Testing As A Service Market Size to Surpass USD 14.91 Billion by 2032, Owing to the Rising Demand for Cloud-Based and AI-Driven Testing Solutions | SNS Insider

GlobeNewswire On April 3, 2025 19:00 IST

The Testing As A Service (TaaS) market is experiencing rapid growth as businesses increasingly adopt cloud-based and AI-powered testing solutions.

Pune, April 03, 2025 (GLOBE NEWSWIRE) — Testing As A Service Market Size Analysis:

“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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Major Players Analysis Listed in this Report are:

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)

Testing As A Service Market Report Scope:

Report Attributes	Details
Market Size in 2023	US$ 4.59 Billion
Market Size by 2032	US$ 14.91 Billion
CAGR	CAGR of 14.01 % From 2024 to 2032
Base Year	2023
Forecast Period	2024-2032
Historical Data	2020-2022
Key Regional Coverage	North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe [Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]). Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America)
Key Growth Drivers	• Growing Adoption of AI and Automation in Software Development Drives the Testing as a Service Market Growth

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Testing As A Service Market Expands Rapidly, Driven by Growing Demand for Cloud-Based and AI-Driven Solutions

The Testing As A Service market is expanding rapidly, primarily driven by the increasing demand for cloud-based and AI-driven testing solutions that promise enhanced software quality and efficiency. As businesses move towards digital transformation, they seek cost-effective and scalable testing solutions, particularly in industries such as BFSI, healthcare, and IT & telecom.

The U.S. Testing As A Service (TaaS) market size was USD 1.27 billion in 2023 and is expected to reach USD 3.68 billion by 2032, growing at a CAGR of 12.59% over the forecast period of 2024-2032.

The U.S. Testing As A Service (TaaS) market is witnessing significant growth, driven by the increasing adoption of cloud-based and AI-powered testing solutions across various industries. With companies focusing on enhancing software quality and reducing operational costs, the demand for scalable and efficient testing services continues to rise. Key sectors such as BFSI, healthcare, IT, and telecom are embracing TaaS to optimize performance, security, and compliance. As digital transformation accelerates.

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.

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.

Testing As A Service Market Segmentation:

By Test Type

Functionality
Performance
Compatibility
Security
Compliance
Others

By End-use

IT & Telecommunication
Healthcare
BFSI
Automotive
Manufacturing
Retail & consumer goods
Energy & Utilities
Others

By Deployment

Public
Private
Hybrid

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North America Dominates TaaS Market in 2023, While Asia Pacific Poised for Fastest Growth with Rapid Digital Transformation

North America dominated the Testing As A Service (TaaS) market in 2023, capturing the largest market share. This is mainly due to the advanced IT infrastructure, the widespread adoption of cloud-based solutions, and the increasing use of AI-driven automation in the region. The presence of major TaaS providers like IBM, Microsoft, Accenture, and Capgemini has further fueled the region’s market growth. The rising demand for solutions in industries like BFSI, healthcare, and IT & telecom has contributed to North America’s dominance in the global TaaS market.

Asia Pacific, however, is expected to witness the highest CAGR over the forecast period, driven by the rapid digital transformation occurring in countries like China, India, Japan, and South Korea. The expansion of cloud services, a growing IT sector, and increasing investments in software development are key factors fueling the adoption of TaaS in this region. Additionally, major companies such as TCS, Infosys, and Wipro have expanded their AI-driven and cloud-based testing solutions to meet the rising demand in Asia Pacific.

Recent Developments

In August 2024, Accenture expanded its collaboration with Amazon Web Services (AWS) to launch the Accenture Responsible Artificial Intelligence (AI) Platform, which assists organizations in scaling AI responsibly. This platform offers comprehensive services including AI governance, risk assessment, generative AI testing, and compliance support, marking a significant step in promoting responsible AI deployment.
In November 2024, Atos was chosen to provide IT services for the Invictus Games in Canada. This involvement highlights Atos’s commitment to delivering customized IT solutions for large-scale international events, ensuring a seamless digital experience for participants and audiences alike.

Table of Contents – Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

6. Competitive Landscape

7. Testing As A Service Market Segmentation, By Deployment

8. Testing As A Service Market Segmentation, By Test Type

9. Testing As A Service Market Segmentation, By End-Use

10. Regional Analysis

11. Company Profiles

12. Use Cases and Best Practices

13. Conclusion

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