Software Testing Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: April 2024
ANZSIC OD4047Revenue
$467.0m
Past 5-Year Growth
Profit
$X.Xm
Employees
1,715
Businesses
405
Wages
$XXX.Xm
Software Testing Services in Australia industry analysis
Demand has been robust but varied over the past few years, driven by continuous technological advancements and a consistent need for online connectivity across various devices. This has seen software testing’s scope extend beyond functionality and into security, responding to a surge in cybersecurity threats, particularly around cloud computing. Despite fluctuating market conditions due to variable business confidence, the industry has benefited from the ubiquity of technology like smartphones and tablets in both consumer and commercial settings. Advancements in artificial intelligence have further underlined the need for comprehensive, innovative testing processes, contributing to 2.2% expected annualised growth in revenue through the end of 2023-24, reaching $467.0 million. This includes an anticipated growth rate of 6.7% in 2023-24.
Trends and Insights
- Turbulent business confidence has shaken demand in the past few years. Although technological advancements and consistent online connectivity requirements have kept demand on an upwards trajectory.
- Increasing internet traffic is driving demand for performance testing services. Businesses are allocating more resources to performance testing to prevent potential losses from faulty applications and ensure server resilience and high capacity in the face of surging online traffic.
- Downstream clients are primarily based in Sydney and Melbourne. This concentration of clients in New South Wales and Victoria has led to an over-representation of software testing firms in these states.
- Advancements in testing labs are creating opportunities for new entrants to the industry. The infrastructure, knowledge sharing, partnership possibilities and market validation that these labs provide makes product development more accessible, fostering more significant potential among new testers.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.2 % over the past five years, to reach an estimated $467.0m in 2024.
Trends and Insights
Software testing is pivotal in the system development lifecycle
- Software testing limits downtime during software's development and operating stages, reduces future maintenance costs and confirms that software is reliable to ensure end users are satisfied.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Increasing tech reliance necessitates regular software testing, supporting industry revenue
- Relentless technology adoption among consumers and enterprises into the future is forecast to necessitate frequent software updates. This will amplify the need for rigorous software testing as a crucial part of product development processes. Companies dealing in high-risk sectors like healthcare and finance, where software accuracy and reliability are critical, will be particularly geared towards these testing services.
Biggest companies in the Software Testing Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Planit | 179.0 | |
Capgemini | 144.6 | |
BMM Australia Pty Ltd | 9.5 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Operational testing, Performance testing and Automated tests. Operational testing is the largest segment of the Software Testing Services in Australia.
Trends and Insights
Rising internet traffic creates heightened demand for performance testing services
- Performance testing reigns as the leading service segment, encompassing load, capacity and speed tests.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Computer and Electronic Equipment Repair in Australia
- Computer System Design Services in Australia
- Computer and Software Retailing in Australia
- Software Publishing in Australia
International industries
- Software Testing Services in the US
Table of Contents
About this industry
Industry definition
Industry operators provide software testing services for clients, like performance testing, stability testing, usability testing and security testing. The industry does not sell its own software, but it may use internally developed software to complete its testing tasks.
What's included in this industry?
Performance testingOperational testingAutomated testsSecurity testingFeasibility and usability testingCompanies
PlanitCapgeminiBMM Australia Pty LtdPurchase this report to view all 5 major companies in this industry.
Related Terms
INTERNATIONAL SOFTWARE TESTING QUALIFICATION BOARDFUNCTIONAL TESTINGDEBUGGINGSYSTEMS DEVELOPMENT LIFE CYCLEIndustry Code
ANZSIC 5420 - Software Testing Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Turbulent business confidence has shaken demand in the past few years. Although technological advancements and consistent online connectivity requirements have kept demand on...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Increasing internet traffic is driving demand for performance testing services. Businesses are allocating more resources to performance testing to prevent potential losses fr...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Downstream clients are primarily based in Sydney and Melbourne. This concentration of clients in New South Wales and Victoria has led to an over-representation of software te...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Advancements in testing labs are creating opportunities for new entrants to the industry. The infrastructure, knowledge sharing, partnership possibilities and market validati...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Planit is focusing on global expansion and sustainability. Strategic acquisitions have bolstered its global reach, and a dedicated sustainability agenda, including a net-zero...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Planit's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Capgemini's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of BMM Australia Pty Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Planit, and factors influencing its performance in the industry
- Description and key data for Capgemini, and factors influencing its performance in the industry
- Description and key data for BMM Australia Pty Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Mixed levels of business confidence have challenged revenue growth in the past few years. However, increased capital expenditure on computer design, software publishing and e...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Heightened costs have affected the industry's profit margins. A global microchip shortage and high electricity service costs have weighed on margins, but they’ve regained som...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Software Testing Services industry in Australia in 2024?
The market size of the Software Testing Services industry in Australia is $467.0m in 2024.
How many businesses are there in the Software Testing Services in Australia industry in 2024?
There are 405 businesses in the Software Testing Services industry in Australia, which has grown at a CAGR of 5.2 % between 2019 and 2024.
Has the Software Testing Services industry in Australia grown or declined over the past 5 years?
The market size of the Software Testing Services industry in Australia has been growing at a CAGR of 2.2 % between 2019 and 2024.
What is the forecast growth of the Software Testing Services industry in Australia over the next 5 years?
Over the next five years, the Software Testing Services industry in Australia is expected to grow.
What are the biggest companies in the Software Testing Services market in Australia?
The biggest companies operating in the Software Testing Services market in Australia are Planit, Capgemini and BMM Australia Pty Ltd
What does the Software Testing Services in Australia include?
Performance testing and Operational testing are part of the Software Testing Services industry.
Which companies have the highest market share in the Software Testing Services in Australia?
The company holding the most market share in Australia is Planit.
How competitive is the Software Testing Services industry in Australia?
The level of competition is moderate and increasing in the Software Testing Services industry in Australia.
