The global password management market was most recently valued at $683.4 million as of 2020. Password management involves a range of services that are used by both individuals and companies of all sizes, including synchronizing passwords, managing password service requests, and bolstering security for accounts and devices. The market’s success in recent years has been driven by an increased risk of data theft and the higher prevalence of cybersecurity attacks.
Leading businesses in this industry include US-based companies Avatier Corporation, CA Technologies, Dell SonicWALL, IBM, Microsoft, Micro Focus, Quest, and SailPoint Technologies; Canadian-based company Hitachi ID Systems; and Danish company FastPassCorp.
Growth in the market is demonstrated by the recent earnings of these companies. For example, despite seeing an overall revenue disruption in Q4 of 2020 — potentially due to impacts from the COVID-19 pandemic — the company saw growth in its security and Internet of Things, or IoT, sectors. Microsoft, on the hand, saw overall revenue growth of 13% in Q4, beating out Wall Street’s expectations, which the company linked to its well-rounded offerings in the tech and security spaces.
Password Management Growth Projections
This market is projected to expand by a relatively high compound annual growth rate (CAGR) of 17.6% between 2020 and 2027, according to the report. The jump from $683.4 million to $2.2 billion amounts to an over 220% value increase, which is significant growth by any standard.
While the US currently leads the industry — accounting for over 28.7% of the global market size in 2020 — China, Japan, Canada, and Germany have been identified by analysts as emerging markets during the forecast period.
Reasons For Growth
As signaled above, growth is expected to be driven by increased demand for password security management systems across the globe. Another simple factor will contribute to the market’s success in the immediate future: the continuing prevalence of the IoT. With more technology floating around, there will be more demand for security measures.
Furthermore, innovation in the industry is predicted to drive growth. For example, the voice enabled segment is expected to grow by a CAGR of 17% through 2027.
Global password management is one of those tech-associated markets that is unlikely to stop growing any time soon. Its function in society is absolutely critical and will only continue to evolve as technology inevitably takes on new and more complex forms.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.