In today’s hyperconnected business environment, there is a rapid emergence of digital solutions, devices, and associated services. The foundation of this digital infrastructure is based on the communication between various business critical applications and data, which are shared across platforms, devices, and users. As these business applications hold critical organizational data, they have become a prime target for hackers and cybercriminals, as they increase the risk exposure in a corporate environment. Due to an increase in the security breaches targeting business applications, organizations across the world are deploying application security solutions to safeguard their web and mobile applications.

The application security market size is expected to grow from USD 2.79 billion in 2017 to USD 9.0 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 26.4%. The market is gaining traction due to the increasing need to protect enterprise applications and data from emerging application layer attacks. Many enterprises across the globe still use web and mobile applications that contain vulnerabilities, which if exploited, might result in huge losses for the organizations. Enterprises are expected to increase their security spending in the upcoming years to ensure robust security for their IT infrastructure.

Market Dynamics: Drivers Need to protect enterprise applications and data Government Regulations Increasing sophistication level of cyber-attacks Increasing deployment of third-party applications Restraints Lack of awareness about cybersecurity Opportunities Increasing smartphone adoption and evolution of IoT Rapid digitalization in emerging economies Challenges High deployment costs and need to quickly deploy applications to end-users

Increasing Digitalization, IoT and smart city initiatives are expected to bring huge growth opportunities for the application security solution providers in the coming years. BFSI, Government and Defense are the top 3 industry verticals to show the highest growth which is an opportunity for the vendors to capture these markets.

The application security ecosystem comprises application security solution vendors such as Veracode (Massachusetts, US), HPE (California, US), Synopsys (California, US), IBM (New York, US), WhiteHat Security (California, US), Qualys (California, US), Checkmarx (Tel Aviv, Israel), Acunetix (St Julians, Malta), Rapid7 (Massachusetts, US), Trustwave ( Illinois, US), High-Tech Bridge (Geneva, Switzerland), Contrast Security (California, US), SiteLock (Arizona, US), Pradeo (Paris, France), and Fasoo (New Jersey, US). It also includes application developers, system integrators, and enterprises. Other stakeholders in the application security market include Managed Security Service Providers (MSSPs), information security consulting service providers, and security auditors.

Major Market Developments: In March 2017, High-Tech Bridge launched Immunize Mobile to enter into mobile market segment. In January 2017, Synopsys released a new version of its Coverity static analysis tool with version number 8.7. The new version includes the capabilities of Cigital and Codiscope, providing enterprise level security to both mobile and web applications. In January 2017, Synopsys acquired Forcheck B.V., the Netherlands-based static analysis tool provider for Fortran applications.