Password Management Market Size (2024 - 2029)

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 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.