Personal Identity Management Market End-user, Deployment, Geography - Forecast and Analysis 2023-2027

Personal Identity Management Market Forecast 2023-2027

The personal identity management market size is estimated to increase by USD 10.45 billion between 2022 and 2027. The market size is forecast to grow at a CAGR of 12.74%. The rapid growth of IoT networks is increasing the need for secure identity management solutions to authenticate and authorize devices and users accessing these networks. The need to comply with regulatory requirements related to personal identity management, such as GDPR and CCPA, is driving organizations to invest in solutions that help them manage and protect personal data. The increase in data thefts globally is highlighting the importance of robust identity management solutions to prevent unauthorized access and protect sensitive information.

What will be the size of the Personal Identity Management Market During the Forecast Period?

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Market Segmentation

This personal identity management market report extensively covers market segmentation by end-user (BFSI, government, telecom and IT, retail and consumer goods, and others), deployment (on-premise and cloud-based), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By End-user

The market share growth by the BFSI segment will be significant during the forecast period. In terms of value, the BFSI segment accounted for a major part of the world's market in 2022. Due to the increasing adoption of digital transformation and regulatory compliance in the BFSI segment, it is expected that its market share will maintain its dominance during the forecast period. Due to the increasing sophistication of security threats, banking and financial institutions are using the modules.

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The BFSI segment is the largest and was valued at  USD 2.50 billion in 2017 and continued to grow by 2021. With many implementation technologies and architectures, the information stays in silos. Therefore it is now necessary for BFSI organisations to develop strategies that take cumulative data into account so as to ensure their protection against cyber threats. As a result, there is a large demand for the solutions in the sector. In developing economies, digitalization is also growing in the banking sector with core banking firms adopting advanced IT solutions such as analytics and IoT.

In addition, the increased demand for IoT and mobile banking has made it essential for banking firms to incorporate applications with database systems. Moreover, the banking and financial sectors face challenges, such as data breaches and strict regulatory norms that differ from country to country. All these factors are boosting the BFSI segment to deploy the solutions, which in turn is expected to drive market growth during the forecast period.

By Deployment

On-premise solutions require end-users to have a software license and it is more costly than cloud-based as it requires in-house hardware and huge capital investment in software licenses. Nevertheless, on-premise is considered to be more secure because there is no third-party interference.  In view of the high level of security offered by such solutions, a number of large companies currently prefer to implement them on-premises. That means that the organisation's IT administration staff will be able to manage its classified information, eliminating any interference from third-party service providers. In addition to the application deployment costs, there is also another cost incurred by organizations in monitoring, maintenance, upgrading, or providing training services for end users. In the cloud-based model, companies follow the pay-as-per-use model. Hence the improved security offered by the on-premise segment is expected to fuel the growth of the segment, which in turn will drive the market during the forecast period. 

By Region

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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The main drivers for adopting personal identity governance solutions in North America are the availability of appropriate IT and business infrastructures, information security regulatory compliance and administrative standards, as well as a strong demand for cloud services that meet those requirements.

Moreover, to increase the quality of delivery systems, it is preferred by industry sectors such as BFSI and industry verticals that have a preference for the solutions.  New and emerging technologies are adopted in this region. For instance, the increasing use of biometrics, the rise of multi-factor authentication, the use of cloud-based solutions, authentication of mobile devices, and the Internet of Things (IoT) are some expected trends in the regional market during the forecast period.

Market Overview

Key Market Driver

The rapid growth of IoT networks is notably driving market growth.  The Internet of Things (IoT) is a network of devices embedded with software, controllers, and sensors that can be controlled by vehicles or home appliances, allowing for connections and data exchanges between objects. With the rising demand for IoT products, there is significant pressure on internet service providers to introduce them to the market. However, some IoT providers neglect to invest in the backend systems necessary to support IoT securely, leading to potential vulnerabilities in data governance, access control, security, and privacy management. This includes overlooking the importance of Cloud-based PIM solutions, biometric authentication (including fingerprint and facial recognition), handling both digital and non-digital data, maintaining a secure customer profile database, and ensuring robust authentication mechanisms.

Nevertheless, these solutions empower IoT customers to establish their preferences, such as whether they want to communicate with each other and provide consent for data sharing. The integration of customer profiles and preferences collected from various interactions into a single profile is a critical capability for managing the personal identity of IoT users. Moreover, an aggregated view of the customer enables personalized engagement and consistent experiences across all channels and devices, enhancing loyalty. These factors are expected to drive market growth during the forecast period.

Significant Market Trends

The growing adoption of face biometrics is an emerging trend shaping market growth.  Facial and gait scanners are part of the biometrics technology. The growth of the market in focus is driven by the growing importance of data protection and cybersecurity. By February 2020, Mastercard Inc. announced that the company was beginning to work with transport operators on developing new multimodal ticketing tools, which will enable passengers to be automatically indicated when they are boarding a train. To ensure the safety and security of payments in the future, payment providers also intend to integrate innovative biometric technologies such as behavioral biometrics like gait, face, heartbeat, or veining into advanced payment systems.

Moreover, companies in the market in focus are also launching new products. For instance, in June 2022, Cybersecurity firm CycurID launched its face biometrics-based Personal Digital Identity Management and Privacy Platform. Therefore such technological developments are anticipated to drive market growth during the forecast period. 

Major Market Restrain

Threat from open-source solutions is a significant challenge hindering market growth. The market for open-source personal ID management solutions poses a substantial threat to the cloud-based and on-premises personal identity management industry. In developing economies, such as India and China, there is a growing interest in open-source solutions for the management of personal identities that can be downloaded and run on all platforms. Businesses will save on upfront costs and be able to take advantage of more flexibility with the use of open-source private identity management solutions.

