Password Management Market - Forecasts from 2020 to 2025

The global password management market was valued at US$726.576 million in 2019 and is expected to show good growth over the forecast period. Changing working trends in many regions has led to an increase in the number of employees working offsite and accessing enterprise servers over an unprotected and unmonitored public network. Insufficient physical security and weak password management can allow hackers to create pathways and bypass standard controls to gain unauthorized access to sensitive data through these endpoints. This is increasing the need for advanced password management solutions and services, thus boosting the market growth. Furthermore, security breach attempts from within the organization are harder to detect than those from outside the organization. Employees within an organization have to go through lesser 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 which can provide enough security by securely storing passwords and facilitating easy creation of new passwords in case of an attack. Continuously evolving malware poses a continuous risk of the data breach. For instance, NotPetya ransomware was a fake tax software update which emerged in Ukraine and went on to infect thousands of systems in over 100 countries. This attack caused huge losses to a large number of companies. Merck & Co., Inc. suffered a loss of around $300 million in the third quarter of 2017. 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 market growth is also being driven by a heavy flow of investments into communication and technology across the globe. Increasing digitization across industries is increasing the number of data centers 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 centers which calls for effective solutions to eliminate any risk of security breach attributed to password compromise. This is driving the demand for advanced password managers among enterprises. Continuously evolving attacks pose a continuous risk to the data being stored at the data centers. Rapidly shifting trends towards public cloud data centers, coupled with an increasing number of devices accessing the information in the cloud, 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 loss of productivity as a result of legal actions. For instance, in August 2013, sensitive data of nearly 3 billion user accounts on Yahoo got exposed as a result of a security breach which cost Yahoo nearly $350 million besides the loss of customer trust. Many other companies like eBay, JP Morgan, Sony, and many others have suffered a security breach which significantly hit their business. This is further increasing the demand for password managers among enterprises of various sizes, thus boosting the market growth. Continuous advancements in technologies are making these solutions and services more robust and reliable, which will further fuel their adoption, thereby boosting the market growth.

Stringent regulations regarding the security of data stored with enterprises is also increasing the demand for advanced solutions which can eliminate any risk of a data breach. For instance, the European General Data Protection Regulation applies to all the companies anywhere in the world which collects 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 when asked to do so. Failing to comply with this regulation can cost the companies a fine of €20 million or 4% of their annual global revenue, whichever is higher. This will fuel the adoption of advanced solutions for data security, thus augmenting the market growth.

Password Management market has been segmented on the basis of offering, enterprise size, end-user, and geography. By offering, the market has been segmented into solution and service. By enterprise size, the market has been segmented into small, medium, and large. By the 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

Geographically, the password management market has been segmented into North America, South America, Europe, the Middle East, and Africa (MEA), and Asia Pacific (APAC). To give a clearer view of these regional markets, these have been further segmented into countries that account for a significant market share. North America and Europe together account for a fairly large market share and market growth in these regions is expected to remain good over the forecast period. Strict enforcement of data security regulations in these regions is one of the major factors driving the market growth. Booming industries in the United States and in most parts of Europe are witnessing an inflow of investments by enterprises into strengthening their enterprise infrastructure, which is also supporting the growth of this market. The market growth in the Asia Pacific is anticipated to remain solid over the projected period. The rapid growth of the communication and technology industry 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 good number of vendors offering tailored solutions for diverse business needs is poised to support the uptake of password management solutions and services among enterprises, thus boosting the market growth. South America and the Middle East and Africa account for a relatively small market share. However, market growth in these regions is expected to remain good over the forecast period.

Competitive Insights

Prominent key players in the password management market include LogMeIn, Inc., 1Password, Click Studios (SA) Pty Ltd, Dashlane Inc., Hitachi ID Systems, Inc., Keeper Security, Inc., and Zoho Corp among others. These companies hold a noteworthy share in the market on account of their good brand image and quality of offerings. Many major players in the Password Management market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.

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
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Others