08. Market Segmentation by Product
08.2 Global Privileged Identity Management Software
08.2.1
The Global Privileged Identity Management Software Licenses market was valued at US$137.28 million in 2014 and is expected to reach US$407.11 million by 2019, growing at a CAGR of 24.29 percent.
Global Privileged Identity Management Software Licenses Market
2014-Exhibit 14:2019 (US$ million)
Source: TechNavio Analysis
The Global Privileged Identity Management Software Licenses market is expected to experience moderate growth during the forecast period. This market is expected to grow at a moderate rate because of the high adoption of privileged identification management software licenses by enterprises and government organizations. The privileged identity management software licenses are considered to be highly secure as there is no third-party interference. Customization and high data security offered in software licenses are some of the factors responsible for the growth of the market.
08.3 Global Privileged Identity Management Services Market Market Size and Forecast
08.3.1
The Global Privileged Identity Management Services market was valued at US$239.52 million in 2014 and is expected to reach US$829.07 million by 2019, growing at a CAGR of 28.19 percent.
Global Privileged Identity Management Services Market 2014-2019 (US$
Exhibit 15:
million)
Source: TechNavio Analysis
The Global Privileged Identity Management Services market is expected to witness an impressive growth rate during the forecast period. One of the major reasons for this is the high adoption of privileged identity management solutions. As the demand for privileged identity management solutions is increasing, services related to its management and maintenance are also expected to increase significantly during the forecast period.
09. Market Segmentation by End-user
09.1 Global Privileged Identity Management Market by End-user 2014
On the basis of end-user, the Global Privileged Identity Management market is categorized into the following segments:
Large Enterprises
Government Organizations
SMEs
Global Privileged Identity Management Market by End-user 2014
Exhibit 16:Source: TechNavio Analysis
There is an increased adoption of privileged identity management solutions in the aforementioned end-user segments because of the growing confidentiality of internal data and the increased need to prevent data breaches. Other end-users of the Global Privileged Identity Management market include home office users, educational institutions, non-profit organizations, and healthcare. The Large Enterprises segment contributed 36.27 percent to the Global Privileged Identity Management market in 2014 and is expected to contribute a share of 34.06 percent by 2019. The usage of privileged identity management solutions in large enterprises is expected to decline by 2019 because of market saturation.
09.2 Global Privileged Identity Management Market by End-user 2014-2019 Global Privileged Identity Management Market by End-user 2014-2019
Exhibit 17:Source: TechNavio Analysis
The Large Enterprises segment is the major adopter of privileged identity management solutions because these solutions enable consistent administration of threats and cyber-attacks across systems, no matter where they reside, in a traditional data center, a private cloud, or on public cloud. The second major revenue contributing segment is SMEs. Privileged identity management solutions in SMEs contributed 31.36 percent in 2014 to the Global Privileged Identity Management market and this segment is expected to contribute a share of 35.43 percent by 2019. SMEs are increasingly adopting this solution because of the rise in cases of data theft.
Government organizations are adopting privileged identity management solutions to maintain audit trails of privileged user activities to ensure that compliance standards are maintained and data are secured everywhere within an organization.
The increased adoption of privileged identity management solutions has also been observed in educational institutions because they help IT departments in educational institutions to cost-effectively minimize the threat of security breaches, reduce IT workload and costs, and meet compliance requirements. Privileged identity management solutions are adopted in the Healthcare sector because of the easy collaboration and sharing of medical and patient information, which ensures more effective treatment.
09.3 Global Privileged Identity Management Market in Large Enterprises Market Size and Forecast
09.3.1
The Global Privileged Identity Management market in Large Enterprises was valued at US$136.67 million in 2014 and is expected to reach US$420.99 million by 2019, growing at a CAGR of 25.23 percent.
Global Privileged Identity Management Market in Large Enterprises
2014-Exhibit 18:2019 (US$ million)
Source: TechNavio Analysis
Large enterprises were the major consumers of privileged identity management solutions in 2014.
Large enterprises are those companies with operations in multiple geographical locations, with employee strength of more than 1,000, and generating revenue of more than US$100 million. As large enterprises have widespread operations and multiple regulatory requirements, and are targets of frequent attacks, they are among the most prominent users of privileged identity management solutions.
09.4 Global Privileged Identity Management Market in SMEs Market Size and Forecast
09.4.1
The Global Privileged Identity Management market in SMEs was valued at US$118.16 million in 2014 and is expected to reach US$437.97 million by 2019, growing at a CAGR of 29.96 percent.
