Password Management Market - Forecasts from 2022 to 2027

The global password management market is anticipated to grow at a CAGR of 11.43% to reach a market value of US$1,805.057 million in 2027 from US$846.414 million in 2020.

Changing working trends in many regions have led to an increase in the number of employees working offsite and accessing enterprise servers over an unprotected and unmonitored public network. Hackers may be able to establish channels and circumvent common measures to get unauthorized access to sensitive data across these endpoints if there is insufficient physical security and poor password management. The demand for cutting-edge password management products and services is rising as a result, driving the market's expansion.

Furthermore, security breaches from within the organization are more difficult to detect than those from without. Employees within an organization have to go through fewer layers of security to gain access to sensitive data not meant for them. Insufficient security at these endpoints can put the data at risk, which is further increasing the demand for robust password managers that can provide enough security by securely storing passwords and facilitating the easy creation of new passwords in case of an attack.

Effect of malware on the market

Malware that is constantly evolving poses a constant risk of a data breach. For instance, NotPetya ransomware was a fake tax software update that emerged in Ukraine and went on to infect thousands of systems in over 100 countries. Numerous businesses suffered significant losses as a result of this attack. The third quarter of 2017 had a loss of almost $300 million for Merck & Co., Inc. Another ransomware attack called WannaCry affected thousands of machines at banks, law enforcement agencies, and other enterprises and organizations. Such attacks have increased the need for solutions that can safeguard access to any component of an enterprise's infrastructure by securing passwords to them, thus augmenting their market growth.

The password management market growth is propelled by heavy investments and digitization

The market's growth is also being driven by a heavy flow of investments in communication and technology across the globe. Increasing digitization across industries is increasing the number of data centres in various locations across the globe, with huge volumes of data being stored at each data center. Facebook, for instance, has more than 300 PB of data in its data centers which is increasing continuously. Similarly, other enterprises across the globe also have huge volumes of data in their data centres which calls for effective solutions to eliminate any risk of security breaches attributed to password compromise. This is driving the demand for advanced password managers among enterprises.

The data centres are constantly exposed to threats that evolve continuously. Public cloud data centers, coupled with an increased number of devices accessing cloud information, have further elevated the risk of data loss due to unsafe passwords. Any occurrence of a security breach can lead to significant monetary loss for the enterprise, besides the loss of customer confidence and productivity as a result of legal actions. For instance, in August 2013, as a result of a security breach at Yahoo, nearly 3 billion user accounts got exposed, costing Yahoo nearly $350 million, in addition to losing customer trust. Many other companies like eBay, JP Morgan, Sony, and many others, have suffered a security breach that has significantly hit their business. This is further increasing the demand for password managers among enterprises of various sizes, thus boosting market growth. Continuous advancements in technology are making these solutions and services more robust and reliable, which will further fuel their adoption, thereby boosting market growth.

Stringent regulations regarding the security of data stored by enterprises are also increasing the demand for advanced solutions that can eliminate any risk of a data breach. For instance, the European General Data Protection Regulation applies to all companies anywhere in the world that collect information about European customers. The law will make it necessary for the companies to protect the data from any kind of breach and would even require the companies to manage the data in a way that any personal data concerning any individual can be removed. Failing to comply with this regulation can cost companies a fine of €20 million or 4% of their annual global revenue, whichever is higher. This will further drive the adoption of advanced solutions for data security, thus propelling market growth.

Segmentation of the password management market

The Password Management market has been segmented on the basis of offerings, enterprise size, end-user, and geography. By offering, the market has been segmented into solutions and services. By enterprise size, the market has been segmented into small, medium, and large. By end-user, the password management market has been segmented into communication and technology, manufacturing, BFSI, retail, and others.

North America and Europe hold a significantly large market share

The password management market has been divided into five regions: North America, South America, Europe, the Middle East and Africa (MEA), and Asia Pacific (APAC). To give a clearer view of these regional markets, they have been further segmented into countries that account for a significant market share. North America and Europe account for a sizable market share, and market growth in these regions is expected to continue throughout the forecast period. One of the major factors driving market growth in these regions is the strict enforcement of data security regulations. Booming industries in the United States and most parts of Europe are seeing an inflow of enterprise investments into strengthening their enterprise infrastructure, which is also supporting market growth. The Asia Pacific market is expected to grow steadily over the forecast period. The rapid growth of the communication and technology industries in countries like China, Japan, India, and South Korea, among others, is one of the major driving factors for the regional market. The presence of a large number of vendors offering tailored solutions for various business needs is expected to boost enterprise adoption of password management solutions and services, thereby driving the market growth. South America, the Middle East, and Africa account for a small portion of the market. Market growth in these regions, however, is expected to remain strong over the forecast period.

Key Developments

• December 2021: As per the 1 December 2021 press release by Dell Technologies, they announced a partnership with Amazon Web Services, a subsidiary of Amazon that provides on-demand cloud computing services. Dell EMC and AWS partnered to introduce Dell EMC PowerProtect Cyber Recovery for AWS. AWS and Dell would collaborate to provide customers with a cyber-recovery solution that separates business-critical data from an attack with an air-gapped cyber vault, allowing companies to decrease risk and protect their data with confidence.
• October 2020: FastPassCorps released its updated Identity Verification Client (IVC) version 4 in a press release in November 2022. In addition to and instead of FPR, IVC specifies how each employee's identification can be verified before issuing a new password. It took probably 6 months for the company to fully launch the product.

Impact of COVID-19 on the Password Management Market

In the past century, the COVID-19 pandemic is considered to be one of the most lethal infections. In addition to causing a disaster to humanity by claiming millions of lives, COVID-19 also caused a steep decline in economies around the globe. In the midst of widespread office closures, the COVID-19 pandemic presented a significant challenge to all businesses around the world. IT security was significantly affected by changes in work culture. Businesses across industries became concerned about cyber-attacks, data breaches, and network intrusions disrupting their operations. The employees of a business are responsible for different accounts, each of which requires a separate and safe password. There is a significant need for secure working methods to protect databases and other essential and confidential digital documents in these times due to the increasing number of cyber-attacks around the world. The market for password management is anticipated to grow in the forecasted period.

Segmentation

• By Offering

Solution

Service

• By Enterprise Size

Small

Medium

Large

• By End User

Communication and Technology

Manufacturing

BFSI

Retail

Others

• By Geography

North America

• USA
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• Germany
• France
• United Kingdom
• Spain
• Italy
• Others

Middle East and Africa

• Saudi Arabia
• UAE
• Israel
• Others

Asia Pacific

• China
• Japan
• South Korea
• India
• Taiwan
• Thailand
• Indonesia
• Others