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Home ➤ Information and Communications Technology ➤ Information & Network Security ➤ Crowdsourced Security Market
Crowdsourced Security Market
Crowdsourced Security Market
Published date: June 2025 • Formats:
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  • Home ➤ Information and Communications Technology ➤ Information & Network Security ➤ Crowdsourced Security Market

Global Crowdsourced Security Market Size, Share Analysis Report By Type (Web Application, Mobile Application, Others (IoT, Wireless, and Network), By Deployment Mode (Cloud, On-Premise), By Organization Size (Large Enterprises, Small and Medium-sized Enterprises), By Industry Vertical (IT & Telecom, BFSI, Healthcare, Travel & Hospitality, Retail, Media & Entertainment, Others (Government, Education, etc.), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

  • Published date: June 2025
  • Report ID: 68953
  • Number of Pages: 217
  • Format:
  • Overview
  • Table of Contents
  • Major Market Players
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  • Quick Navigation

    • Report Overview
    • Key Takeaway
    •  U.S. Market Size
    • Type Analysis
    • Deployment Analysis
    • Organization Size Analysis
    • Industry Vertical Segment Analysis
    • Key Market Segments
    • Emerging Trends
    • Business Benefits
    • Drivers
    • Restraint
    • Opportunities
    • Challenges
    • Key Players Analysis
    • Recent Developments
    • Report Scope

    Report Overview

    The Global Crowdsourced Security Market size is expected to be worth around USD 283.9 million by 2034, from USD 129.1 million in 2024, growing at a CAGR of 8.2% during the forecast period from 2025 to 2034. In 2024, North America held a dominant market position, capturing more than a 41% share, holding USD 52.93 million in revenue.

    The crowdsourced security market has been experiencing significant growth, driven by the escalating complexity of cyber threats and the increasing reliance on digital infrastructures. Several factors are propelling the growth of the crowdsourced security market. The increasing frequency and sophistication of cyberattacks have heightened the demand for proactive and comprehensive security measures.

    Additionally, the shortage of skilled cybersecurity professionals has led organizations to seek alternative solutions, such as crowdsourced security, to bridge the talent gap. The cost-effectiveness and scalability of this approach further enhance its appeal, allowing businesses to access a wide range of expertise without the overhead of maintaining large in-house security teams.

    Crowdsourced Security Market size

    The demand for crowdsourced security solutions is surging across various sectors, including IT and telecom, financial services, healthcare, government, and manufacturing. Organizations in these industries are increasingly recognizing the value of leveraging external expertise to fortify their security postures. Crowdsourced security models offer high flexibility and quick response. This helps businesses adapt fast to new threats and vulnerabilities.

    Datadog posted strong financial results for the first quarter of 2025, with revenue rising 25% year-over-year to $761.6 million, outpacing analyst expectations of around $741.5 million. The company’s adjusted earnings stood at $0.46 per share, exceeding the consensus estimate range of $0.42 to $0.43, reflecting improved operating leverage.

    Operating cash flow remained solid at $272 million, while free cash flow reached $244 million, highlighting Datadog’s strong financial discipline and sustained ability to generate high-quality earnings amid increasing enterprise demand for observability and security solutions.

    The expanding crowdsourced security market presents numerous investment opportunities. Companies specializing in platform development, AI and ML integration, and cloud-based security services are poised for growth. Investors can also explore opportunities in sectors that are rapidly adopting crowdsourced security solutions, such as healthcare, finance, and government.

    Implementing crowdsourced security measures offers several benefits to businesses. It enhances the overall security posture by providing continuous and comprehensive assessments of digital assets. The approach also fosters a proactive security culture, encouraging organizations to address vulnerabilities before they can be exploited.

