Coverity has been named the marketshare leader for embedded software and static analysis products according to a market report from VDC Research. The report, 2010 Software & System Lifecycle Management Tools Market Intelligence Service on Automated Test & Verification Tools, found that Coverity holds over 30 percent of the market for embedded software static analysis products, more than twice the market share of the nearest vendor.

The report highlights Coverity’s last two years of revenue growth, which were apparently driven by increases in investments from both the embedded system manufacturing and ISV business segments.

The VDC Automated Testing report predicts that the market for automated testing solutions will continue to grow as the pressure on software to provide both business and product value increases. The report states that "the ubiquitous, mounting pressure on software will generate a commercial [automated testing and verification tool] market with sustained revenue growth opportunities outpacing that of many of software and system lifecycle management tool categories."

The VDC report also notes investment drivers for automated testing and verification products. Specifically, the report states, "As the resulting volume and value of software continues to increase, so too does the corresponding cost of defects in the application under development, in terms of lost business execution time, lost time in market, product recalls, tort liabilities, brand damage and reengineering labor. Consequently, embedded and enterprise engineers alike continue to utilize automated test and verification tools (ATVT) in higher frequencies."