Privileged Access Management Market

[396 Pages Report] The global Privileged Access Management (PAM) Market size is projected to grow from USD 2.9 billion in 2023 to USD 7.7 billion by 2028 at a CAGR of 21.5% during the forecast period.

The PAM market has witnessed significant expansion, primarily fueled by the ongoing wave of digital advancements and the rapid inclination towards cloud-centric strategies. This growth is further accentuated by mounting concerns over the potential misuse of accounts and shared passwords. Additionally, the escalating threat of internal actors breaching security measures underscores the critical need for robust PAM solutions. Furthermore, as organizations increasingly prioritize compliance with regulatory frameworks, the demand for sophisticated PAM solutions continues to soar, reinforcing the market’s upward trajectory.

The PAM market benefits from opportunities driven by remote work & third-party access, escalation of cybersecurity threats, education, training, and innovative technologies. These factors create favorable conditions for the market’s growth, with organizations seeking advanced solutions to safeguard their systems and valuable data, further contributing to the rising demand for PAM solutions.

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In times of a potential worldwide recession, as suggested by indicators like the European Central Bank’s rate hikes and soaring inflation rates in major economies like the EU and UK, the PAM market is poised for a complex trajectory. Historically, downturns often result in tightened IT budgets; however, the increasing significance of cybersecurity amidst a digital transformation era, combined with escalating concerns surrounding insider threats, tends to counterbalance this trend in the PAM sector. As organizations seek cost-effective solutions, they tend to gravitate towards optimizing the existing systems rather than large-scale new implementations. Moreover, with increased account and password sharing concerns, regulatory compliance demands, and the intrinsic value of safeguarding critical data, investments in PAM solutions will remain a priority for businesses, even in strained economic times. Still, the broader financial strain will slow the adoption rate for smaller enterprises or those in severely impacted sectors.

PAM Market Dynamics

Driver: Digital transformation and the accelerated shift to the cloud

Businesses rapidly undergo digital transformation, reshaping their goals, workflows, and culture. As per Gartner, 91% of businesses participate in a digital initiative, with 87% of senior leaders prioritizing digitalization. With a significant shift to integrating digital technologies, 89% of companies are implementing or planning a digital-first strategy. A substantial component of this transformation is the move to cloud environments, prized for scalability, agility, and cost-efficiency. Gartner predicts cloud IT spending will surpass traditional IT by 2025, with investments expected to rise from USD 1.3 trillion in 2022 to USD 1.8 trillion in 2025. By 2023, global public cloud spending will reach nearly USD 600 billion. As cloud adoption increases, so does the complexity of access points and potential cyber threats. The decentralized nature of the cloud presents various security issues, making PAM crucial for safeguarding critical resources. As businesses embrace cloud services and prioritize digital agility, the role of PAM extends beyond security, facilitating digital transformation while maintaining data integrity, confidentiality, and compliance. The continued ascent of digital transformation and cloud adoption underscores PAM’s growing significance in the enterprise security framework, propelling its market growth.

Restraint: Complex implementation

Integrating new systems, particularly PAM solutions, into large organizations with existing digital infrastructures is a significant restraint, especially when legacy systems are in place. These older systems have hurdles due to distinct configurations, outdated architectures, and deeply ingrained processes. Integrating PAM requires careful planning, resource dedication, and often specialized skills. According to a Keeper Security survey, while 91% of firms utilize a PAM product, many find them too complicated. Specifically, 68% of IT managers find their PAM products unnecessarily complex or filled with extra features. IT teams tend to use only 62% of PAM features, and 56% have abandoned full PAM implementation because of its complexity. The intricacies involved in PAM and the interlinked nature of long-standing systems and applications make its implementation daunting. This complexity is a restraint for companies reluctant to undergo significant technological revamps.

Opportunity: Escalation of cybersecurity threats

The digital realm is witnessing a spike in cybersecurity threats, particularly those targeting privileged accounts, which are pivotal to an organization’s IT setup. These accounts cause severe data leaks, financial losses, and reputation damage when breached. The rise of advanced threats, such as ransomware that leverages privileged credentials, highlights this vulnerability. Vectra’s report shows a significant security gap, indicating traditional methods, which often depend on one-time decisions or set privilege lists, are becoming obsolete. From July to December 2019, detections of potentially harmful behaviors spiked, with 74% being suspicious privilege accesses similar to the Capital One breach pattern. Moreover, Forrester states that 80% of breaches involve privileged accounts. This evolving threat environment offers the PAM market many opportunities, emphasizing the need for PAM solutions in securing digital assets against modern cyber threats.

Challenge: Lack of granularity

In the PAM market, one of the predominant challenges is a lack of granularity. PAM solutions are designed to manage and monitor privileged access across an organization. However, not all PAM systems offer the same degree of detail in their management capabilities. Some lack the granularity to provide fine-tuned control over specific areas of privileged access. For example, a system might allow database access but not specify which parts of the database are accessible. This broad approach exposes more data, elevating the risk of unauthorized access. Especially for entities like financial or healthcare institutions managing sensitive data, imprecise access controls pose considerable compliance and security challenges.

PAM Market Ecosystem

By services, the managed services segment accounts for the highest CAGR during the forecast period.

