The rise in cyberattacks is alarming. With ransomware, zero-day exploits, and phishing attacks becoming more frequent, even the most robust systems can fall victim. Many organizations are still underprepared, leaving vulnerabilities untested and their defenses weak.
According to predictions by VPNRanks, the average cost of a data breach is expected to exceed $5.37 million by 2025. This figure underscores the critical need for penetration testing.
Penetration Testing is a proactive approach to uncover and address vulnerabilities before malicious actors can exploit them. With the current trends showing an increase in cyber incidents, penetration testing is no longer optional; it’s essential for survival.
VPNRanks Research Highlights: Penetration Testing
Penetration testing is becoming an essential tool in combating cyber threats as the demand for robust security measures grows. Here are key insights and predictions shaping the future of penetration testing:
- 💰The penetration testing market is projected to surpass USD 3 billion by 2025.
- 🔍Frequency of penetration testing performed by organizations 1-2 times annually will rise to 48% by 2025.
- ✅Success rate in penetration tests would be 98% by 2025.
- 🚨Emphasizing the urgency of penetration testing, the average cost of a data breach is expected to exceed $5.37 million by 2025.
Disclaimer: These figures are estimates provided by VPNRanks, based on historical data and current trends analyzed through predictive models. They represent potential future scenarios and should not be considered exact predictions. The actual outcomes may vary depending on various factors, including new interventions and changes in online behavior.
What is Penetration Testing?
Penetration Testing, often called pen testing, is like hiring an ethical hacker to test the security of a system, website, or application.
Imagine you have a house, and you want to know if a thief can break in. Instead of waiting for a real thief, you hire someone to try to break in and find weak spots (like an unlocked door or a window that doesn’t close properly). Afterward, they tell you what they found and how to fix it.
In the same way, pen testers intentionally try to exploit vulnerabilities in digital systems to see how a real hacker might attack. The goal is to find and fix these problems before the bad guys can.
Why is Penetration Testing important?
Penetration testing is important because it helps organizations identify and fix vulnerabilities before malicious hackers can exploit them.
Pen testing reveals weaknesses in your systems, applications, or networks that you may not know exist. This gives you a chance to address them before they’re exploited.
Many industries require penetration testing to meet regulations like GDPR, HIPAA, PCI-DSS, or ISO standards. Regular pen testing helps businesses stay compliant.
Who Performs Pen Tests?
Penetration tests (pen tests) are performed by skilled cybersecurity professionals known as penetration testers or ethical hackers. These individuals or teams are often employed by:
It’s ideal for a penetration test to be conducted by someone with little to no prior knowledge of how the system is secured. This fresh perspective helps uncover blind spots that the developers who built the system might have overlooked.
For this reason, companies often hire external contractors, commonly known as “ethical hackers,” to perform these tests. These professionals are authorized to hack into a system with the goal of identifying and addressing security vulnerabilities.
What are the Types of Penetration Tests?
There are several types of penetration tests, each designed to assess different aspects of a system’s security. Here’s an overview:
| Type of Pen Test | Description | Purpose | Use Case |
| Open-Box Pen Test | Hacker is provided with some information about the company’s security setup beforehand. | Simulates a semi-informed attack to assess vulnerabilities with partial knowledge of the system. | Testing specific security areas with detailed insight. |
| Closed-Box Pen Test | Hacker is given no background information other than the company’s name. | Mimics an external attacker with no prior knowledge of the target. | Evaluating perimeter defenses and external attack scenarios. |
| Covert Pen Test | Also called a ‘double-blind’ test, no one in the company (including IT/security staff) knows the test is happening. | Tests real-time detection and response capabilities of the company. | Assessing incident response without prior preparation. |
| External Pen Test | Focuses on the company’s external-facing technologies, such as websites and external servers. | Identifies vulnerabilities that could be exploited from outside the company’s premises. | Protecting external systems from remote attackers. |
| Internal Pen Test | Conducted within the company’s internal network to simulate insider threats. | Evaluates risks posed by internal users or disgruntled employees within the company’s firewall. | Understanding potential damage from insiders or compromised accounts. |
Growth of the Pen Testing Market
The penetration testing market has experienced steady growth due to increasing cyber threats and the rising demand for robust security measures. Organizations across industries are prioritizing pen testing to safeguard sensitive data and ensure compliance with evolving cybersecurity regulations.
🚨VPNRanks projects that, the penetration testing market will exceed USD 3 billion by 2025.
Trend Analysis
- The global penetration testing market was valued at USD 2.20 billion in 2023.
- It is projected to grow to USD 2.45 billion in 2024.
- By 2032, the market is expected to reach USD 6.35 billion.
- With a CAGR of 12.6% during the forecast period (2024–2032).
