If you are running out of heap space during the surefire (or failsafe) JUnit testing run, changing MAVEN_OPTS may not help you. I kept trying different configurations in MAVEN_OPTS with no luck until I found this post that fixed the problem.
Basically the JUnits fork off into their own environment and ignore the settings in MAVEN_OPTS. You need to configure surefire in your pom to add more memory for the JUnits.
Hopefully this can save someone else some time!
Edit: Copying solution from Keith Chapman's blog just in case the link breaks some day:
<plugin>
<groupId>org.apache.maven.plugins</groupId>
<artifactId>maven-surefire-plugin</artifactId>
<configuration>
<forkMode>pertest</forkMode>
<argLine>-Xms256m -Xmx512m</argLine>
<testFailureIgnore>false</testFailureIgnore>
<skip>false</skip>
<includes>
<include>**/*IntegrationTestSuite.java</include>
</includes>
</configuration>
</plugin>
Update (5/31/2017):
Thanks to @johnstosh for pointing this out - surefire has evolved a bit since I put this answer out there. Here is a link to their documentation and an updated code sample (arg line is still the important part for this question):
<plugin>
<groupId>org.apache.maven.plugins</groupId>
<artifactId>maven-surefire-plugin</artifactId>
<version>2.20</version>
<configuration>
<forkCount>3</forkCount>
<reuseForks>true</reuseForks>
<argLine>-Xmx1024m -XX:MaxPermSize=256m</argLine>
<systemPropertyVariables>
<databaseSchema>MY_TEST_SCHEMA_${surefire.forkNumber}</databaseSchema>
</systemPropertyVariables>
<workingDirectory>FORK_DIRECTORY_${surefire.forkNumber}</workingDirectory>
</configuration>
</plugin>