How Has the Password Manager Market Evolved Historically and What is its Current Size?
The password manager market has seen considerable growth due to a variety of factors.
• The market size of password managers has experienced remarkable growth in the past few years. It is projected to expand from $3.06 billion in 2024 to a staggering $3.75 billion by 2025, with a compound annual growth rate (CAGR) of 22.6%.
The spike in growth during the historical period is associated with various factors such as heightened consciousness about cybersecurity threats, surge in online accounts and passwords, major incidents of data breaches and identity thefts, increased utilization of digital services and e-commerce, and the enforcement of regulatory standards advocating robust password security.
What is the Forecasted Market Size and CAGR for the Password Manager Market?
The password manager market is expected to maintain its strong growth trajectory in upcoming years.
• The expansion of the password manager market is predicted to skyrocket in the forthcoming years, reaching $8.28 billion by 2029 with a Compound Annual Growth Rate (CAGR) of 21.9%.
This predicted growth in the forecast period is credited to ongoing development in password manager technology, inclusion of biometric authentication for improved safety, increasing focus on user-friendly interfaces and seamless user experiences, heightened demand for multi-factor authentication methods, and the continuous amplification of online activities and remote work setups. Significant trends predicted for the forecast period include the incorporation of artificial intelligence (AI) and machine learning, adoption of biometric authentication, password-less authentication options, enhancing user interface and experience, cloud-based password management methodologies, a rise in security education and training, amalgamation with Internet of Things (IoT) devices, and blockchain-supported security protocols.
What Key Factors and Trends Are Driving The Growth Password Manager Market?
The rise in cybersecurity threats is anticipated to stimulate the expansion of the password manager market in the future. Cybersecurity threats encompass potential digital dangers and frailties that may jeopardize the confidentiality, veracity, and accessibility of information and tech systems. Password managers can create complex and unique passwords for each account, escalating the challenge for cyber attackers to decipher or crack them. These passwords, usually a combination of letters, numbers, and symbols, are often longer than those individuals would generate on their own. For example, in April 2024, the Department for Science, Innovation and Technology, a UK government agency, reported that about 22% of businesses and 14% of charities experienced cybercrime in the previous year. This percentage rises to 45% for mid-size businesses, 58% for large businesses, and 37% for high-income charities. Also, from the 50% of businesses and 32% of charities that reported any cybersecurity breaches or attacks, a little over two-fifths (44% of businesses and 42% of charities) eventually became victims of cybercrime. Therefore, the escalation in cybersecurity threats will fuel the growth of the password manager market.
What Are The Market Segments In The Password Manager Market?
The password manager market covered in this report is segmented –
1) By Solution Type: Self-Service Password Management, Privileged User Password Management
2) By Product Type: Windows System, Android System, iOS Systems, Linux Systems, Other Systems
3) By Deployment: Cloud Based, On-Premise
4) By Application: Commercial User, Private User
5) By End-User Vertical: Banking, Financial Services And Insurance (BFSI), Healthcare, IT And Telecommunication, Other End-User Verticals
Subsegments:
1) By Self-Service Password Management: Password Reset Tools, Self-Service Password Recovery Solutions, Multi-Factor Authentication (MFA) Integration, Security Questions And Answers, Mobile Password Management Apps
2) By Privileged User Password Management: Password Vaulting Solutions, Session Management Tools, Password Rotation And Policy Enforcement, Access Control And Auditing Features, Secure Sharing And Collaboration Tools
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What New Trends Are Influencing The Password Manager Market?
Leading businesses active in the password manager market are concentrating on developing modern technologies like biometric password managers to achieve a competitive edge. Biometric password managers are a type of password management system that deploy biometric authentication procedures. For example, in July 2022, VINCSS, an internet security company based in Vietnam, launched a FIDO2 platform for password management, emerging as a market leader. The VinCSS FIDO2 KeyVault eliminates the need for a master password during regular operations, thereby minimizing the threat of master password leakage. This system prompts new users, or those creating a new vault, to name their vault and choose a FIDO2 key such as a VinCSS FIDO2 Authenticator or some other biometric hardware or software key. The system uses a private instance method for key derivation that only stores the root secret in memory for a brief period when the vault is in use. This strategy increases security and is consistent with the sector's shift towards passwordless authentication solutions.
Who Are the Key Players In The Password Manager Market?
Major companies operating in the password manager market report are:
• Apple Inc.
• Microsoft Corporation
• Dell Inc.
• IBM Corporation
• CA Technologies Inc.
• Zoho Corporation
• Okta Inc.
• CyberArk Software Ltd.
• Untethered Labs Inc.
• Nord Security
• Delinea
• Lastpass US LP
• 1Password
• Keeper Security Inc.
• ManageEngine
• Hitachi ID Systems Inc.
• Dashlane Inc.
• Core Security SDI Corporation
• Bitwarden Inc.
• Avatier Corporation
• Siber Systems
• Id Agent LLC
• Lunabee Studio
• GateKeeper Enterprise
• CommonKey Inc.
• EnPass
• Hypervault
• Lamantine Software Company
• Password Boss Inc.
• SplashData Inc.
• True Key
What Are The Regional Insights Into The Password Manager Market?
North America was the largest region in the password manager market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the password manager market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