Source:
What’s Next? VPNRanks’ Predictions for 2025
This growth will likely be driven by heightened adoption in sectors like healthcare, finance, and retail, where data security is paramount, and stricter global regulations demand regular testing of digital systems.
⚠️Based on historical trends, the penetration testing market is expected to surpass USD 3 billion by 2025, maintaining its trajectory of double-digit growth.
Core Influences Behind VPNRanks’ Predictions
These factors collectively support the prediction of robust growth in the pen testing market, ensuring its place as a cornerstone of modern cybersecurity strategies by 2025.
- Rising Cybersecurity Threats: With cyberattacks becoming more frequent and sophisticated, businesses are allocating greater budgets to cybersecurity measures, including penetration testing.
- Compliance with Regulations: Stricter data protection laws like GDPR, HIPAA, and PCI-DSS mandate regular penetration testing, pushing demand further.
- Expansion of Digital Transformation: The accelerated adoption of cloud computing, IoT, and remote work environments increases attack surfaces, making penetration testing essential.
- Emergence of AI and Automation in Pen Testing: The integration of AI and machine learning into pen testing tools is reducing costs and improving accuracy, making it more accessible for businesses of all sizes.
- Growth of Critical Industries: Sectors like healthcare and finance, which store sensitive data, are expected to lead the adoption curve, as breaches in these industries have the most severe repercussions.
Regional Penetration Testing Trends
The penetration testing market has experienced significant growth across various regions and industries, driven by escalating cyber threats and stringent regulatory requirements. Here’s an overview of regional trends:
- North America dominates the penetration testing market, attributed to the presence of major technology companies, high cybersecurity awareness, and strict regulations. The U.S. is the leading contributor, accounting for a substantial market share. ( Source: Market Value Insights)
- Europe holds a significant market share, with countries like the U.K., Germany, and France leading the adoption of penetration testing services. The implementation of stringent data protection regulations, such as GDPR, has propelled the demand for robust security assessments. ( Source: Allied Market Research)
- Asia-Pacific is emerging as the fastest-growing region in the penetration testing market, driven by rapid digital transformation, increasing cyber threats, and growing regulatory compliance. Countries like China, India, Japan, and South Korea are key contributors to this growth.
- ( Source: Market Value Insights)
Share of Companies using Penetration Testing in Poland
Penetration testing adoption varies across industries, reflecting each sector’s unique security needs and regulatory requirements. Here’s an overview of adoption rates by sector:
- Approximately 32% of organizations in the financial sector utilize penetration testing services.
- Around 15% of healthcare organizations employ penetration testing.
- Approximately 45% of companies in the IT and telecommunications sectors engage in penetration testing.
- About 30% of retail and e-commerce businesses conduct penetration testing.
These statistics underscore the varying levels of penetration testing adoption across industries, influenced by the specific security challenges and compliance obligations each sector faces.
Source
Share of Companies using Penetration Testing in Poland
According to Statista, nearly 60% of companies in Poland utilized security testing (penetration testing) services in 2021, with the primary focus on auditing network and IT infrastructure security.
| Type of Security Testing | Share of Companies Using It (%) |
| Web | 86% |
| IT Infrastructure | 83% |
| Web Applications | 60% |
| Mobile Applications | 54% |
| Red Teaming | 22% |
| We Do Not Use Security Testing | 41% |
Frequency of Penetration Testing
Penetration testing should be performed on a regular basis (at least once a year) to ensure consistent IT and network security management. Regular testing helps reveal how newly discovered threats (0-days, 1-days) or emerging vulnerabilities could be exploited by malicious hackers.
🚨VPNRanks projects that the percentage of organizations performing penetration testing 1-2 times a year will increase to 48% by 2025.
Trend Analysis
The 2024 Pen Testing Report by CoreSecurity reveals that a significant portion of cybersecurity professionals (43%) conduct penetration testing one to two times per year.
| Frequency | 2024 | 2023 |
| Never | 17% | 14% |
| 1-2 times a year | 43% | 38% |
| Quarterly | 11% | 20% |
| Monthly | 12% | 12% |
| Weekly | 9% | 8% |
| Daily | 8% | 8% |
What’s Next? VPNRanks’ Predictions for 2025
Based on the upward trend observed in historical data from 2023 and 2024.
⚠️VPNRanks predicts that the percentage of organizations conducting penetration testing 1-2 times a year will rise to 48% by 2025, as awareness of cybersecurity risks continues to grow.
However, some organizations will remain non-compliant due to budget constraints or a lack of expertise.
Core Influences Behind VPNRanks’ Predictions
These factors collectively support the prediction of robust growth in the pen testing market, ensuring its place as a cornerstone of modern cybersecurity strategies by 2025.
- Growing Awareness of Cybersecurity Risks: Organizations are increasingly prioritizing penetration testing to address rising cyber threats and protect sensitive data from breaches.
