Testing as a Service Market Report and Forecast 2025-2034

The global testing as a service market size is projected to grow at a CAGR of 11.20% between 2025 and 2034. The major drivers of the market include reduced operational costs and increasing technological innovations due to rising research and development activities.

Testing as a Service Market Growth

Testing as a service (TaaS) refers to testing of applications in simulated real world environments for detection of flaws. The testing solutions are generally provided by third party service providers. The outsourcing model carries out the software testing for companies that lack the resource and skills for carrying out internal testing.

Factors impacting testing as a service market outlook include increasing technological innovations due to rising demand for stability, usability, and performance of software applications. The market is driven by the need for robust security measures to address cyberattacks and ensure compliance, particularly in the context of cloud technologies, IoT devices, and complex software applications. This is evident in the fact that 88 million people of US have been affected by data breaches of their personal health information, an increase of 60% in 2023. Due to this, 70% of healthcare facilities have migrated to the cloud.

Key Trends and Developments

Rising cases of cyberattacks, increasing adoption of cloud services, and increased awareness about the various benefits by TaaS are factors leading the testing as a service market development

June 2024

A major cyberattack on Synnovis, a pathology service provider, has severely disrupted GP practices in London, leaving them able to process only 40% of their daily 10,000 blood tests. Thousands of patient samples are at risk of being destroyed due to degradation, prompting the need for TaaS software.

June 2024

The Bank of Thailand is set to test programmable payments in an enhanced regulatory sandbox. This move aims to enhance efficiency and ease in payments for the public and businesses with bank accounts or e-money wallets.

March 2024

MIT spinout DataCebo has developed the Synthetic Data Vault (SDV), an open-source generative AI system to create synthetic data for software testing. This technology helps organisations generate realistic data to test software applications and train ML models for ensuring data privacy.

Rising awareness regarding performance benefits of TaaS

The increased awareness about the various benefits offered by TaaS has resulted in an accelerated demand, supporting the testing as a service market expansion. It offers usability testing, functionality testing, compatibility testing, and performance testing, among others.

Increased adoption of cloud technologies and IoT devices

The growing use of cloud computing and IoT devices introduces new complexities in software development, driving the demand for robust testing solutions. Companies like Amazon Web Services (AWS) and Microsoft Azure offer cloud-based testing services to cater to this growing demand.

Integration of AI and ML in testing

AI-driven testing tools and solutions enhance the efficiency and effectiveness of testing processes by automating repetitive tasks, identifying patterns, and predicting testing outcomes. Companies like IBM and Accenture are leveraging AI and ML in their testing services.

Growing focus on security and compliance

The increasing frequency and severity of cyberattacks have made security and compliance a top priority for organisations. TaaS providers like Qualitest Group and Wipro Limited offer security testing services that help organisations ensure compliance with regulations like GDPR and HIPAA.

Testing as a Service Market Trends

The market’s growth is further aided by the rising adoption of the services that provide automation testing in manufacturing, healthcare, and media sectors due to growing shift towards digital transformation. The utilisation of automated testing application services is also increasing due to their ability to reduce operational costs. Rising security issues and technological complexities along with increased research and development activities by the key market players to produce innovative products and services is also propelling testing as a service market growth.

Additionally, as per industry reports, 26% of companies reported using AI and machine learning solutions to predict and handle breaches, driving the market. This growing adoption of emerging technologies such as AI, ML, blockchain, and the IoT introduces new challenges in software development, which TaaS providers address by incorporating innovative testing methodologies tailored to these emerging technologies.

Testing as a service Industry Segmentation

The EMR’s report titled “Testing as a Service Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Functionality Testing
• Usability Testing
• Performance Testing
• Compatibility Testing
• Others

Market Breakup by Enterprise Size

• Small and Medium Size Enterprises (SMEs)
• Large Enterprises

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Testing as a Service Market Share

Different types of testing software are being used across industries to escalate productivity and revenue

Functionality testing segment is witnessing growth as it ensures software applications meet their intended requirements and perform as expected. Usability testing software evaluates the ease of use and user-friendliness of software applications. As organisations recognise the importance of delivering applications with a seamless user experience, the demand for usability testing services is expected to rise, driving growth in this segment.

