Password Manager Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.88 Billion |
| Market Size (2029) | USD 6.35 Billion |
| CAGR (2024 - 2029) | 27.55 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Password Manager Market Analysis
The Password Management Market size is estimated at USD 1.88 billion in 2024, and is expected to reach USD 6.35 billion by 2029, growing at a CAGR of 27.55% during the forecast period (2024-2029).
Password management (PM) technologies enable users to reset clients' passwords following an account lockout or when individuals forget their credentials. Additionally, PM tools can synchronize passwords for users across many platforms, enabling users to log into numerous applications using a single password. As more financial and personal information is kept online, the demand for complex passwords and safe means to store them has led to the development of password managers.
- As cloud apps, mobile apps, and new technologies are being increasingly integrated into the workplace, many passwords are also being introduced, which employees struggle to keep track of. Small businesses struggle the most with passwords, while due to resources and regulations, larger companies may be more likely to have single sign-on solutions, enabling employees to access more apps with fewer passwords. This calls for password management solutions, which help efficiently utilize passwords.
- As technology use is increasing, the risks involved in adopting technology in critical scenarios are also on the rise. For instance, sensitive information, such as financial and personal details, breaches, or denial of services by servers on mission-critical systems by the breach of user and password are driving the demand for password management.
- Deploying advanced technologies such as multi-factor authentication boosts the adoption of password management. Several password managers support multi-factor authentication (MFA) to safeguard users and their passwords better. An attacker would need to know the master password and have access to the second factor to gain access to credentials with multi-factor enabled. Every cloud-sync password manager and any other place where password managers are being used to store passwords, protecting access to privileged or other sensitive accounts, should enable multi-factor authentication.
- The flaws in password management applications are challenging the market's growth and the adoption of such solutions. A security breach from the perspective of the password manager is expected to be catastrophic compared to a single entity breach, owing to the presence of multiple IDs and passwords managed by applications, which make the data even more sensitive.
- Since the COVID-19 outbreak, there has 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 to make money. Some impacted businesses are spending money to upgrade their outdated data and password management systems. The threat of cyberattacks is anticipated to continue in the coming years.
Password Manager Market Trends
Desktop Technology Type Segment is Expected to Hold Significant Market Share
- With the increasing number of security threats, data breaches, and frauds, BFSI organizations are under increasing regulatory and public scrutiny. Hence, password management solutions are becoming essential in the BFSI sector.
- These solutions allow the institutions to manage and measure security and identify the risks associated with the users’ access to crucial systems and applications in a structured and centralized way. Agencies, such as the Federal Deposit Insurance Corporation (FDIC) and Federal Financial Institutions Examination Council (FFIEC), have established uniform principal standards and reports for promoting uniformity in the supervision of financial institutions.
- Further, the increased cybercrimes in financial sectors force banks and financial institutes to enhance their password security. In addition, banks are partnering with telcos to fight growing cybercrimes in the banking sector. According to IBM, in 2023, manufacturing saw the highest share of cyberattacks among the leading industries worldwide. The manufacturing companies encountered nearly a quarter of the total cyberattacks. Finance and insurance organizations followed, with around 18%. Professional, business, and consumer services ranked third, with 15.4% of reported cyberattacks.
- Further, financial services organizations have been increasing investments in cybersecurity solutions and cybersecurity awareness among employees, owing to the increasing password security it provides.
- The BFSI sector works closely with highly sensitive data such as personally identifiable information and financial records. Cybercriminals can compromise this data, use it for financial fraud, monetize it, and do other malicious activities for their benefit. Such factors have strongly augmented the growth of password management solutions in the banking and finance sectors.
North America is Expected to Hold Significant Market Share
- Owing to the high adoption rate of advanced technologies in countries across the United States and Canada, North America is expected to account for a significant market share of the password management market. The high social media penetration and the strict government regulations regarding data breaches in the United States have increased the demand for password management software in this region. The growing affinity toward mobile payments, social media accounts, and several other productional accounts has resulted in the need for multiple passwords, which can be managed easily. Moreover, password management solutions are always under the threat of cyber-attacks, which tend to offer a high level of encryption.
- The growing number of cyber attacks in the region further contributes to the market growth. Further, the COVID-19 pandemic has made remote working a norm, significantly contributing to the market growth. The most significant difficulties brought on by remote work are those connected to access security. Protecting endpoints against malware propagation has become the primary concern since users frequently install unauthorized/pirated software and open unknown/malicious attachments.
- Rising to these obstacles becomes necessary as fraudsters utilize the opportunity supplied by the inadequate access management processes. Even though attackers are not geographically limited, the number of cyberattacks against US-based firms is at an all-time high. Privileged access management (PAM) solutions that handle these issues without affecting productivity or adding extra complexity are sought after by IT managers.
- The growing number of password security breaches in the country has necessitated the deployment of password management platforms across the region. Further, strategic developments such as collaborations and expansions in the region contribute to the market’s growth rate.
- The growing number of product updates is also bolstering the demand for password managers. For instance, a Toronto-based enterprise password management company announced the debut of a new solution and an acquisition, along with growth in the machine secrets management market.
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. 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.
- February 2024: 1Password, one of the leaders in identity security, announced the launch of its new global partner program. This multi-year initiative's first phase provides partners access to 1Password's growing security solutions suite, a simplified partner experience, and a toolkit of sales, marketing, and enablement resources to drive mutual growth.
- February 2024: Keeper Security, a provider of cloud-based zero-trust and zero-knowledge cybersecurity software protecting passwords, passkeys, secrets, connections, and privileged access, partnered with the Amazon Web Services (AWS) Partner Network (APN). As an APN member, Keeper joined a global network of 130,000 partners from more than 200 countries working with AWS to provide innovative solutions, solve technical challenges, win deals, and deliver value to customers.
