Password Manager Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Global Password Management Software Market report is segmented by solution type (self-service password management, privileged user password management), technology type (desktop, mobile devices, voice-enabled password reset), end-user vertical (BFSI, Healthcare, IT & Telecommunication), and geography. The market sizes and forecasts are provided in terms of value in USD for all the above segments.

Password Manager Market Size

Password Manager Market Summary
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Study Period 2018 - 2028
Base Year For Estimation 2022
CAGR 28.52 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Low

Major Players

Password Manager Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Password Manager Market Analysis

Password Management Market was valued at USD 1.74 billion in the previous year and is expected to register a CAGR of 28.52%, reaching USD 7.32 billion by the next five years. One of the main factors driving market growth is the growing usage of password management solutions by small and medium-sized businesses.

  • Password management is the process of protecting and controlling passwords during their entire life cycle, from creation to termination, by following a set of ethical standards. This is accomplished with the aid of password managers, which use internal encrypted vaults to hold privileged credentials. Secure password management solutions are becoming more and more necessary as there are more and more digital devices and applications being used, especially by SMEs, MNCs, and government agencies.
  • Password Management Solutions focuses on offering services for safely maintaining, retrieving, and saving digital passwords. These solutions use strong security standards and encryption approaches to reduce the danger of cyberattacks like hacking and data breaches. The demand for password management solutions has increased dramatically with the proliferation of digital devices and applications.
  • The usage of password management is not just limited to businesses; individual users can also benefit from it as a security solution for their devices and accounts. Additionally, end users frequently utilize it to audit, safeguard, oversee, and manage the operations related to privileged accounts. As cyberattacks appear to become more common and damaging, individuals and companies must protect their data.
  • The 2022 Hacker-Powered Security Report states that worldwide, cyberattacks increased by 38% in 2022 over 2021. Due to the rising adoption of cloud-based solutions and services to run corporate operations, cybercriminals have taken advantage of an enlarged attack surface, and ethical hackers discovered over 65,000 vulnerabilities in 2022, a 21% increase from 2021. The market is anticipated to benefit from the rising danger of data theft in crucial industries like healthcare, the public sector, and BFSI.
  • Additionally, 82% of security breaches involve human aspects, such as social attacks, mistakes, and misuse, according to the Verizon 2022 Data Breach Investigation Report. To combat these assaults, businesses should concentrate on coming up with a sensible strategy for privileged password storage, protection, management, and monitoring.
  • The adoption of such solutions and the market's growth are being hampered by the shortcomings in password management software. Due to the existence of many IDs and passwords handled by applications, which further increases the sensitivity of the data, a security breach from the standpoint of the password manager is anticipated to be catastrophic compared to a single entity leak. Moreover, Password management solution security flaws can harm the market's growth and the reputation of the sector.
  • Since the COVID-19 outbreak, there have been a significant increase in cyberattacks that have had a negative impact on people, companies, and organizations. Due to remote working practices, a lack of knowledge about the outbreak's spread, and increased public anxiety, hackers used numerous cyberattack techniques in an effort to make money. Some impacted businesses are spending money to upgrade their outdated data and password management systems. It is anticipated that the threat of cyberattacks would continue longer than the COVID-19 epidemic.

Password Manager Market Trends

Increased Cybersecurity Risks in the Recent Times Drives the Market Growth

Cybercrime has become an unavoidable feature of modern business. Over 450,000 new harmful programs and potentially unwanted applications (PUA) are registered daily, according to the AV-TEST Institute, an independent German research organization for IT security. Due to the increase in cyberattacks, the market is anticipated to grow since maintaining strict password regulations improves cyber hygiene and protects vital company data.

Cybersecurity password management offers consolidated, secure data access. By implementing a password manager, essential accounts and credentials across the company are systematically found and gathered under one roof. As a result, target computers and apps can be accessed with only one click without manually inputting a password. This opens the door for centralized management of private data.

Further, the growing government investments in cybersecurity are analysed to bolster the demand for password management significantly. In March 2022, the President of the United States, Joe Biden's USD 5.8 trillion budget proposal for the fiscal year 2023 was published by the White House, and cybersecurity appears to be a full focus, as seen by a significant increase in spending from the previous year.

However, about a USD 10.9 billion increase from 2022 is requested in the President's budget for civilian cybersecurity-related operations. USD2.5 billion of that sum has been given to the DHS's Cybersecurity and Infrastructure Security Agency. That is a rise of about USD 500 million from the prior year. Such significant government initiatives will create the demand for solutions in combating cyber-attacks.

