SMBs use password management solutions, and this sector is fueling market growth.
Password management presents a lucrative opportunity for the channel. Indeed, research predicts that the global market will more than quadruple in value, surpassing $4.7 billion by 2028.
A new report from QYResearch predicts a compound annual growth rate of 18.6% through 2028. The market was valued at over $1.4 billion in 2021.
GoTo, Trend Micro, Hitachi ID Systems, Okta, Sailpoint Technologies and others are major players in the global password management market. The top five companies in 2019 had a combined market share of over 39%. Trend Micro holds the dominant position with nearly 12% of the global market.
One of the key growth drivers for the password management market is the increasing use of password management solutions by SMBs.
Hackers have a chance every time a user logs into a new program. Single sign-on (SSO) decreases the attack surface. This is because users log in only once a day and use a single set of credentials. Enterprise security is enhanced by limiting login to a single set of credentials.
Additionally, SSO helps with regulatory compliance. IT controls must be documented and companies must demonstrate that sufficient measures are in place to secure data to comply with regulations such as Sarbanes-Oxley. In addition, SSO is a way to satisfy data access and antivirus needs. This factor is expected to drive the growth of the password management market.
Password management software thwarts internal and external threats
Password management software uses security measures to thwart attempts by internal and external threats to obtain master passwords, credentials, secrets, tokens, and keys in order to gain access to private systems and data. On-premises and in the cloud are two options for these centralized password management systems.
Cloud-based password managers are more secure than browser-based ones because they include more features that increase security. Most cloud-based password managers include a backup for the vault initially. An organization can restore a recent version of the database in the event that the server is damaged. Additionally, cloud-based password managers allow users to save protected notes and credit card information in addition to passwords. Users can thus save all important information. This in turn is expected to drive the growth of the market.
Based on the region, look for Asia-Pacific as the most lucrative. This is due to the increase in digitization initiatives, the increase in fraud and identity theft over the past 10 years, and the use cases of digital identity across industries. The use of new technologies such as artificial intelligence (AI), machine learning (ML) and automation of verification solutions, as well as government and enterprise initiatives focused on digitization, would also offer potential. profit to password management companies.