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Industry Landscape

The Application Security (AppSec) industry is experiencing rapid growth, driven by increasing software development complexity, the rise of AI-generated code, and escalating cyber threats. Organizations are consolidating fragmented tools into unified platforms to enhance visibility and efficiency. Focus is shifting towards 'shift-left' security and automated remediation, making it a critical component of modern software development.

Industries:
CybersecurityDevSecOpsSoftware Supply ChainAI-Native SecuritySDLC

Total Assets Under Management (AUM)

Application Security Market Size in United States

~Approximately $5.2 Billion USD

(15-20% CAGR)

- Growing demand for unified platforms.

- Increased adoption of DevSecOps.

- Rising focus on cloud-native application security.

Total Addressable Market

12 billion USD

Market Growth Stage

Low
Medium
High

Pace of Market Growth

Accelerating
Deaccelerating

Emerging Technologies

AI-Generated Code Security

AI-generated code introduces new vulnerabilities and challenges for traditional AppSec tools, requiring specialized security solutions to analyze and secure code created by large language models.

Software Supply Chain Security Automation

Automated enforcement of security policies and integrity checks across the entire software supply chain, from development environments to deployment, is becoming critical to prevent sophisticated attacks.

Graph-based Security Analytics

Leveraging graph databases and analytics to map relationships between code, infrastructure, and vulnerabilities for deeper insights and more effective risk prioritization and remediation.

Impactful Policy Frameworks

NIST AI Risk Management Framework (AI RMF 1.0) 2023

Published in January 2023, the NIST AI RMF provides voluntary guidance for organizations to manage risks associated with artificial intelligence systems, focusing on trustworthy AI development and deployment.

This framework will guide how AppSec platforms secure AI-driven code and AI components, pushing vendors like Cycode to integrate AI safety and reliability features.

Cybersecurity Executive Order (EO 14028) 2021 - Software Bill of Materials (SBOM)

Issued in May 2021, this U.S. Executive Order mandates improved cybersecurity for federal government systems, emphasizing the need for a Software Bill of Materials (SBOM) to enhance supply chain transparency and security.

This policy directly impacts AppSec providers by increasing demand for comprehensive SCA and software supply chain security tools that can generate and manage SBOMs effectively.

SEC Cybersecurity Disclosure Rules 2023

Effective December 2023, the SEC mandates public companies to disclose material cybersecurity incidents within four business days and annually report on their cybersecurity risk management, strategy, and governance.

These rules increase corporate accountability for cybersecurity, driving demand for unified AppSec platforms that provide comprehensive visibility and reporting on security posture to meet disclosure requirements.

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