Market Trends of Password Management Industry
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%.
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.