North America to Continue Bullish Run in Global Test Automation Market

Of the numerous arms of the IT industry, one of the most important ones to have been taken by a storm by automation is the area of software testing. As software projects, especially the ones that have several layers, are larger, and complex, require massive investment in testing, in terms of human resources and funds, automation has emerged as a way to immensely cut down costs and manual work hours invested. Test automation also leads to a significant reduction in the overall time required for the software to be deployed and implemented.

Over the years, test automation has become one of the core approaches used for undertaking a variety of software tests and is expected to remain prominent in terms of use and implementation in the next few years as well. Analysts predict that the larger implementation of test automation will be one of the key ways software companies will reduce their overall costs of operation.

Transparency Market Research (TMR) estimates that the global market for test automation will exhibit an exponential 15.4% CAGR over the period between 2017 and 2025, rising to a valuation of US$109.69 bn by 2025 as opposed to US$30.45 bn in 2016.

Q. Which areas of operation will prove to be more promising for test automation companies?

A. The key operations of test automation companies are product development and provision of test automation services. Of these two areas, the services segment presently holds a dominant position and is the leading contributor of revenue to the global market. In the next few years as well, it will be the services segment that will cloak the maximum revenues, mostly on the back of the high preference of a number of software development companies to managed services.


Of the key types of services provided by test automation companies, the managed services segment will emerge as the most in-demand service type in the next few years. However, the segment of assessment and advisory services will also garner healthy demand from software development companies across the globe.

Q. Which regional market will prove to be most promising?

A. Presently, North America and Asia Pacific are considered to be the leading segments in terms of revenue contribution and growth opportunities. North America holds the maximum share in the global test automation market, courtesy the presence of a large number of test automation tools developing as well as services firms. The regional market held a massive 46% of the overall revenue of the global market in 2016 and is expected to retain its commanding position in the next few years as well. The strong position of the regional market can be attributed to the rising traction of quality assessment operations within companies as more an increased implementation of transformation projects as a way of augmenting returns on investment and reducing time-to-market of products.

Asia Pacific will lead to the most promising growth opportunities owing to the strong role of several economies in the software services area. The region will exhibit a promising 16.5% CAGR from 2017 to 2025, establishing itself as one of the most promising investment avenues for the test automation market.

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