Password Management Market Size, Share & Trends Analysis Report By Type, By Access Type (Desktops, Mobile Devices), By Organization Type (BFSI, Healthcare), By End-User Type, And Segment Forecasts, 2018 - 2025

Report Overview

The global password management market size to be valued at USD 2.05 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 19.4% during the forecast period. Increasing adoption of password management solutions by small and medium enterprises is one of the key trends escalating market growth. Moreover, increasingly complex compliance, regulatory, and risk management environment in businesses encourage the implementation of these solutions among industries across the globe.

These solutions can satisfy the needs of enterprises such as synchronizing a single password via all access accounts for a person or empowering IT service desks with the help of a central tool for managing password service requests. Increasing risk of data theft in critical industries such as healthcare, public sector, and BFSI is expected to provide a fillip to the market.

Password management use is not only restricted to enterprises but also help to individual users as a security tool for their accounts and devices. Also, it is widely used by end users to audit, secure, monitor, and manage the activities associated with privileged accounts.

As cyberattacks seem to become progressively more prevalent and far-reaching in their damage, it is more essential for individuals as well as organizations to protect their data. The ability to transfer client files, customer data, employee files, financial records, medical records, and other sensitive & valuable information has increased the legal risks.

According to a report by Cybersecurity Ventures and Thycotic, over three billion passcodes and user credentials were stolen in the year 2016. Moreover, the report also says that there is a potential for cybercrime damages to amount to about USD six trillion by 2021. Growing complex systems & rules for generating and changing passwords are augmenting the need for efficient password management solutions has increased among enterprises.

Password Management Market Trends

The growing number of internet and mobile users have a massive impact on various businesses. With the increase in internet usage, improvement in communication channels, and high speed internet,various companies are gradually implementing security measures such as user accounts to ensure accountability. Hence, these developments are driving the market.

Password managers are apps that help users see and learn all the passwords stored on the device and the passwords for individual accounts.  Data theft and cybercrimes are becoming a matter of concern and password management systems provide unique account identification and effective password storage facilities.

However, they also have the disadvantage of allowing access to all malicious elements such as viruses, which can tamper with data integrity. This is hampering the market growth.

Type Insights

The global demand for these solutions has witnessed a tremendous rise in the past few years owing to the emergence of the Internet of Things (IoT), cloud technology, and other digital frameworks within the processes. Based on type, the password management market is classified into self-service and privileged user password management.

Self-service password management emerged as the largest service segment in 2016. These solutions enable users to reset and manage their passcodes on their own without any help from the helpdesk. This helps in saving valuable time for the IT department along with a reduction in cost incurred within the department. Privileged solutions facilitate higher security by maintaining passwords of privileged users, deploying different methods including automated password resets, frequent passcode randomization, and privileged session recording.

Access Type Insights

Desktops & laptops emerged as the largest segment in 2016. Password management software solutions assist in securing privileged users’ accounts that exist on the server, network appliance, desktop, and laptop operating systems of an IT infrastructure. It is widely used to secure, audit, monitor, and manage all activities related to privileged accounts.

Mobile devices is anticipated to the fastest-growing segment during the forecast period. With the increasing trend of BYOD among organizations, managing and securing various accounts including official, social, and financial becomes difficult. With the help of passcode managers, employers of all the sectors can have access to collaborative portals subsequent back-end systems.

Organization Insights

Based on the size of organization, the market is segmented into large enterprises and small and medium-sized businesses (SMBs). Even though small businesses have limited budgets, increasing threat and strict compliance mandates have bound them to use appropriate security measures.

With the dynamic and constantly evolving nature of businesses, it is essential for organizations to ensure that their data is kept secured by using effective passcode management processes and systems. Password security helps to keep sensitive information safe. Many large enterprises have invested in password management tools as the first line of account defense.

End-User Insights

The key end-use sectors reviewed in the report are banking, financial services and insurance (BFSI), public sector & utilities, education, manufacturing, healthcare, retail and wholesale distribution, telecom and IT, and others. Such industries have a network of complex systems that are passcode protected so that access is granted only to authorized individuals. Password management solutions help to reduce congestion at helpdesks and improve security and productivity.

The BFSI sector was the most prominent end user in 2016. Owing to the highly sensitive nature of assets and information maintained by banking and financial institutions, it is imperative to ensure a highly secure environment. Any lapse or a breach in security can be costly and disastrous with higher operating costs, revenue losses, and damaged the reputation of the organization.

With growing security threats, data breaches, and incidents of fraud, institutions are under increasing regulatory and public scrutiny, passcode management solutions have become essential. They allow these institutions to manage and measure security and identify risks associated with user access to crucial systems and applications in a structured and centralized way. Agencies such as Federal Deposit Insurance Corporation (FDIC) and Federal Financial Institutions Examination Council (FFIEC) establish uniform principal standards and reports for promoting uniformity in the supervision of financial institutions.

Regional Insights

North America was the leading region and accounted for just over 38.0% of the overall market revenue in 2016, owing to rising applications of password management solutions across end-use industries. Moreover, constant technological advancements in fields of analytics, cloud, and BYOD trends are expected to provide a significant push to the regional market.

Asia Pacific is projected to exhibit a substantial CAGR over the forecast period owing to the expanding base of small & medium organizations in the region. Countries such as India, China, and Japan have been experiencing strong economic growth. In addition, a growing technology user base and rapidly developing infrastructure are responsible for driving the market.

Key Companies & Market Share Insights

The global market is highly competitive and fairly concentrated, with the top five companies accounting for the maximum share of global production in 2016. The market players are using strategies such as collaboration, acquisition, and new product development and launches to strengthen their positions in the market.

Application development and customized software are expected to be key parameters to sustain competition in the arena, with frequent mergers and acquisitions being undertaken as an attempt to diversify the product portfolio and gain market share. These players provide solutions that may be delivered via on-premise or cloud models. Companies such as Microsoft and Google are trying to deliver innovative ways of password management such as USB tokens and automatic encrypted solutions.

Recent Developments

• In November 2022, FastPassCorps released its updated Identity Verification Client (IVC) version 4. It is a complement to and substitute for FPR, IVC provides a smart procedure that specifies how each employee's identification can be validated before issuing a new password.

• In May 2022, LogRhythm and REAL Security have teamed up to help businesses in the Adriatic zone identify and manage cyber threats. The cooperation expands LogRhythm's footprint throughout south-east Europe while also providing world-class security operations capabilities to real security.

• In March 2022, CyberRes acquired Debricked, a programmer open source intelligence startup aiming revolutionizing how enterprises safeguard their software supply chain for the future.

Some of the prominent players include:

• CA Technologies

• Quest Software

• NetIQ

• FastPass.

Password Management Market Report Scope

Global Password Management Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global password management market report on the basis of product and region:

• Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Self-service password management

  • Privileged user password management

• Access Outlook (Revenue, USD Million, 2014 - 2025)

  • Mobile devices

  • Desktops & laptops

  • Voice-enabled password systems

  • Others

• Organization Outlook (Revenue, USD Million, 2014 - 2025)

  • Small & medium organization

  • Enterprise

• End-user Outlook (Revenue, USD Million, 2014 - 2025)

  • BFSI

  • Education

  • Healthcare

  • Manufacturing

  • Public sector & utilities

  • Retail & wholesale distribution

  • Telecom & IT

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa