Password Management Market Size, Share & Trends Analysis Report By Type (Self-Service Password Management, Privileged User Password Management), By Enterprise (Small Enterprises, Medium Enterprises, Large Enterprises), By deployment (Cloud, On-Premise), By Technology (Desktop, Mobile Devices, Voice-enabled Password systems), By End-User (Healthcare, Energy and Utilities, Retail, BFSI, Government and Defence, IT and Telecom, Education, Manufacturing, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The Password Management Market size is expected to reach USD 7171.1 million by 2030 from USD 1470.5 million in 2021, growing at a CAGR of 19.25% during the forecast period, 2022–2030.

Password management involves using a software application to track and store a user's passwords for various online accounts. Password management systems perform multiple functions, including imposing password complexity, password rotation, etc. Cloud-based storage, Mac, and Linux-based systems are currently popular because they improve workflow and thus save money. However, access to these resources requires a unique password, driving the demand for password management systems.

The rapidly increasing cases of cybercrime and the losses associated with them on an individual or organization level are the key factors expected to drive market growth during the forecast period, 2022-2030. Credentials are the primary means by which a bad actor hacks into an organization, according to the Verizon 2021 Data Breach Investigations Report, with 61% of breaches attributed to leveraged credentials.

Market Dynamics

Market Drivers

Rising Adoption of Cloud-based Databases and Processes

The market is being propelled forward by the rise of cloud computing, the Internet of Things (IoT), and other digital frameworks worldwide. Global organizations increasingly use password management solutions to reset and manage their passcodes quickly. Because of their cost-effectiveness and time-saving benefits, the systems are commonly used for automated password resets, frequent passcode randomization, and session records. Password management has become increasingly crucial for protecting online information and preventing online fraud as online transactions grow.

Rising Prevalence of Cyber-Attacks

Password management is a reliable method of ensuring enterprise security by making it easier to store and secure complex account credentials. Every employee in a company is in charge of different accounts, each requiring a unique and secure password. Due to the increasing number of cyber-attacks worldwide, there is a high demand for secure working methods to protect databases and other essential and confidential digital documents.

Market Restraint

Security and Privacy-Related Risks

Password management tools allow you to read and learn all of the passwords stored on your device and each account's email address or another unique identifier. Keeping multiple passwords in a single memory becomes an important topic when unauthorized access is gained. In the case of password management, while these tools store all of the passwords in one memory, they also have the disadvantage that if any toxic substance, such as malware, gains access to the memory, it can read all of the passwords stored in that memory.

Regional Analysis

Geographically, the global password management market share has been analyzed across North America, Europe, Asia Pacific and Latin America, the Middle East, and Africa (LAMEA).

Due to the widespread presence of prominent companies and the growing adoption of password management solutions across various end-use sectors, North America is expected to dominate the market. Besides that, technological advancements in cloud, analytics, and others are expected to drive market growth significantly over the forecast period.

The growing trend of consumer identity and access management and Europe's General Data Protection and Regulation (GDPR) are expected to drive market growth during the forecast period. During the forecast period, 2022–2030, specific European government policies to protect personal data are expected to boost market growth. The European Union's General Data Protection Regulation, for example, mandates compliance with the new rules and regulations by organizations that collect or process personal data in the European Union. Password management in Europe is expected to grow at a CAGR of 16.45% during the forecast period.

The Asia Pacific is expected to emerge as the fastest-growing region, owing to the expansion of small- and medium-sized enterprises in developing economies such as China and India. Cybercrime is increasing in the region, which is fuelling the market growth. The rise in mobile and cloud users with poorly managed credential functions has made it easier for criminals to launch phishing, malware, and other password breach attacks. Password management in the Asia Pacific is expected to grow at a CAGR of 19.3% during the forecast period.    

A key trend expected to propel market growth in the Asia Pacific during the forecast period is rapid digital transformation, with increased smartphone adoption and an increased number of online transactions. This trend has given cybercriminals, fraudsters, and others a new way to steal personal information. Accenture reports that ransomware attacks fell slightly in 2021, but the United States remained the top region impacted by ransomware and extortion threats, accounting for nearly half of all intrusion volume. Manufacturing, financial services, healthcare, and technology are the most targeted industries.

Segmental Analysis

The global password management system market share is segmented by type, organization size, end-user and technology.

The market can be divided into self-service password management and privileged user password management. The rise of cloud computing and the Internet of Things (IoT) has sparked a demand for password management software. Due to the ease of operation provided by these solutions without the assistance of third parties, which reduces the time and cost incurred, the self-service password management segment is expected to hold a significant market share. In this segment, self-service password management is likely to grow at a CAGR of 18.6% and reach around USD 5000 million by 2030. Password reset and session recording are two standard methods of privileged password management.

The market can be divided into small and medium businesses and large businesses based on their size. The rise in the number of small and medium-sized enterprises in developing economies increased threats, and stricter regulations have caused the adoption of security measures. To ensure data security, many large organizations are implementing password management systems.

The market can be segmented into the desktop, mobile devices, and voice-enabled password reset based on technology type. The technology dependency on computers, laptops, and mobiles is increasing; the password management market is rising. Desktops have the majority share in the overall segment. Desktop password management is expected to grow at a CAGR of 16.6% during the forecast period.

Depending on the end-user, the market can be divided into energy and utilities, retail, BFSI, government and defence, healthcare, and retail. Due to susceptible assets and their information, financial sectors such as banks, insurance, and others are expected to account for significant shares. Rising data breach issues in the banking sector have prompted effective security measures, expected to drive market growth over the forecast period. Password management in the BFSI sector is expected to grow at a CAGR of 17.3% during the forecast period and reach USD 2100 million by 2030. Password reset and session recording are two standard methods of privileged password management. Password reset and session recording are two standard methods of privileged password management.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments

May 2022: Nearly half -46% — of IT, security, and cybersecurity leaders said they still store passwords in shared office documents. Despite an overwhelming 93% of respondents requiring password management training, 63% hold training more than once per year. This is just one of the findings in a survey conducted by Pulse on behalf of Hitachi ID, a leading cybersecurity software provider focused on enterprise identity, privileged access, and password management.