Performance testing ensures software applications can handle expected workloads and respond within acceptable time frames. As per testing as a service market analysis, this segment is expected to witness significant growth as it identifies and addresses performance bottlenecks, ensuring applications can handle peak loads and provide a satisfactory user experience.

In contrast, compatibility testing verifies software applications function correctly across different hardware configurations, operating systems, browsers, and devices. As the number of devices and platforms proliferates, the demand for compatibility testing services is increasing.

Both, SMEs and large enterprises hold significant market shares, driven by the need to prevent cybercrimes and promote software quality

SMEs are a significant segment in the testing as a service market report as these companies often lack the resources and expertise to manage testing in-house, making them more likely to outsource testing services. The demand for testing as a service among SMEs is driven by the need for cost-effective solutions that can help them ensure software quality and prevent cyberattacks without significant investments in infrastructure and personnel.

Large enterprises, on the other hand, often have the resources and expertise to manage testing in-house but may still choose to outsource certain testing activities to specialised service providers. The demand for testing as a service among large enterprises is driven by the need for scalability, flexibility, and expertise in managing complex testing environments and cyber extortion. As per industry reports, large enterprises were most impacted by cyber extortion (40%), followed by small organisations (25%) and medium-sized businesses (23%). This propels the demand for TaaS in all enterprises.

Leading Companies in the Testing as a Service Market

Market players are investing in AI to automate repetitive testing tasks, using ML to identify defects and predict testing outcomes

Accenture plc

Accenture plc is an IT services and consulting company with leading capabilities in security, digital, and cloud that is headquartered in Dublin, Ireland and was founded in 1989. The company offers business process outsourcing, testing as a service, infrastructure outsourcing, and management consulting, among others.

IBM Corporation

IBM Corporation is an IT services and IT consulting company that is headquartered in New York, United States and was founded in 1911. The company specialises in technology support, consulting, analytics, and resiliency services, among others and provides testing as a service.

Oracle Corporation

Oracle Corporation is a computer software company that was founded in 1977 and is headquartered in Texas, United States. It specialises in business intelligence, server and storage systems, and provide solutions for communication industry.

Capgemini SE

Capgemini SE was founded in 1967 and is headquartered in Paris, France. The company offers artificial intelligence solutions, cloud services, cybersecurity services, data processing services, digital solutions, engineering services, IT services, and managed and outsourcing services.

Other key players in the global testing as a service market include Cognizant Technology Solutions Corporation, Atos SE, DXC Technology Company, Infosys Technologies Limited, TATA Consultancy Services Limited, Wipro Limited, Qualitest Group, and Aspire Systems Private Limited, among others.

Testing as a Service Market Analysis by Region

North American market is witnessing rapid growth due to the growing demand for compliance testing in various industries

North America is anticipated to account for a significant share of the market in the coming years. This growth can be attributed to the strong presence of various key market players in the region and rising adoption of testing services in countries such as Canada and Unites States of America for enhancing the functionality of applications. The increasing investments towards the development of advanced application testing services along with the growing popularity of internet of things and artificial intelligence in North America is boosting the testing as a service market share.

The growing demand for robust security measures and compliance testing in industries such as IT and telecommunications, automotive, and healthcare is also driving the growth of the market in North America. Meanwhile, Asia Pacific is expected to be the fastest-growing region in the market, driven by the rapid economic growth and increasing penetration of internet and mobile devices in countries such as China and India. The growing demand for testing services in industries such as IT and telecommunications, manufacturing, and energy and utilities is driving the growth of the market in Asia Pacific. Companies like Infosys and TATA Consultancy Services offer testing services tailored to the specific needs of these industries.

Testing as a Service Market Report Snapshots

Testing as a Service Market Size

Testing as a Service Market Growth

Testing as a Service Market Trends

Testing as a Service Market Share

Testing as a Service Companies

Testing as a Service Market Regional Analysis