The Dynamic Application Security Testing (DAST) market enables automated security testing of web applications and APIs to identify vulnerabilities, malware and compliance issues. DAST tools scan a running application for security issues such as cross-site scripting (XSS), SQL injection and other exploitable vulnerabilities. Offering advantages like coverage of entire application surface, context-aware scans, and authentication simulation, DAST helps organizations ensure compliance with data protection regulations like GDPR and HIPAA. It detects flaws early in development cycles to significantly reduce costs of remediation.

The Global Dynamic Application Security Testing Market is estimated to be valued at US$1.86 Bn in 2024 and is expected to exhibit a CAGR of 24.% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the Dynamic Application Security Testing are WhiteHat Security, Veracode, Synopsys Accenture, IBM Corporation, Micro Focus, Pradeo, Rapid7, Tieto, and Trustwave holdings, Inc. WhiteHat Security and Micro Focus together accounted for over 30% market share in 2022.
Growing concerns around web application vulnerabilities, data breaches and stringent data security regulations are driving increased adoption of DAST tools. Organizations across industries like banking, healthcare and government are increasingly deploying DAST to strengthen security postures.
Geographical expansion coupled with strategic partnerships is allowing DAST vendors to enhance offerings and gain wider market coverage. Notable deals include IBM's acquisition of Spanugo and Rapid7's acquisition of DivvyCloud, extending their respective product portfolios.

Market Drivers
Stringent compliance mandates around data protection are a key driver for the DAST market. Data privacy laws such as GDPR and CCPA have enforced strict consequences for security breaches, compelling enterprises to rigorously test applications and APIs. The rapid proliferation of SaaS and cloud-based applications have further increased the need for continuous security monitoring using DAST. Their automated and scalable testing capabilities help address challenges of securing modern, dynamic applications and APIs.

Current Geopolitical Scenarios Impacting the Dynamic Application Security Testing Market Growth

The dynamic application security testing market is witnessing significant growth due to the growing digitalization and rising adoption of web and mobile applications across various industries globally. However, the ongoing geopolitical tensions and conflicts are posing challenges. The Russia-Ukraine war has disrupted the global supply chains. Several software providers have halted or reduced operations in Russia and Belarus following sanctions. This has impacted the security testing tool adoption in Eastern Europe. Furthermore, heightened tensions between the US and China regarding trade and technology also raises concerns. The regional slowdown in major economies can hamper investments in application security solutions.

Moving forward, vendors must focus on diversifying their supply networks, collaborating with local partners and prioritizing customer requirements in politically volatile regions. Adopting a flexible business model to shift production during crises would help minimize disruptions. Additionally, providing customized solutions at competitive costs catering to industry-specific needs would accelerate the market recovery. Widespread skill development programs are also critical to address the talent shortage issue and strengthen innovation. With resumption of global trade and diplomatic efforts to resolve conflicts, the market outlook remains positive long-term supported by growing digitization.

Geographical Regions where Dynamic Application Security Testing Market Value is Concentrated

North America currently dominates the dynamic application security testing market and holds over 35% of the global market share in terms of value. This is attributed to significant investments by organizations across industries in the US and Canada to integrate advanced security testing into the development process and strengthen online defenses against cyber threats. Rapid adoption of cloud-based solutions and presence of leading vendors also drive the North American market. Europe is another major revenue generator owing to stringent data privacy regulations and rising mobile commerce activities in the region.

Fastest Growing Region for Dynamic Application Security Testing Market

The Asia Pacific region is poised to be the fastest growing market for dynamic application security testing at a CAGR of over 30% during the forecast period. This is mainly due to the growing digital infrastructure, increasing internet and smartphone penetration along with rising online payment usage in countries such as India, China, South Korea and Japan. Furthermore, implementation of cybersecurity laws and initiatives to enhance critical infrastructure security are compelling enterprises across industries to adopt proactive testing strategies. Large banks and financial institutions in particular are emphasizing application security testing for their AI and blockchain networks. Additionally, expansion of global vendors and technology adoption pushed by startup culture will further propel the Asia Pacific market.