In addition, the Snyk 2022 State of Cloud Security Report discovered that 80% of enterprises had at least one serious cloud security event in the previous 12 months. 83% of the firms surveyed, according to IBM's Cost of a Data Breach Report 2022, experienced more than one data breach. Such elements will increase demand for multi-factor authentication-type solutions, which are a vital component of password management software and are growing in popularity due to their greater security.

Therefore, the growing cybersecurity risks and government investments to mitigate these bolstered the demand for password management solutions during the forecast period. According to IBM, Manufacturing has the most significant proportion of cyber-attacks among the global major industries. Attacks against industrial organizations accounted for over 23% of all cyber-attacks in 2021. Finance and insurance stood in second with approximately 22% of the attacks. Professional and commercial services remained in third place, accounting for about 13%.

Password Management Market: Share of Cyber Attacks, by Industry, in Percentage (%), Global, 2021

Asia-Pacific to Witness the Fastest Growth

Asia Pacific is expected to proliferate throughout the projection period, owing to the region's growing base of small and medium-sized businesses. The economies of nations like India, China, and Japan have been expanding rapidly. The market is also driven by an expanding pool of technology users and an infrastructure developing quickly.

Passcode management solutions have grown crucial due to the region's escalating security risks, data breaches, and fraud events, putting institutions under increased regulatory and public scrutiny. For instance, according to IBM X-Force Threat Intelligence Index, the Asia-Pacific area experienced the most cyberattacks in 2022, accounting for 31% of all incidents resolved globally.

Additionally, according to IBM's X-Force Threat Intelligence Index 2023, the industrial sector was the target of 24.8% of cyberattacks in 2022, followed by the finance and insurance sectors (18.9%). The manufacturing sector continues to be the most frequently attacked sector for the second year in a row. The Asia-Pacific region had about 61% of security incidents in the manufacturing industry. These elements will increase the demand for password management tools that restrict hackers' access.

Moreover, Due to the introduction of the Internet of Things (IoT), cloud computing, and other digital frameworks within the processes, the demand for these solutions is expected to increase in the region in the coming years significantly. The European Commission estimates that Asia is responsible for over one-third of all IoT spending. Furthermore, adopting the Cloud across various industries such as banking, financial services and insurance (BFSI), public sector & and utilities, education, manufacturing, healthcare, retail, and wholesale distribution is likely to drive market demand as they are vulnerable to cyber assaults.

The rise in internet and mobile usage has had a significant impact on a variety of industries. As internet usage grows, communication methods improve, and many businesses are increasingly putting security measures like user accounts in place to ensure responsibility. In accordance with the GSMA, 1.36 billion mobile internet users were recorded in 2022. That number is projected to rise to 1.84 billion users by 2030, with a penetration rate of 61% compared to 49% in 2022. The increased Internet penetration rate will create a massive demand for security solutions by providing significant opportunities for the vendor to enhance their Password management solution services.

For example, in November 2022, FastPassCorps launched version 4 of its Identity Verification Client (IVC). IVC offers a clever approach that details how each employee's identification can be checked before giving a new password as a supplement to and replacement for FPR. Such vendors' activities in launching innovative solutions are expected to drive the market.

Password Management Market - Growth Rate by Region

Password Manager Industry Overview

The password management market is highly fragmented with the presence of major players like Lastpass US LP (Goto Group Inc.), 1Password (AgileBits Inc.), Dashlane Inc., Keeper Security Inc., and Avatier Corporation among others. Players in the market are adopting strategies such as partnerships, mergers, innovations, investments and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

  • January 2023 - Island, one of the market leaders in the Enterprise Browser market, announced the first password manager natively built into an enterprise browser, giving IT teams and employees powerful new capabilities to eliminate password abuse, help ensure organizational custody of corporate passwords, and embrace passwordless user authentication flows.
  • August 2022 - 1Password released an update for its Android and iOS apps. 1Password 8 completely overhauls the appearance of mobile password management apps. The customizable home tab includes a feature of the new mobile layout that should make it simpler to locate logins, save favorites, and arrange users' passwords.
  • March 2022 - LastPass, the prominent player in password management, announced a partnership with Ping Identity, including PingOneand PingFederate, to better support enterprise customers. Customers who use PingOneand PingFederate as their identity provider (IdP) can now integrate with LastPass to streamline access management and scale effective password hygiene throughout entire organizations, saving time for IT departments while maintaining the security of the data without introducing another step - or password - to the end users' workflow. With these new improvements, LastPass Business can now be used by enterprises of all sizes and has integrations with all major IdPs.

Password Manager Market Leaders

  1. Lastpass US LP (Goto Group, Inc.)

  2. 1Password (AgileBits Inc.)