    Key Takeaway

    • In 2024, the Web Application segment led the Global Crowdsourced Security Market with a 48% share, driven by the rising focus on securing customer-facing digital interfaces.
    • The Cloud segment dominated with a 64% share, as businesses increasingly migrated workloads to cloud environments and sought real-time vulnerability detection.
    • Large Enterprises accounted for 72% of the market in 2024, reflecting their higher cybersecurity budgets and ongoing need for continuous testing across complex systems.
    • The IT & Telecom sector led with a 26% market share, owing to the critical need for data protection, uptime, and threat resilience in high-traffic networks.
    • The U.S. Crowdsourced Security Market was valued at USD 50.1 million in 2024, supported by a solid 6.3% CAGR, driven by early technology adoption and regulatory pressure.
    • Regionally, North America held a dominant 41% share, underpinned by mature cybersecurity frameworks, rising enterprise digitalization, and strong developer communities.

     U.S. Market Size

    The US Crowdsourced Security Market is valued at approximately USD 50.1 Million in 2024 and is predicted to increase from USD 68 Million in 2029 to approximately USD 92.3 Million by 2034, projected at a CAGR of 6.3% from 2025 to 2034.

    US Crowdsourced Security Market size

    In 2024, North America held a dominant market position, capturing more than a 41% share, with total revenue reaching USD 52.93 Million in the crowdsourced security market. This leadership can be primarily attributed to the region’s early adoption of advanced cybersecurity models, widespread digital transformation, and the strong presence of leading technology companies and cybersecurity vendors.

    The region has also witnessed a surge in cyber threats targeting both public and private sectors, prompting companies to adopt agile and scalable solutions like crowdsourced security. The U.S., in particular, has actively promoted vulnerability disclosure programs and bug bounty platforms, further accelerating the uptake of this model.

    Crowdsourced Security Market region

    Moreover, North America benefits from a robust regulatory environment that pushes organizations to stay ahead of security risks. Initiatives such as the Cybersecurity & Infrastructure Security Agency (CISA) and enhanced federal data protection laws have encouraged a culture of continuous threat assessment. Companies in finance, healthcare, and defense are increasingly relying on external security researchers to uncover vulnerabilities in real time.

    For instance, In February 2024, Bugcrowd raised $156.2 million in strategic growth funding, signaling strong investor confidence in the crowdsourced security model. Backed by General Catalyst, Costanoa Ventures, and Rally Ventures, the investment aims to accelerate Bugcrowd’s expansion across North America and global markets, enhance its AI-driven platform, and explore strategic acquisitions.

    Type Analysis

    In 2024, the Web Application segment held a dominant position in the global crowdsourced security market, capturing over 48% of the total market share. This leadership is attributed to the widespread adoption of web applications across various industries, making them prime targets for cyber threats.

    The increasing complexity and interconnectivity of web applications have expanded their vulnerability surface, necessitating robust security measures. Crowdsourced security platforms have emerged as effective solutions, leveraging a global pool of ethical hackers to identify and remediate vulnerabilities in real-time.

    The prominence of the Web Application segment is further reinforced by the integration of these applications into critical business operations, including e-commerce, banking, and healthcare services. As organizations increasingly rely on web-based platforms to engage with customers and manage sensitive data, the demand for continuous and comprehensive security assessments has intensified.

    For instance, in April 2025, Cobalt continued to lead the Web Application segment of the crowdsourced security market, owing to the strong performance of its enhanced Pentest as a Service (PtaaS) solution. The platform supports agile development teams and compliance-driven sectors by enabling real-time vulnerability assessments throughout the entire software development lifecycle.

    Deployment Analysis

    In 2024, the Cloud segment held a dominant market position in the global crowdsourced security market, capturing more than a 64% share. This dominance can be attributed to the rapid adoption of cloud computing across various industries, which has expanded the attack surface and necessitated more robust security measures.

    Crowdsourced security platforms, leveraging a global network of ethical hackers, have emerged as effective solutions to identify and remediate vulnerabilities in cloud-based environments. The scalability and flexibility of cloud deployments have made them particularly attractive to organizations seeking cost-effective and agile security solutions.

    Cloud-based crowdsourced security services offer real-time threat detection and response capabilities, enabling organizations to proactively address security challenges. Additionally, the integration of artificial intelligence and machine learning technologies into these platforms has enhanced their ability to analyze vast amounts of data and identify potential threats more efficiently.

