Password Management Market

Password Management Market Research, 2032

The global password management market was valued at $2.4 billion in 2022, and is projected to reach $15.2 billion by 2032, growing at a CAGR of 20.7% from 2023 to 2032.

A password manager is a technology tool that helps internet users create, save, manage, and use passwords across different online services. It is a critical part of the IT policy of most organizations. Its solutions ensure robust cybersecurity as well as convenience for home and enterprise users alike.

The increase in remote work culture among various enterprises has increased the demand for password management systems. Passwords have become increasingly popular as digitization advances. As a result, the need for a centralized password management system grows, boosting the development of password management systems. Furthermore, there is growth in market because of an increase in demand for easy authentication techniques. Individuals and companies continue to rely on traditional password management approaches while hackers have new tools and assaults. This highlights the importance of employing optimal password management practices to mitigate security concerns. As a result, this aspect accelerates the advancement and use of password management tools. Furthermore, customer concerns about cybersecurity have propelled the password management market growth. However, a lack of knowledge among individuals and enterprises, as well as technical restrictions, have impended market expansion. On the contrary, a surge in online accounts and an increase in cloud-based service adoption are expected to bring lucrative growth opportunities to the password management industry in the upcoming years.

The report focuses on growth prospects, restraints, and trends of the password management market forecast. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the Password management market outlook.

The COVID-19 pandemic acted as a catalyst for the password management market, owing to the rise in digital transformation. The pandemic disrupted traditional working patterns by introducing work-from-home and remote work. Hence, the increase in remote working introduced a greater focus on cybersecurity which drives the adoption of password management tools.

Segment Review

The password management market is segmented into type, access, enterprise size, industry vertical, and region. On the basis of type, the market is bifurcated into self-service password management and privileged user password management. On the basis of access, it is fragmented into mobile devices, desktops & laptops, voice-enabled password systems, and others. On the basis of enterprise size, the market is bifurcated into large enterprises and small and medium-sized enterprises. On the basis of industry vertical, the market is divided into BFSI, IT and telecom, healthcare, retail, government and public sector, manufacturing, and others. On the basis of region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

On the basis of type, the self-service password management segment dominated the market in 2022, and is expected to grow at the fastest CAGR during the forecast period. This is attributed to the fact that it reduces IT support costs by enabling users to reset passwords on their own and provides an intuitive one-time user registration process that allows users to reset passwords and unblock accounts on-demand from any device or location.

On the basis of region, North America dominated the password management market share in 2022. This is attributed to the increase in adoption of technology and infrastructure development, which resulted in the rise in remote work culture in the region. Furthermore, key players such as SailPoint Technologies, Inc. and Bitwarden, Inc. are expected to boost the market growth for password management across the U.S. and Canada, as they are focused on launching advanced password managers to improve their product portfolio. However, Asia-Pacific is considered to be the fastest-growing region during the forecast period. This is attributed to the rise in digitization initiatives and increase in fraudulent activities and identity theft. Furthermore, key players in Asia-Pacific have been investing in modernizing their password management systems in order to simplify the creation and management of secure passwords for all online accounts across multiple platforms including mobile.

The key players operating in the password management market include Bitwarden, Inc., Dashlane Inc., Zoho Corporation Pvt. Ltd., 1Password, Nord Security, NortonLifeLock Inc., One Identity LLC, SailPoint Technologies, Inc., LastPass US LP, and Siber Systems, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the password management industry.

Market Landscape and Trends

According to the ETCISO.in, with the growing digital initiatives of India, there is a growth in threat of cyberattacks. In 2022, the Computer Emergency Response Team of India (CERT-In) reported a 51% increase in ransomware attacks in the first half of the year. In addition, the Ministry of Electronics and Information Technology (MeitY) submitted a report to the Lok Sabha, revealing that there were 47 incidents of data leaks and 142 incidents of data breaches reported in the last five years.  The adoption of password management tools has gained significant growth among individuals and businesses in India to combat this growing threat.

In addition, in August 2021, Dashlane released its Mac Catalyst app, becoming the first password manager using the new Apple technology to debut in the Mac App Store. The company released a new update to its highly-rated iOS app, featuring smarter search functionality and a number of UX/UI improvements. These enhancements are part of a significant revamp of iOS navigation of Dashlane that is a part of a progressive rollout, in an effort to provide a better user experience, ultimately helping save time by ensuring access to unique, secure passwords in fewer clicks.