Password Manager Market Leaders
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Lastpass US LP (Goto Group, Inc.)
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1Password (AgileBits Inc.)
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Dashlane Inc.
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Keeper Security Inc.
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Avatier Corporation
*Disclaimer: Major Players sorted in no particular order
Password Manager Market News
- March 2024: Avatier secures and automates the globe's workforce with self-service unified identity management solutions through robust safeguards that could have prevented high-profile data breaches such as the staggering USD 100 million MGM breach of 2023. Avatier's commitment to excellence took a leap forward in an era where data security is paramount, offering a game-changing 2024 Enterprise Self-Service Password Reset (SSPR) solution. As the reality of cyber threats looms more significant than ever, this groundbreaking solution, fortified by patent-pending technology, is poised to redefine enterprise cybersecurity standards and complements Avatier's broader SSO and identity governance and administration (IGA) offerings.
- October 2023: Pax8, one of the leading cloud commerce marketplaces, partnered with CyberFOX to offer managed service providers (MSPs) identity access management (IAM) solutions specializing in privileged access management (PAM) through their exclusive product, AutoElevate. CyberFOX's password manager provides enterprise-grade password management that helps increase security and reduce risk without complication. CyberFOX helps over 2,000 MSPs improve efficiencies, increase productivity, and generate new revenue streams while serving small and medium-sized businesses (SMBs).
Password Manager Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Password Management Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Cybersecurity Risk in the Recent Times
5.2 Market Restraints
5.2.1 Security Flaw Related to Hacking of Password Managers
6. MARKET SEGMENTATION
6.1 By Solution Type
6.1.1 Self-service Password Management
6.1.2 Privileged User Password Management
6.2 By Technology Type
6.2.1 Desktop
6.2.2 Mobile Devices
6.2.3 Voice-enabled Password Reset
6.3 By End-user Vertical
6.3.1 BFSI
6.3.2 Healthcare
6.3.3 IT and Telecommunication
6.3.4 Other End-user Verticals
6.4 By Geography***
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Lastpass US LP (Goto Group Inc.)
7.1.2 1Password (AgileBits Inc.)
7.1.3 Dashlane Inc.
7.1.4 Keeper Security Inc.
7.1.5 Avatier Corporation
7.1.6 Core Security Technologies (Helpsystems LLC)
7.1.7 Fastpasscorp A/S
7.1.8 Hitachi ID Systems Inc.
7.1.9 Microsoft Corporation
7.1.10 IBM Corporation
7.1.11 Cyberark Software Ltd
7.1.12 Trend Micro Inc.
7.1.13 EmpowerID Inc.
7.1.14 Ivanti
7.1.15 Intuitive Security Systems Pty Ltd
7.1.16 Steganos Software GmbH
7.1.17 AceBIT GmbH
7.1.18 Siber Systems Inc. (Roboform)
7.1.19 Delinea Inc (Centrify Corp)
7.1.20 Zoho Corporation Pvt. Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
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 password management software market is segmented by solution type (self-service password management and privileged user password management), technology type (desktop, mobile devices, and voice-enabled password reset), end-user vertical (BFSI, healthcare, IT and telecommunication, and other end-user verticals), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (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 | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Password Manager Market Research FAQs
How big is the Password Management Market?
The Password Management Market size is expected to reach USD 1.88 billion in 2024 and grow at a CAGR of 27.55% to reach USD 6.35 billion by 2029.
What is the current Password Management Market size?
In 2024, the Password Management Market size is expected to reach USD 1.88 billion.
Who are the key players in Password Management Market?
Lastpass US LP (Goto Group, Inc.), 1Password (AgileBits Inc.), Dashlane Inc., Keeper Security Inc. and Avatier Corporation are the major companies operating in the Password Management Market.
Which is the fastest growing region in Password Management Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Password Management Market?
In 2024, the North America accounts for the largest market share in Password Management Market.
What years does this Password Management Market cover, and what was the market size in 2023?
In 2023, the Password Management Market size was estimated at USD 1.36 billion. The report covers the Password Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Password Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What drives the Password Management Market?
The Password Management Market growth is driven by: a) Increasing cybersecurity threats b) Regulatory compliance requirements c) Widespread adoption of digital services necessitating robust password practices
What drives the Password Management Market?
The Password Management Market growth is driven by: a) Increasing cybersecurity threats b) Regulatory compliance requirements c) Widespread adoption of digital services necessitating robust password practices
Password Manager Industry Report
The Password Management Industry is on an upward trajectory, fueled by the increasing demand for secure and efficient password management solutions across various sectors. This growth is driven by the digital transformation challenges businesses and individuals face, including managing numerous passwords. Solutions in this industry provide a centralized platform for password generation, storage, and management, enhancing both security and convenience. Particularly, small and medium-sized enterprises are recognizing the importance of robust cybersecurity measures, contributing to the industry's expansion. The market caters to diverse needs, from self-service to privileged user password management, and finds significant applications in sectors like banking, financial services, insurance (BFSI), healthcare, government, and IT. Regions like North America and Asia-Pacific are witnessing notable growth due to technological advancements and digital infrastructure development. Despite potential security vulnerabilities, the industry's future looks promising, due to the increasing emphasis on cybersecurity and the convenience of password management systems. For detailed insights, Mordor Intelligence™ Industry Reports offer comprehensive analysis, including market share, size, revenue growth rate, and a forecast outlook, available as a free report PDF download.
