The size of the global automation testing market is projected to increase at a Compound Annual Growth Rate (CAGR) of 14.5% from USD 28.1 billion in 2023 to USD 55.2 billion by 2028. One of the main factors propelling the expansion and broad use of automated testing in the software development environment is the scripts' ability to be reused.
With this feature, test scripts may easily transition between different versions and stages of development, offering a consistency and efficiency that manual testing cannot match. Reusing automated test scripts throughout the development lifecycle reduces redundancy and promotes a more efficient testing procedure.
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The increasing emphasis on API-first development places automation testing tools at the forefront of validating crucial aspects such as APIs' functionality, security, and performance. In this scenario, where APIs are the backbone for seamless integration and communication between software components, automation testing is critical. Everything functions according to requirement when an API server correctly verifies information exchange between two pieces of software, while security and performance tests check the reaction under different circumstances. Automating these essential checks regarding different aspects of API testing makes software components more reliable and interoperable and puts faster integration cycles in place so that even stronger applications can be delivered fast in an API-driven development environment. The role of automation testing tools in this context not only ensures the quality of individual APIs but also contributes significantly to the overall success of API-first development strategies.
By 2028, the Automation Testing market is expected to have a robust growth trajectory in terms of value.
The substantial growth of the automation testing market is being fueled by the fast rate of digital transformation and the growing demand for rapid, high-quality software delivery across industries. Advancements in artificial intelligence, machine learning, and cloud-based platforms are enabling the integration of automated testing into development pipelines, significantly enhancing testing efficiency. Automated functional, regression, and performance testing is being increasingly utilized across industries such as IT, telecommunications, banking, and healthcare for software reliability and accelerating release cycles. Expansion is being fueled by agile and DevOps practices as well, with organizations partnering with testing solution providers to incorporate automation into their processes. All these activities are increasing software quality, reducing time-to-market, and creating new opportunities for automation testing innovations.
The Retail vertical is expected to have the highest growth rate during the forecast period.
The quick digital transformation of retail businesses drives automation testing growth which creates smooth operations together with better customer experiences and stable system performance. Automation testing is increasingly relied upon by retailers to validate e-commerce websites, mobile apps, and omnichannel shopping platforms, ensuring smooth transactions, payment gateway integration, and personalized user experiences. Automation testing enhances POS systems through its ability to check transaction accuracy and perform barcode scanning while updating inventory in real time. Additionally, supply chain and inventory management solutions use automation testing to maintain seamless data flow across warehouses, ERP systems, and CRM platforms, helping retailers optimize stock levels and order fulfilment.
Security and compliance testing have become crucial as retailers handle sensitive payment data, requiring compliance with PCI-DSS and GDPR regulations. Performance and load testing help businesses prepare for high-traffic events, ensuring fast response times and system stability. Additionally, AI-powered chatbots and virtual assistants are tested for accuracy in customer interactions, while automation testing validates business intelligence tools and predictive analytics for improved decision-making. As the retail industry continues its digital transformation, automation testing software plays a vital role in accelerating software releases, reducing operational risks, and enhancing customer experiences, making it an essential investment for retailers looking to scale and innovate.
North America is expected to account for the largest market share in 2023.
The Automation Testing market has been studied in North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.
The North American business landscape demands quick time-to-market delivery alongside strict quality requirements for organizations. This imperative has driven the widespread adoption of automation testing as a strategic necessity. The growing number of IoT devices and applications in North America requires performance testing because organizations and developers aim to maximize system efficiency. AI and ML together with IoT and analytics create more need for automation testing because of their increased integration. Key applications include e-commerce website and mobile app testing, ensuring smooth transactions and omnichannel retail experiences, inventory and supply chain management, AI-powered chatbot testing, and cybersecurity compliance for payment systems. Strict regulatory requirements such as PCI-DSS and GDPR compliance, along with growing cybersecurity concerns and the widespread adoption of DevOps and Agile methodologies, have been identified as key factors driving market growth. Organizations have accelerated their automation testing adoption due to the requirement for performance and load testing during peak shopping season. Automation testing is likely to remain a key enabler of digital transformation and operational efficiency as businesses in North America continue investing in AI, cloud computing, and big data analytics.
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Unique Features in the Automation Testing Market
Modern tools increasingly provide codeless or low-code interfaces—drag-and-drop workflows, visual builders, and pre-built templates that let non-developers (QA specialists, business analysts, product owners) build and execute automated tests without writing much code.
