Password management market to reach $2.9 billion by 2027

The global password management market size is expected to reach $2.9 billion by 2027, rising at a market growth of 20.7% CAGR during the forecast period, according to ResearchAndMarkets.

password management market 2027

A password is a string of characters that allows you to access a service or device while also protecting you from unauthorized access. Password management is a software solution that helps IT administrators manage and organize passwords on servers, network appliances, and computer systems.

It is generally used by end-users to audit, safeguard, manage, and monitor actions linked with privileged accounts as a tool for information security and governance. These software programs aren’t just for businesses; they’re also employed as a security tool by individuals. They preserve critical data, files, financial records, and legal information from cyber-attacks.

COVID-19 impact analysis

The outbreak of the COVID-19 pandemic is considered as one of the most lethal infection over centuries. COVID-19 not only caused a disaster to humanity by depriving millions of people of their lives, but it also caused a steep downfall to the economies all over the world. In addition, The COVID-19 pandemic presented a significant challenge to all businesses around the world in terms of continuing to operate amid widespread office closures.

Changes in work culture had a significant impact on IT security. Cyber-attacks, data breaches, and network intrusions disrupted companies’ operations and became a big concern for enterprises across industries.

Password management market growth factors

Rising prevalence of cyber-attacks

Password management is a robust approach to ensure enterprise security by making it easier to store and secure complex account credentials. Every person in a business is responsible for different accounts, each of which requires a separate and safe password. Because of the rising amount of cyber-attacks around the world, there is a significant demand for secure working methods to protect databases and other necessary and confidential digital documents.

Rising adoption of cloud-based databases and processes

The rise of cloud computing, the Internet of Things (IoT), and other digital frameworks around the world is propelling the market forward. Global organizations are increasingly using password management solutions to simply reset and manage their passcodes.

The systems are commonly used for automated password resets, frequent passcode randomization, and session records due to their cost-effective and time-saving advantages. Furthermore, as the quantity of online transactions grows, password management has become increasingly important for protecting online information and preventing online fraud.

Marketing restraining factor

Security and privacy-related risks

Password managers are tools that comprise the ability to read and learn all the passwords that are stored in a device along with each account’s email address or other unique user identification.

Storing multiple passwords in a single memory becomes a very critical subject matter when unauthorized access invades that memory. Also, in the case of password management, while these tools store all the passwords in one memory, they also come with a drawback that if any toxic substance, for instance, malware, successfully makes access into the memory, it is enabled to read all the passwords that are stored in that memory.

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