Thus, it is possible to choose from open-source solutions for businesses, mainly SMEs who are seeking a better growth plan that will cost less. Free, open-source software solution offers an entire system free of charge and with control over all permissions and access rights assigned to the key persons so that assets can be safe and secure. These advantages will enable open-source solutions to be widely used by small enterprises, which will, in turn, hinder market growth during the forecast period. 

Key Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Personal Identity Management Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Dell Technologies Inc. - The company offers Dell One Identity as a service which helps to achieve identity and access management objectives of administration, governance, and compliance quickly. 
• Experian Plc - The company offers identity management to manage data in a connected customer view and minimize end user friction without increasing risk.
• ForgeRock Inc. - The company offers identity management to improve enterprise-wide security and boost growth and operational efficiency.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• AO Kaspersky Lab
• Avatier Corp.
• Broadcom Inc.
• Constellation Software Inc.
• CyberArk Software Ltd.
• Delinea Inc.
• International Business Machines Corp.
• Microsoft Corp.
• Okta Inc.
• Open Text Corp.
• Oracle Corp.
• Ping Identity Corp.
• Quest Software Inc.
• SailPoint Technologies Inc.
• Salesforce Inc.
• Thales Group
• Zoho Corp. Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook
  • BFSI
  • Government
  • Telecom and IT
  • Retail and consumer goods
  • Others

• Deployment Outlook 
  • On-premise
  • Cloud-based

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Argentina
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Market is experiencing significant growth, driven by mergers & acquisitions and the increasing adoption of Cloud Personal Identity Management solutions. With rising customer demand for secure and convenient access to digital services, organizations are focusing on robust identity management systems. These solutions facilitate seamless content management and address security needs, particularly in Bring Your Own Device (BYOD) environments and for Small and Medium Enterprises (SMEs). Moreover, the proliferation of smart & connected devices has amplified the importance of efficient identity management to safeguard sensitive data. As a result, the market is witnessing innovations tailored to meet evolving security requirements and enhance user experiences across various digital platforms.

Personal Information Management (PIM) has become increasingly crucial in the digital age, where individuals manage various online personas across different digital contexts. As a result, the PIM market has witnessed significant growth, driven by the need for effective management of identity data and ensuring security posture. With the proliferation of digital identities, managing login credentials, access permissions, and identity verification has become paramount. Businesses rely on Identity and Access Management (IAM) systems and Single Sign-On (SSO) solutions to streamline these processes while bolstering security. Cutting-edge technologies such as biometric authentication, including fingerprint recognition and facial recognition, are increasingly integrated into PIM solutions, enhancing both security and user experience. Moreover, the shift towards cloud-based alternatives offers affordability and scalability, catering to diverse organizational needs.

Decentralized identity management is gaining traction, offering more control to users while reducing reliance on centralized identity providers. Regulatory compliance management is a significant driver, prompting organizations to invest in innovative solutions that ensure adherence to regulations and mitigate risks associated with fraudulent activities and cybercrime. Research methodology for analyzing the PIM market involves a combination of primary research, secondary research, and subject-related expert advice. This includes gathering data from various sources such as company profiles, financial statements, market reports, and regulatory databases. Analyzing past, present, and future trends enables businesses to develop strategic approaches and strengthen their position in the market. Geographical penetration and rising adoption of cloud-based PIM solutions underscore the market's potential for growth. In addition to quantitative data, qualitative data derived from subject matter expert advice and key opinion leaders provides valuable insights into market dynamics. Integration of biometric authentication, enterprise bring-your-own-device (BYOD) policies, and advancements in IAM business technologies shape the future trajectory of the identity and access management market.

Within the realm of multifactor authentication, there exists a multifaceted sub-segment that analyzes various deployment modes. These modes encompass hybrid models, which blend on-premise and cloud-based deployments. The on-premise deployment sub-segment focuses on localized implementations, whereas the cloud-based sub-segment centers on cloud-hosted solutions, reflecting the diverse needs of end-users. In sectors such as education, healthcare, manufacturing, and beyond, multifactor authentication plays a pivotal role in securing sensitive data and systems. As businesses expand, there's a corresponding expansion of product portfolios to meet evolving security needs, driven by a growing demand from security professionals.

The prevalence of multi-cloud environments and the rise of cloud computing necessitate robust authentication measures, particularly in the context of BYOD (Bring Your Own Device) policies. Emerging technologies like artificial intelligence (AI), machine learning (ML), and blockchain are increasingly integrated into authentication solutions, enhancing security and efficiency. Provisioning solutions cater to diverse deployment preferences, including on-premises deployment and RBAC (Role-based access control) functionalities. The proliferation of IoT devices and containers further underscores the importance of authentication in safeguarding interconnected systems. Blockchain technology offers decentralized authentication mechanisms, appealing to both small and medium enterprises (SMEs) and large enterprises seeking heightened security measures. In navigating the multifactor authentication landscape, businesses must adapt to emerging trends and technologies to ensure robust security protocols across all facets of operation.

Personal Identity Management Market Scope
Report Coverage	Details
Page number	162
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 12.74%
Market growth 2023-2027	USD 10.45 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	11.57
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 30%
Key countries	US, China, Japan, Germany, and the UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AO Kaspersky Lab, Avatier Corp., Broadcom Inc., Constellation Software Inc., CyberArk Software Ltd., Delinea Inc., Dell Technologies Inc., Experian Plc, ForgeRock Inc., International Business Machines Corp., Microsoft Corp., Okta Inc., Open Text Corp., Oracle Corp., Ping Identity Corp., Quest Software Inc., SailPoint Technologies Inc., Salesforce Inc., Thales Group, and Zoho Corp. Pvt. Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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