  3. Dashlane Inc.

  4. Keeper Security Inc.

  5. Avatier Corporation

*Disclaimer: Major Players sorted in no particular order

Password Management Market Concentration

Password Manager Market News

  • January 2023 - Proton AG has announced the global release of Proton Pass, an open-source and free password manager available as a browser extension or mobile app on Android and iOS. The newest product in the company's line-up for data and privacy protection, Proton Pass, offers customers a safe, end-to-end encrypted vault to keep their passwords and notes.
  • March 2022 - Hitachi ID revealed the Hitachi ID Bravura Safe, the newest component of the Hitachi ID Bravura Security Fabric. This enterprise password safe offers a centralized, secure, and reliable technology that controls the numerous decentralized employee passwords, secrets, and files throughout an organization to guard against cyberattacks.
  • January 2022 - In order to protect infrastructure secrets, including API keys, certificates, database passwords, and access keys, Keeper Security Inc. introduced Keeper Secrets Manager, a new cloud-based, zero-knowledge solution. Keeper Secrets Manager is fully managed and cloud-based. It also uses the same zero-knowledge security architecture as the enterprise password management product from Keeper.

Password Manager Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Impact of COVID-19 on the Password Management Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increased Cybersecurity Risk in the Recent Times

    2. 5.2 Market Restraints

      1. 5.2.1 Security Flaw Related to Hacking of Password Managers

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Solution Type

      1. 6.1.1 Self-service Password Management

      2. 6.1.2 Privileged User Password Management

    2. 6.2 By Technology Type

      1. 6.2.1 Desktop

      2. 6.2.2 Mobile Devices

      3. 6.2.3 Voice-enabled Password Reset

    3. 6.3 By End-user Vertical

      1. 6.3.1 BFSI

      2. 6.3.2 Healthcare

      3. 6.3.3 IT and Telecommunication

      4. 6.3.4 Other End-user Verticals

    4. 6.4 By Geography

      1. 6.4.1 North America

      2. 6.4.2 Europe

      3. 6.4.3 Asia Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Lastpass US LP (Goto Group Inc.)

      2. 7.1.2 1Password (AgileBits Inc.)

      3. 7.1.3 Dashlane Inc.

      4. 7.1.4 Keeper Security Inc.

      5. 7.1.5 Avatier Corporation

      6. 7.1.6 Core Security Technologies (Helpsystems LLC)

      7. 7.1.7 Fastpasscorp A/s

      8. 7.1.8 Hitachi ID Systems Inc.

      9. 7.1.9 Microsoft Corporation

      10. 7.1.10 IBM Corporation

      11. 7.1.11 Cyberark Software Ltd

      12. 7.1.12 Trend Micro Inc.

      13. 7.1.13 EmpowerID Inc.

      14. 7.1.14 Ivanti

      15. 7.1.15 Intuitive Security Systems Pty Ltd

      16. 7.1.16 Steganos Software GmbH

      17. 7.1.17 AceBIT GmbH

      18. 7.1.18 Siber Systems Inc (Roboform)

      19. 7.1.19 Delinea Inc (Centrify Corp)

      20. 7.1.20 Zoho Corporation Pvt. Ltd

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

Password Manager Industry Segmentation

Password management is primarily a software solution that supports the organization in storing passwords. The identity management market now includes a significant component dedicated to password management. Human-generated passwords are frequently vulnerable to attacks and have weak algorithms. In addition to being helpful for individuals, password management is also beneficial for various businesses, including small, medium, and big enterprises, as a tool for information and governance security. Additionally, they are used to secure, administer, audit, and keep an eye on all activity related to their privileged accounts.

The Global Password Management Software Market is segmented by Solution Type (Self-service Password Management, Privileged User Password Management), by Technology Type (Desktop, Mobile Devices, Voice-enabled Password Reset), End-User Vertical (BFSI, Healthcare, IT & Telecommunication), and Geography. The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Solution Type
Self-service Password Management
Privileged User Password Management
By Technology Type
Desktop
Mobile Devices
Voice-enabled Password Reset
By End-user Vertical
BFSI
Healthcare
IT and Telecommunication
Other End-user Verticals
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa

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Password Manager Market Research FAQs

The Password Management Market is studied from 2018 - 2028.

The Password Management Market is growing at a CAGR of 28.52% over the next 5 years.

The Password Management Market is valued at 1 Million USD in 2018.

The Password Management Market is valued at 7 Million USD in 2028.

Asia-Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2022.

Lastpass US LP (Goto Group, Inc.), 1Password (AgileBits Inc.), Dashlane Inc., Keeper Security Inc., Avatier Corporation are the major companies operating in Password Management Market.

Password Manager Industry Report

Statistics for the 2023 Password Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Password Management analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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