Revenue Forecast

The revenue estimate for the base year 2023 is $334.3 million, with a CAGR of 19.8% projected for the study period from 2023 to 2028.

The Impact of the Top 3 Strategic Imperatives on the Automated Security Validation (ASV) Sector

Competitive Intensity

• In addition to intense competition within the sector, ASV vendors face stiff competition from adjacent sectors, such as automated penetration testing and vulnerability management (VM).

• Vendors from adjacent sectors strive to include security validation capabilities to address the growing demand for contextualized vulnerability prioritization capabilities.

• In the crowded security industry, ASV vendors struggle to create awareness among the end customers about distinct benefits of security validation over those of adjacent sectors. Consequently, customers allocate less of the security budget to ASV, thereby constricting vendor revenue.

Industry Convergence

• ASV tools provide an adversary’s perspective of exposures in an organization’s network. Such information helps security teams prioritize high-impact exposures, reducing the remediation workload for security teams.

• As a result, ASV use cases are increasingly relevant for various security operations (SecOps) tools, such as VM, extended detection and response (XDR), and security orchestration, automation, and response (SOAR).
• Partnerships between ASV and SecOps vendors, such as endpoint detection and response (EDR), disaster recovery, XDR, VM, and SOAR, are becoming increasingly common.
• SecOps vendors may absorb some of the ASV vendors through mergers and acquisitions (M&As) in the future.
• Some leading ASV vendors might incorporate SecOps capabilities to offer an integrated exposure management portfolio.

Transformative Megatrends

• Organizations are increasingly finding a large volume of exposure in their cloud infrastructure, and the increasing adoption of AI brings in new security exposures.

• Existing security approaches are either ineffective or inefficient to handle such new types of threats to the organization’s security.
• ASV vendors must accelerate innovation to accommodate the security concerns of the digital organization.
• Because of shrinking cybersecurity budgets and an uncertain economic environment, ASV vendors are struggling to distribute resources and cash between growth and innovation.

Scope of Analysis

• ASV tools help enterprises test their security resiliency by running attack simulations on information technology (IT) infrastructure.

• ASV tools are alternatives to traditional security posture assessment mechanisms, such as penetration testing, red team exercises, security control validation, and vulnerability assessment.
• ASV tools act like real attackers while avoiding collateral damage to vital business systems. These tools provide a holistic view of an organization’s attack surface and help detect security posture drift.

Segmentation

ASV

North America

North America includes the United States and Canada. The region has a high concentration of enterprises at the higher end of the security maturity spectrum open to experimenting with new technologies and tools.

Europe

Europe has a diverse mix of enterprises with varied security maturity levels. Western European countries, such as the United Kingdom, France, and Germany, exercise robust security policies.

CALA

CALA is an emerging region for the ASV market. Security is taking a front seat for many businesses within this region, although the region is not equal to North American countries regarding security.

MEA

MEA countries spend less on security initiatives and largely make do with annual compliance-based penetration testing exercises. The large concentration of ASV vendors in Israel is improving adoption in this region.

APAC

APAC includes countries such as India, Australia, Japan, Malaysia, Singapore, and Thailand. APAC is usually a late entrant to new security tools, such as ASV. Increasing regulatory requirements and lower spending capacity characterize this region.

Competitive Environment

Growth Drivers

ASV: Growth Drivers