One of the biggest pain points in automation is test fragility: UI changes, element locator shifts, dynamic content, etc., breaking tests. Newer tools use AI / ML to detect such breaks automatically, adjust selectors or paths, or adapt tests (“self-healing”).
Rather than being a separate phase, testing is now embedded into the software development pipeline. CI-CD tools trigger automated tests on every commit; developers get rapid feedback. QA is part of DevOps, and in some models, testers work together with SRE (Site Reliability Engineering) to monitor production and feed insights back.
Rather than separate tools for UI testing, API testing, performance, accessibility, security, etc., platforms are now bundling or integrating across all these quality dimensions. The aim is to provide a single framework for autonomous quality, meaning minimal human intervention, broad coverage, from front-end to back-end and everything in between.
Major Highlights of the Automation Testing Market
The push toward digital transformation (remote work, cloud adoption, online services) is increasing demand for more reliable, faster software delivery, which boosts need for test automation.
Adoption of Agile, DevOps, and continuous integration/continuous delivery (CI/CD) practices is also a big driver; teams want testing early, often, and integrated into pipelines.
Increasing complexity of software (microservices, cloud environments, multiple platforms/devices) means manual testing becomes less feasible for many use cases. Automation helps manage scale.
Rise of AI/ML capabilities in test automation: tools that can auto-generate test cases, do predictive or risk-based testing, self-heal broken tests, prioritize defects etc., are increasingly adopted.
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Top Companies in the Automation Testing Market
Prominent companies include IBM (US), Accenture (Ireland), Broadcom (US), Open Text (Canada), CapGemini (France), Microsoft (US), Keysight Technologies (US), Cigniti Technologies (India), Tricentis (US), Cygnet Infotech (India), Invensis Technologies Pvt Ltd (India), QualityKiosk Technologies Pvt. Ltd. (India), Apexon (US), Idera, Inc. (US), QA Source (US), Astegic (US), Worksoft (US), ACCELQ (US), Sauce Labs (US), SmartBear (US), Parasoft (US), Applitools (US), AFour Technologies (India), QA mentor (US), Mobisoft Infotech (US), ThinkSys (US), Qt Group (Finland), Codoid (India).
IBM (US)
IBM is a global technology and consulting company; IBM operates several key segments that collectively define its business strategy. Its software segment delivers solutions for hybrid cloud, data, AI, automation, and security, with offerings such as Red Hat, automation tools, and data analytics. In the consulting segment, IBM provides industry expertise and technology implementation services, driving digital transformation through AI and automation and infrastructure solutions; in the Hybrid Infrastructure and Infrastructure Support segments, provides agile and secure platforms, including zSystems, Power, Storage, and IBM Cloud IaaS, essential for hybrid cloud and AI workloads. Financing solutions enable clients to acquire critical IT systems and services, supporting IBM's hybrid cloud and AI strategy. IBM has a robust geographical presence in North America, Europe, the Middle East and Africa, Asia Pacific, and Latin America.
Microsoft (US)
Microsoft is an American multinational technology company; it operates across three key segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. In the Productivity and Business Processes segment, they offer the well-known Office Suite, including Word, Excel, PowerPoint, and Outlook, along with cloud-based solutions like Office 365 and Microsoft 365, which are crucial for business communication and collaboration. In the Intelligent Cloud segment, Microsoft's Azure platform provides a comprehensive range of cloud services, covering IaaS to SaaS, making it a preferred choice for businesses requiring cloud-based application hosting, data management, and solution deployment. The More Personal Computing segment focuses on consumer-oriented products such as Windows, Surface devices, Xbox gaming consoles, and Bing search. Additionally, Microsoft owns LinkedIn, offers enterprise software like Windows Server and SQL Server, and actively integrates artificial intelligence into its products and services. With a robust geographical presence in North America, Europe, the Middle East and Africa, Asia Pacific, and Latin America, Microsoft remains a global tech leader.
Accenture (Ireland):
A multinational professional services company headquartered in Dublin, Ireland. They offer a wide range of services in strategy, consulting, digital transformation, and technology.
Broadcom (US):
An American multinational semiconductor and infrastructure software company headquartered in San Jose, California. They focus on designing, developing, and supplying a variety of semiconductor and infrastructure software products.
OpenText (Canada):
A Canadian multinational enterprise software company headquartered in Waterloo, Ontario. They specialize in enterprise information management (EIM) products, including content management, document management, and business process automation solutions.
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