The global password management market size was valued at USD 414.7 million in 2016. 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 is encouraging implementation of these solutions among industries across the globe.
These solutions can satisfy 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 helpful 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. 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.
The global demand for these solutions has witnessed a tremendous rise in the past few years owing to emergence of 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 of the IT department along with 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.
Desktops & laptops emerged as the largest segment in 2016. Password management software solutions assist in securing privileged users’ accounts that exist on server, network appliance, desktop, and laptop operating system 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 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.
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 budget, increasing threat and strict compliance mandate have bound them to use appropriate security measures.
With 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.
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 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 breach in security can be costly and disastrous with higher operating costs, revenue losses, and damaged reputation of 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.
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 expanding base of small & medium organizations in the region. Countries such as India, China, and Japan have been experiencing strong economic growth. In addition, growing technology user base and rapidly developing infrastructure are responsible for driving the market.
The global password management market is highly competitive and fairly concentrated, with top five companies accounting for maximum share of the global production in 2016. Key market participants include CA Technologies, Quest Software, NetIQ, and FastPass. 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 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.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, Germany, U.K., China, India, Japan, Brazil, Mexico.
Revenue forecast, company share, competitive landscape, growth factors and trends
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This report forecasts revenue growth at global, regional & country levels and provides an analysis on 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)
Desktops & laptops
Voice enabled password systems
Organization Outlook (Revenue, USD Million, 2014 - 2025)
Small & medium organization
End user Outlook (Revenue, USD Million, 2014 - 2025)
Public sector & utilities
Retail & wholesale distribution
Telecom & IT
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East & Africa
b. The global password management market size was estimated at USD 728.5 million in 2019 and is expected to reach USD 881.5 million in 2020.
b. The global password management market is expected to grow at a compound annual growth rate of 19.4% from 2017 to 2025 to reach USD 2,056.3 million by 2025.
b. North America dominated the password management market with a share of 34.4% in 2019. This is attributable to rising applications of password management solutions across end-use industries.
b. Some key players operating in the password management market include CA Technologies, Quest Software, NetIQ, and FastPass.
b. Key factors that are driving the market growth include obligatory mobile devices of password management solutions by the organizations and authorities and improving operational efficiency.
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Amidst the COVID-19 crisis, the network security industry is poised for sustainable growth despite the foreseeable economic turbulence. Implementation of remote working policy, due to lockdown is putting unanticipated stress on remote networking technologies and causing operational technology (OT) security risk concerns over the vulnerable home network security. Furthermore, as digital infrastructure becomes a critical aspect of business strategic considerations, network security will become a competitive differentiator for businesses and overhaul their remote working strategies. We are incessantly monitoring the market dynamics and regulations while continuously assessing the impact of Covid-19 with the aim of providing you with actionable market insights. The report will account for Covid19 as a key market contributor.