    For instance, in April 2025, during the RSA Conference, CrowdStrike unveiled significant upgrades to its Falcon® Cloud Security platform, further reinforcing its leadership in securing cloud environments. A key addition was an AI model scanning capability, designed to detect malware, backdoors, and adversarial manipulations in AI models before deployment. This ensures safer integration of AI into enterprise workflows.

    Crowdsourced Security Market Share

    Organization Size Analysis

    In 2024, the Large Enterprises segment held a dominant position in the global crowdsourced security market, capturing more than a 72% share. This leadership is attributed to the extensive digital infrastructures and complex security requirements inherent to large organizations. With vast amounts of sensitive data and expansive operations, these enterprises are prime targets for sophisticated cyberattacks, necessitating robust and comprehensive security measures.

    Large enterprises possess the financial and technical resources to implement advanced security solutions, including crowdsourced security platforms. These platforms leverage a global network of ethical hackers to identify and remediate vulnerabilities in real-time, providing a proactive approach to cybersecurity. The scalability and flexibility of crowdsourced security solutions align well with the dynamic and diverse needs of large organizations, enabling them to adapt to evolving threat landscapes effectively.

    Furthermore, regulatory compliance mandates and the increasing sophistication of cyber threats have compelled large enterprises to prioritize cybersecurity investments. Crowdsourced security offers a cost-effective and efficient means to enhance security postures, ensuring compliance with industry standards and protecting critical assets.

    For instance, In November 2024, To meet the needs of large organizations, Rainforest QA Inc. expanded its cloud-based QC and security testing platform by integrating crowdsourced testers with enterprise DevOps pipelines. Using AI-driven automation and a worldwide network of testers, the platform delivers end-to-end continuous testing for large-scale digital products that ensures both security and usability.

    Industry Vertical Segment Analysis

    In 2024, the IT & Telecom segment held a dominant position in the global crowdsourced security market, capturing more than a 26% share. This leadership is attributed to the sector’s extensive digital infrastructure and the critical nature of its services, which make it a prime target for cyber threats.

    The rapid adoption of technologies such as 5G, cloud computing, and the Internet of Things (IoT) has expanded the attack surface, necessitating robust and adaptive security measures. The IT & Telecom industry’s reliance on continuous connectivity and data exchange underscores the importance of proactive security strategies.

    Crowdsourced security platforms offer a scalable and efficient solution by leveraging a global network of ethical hackers to identify and remediate vulnerabilities in real-time. This approach not only enhances threat detection capabilities but also aligns with the industry’s need for agile and cost-effective security solutions.

    Furthermore, regulatory compliance requirements and the increasing sophistication of cyberattacks have compelled IT & Telecom companies to invest in advanced security measures. The integration of artificial intelligence and machine learning into crowdsourced security platforms has further enhanced their effectiveness, enabling more accurate threat identification and faster response times.

    Key Market Segments

    By Type

    • Web Application
    • Mobile Application
    • Others (IoT, Wireless, and Network)

    By Deployment Mode

    • Cloud
    • On-Premise

    By Organization Size

    • Large Enterprises
    • Small and Medium-sized Enterprises

    By Industry Vertical

    • IT & Telecom
    • BFSI
    • Healthcare
    • Travel & Hospitality
    • Retail
    • Media & Entertainment
    • Others (Government, Education, etc.)

    Key Regions and Countries

    • North America
      • US
      • Canada
    • Europe
      • Germany
      • France
      • The UK
      • Spain
      • Italy
      • Russia
      • Netherlands
      • Rest of Europe
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Australia
      • Singapore
      • Thailand
      • Vietnam
      • Rest of APAC
    • Latin America
      • Brazil
      • Mexico
      • Rest of Latin America
    • Middle East & Africa
      • South Africa
      • Saudi Arabia
      • UAE
      • Rest of MEA

    Emerging Trends

    Integration of AI and Machine Learning in Threat Detection

    The crowdsourced security market is witnessing a significant shift with the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies. These advancements are enhancing the capabilities of security platforms by automating threat detection and response mechanisms.

    AI algorithms can analyze vast amounts of data to identify patterns and anomalies, enabling quicker identification of potential threats. This integration not only improves the efficiency of security measures but also allows for real-time responses to emerging cyber threats, thereby strengthening the overall security posture of organizations.

    Expansion into Cloud and IoT Environments

    As organizations increasingly adopt cloud computing and Internet of Things (IoT) technologies, the attack surface for potential cyber threats expands. Crowdsourced security platforms are evolving to address these new challenges by extending their services to cloud-based applications and IoT devices. This expansion ensures comprehensive security coverage across diverse technological landscapes, allowing organizations to proactively identify and mitigate vulnerabilities in these rapidly growing domains.

    Business Benefits

    Access to a Diverse Pool of Security Experts

    Crowdsourced security leverages the collective expertise of a global community of ethical hackers and security researchers. This approach provides organizations with access to a wide range of skills and perspectives, enhancing the ability to identify and address complex security vulnerabilities. The diversity of the crowd ensures that security assessments are thorough and multifaceted, leading to more robust protection against cyber threats.

    Cost-Effective and Scalable Security Solutions

    Implementing crowdsourced security measures can be more cost-effective compared to traditional security testing methods. Organizations can scale their security efforts based on specific needs and budgets, paying for results rather than time. This model allows for flexible engagement with security experts, enabling businesses to address vulnerabilities promptly without incurring the high costs associated with in-house security teams or extensive consulting services.

    Drivers

    Rising Sophistication of Cyber Threats

    The increasing complexity and frequency of cyberattacks have necessitated more proactive and adaptive security measures. Traditional security systems often struggle to keep pace with evolving threats, leading organizations to seek innovative solutions.

    Crowdsourced security platforms, by leveraging a global community of ethical hackers, provide a dynamic approach to identifying and mitigating vulnerabilities. This collective intelligence enables real-time threat detection and response, enhancing an organization’s overall security posture.

    Moreover, the integration of artificial intelligence (AI) and machine learning (ML) into these platforms has further amplified their effectiveness. AI algorithms can automate threat detection processes, while ML models analyze vast datasets to uncover patterns and anomalies.

    This synergy between human expertise and advanced technologies ensures a more robust defense mechanism against sophisticated cyber threats. Consequently, the adoption of crowdsourced security solutions is anticipated to grow, driven by the need for agile and comprehensive cybersecurity strategies.

    Restraint

    Concerns Over Data Privacy and Confidentiality

    While crowdsourced security offers numerous benefits, it also raises significant concerns regarding data privacy and confidentiality. Engaging a diverse pool of external researchers to test and identify vulnerabilities inherently involves sharing sensitive information. Organizations may be apprehensive about exposing proprietary data or systems to individuals outside their internal security teams, fearing potential misuse or unauthorized access.

    Additionally, the lack of standardized protocols and regulations governing crowdsourced security initiatives can exacerbate these concerns. Without clear guidelines, there is a risk of inconsistent practices, leading to potential breaches of confidentiality. This uncertainty may deter some organizations from fully embracing crowdsourced security solutions, thereby limiting the market’s growth potential.

    Opportunities

    Expansion into Emerging Markets and Sectors

    The proliferation of digital technologies across various industries presents a significant opportunity for the expansion of crowdsourced security solutions. Sectors such as healthcare, finance, and manufacturing are increasingly adopting digital platforms, thereby expanding their attack surfaces.

    These industries require specialized security measures to protect sensitive data and ensure operational continuity. Crowdsourced security can offer tailored solutions to address these unique challenges, facilitating its penetration into new markets.

    Furthermore, the growing adoption of cloud computing and Internet of Things (IoT) devices in emerging economies underscores the need for robust cybersecurity frameworks. As these regions continue to digitize, the demand for scalable and cost-effective security solutions will rise. Crowdsourced security platforms, with their flexible models and diverse expertise, are well-positioned to meet this demand, thereby driving market growth.