- Regulatory Compliance Pressure: Stricter regulations, such as GDPR and HIPAA, are mandating regular security assessments, driving higher adoption rates.
- Cost-Effective Testing Solutions: Affordable and automated penetration testing tools are making it easier for businesses, especially small and medium-sized ones, to test their systems more frequently.
- Adoption of Digital Transformation: The expansion of cloud computing, IoT, and remote work is increasing attack surfaces, prompting organizations to adopt regular penetration testing.
- Improved Cybersecurity Budgets: Companies are dedicating larger portions of their budgets to cybersecurity measures, including penetration testing, as part of their long-term risk management strategy.
Success Rates of Penetration Testing
According to VPNRanks research on Ethical Hacking,
🚨 The ethical hacking industry is projected to achieve a 98% success rate in penetration tests by 2025.
This high success rate underscores the critical role of ethical hackers in proactively identifying and mitigating vulnerabilities, thereby safeguarding organizations from potential cyberattacks.
Key Predictions:
- 📈Market Growth: The ethical hacking market is expected to surpass USD 25 billion by 2025, reflecting the increasing demand for cybersecurity expertise.
- 🛡️Vulnerability Discovery: Ethical hackers are anticipated to discover over 85,000 vulnerabilities annually by 2025, highlighting the ongoing need for vigilant security assessments.
These projections emphasize the importance of integrating regular penetration testing into organizational security strategies to effectively combat evolving cyber threats.
Average Cost of Penetration Testing and Cost of a Data Breach
The cost of a penetration test varies based on factors such as the scope, complexity, and type of testing required.
💸 Penetration testing costs typically range from $5,000 to $40,000.
Below are the estimated cost ranges for moderate-scope and medium-complexity penetration tests across various IT assets:
| IT Asset | Cost Range |
| External IT Infrastructure | $5,000–$20,000 |
| Internal IT Infrastructure | $7,000–$30,000 |
| Mobile Applications, Web Applications, and APIs | $5,000–$30,000 |
| IoT Network | $7,000–$50,000 |
| Cloud Environment | $12,000–$50,000 |
Cost Savings Through Penetration Testing
Investing in penetration testing can lead to significant cost savings by preventing data breaches. According to IBM’s Cost of a Data Breach report, the average cost of a data breach was:
- 2020: $3.86M
- 2021: $4.24M
- 2024: $4.88M (a 10% increase over last year and the highest total ever.)
By identifying and addressing vulnerabilities proactively, organizations can avoid the substantial financial losses associated with breaches, including regulatory fines, legal fees, and reputational damage.
What’s Next? VPNRanks’ Predictions for 2025
Continuing the upward trend as cyberattacks grow in sophistication and severity.
⚠️By 2025, the average cost of a data breach is expected to surpass $5.37 million.
Therefore, the expense of regular penetration testing is often justified by the potential savings from preventing costly security incidents.
Source
- ScienceSoft
- IBM’s 2020 Cost of a Data Breach report
- IBM’s 2021 Cost of a Data Breach report
- IBM’s 2024 Cost of a Data Breach report
Case Studies: How Penetration Testing Prevents Cyber Disasters
Penetration testing is a proactive approach to identifying and addressing security vulnerabilities before malicious actors can exploit them. The following case studies illustrate its critical role across various industries:
1. The Retail Giant
A large retail chain suffered significant reputational damage and financial losses due to a data breach. To uncover existing vulnerabilities, they conducted a penetration test. The testing team, simulating advanced persistent threats (APTs), identified several weaknesses:
- Outdated software susceptible to exploitation.
- Unsecured APIs allowing unauthorized access to sensitive data.
- Weak password policies making brute-force attacks feasible.
Following the penetration test, the retail giant implemented a comprehensive update of their systems, including tightening their password protocols and securing their APIs. This case highlights the importance of regular penetration testing in minimizing risks, especially for businesses handling sensitive customer data.
2. The Financial Institution
A regional bank engaged a penetration testing firm to assess its security protocols following a series of high-profile cyberattacks in the industry. The testing process was rigorous, focusing on both digital and physical security aspects. The findings revealed:
- Insufficient physical access controls, allowing potential intruders easy access to their facilities.
- Poorly segmented internal systems, meaning that successful infiltration of one system could lead to access to critical financial data.
- Training gaps, with many employees unaware of phishing tactics.
The bank swiftly took action by enhancing physical security, establishing a more rigorous employee training program, and improving their internal segmentation. This case demonstrates that penetration testing is not just about online security—it encompasses a complete security evaluation.
3. The Healthcare Provider
A healthcare provider experienced a ransomware attack that encrypted patient records. Determined to avoid a repeat incident, they turned to penetration testing. During the exercise, the testing team discovered:
- Medical devices on the network had outdated firmware and lacked encryption.
