The automation testing market is estimated to witness robust growth by 2027 owing to soaring product prevalence across varied industry verticals.

Automation testing refers to the process of testing software and other tech products to ascertain that they meet specific requirements. The test aims to double-check that the software or equipment performs its functions efficiently and identify any defects, bugs, and any other issues that could arise with product development.

The COVID-19 outbreak disrupted virtually all industries across the globe. Widespread adoption of automation has helped companies cut costs during COVID-19-induced economic turmoil to enhance existing operations and provide more agile services to customers. Subsequently, rising awareness pertaining to the benefits of automation testing has been favorable for automation testing industry expansion during the pandemic.

The automation testing market has been segmented based on end point interface, component, application, and region. With respect to component, the market has been segregated into testing type (functional testing and non-functional testing) and services (planning & development, implementation, documentation & training, advisory & consulting, support & maintenance, and managed).

The non-functional testing segment has further been categorized into performance testing, security testing, API testing, compliance testing, usability testing, and others. In 2020, the performance testing segment held a market share of above 5% and is expected to grow at a notable pace over 2021-2027. Mounting demand for verifying software stability and performance is likely to propel segmental growth in the coming years.

In terms of end point interface, the automation testing market has been bifurcated into web, mobile, desktop, embedded software, and cloud. The web segment garnered around 15% share in the market in 2020 and is projected to witness substantial growth by 2027. Increasing penetration of web-based applications across the IT sector is foreseen to support segmental development over the following years.

From the application perspective, the market has been divided into BFSI, IT & telecom, retail, manufacturing, healthcare, government & public sector, transportation & logistics, smart consumer devices, medical devices, automotive, and others. In 2020, the automotive segment attained a market share of approximately 10% and is speculated to progress at a solid CAGR over the review timeline. Prominent R&D initiatives focused on autonomous vehicles and electrification of cars is expected to fuel product adoption in the automotive sector in the forthcoming years.

By region, the Latin America automation testing market accounted for more than 5% of the overall industry revenue in 2020 and is anticipated to reach a significant valuation by the end of 2027. Proliferation of robotics and industrial automation across Brazil and Mexico is slated to drive product uptake in the LATAM region through the forecast period.