The automated software quality assurance market is a subset of Application Lifecycle Management market. It typically includes test management, automated stress and load testing, and automated functional and regression testing. However, software quality comprises of much broader set of activities than these. Other areas include test data selection and management, unit testing, security and compliance, cross-browser testing, and usability. New technologies like cloud computing are also having a major impact on the market.
The market is also highly concentrated. Big players have more than 80% market share due to their extensive portfolio and global presence. They do not offer the most innovative products in the space, having time to wait for markets to mature or adding needed components via partnerships and acquisitions. Smaller companies generally have a focus on a particular part of the software quality process (e.g., cloud, load/stress, functional automation). However, many of these companies’ products are purchased as additions to market leader tools. Niche players thrive in the market by providing hands-on support and targeted solutions.
Companies generally employ tools from multiple vendors and are happy with their selection. However, there is an outcry regarding licensing and training costs. This has also resulted in experimentation with novel business models like Software-as-a-Service (SaaS) and pricing.
Murphy, T. (2011). Magic Quadrant for Integrated Software Quality Suites, Gartner Research.