- Employees had access to sensitive files beyond their job requirements.
- Insufficient measures for data breach detection allowed incidents to go unnoticed.
As a result of the findings, the healthcare provider implemented stringent access controls, conducted regular updates of medical device software, and set up advanced monitoring systems. This case underscores the critical nature of healthcare data security, where breaches can have life-altering implications for patients.
These case studies underscore the necessity of regular penetration testing across various sectors to identify vulnerabilities and strengthen security measures proactively.
Source
Expert Opinions: Gathered by VPNRanks
Industry leaders share their perspectives on penetration testing, highlighting its importance, challenges, and evolving methodologies.
Nabil E
Nabil E recommended some best practices for Pentesters:
1️⃣ Download tools only from trusted repositories like GitHub.
2️⃣ Review the code, especially for sensitive tools.
3️⃣ Test tools in isolated environments without network access if possible.
4️⃣ Stay informed about updates and discussions in the cybersecurity community.
Arthur Alves
Arthur Alves highlighed that it’s important to understand that pen testing has its limits.
False positives and negatives can occur, and testing is often limited to specific systems or timeframes. This means vulnerabilities outside the scope of the test or that arise later may not be detected. Regular testing and broad coverage are key to minimizing these gaps.
Kishan Kumar
An expert recognized by Microsoft, Google, AT&T, and over 50 global enterprises, Kishan Kumar shares key challenges in cybersecurity and practical tips to overcome them effectively.
- Limited Scope: Ensure clear communication with stakeholders to expand scope when needed.
- False Positives: Always verify scanner findings manually.
- Complex Applications: Break down testing into smaller, manageable components.
Shegun (Olusegun) Olusanya
Shegun (Olusegun) Olusanya emphasized that organizations should adopt modern strategies tailored to cloud environments.
- Continuous Monitoring: Tools like Amazon GuardDuty and Azure Security Center detect configuration drifts and threats in real time.
- IaC Testing: Validate templates like Terraform and CloudFormation before deployment to prevent insecure setups.
- Red Team Exercises: Simulate attacks to identify gaps in detection and response capabilities.
- DevSecOps Integration: Embed automated security checks into CI/CD pipelines for ongoing vulnerability detection.
In-Depth Analysis of VPNRanks Methodology
VPNRanks employs a comprehensive and data-driven approach to deliver accurate and actionable insights into cybersecurity trends. Here’s how we ensure our research meets the highest standards:
- 📊 Data Collection: Gathered insights from industry reports, surveys, and trusted cybersecurity sources.
- 🔍 Trend Analysis: Analyzed historical data to identify growth patterns and future projections.
- 🛠️ Expert Insights: Consulted cybersecurity professionals for real-world perspectives and validation.
- 📈 Comparative Study: Compared market statistics across different regions and industries.
- ✍️ Content Review: Verified accuracy through rigorous fact-checking and cross-referencing.
- 🚀 Prediction Modeling: Used data-driven forecasting to project future market trends.
Explore More In-Depth Guides by VPNRanks
- Social Media Cybersecurity Threats: social platforms are becoming prime targets for cyberattacks, get into the stats.
- Passwordless Authentication: Explore the data behind the growing adoption of passwordless security.
- Brushing Scams: Uncover the surprising statistics behind deceptive online order schemes.
- Email Spoofing: Explore the alarming rise and impact of forged email attacks.
- Phishing statistics: Dive into data-driven insights on phishing trends and vulnerabilities.
FAQs
What are the 5 stages of Penetration Testing?
The five phases of penetration testing include reconnaissance, scanning, vulnerability assessment, exploitation, and reporting. Let’s explore each stage in detail.
What are the three types of Penetration Tests?
Penetration tests can be categorized into three types: black-box, white-box, and gray-box testing. Each type provides varying levels of information to the tester for assessing system vulnerabilities.
Is Penetration Testing illegal?
Penetration testing tools are legal to use, provided the tester has proper authorization. Testers must understand the tool’s functionality to avoid unintended consequences and ensure compliance.
What is gray box Penetration Testing?
Gray box penetration testing involves testers having partial knowledge of a system’s network and infrastructure. Using this limited information, they identify and report vulnerabilities more effectively.
Gray box testing bridges the gap between black-box and white-box testing, offering a balanced approach that combines limited insider knowledge with a real-world attacker perspective.
Conclusion
Penetration testing has become an indispensable tool in the fight against cyber threats. As businesses face an ever-evolving threat landscape, proactive measures like penetration testing ensure vulnerabilities are addressed before they can be exploited.
With alarming costs associated with data breaches and rising cyberattack frequencies, organizations must prioritize regular security assessments. By investing in penetration testing, businesses can safeguard their assets, maintain compliance, and build trust.