The managed services segment is anticipated to hold the highest CAGR during the forecasted period. This dominance is attributed to the increasingly complex threat of the environment. As cyber threats become more intricate and persistent, organizations seek specialized solutions, especially those lacking in-house expertise. Managed services in the PAM sector offer agility and profound knowledge, allowing businesses to address emerging threats promptly. Furthermore, as enterprises scale and diversify continuous monitoring, timely updates, and adaptive strategies become paramount, and the managed PAM services fulfill these needs. Moreover, the cost efficiencies and a focus on core competencies have driven organizations to lean heavily on managed PAM providers, propelling their growth in the market.

By solution, the access control solution segment accounts for the largest market size during the forecast period

The access control solution segment is anticipated to hold the largest market size during the forecasted period. As organizations grapple with an expanding digital footprint, robust access controls become paramount. The access control solution in the PAM framework ensures that only authorized personnel have the right to access specific resources based on their roles and responsibilities. This minimizes the risk of insider threats and thwarts external adversaries from exploiting weak access points. Additionally, with the rising prevalence of regulations demanding stringent data protection measures, such as GDPR and CCPA, businesses increasingly recognize the value of having a robust access control mechanism. As a result, the investment into these solutions has seen an uptick, thus contributing to its dominant market size. The proliferation of cloud technologies, remote work, and the IoT further accentuates the need for meticulous access control, driving demand in the PAM market.

By solution, the privileged identity management solution accounts for the highest CAGR during the forecast period.

The privileged identity management solution segment is anticipated to hold the highest CAGR during the forecasted period. This growth trajectory is attributed to the heightened awareness of the threats associated with mishandled privileged identities. As organizations expand and digital transformations continue, there is an increase in the number of privileged accounts, be it administrators, service accounts, or system-specific super users. Each of these accounts, if left unchecked, presents a potential attack vector for cyber adversaries. The privileged identity management solution provides a comprehensive framework for managing and monitoring these privileged identities, ensuring that only authenticated users access critical systems.

Furthermore, the solution offers session recording, real-time monitoring, and privileged access, fortifying the organization’s defense mechanisms. The surge in breaches associated with privileged account misuse further amplifies the demand. Furthermore, in the regulatory landscape, where compliance mandates like GDPR and HIPAA enforce rigorous data protection standards, organizations are not only adopting but also investing heavily in privileged identity management solutions. This amalgamation of security imperatives and regulatory compliance is driving the exceptional growth rate anticipated for this segment in the PAM market.

By region, North America accounts for the largest market size during the forecast period.

North America, primarily driven by the US, continues to dominate the PAM market during the forecasted period. Several key factors underpin this dominance. Firstly, the region is home to many global enterprises, particularly in sectors like technology, finance, and healthcare, which prioritize robust cybersecurity measures due to the sensitivity and value of their data. Secondly, North America has a mature IT infrastructure necessitates advanced PAM solutions to counter sophisticated cyber threats. Regulatory mandates, such as the SOX and the HIPAA, further propel businesses to adopt stringent access controls, pushing demand for PAM solutions. Moreover, leading PAM vendors and continuous R&D investments in the region catalyze innovation and market growth. Furthermore, the increased awareness of insider threats and the potential risks associated with cloud environments have spurred organizations to re-evaluate and reinforce their privileged access strategies, solidifying North America’s position in the PAM market.

Key Market Players

Some of the well-established and key market players in the PAM market include Fortinet (US), Beyond Trust (US), CyberArk (US), Broadcom (US), Imprivata (US), Optiv Security (US), Okta (US), IBM (US), Micro Focus (OpenText) (UK), ManageEngine (Zoho) (US), Hashi Corporation (US), One Identity (US), ARCON (India), Netwrix (US), Delinea (US), Wallix (France), Saviynt (US), Senhasegura (Brazil), KronTech (Turkey), miniOrange (US), EmpowerID (US), StrongDM (US), CyberSolve (US), Opal Security (US), Foxpass (US), Secureden (US), RevBits (US), Silverfort (Israel), and IDM Technologies (UAE).

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Scope of the Report

The study categorizes the PAM market by offering, deployment mode, verticals, and regions.

By Region:

Recent Developments

• In September 2023, BeyondTrust formed a strategic partnership with Jamf (US). This collaboration enhances Mac endpoint security, a critical aspect of PAM solutions. The integration streamlines privilege management and application control for Apple devices, offering improved access control and operational efficiency.
• In March 2023, FortiPAM introduced privileged remote access management for OT ecosystems and critical assets, integrating with various Fortinet products to provide single sign-on, multi-factor authentication, and zero trust network access.     
• In June 2022, CyberArk introduced new functionality for CyberArk Endpoint Privilege Manager, extending its capabilities to support Linux platforms. This enhancement allows security and IT professionals to enforce the least privilege and implement just-in-time security controls across Linux endpoints in various environments.
• In April 2022, Imprivata strategically acquired SecureLink, a move aimed at strengthening its presence in the PAM market. This acquisition underscores Imprivata’s commitment to advancing secure, friction-free digital identity solutions tailored explicitly to PAM.
• In March 2021, Optiv Security introduced a new service. This PMaaS offering provides comprehensive planning, implementation, and ongoing management to assist organizations in safeguarding their privileged accounts from cyber threats. It includes services such as architecture and design, software implementation, and strategy and assessment, all supported by Optiv’s security and operations (SecOps) team. It aims to enhance privileged access management and identity security, helping organizations protect their critical assets effectively

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