Automated functional, regression, and performance testing is being increasingly utilized across industries such as IT, telecommunications, banking, and healthcare for software reliability and accelerating release cycles. Expansion is being fueled by agile and DevOps practices as well, with organizations partnering with testing solution providers to incorporate automation into their processes. All these activities are increasing software quality, reducing time-to-market, and creating new opportunities for automation testing innovations.

The Retail vertical is expected to have the highest growth rate during the forecast period.

The quick digital transformation of retail businesses drives automation testing growth which creates smooth operations together with better customer experiences and stable system performance. Automation testing is increasingly relied upon by retailers to validate e-commerce websites, mobile apps, and omnichannel shopping platforms, ensuring smooth transactions, payment gateway integration, and personalized user experiences. Automation testing enhances POS systems through its ability to check transaction accuracy and perform barcode scanning while updating inventory in real time. Additionally, supply chain and inventory management solutions use automation testing to maintain seamless data flow across warehouses, ERP systems, and CRM platforms, helping retailers optimize stock levels and order fulfilment.

Security and compliance testing have become crucial as retailers handle sensitive payment data, requiring compliance with PCI-DSS and GDPR regulations. Performance and load testing help businesses prepare for high-traffic events, ensuring fast response times and system stability. Additionally, AI-powered chatbots and virtual assistants are tested for accuracy in customer interactions, while automation testing validates business intelligence tools and predictive analytics for improved decision-making. As the retail industry continues its digital transformation, automation testing software plays a vital role in accelerating software releases, reducing operational risks, and enhancing customer experiences, making it an essential investment for retailers looking to scale and innovate.

North America is expected to account for the largest market share in 2023.

The Automation Testing market has been studied in North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.

The North American business landscape demands quick time-to-market delivery alongside strict quality requirements for organizations. This imperative has driven the widespread adoption of automation testing as a strategic necessity. The growing number of IoT devices and applications in North America requires performance testing because organizations and developers aim to maximize system efficiency.  AI and ML together with IoT and analytics create more need for automation testing because of their increased integration. Key applications include e-commerce website and mobile app testing, ensuring smooth transactions and omnichannel retail experiences, inventory and supply chain management, AI-powered chatbot testing, and cybersecurity compliance for payment systems. Strict regulatory requirements such as PCI-DSS and GDPR compliance, along with growing cybersecurity concerns and the widespread adoption of DevOps and Agile methodologies, have been identified as key factors driving market growth. Organizations have accelerated their automation testing adoption due to the requirement for performance and load testing during peak shopping season. Automation testing is likely to remain a key enabler of digital transformation and operational efficiency as businesses in North America continue investing in AI, cloud computing, and big data analytics.

Prominent companies include IBM (US), Accenture (Ireland), Broadcom (US), Open Text (Canada), CapGemini (France), Microsoft (US), Keysight Technologies (US), Cigniti Technologies (India), Tricentis (US), Cygnet Infotech (India), Invensis Technologies Pvt Ltd (India), QualityKiosk Technologies Pvt. Ltd. (India), Apexon (US), Idera, Inc. (US), QA Source (US), Astegic (US), Worksoft (US), ACCELQ (US), Sauce Labs (US), SmartBear (US), Parasoft (US), Applitools (US), AFour Technologies (India), QA mentor (US), Mobisoft Infotech (US), ThinkSys (US), Qt Group (Finland), Codoid (India).

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