    Challenges

    Managing the Quality and Validity of Submissions

    A notable challenge in crowdsourced security is ensuring the quality and validity of vulnerability reports submitted by external researchers. Given the open nature of these programs, there is a possibility of receiving a high volume of low-quality or duplicate submissions. This influx can overwhelm internal security teams, leading to inefficiencies and potential oversight of critical vulnerabilities.

    To address this, organizations must implement stringent validation processes and establish clear guidelines for submissions. Some platforms have introduced reputation systems and tiered access levels to incentivize high-quality contributions. However, maintaining this balance between openness and quality control remains a complex task, requiring continuous refinement of processes and engagement strategies.

    Key Players Analysis

    Applause has solidified its position in the digital quality and crowd-sourced testing arena by surpassing $200 million in Annual Recurring Revenue, reflecting robust growth and market confidence. The company’s strategic expansion includes a notable acquisition of Testhub, enhancing its European market presence. Applause’s commitment to innovation is evident in its focus on testing generative AI applications, ensuring functionality and accessibility at scale.

    Bugcrowd has reinforced its leadership in crowdsourced cybersecurity by launching the industry’s first Crowdsourced Red Team as a Service, connecting clients with a global network of vetted ethical hackers for comprehensive red team engagements. The acquisition of Informer, a specialist in attack surface management, has expanded Bugcrowd’s capabilities in continuous penetration testing and external attack surface management.

    Cobalt has advanced its Pentest as a Service (PTaaS) model by introducing new product innovations aimed at enhancing transparency, automation, and risk prioritization in penetration testing. The platform now enables faster pentest launches, real-time collaboration with testers, and seamless integration with remediation workflows, facilitating efficient vulnerability management.

    Top Key Players in the Market

    • Applause App Quality Inc.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
      • Strategic Overview
      • SWOT Analysis
    • Bugcrowd Inc.
    • Cobalt
    • Detectify
    • HackerOne Inc.
    • Passbrains ag
    • Planit Test Management Web Application Pty Ltd
    • Rainforest QA Inc.
    • Synack Inc.
    • Zerocopter B V
    • Others

    Note (*): Similar analysis will be provided for other companies as well.

    Recent Developments

    • In April 2025, Detectify introduced Alfred, an AI-driven system that autonomously collects and prioritizes threat intelligence, generating high-fidelity security tests for the most exploitable vulnerabilities.
    • In May 2024, Bugcrowd Inc. Acquired Informer, a provider of external attack surface management and continuous penetration testing, to enhance its crowdsourced security offerings.

    Report Scope

    Report Features Description
    Market Value (2024) USD 129.1 Mn
    Forecast Revenue (2034) USD 283.9 Mn
    CAGR (2025-2034) 8.2%
    Base Year for Estimation 2024
    Historic Period 2020-2023
    Forecast Period 2025-2034
    Report Coverage Revenue forecast, AI impact on market trends, Share Insights, Company ranking, competitive landscape, Recent Developments, Market Dynamics and Emerging Trends
    Segments Covered By Type (Web Application, Mobile Application, Others (IoT, Wireless, and Network), By Deployment Mode (Cloud, On-Premise), By Organization Size (Large Enterprises, Small and Medium-sized Enterprises), By Industry Vertical (IT & Telecom, BFSI, Healthcare, Travel & Hospitality, Retail, Media & Entertainment, Others (Government, Education, etc.)
    Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, New Zealand, Singapore, Thailand, Vietnam, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA
    Competitive Landscape Applause App Quality Inc., Bugcrowd Inc., Cobalt, Detectify, HackerOne Inc., passbrains ag, Planit Test Management Web Application Pty Ltd, Rainforest QA Inc., Synack Inc., Zerocopter B V, Others
    Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements.
    Purchase Options We have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
    Crowdsourced Security Market
    Crowdsourced Security Market
    Published date: June 2025
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    • Applause App Quality Inc.
    • Bugcrowd Inc.
    • Cobalt
    • Detectify
    • HackerOne Inc.
    • Passbrains ag
    • Planit Test Management Web Application Pty Ltd
    • Rainforest QA Inc.
    • Synack Inc.
    • Zerocopter B V
    • Others
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