The COVID-19 pandemic had a positive impact on the password management market size. The pandemic disrupted traditional working patterns by introducing work-from-home and remote work. The increase in remote working calls for a greater focus on cybersecurity, because of the greater exposure to cyber risk. Cyber-attackers saw the pandemic as an opportunity to step up their criminal activities by exploiting the vulnerability of employees working from home. This aided the expansion of the password management market by enhancing company security and giving additional management tools to meet the diverse needs of consumers.

Top Impacting Factors

Rise in adoption of remote work culture

Remote work has emerged as an essential factor for the expansion of the password management market. Secure and organized access to digital resources has become essential with employees working from a variety of locations and devices. This trend has increased concerns about data breaches and cyber threats driving businesses to implement strong password management solutions. These solutions improve security by encouraging the use of strong, unique passwords, as well as making access easier by utilizing single sign-on and multi-factor authentication processes. Demand for user-friendly and scalable password management systems has increased as businesses attempt to retain operational efficiency while protecting sensitive data.

For instance, in June 2021, LastPass and Sherweb, a global cloud solutions provider, started offering MSP partners the ability to secure the digital workplace from data breaches and cyber threats while minimizing administrative hassle. Sherweb partners deploy the LastPass MSP solution across their clients, while relying on the same vendor they trust for their other technology needs with this partnership.

Increase in demand for convenient authentication methods

The rise in demand for convenient authentication methods is a key factor in the expansion of the password management market. Traditional username-password combinations have become cumbersome and vulnerable to cyberattacks due to weak passwords and reuse. As a result, users and organizations have increasingly adopted password management software that facilitates single sign-on (SSO) and multi-factor authentication (MFA), avoiding the need to memorize several complex passwords.

Furthermore, the popularity of remote work and the growth in reliance on digital services have increased the demand for password management solutions. These solutions provide safe credential storage and synchronization across several platforms, streamlining the authentication process while maintaining a high level of security. Moreover, with increased awareness of data breaches and privacy issues, there is a growth in demand for user-friendly yet robust authentication solutions, which fuels the growth of the password management market.

Rise in online accounts

The proliferation of online accounts has created a rise in demand for effective password management solutions, thereby presenting significant growth prospects to the password management market. The challenge of managing numerous complex passwords has become increasingly difficult as individuals and businesses continue to rely on a multitude of online platforms and services. This has led to a surge in adoption of password management solutions, as it offers a convenient and secure way to generate, store, and organize passwords. They alleviate the burden of memorizing multiple passwords while enhancing security through features such as encryption and multi-factor authentication. This trend drives the password management market's expansion by highlighting the need for streamlined user experiences.

In addition, key players in the market have adopted various strategies such as product launches and partnerships to create and drive continuous improvement. For instance, in March 2022, Bitdefender, a global cybersecurity leader, launched Bitdefender Password Manager, a new consumer solution that simplifies the creation and management of secure passwords for all online accounts across multiple platforms including mobile. Therefore, these factors are expected to provide lucrative growth opportunities for the password management market.

Increase in adoption of cloud-based services

The growth in adoption of cloud-based services has created significant opportunities for the password management market. The need for secure and efficient password management solutions becomes paramount as more businesses and individuals migrate their operations and data to the cloud. Cloud services require users to manage an increase in number of passwords for various accounts, applications, and platforms. This complexity can lead to security vulnerabilities if not managed effectively. Password management solutions offer a convenient way to generate, store, and auto-fill passwords, enhancing security and user experience. The integration of these solutions with cloud services aligns with the modern trend of seamless and secure access, making them indispensable for both enterprises and individuals.

In addition, as the cloud ecosystem continues to expand, the password management market started gaining traction from the increased demand for robust security measures, streamlined user experiences, and centralized control over access credentials. Therefore, these factors are expected to create lucrative growth opportunities for the password management market in the upcoming years.

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the password management market analysis from 2022 to 2032 to identify the prevailing market opportunity.
• Market research is offered along with information related to key drivers, restraints, and opportunities.
• The Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the password management market segmentation assists to determine the prevailing password management market opportunities.
•  Major countries in each region are mapped according to their revenue contribution to the market.
•  Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
•  The report includes the analysis of the regional as well as password management market trends, key players, market segments, application areas, and market growth strategies.

 Password Management Market Report Highlights