Global Privileged Identity Management Market in SMEs 2014-2019 (US$
Exhibit 19:
million)
Source: TechNavio Analysis
One of the main reasons for the low contribution from the SMEs segment in 2014 is the absence of strict regulatory requirements in SMEs. The APAC region comprises some of the fastest developing economies of the world, including India and China. However, the governments of most of the countries in the APAC region are slow to adopt advanced technologies, and, thus, have still not adopted privileged identity management solutions. A growing number of Asian small companies, particularly in India and China, are enjoying high growth figures and are expected to substantially grow in the future. Moreover, SMEs have been witnessing increased investment in the IT sector.
09.5 Global Privileged Identity Management Market in Government Organizations
Market Size and Forecast 09.5.1
The Global Privileged Identity Management market in Government Organizations was valued at US$107.12 million in 2014 and is expected to reach US$334.50 million by 2019, growing at a CAGR of 25.58 percent.
Global Privileged Identity Management Market in Government
Exhibit 20:Organizations 2014-2019 (US$ million)
Source: TechNavio Analysis
One of the major reasons for the wide adoption of privileged identity management solutions in the Government sector is that this sector is one of the most frequently attacked destinations.
Among governments worldwide, the US government is the most extensive user of privileged identity management solutions. The US government alone accounts for more than 50 percent of the revenue contribution in the Government Organizations segment. The governments of the EU are also experiencing an increase in insider theft cases, thus driving them to adopt privileged identity management solutions.
10. Geographical Segmentation
10.1 Global Privileged Identity Management Market by Geographical Segmentation 2014
In 2014, the Americas, one of the early adopters of the technology, accounted for a market share of 45.18 percent and is expected to account for 42.77 percent by 2019. The US is the largest contributing country in the Americas. The availability of adequate infrastructures, a high frequency of cyber-attacks, the presence of numerous global financial institutions and large companies, stringent government regulations, and increased adoption of technologies among organizations are the major factors contributing to the market growth in the Americas.
Global Privileged Identity Management Market by Geographical
Exhibit 21:Segmentation 2014
Source: TechNavio Analysis
10.2 Global Privileged Identity Management Market by Geographical Segmentation 2014-2019
The Americas was followed by the EMEA region, which accounted for 35.47 percent of the total market revenue in 2014 and is expected to reach 36.47 percent by 2019. Western Europe is the major revenue contributor in the region. Countries such as the UK, France, and Germany are the major adopters of privileged identity management solutions. The increase in the number of regulatory requirements and the increase in frequency of complex security threats are driving the adoption of privileged identity management solutions in this region. Large enterprises and government organizations are the major adopters of these solutions. These segments have a strong presence in the EMEA region, leading to significant market growth.
Global Privileged Identity Management Market by Geographical
Exhibit 22:Segmentation 2014-2019
Source: TechNavio Analysis
The EMEA region was followed by the APAC region, which accounted for a market share of 19.35 percent in 2014 and is expected to reach 20.76 percent by 2019. Although the contribution from the APAC region is currently low, the market in this region is expected to contribute significantly in the future, because of the growing demand for privileged identity management solutions in developing countries such as Japan, China, and India. Strict regulations aimed at protecting an organization's network from security threats are currently driving the adoption of privileged identity management solutions in this region. Likewise, the improving economic conditions in the APAC region are also expected to lead to an increase in the contribution from this region.
Global Privileged Identity Management Market by Geographical
Exhibit 23:Segmentation 2014-2019 (US$ million)
Source: TechNavio Analysis
In 2014, the Privileged Identity Management market in the Americas was valued at US$170.24 million and is expected to reach US$521.00 million by 2019, growing at a CAGR of 25.07 percent.
Some of the reasons for this are the strict compliance regulations and the high frequency and complexity of attacks in the country. As a huge number of large financial enterprises are concentrated in the Americas, the adoption of privileged identity management solutions is
privileged identity management solutions in the Americas. For instance, the US government is one of the largest consumers of privileged identity management solutions.
The Privileged Identity Management market in the EMEA region was valued at US$133.65 million in 2014 and is expected to reach US$453.18 million by 2019, growing at a CAGR of 27.66 percent.
One of the key factors contributing to this market growth is the increased focus on improving business productivity and efficiency. These solutions help identify employees and securely grant permission to access data. With the implementation of privileged identity management solutions, employees can overcome the difficulty of multiple log-ins for different business processes. Privileged identity management solutions support globally federated identities, enabling employees to easily manage their identity in an organization spread across various locations. Therefore, privileged identity management solutions provide seamless access to cloud applications and services through a single sign-on identity solution, thereby reducing the operation time.
The APAC region contributed revenue of US$72.91 million in 2014 and is expected to reach US$262.00 million by 2019, growing at a CAGR of 29.15 percent during the forecast period.
Although the market is dominated by the Americas in terms of revenue, the APAC region is expected to lead the Privileged Identity Management market in terms of growth rate during the forecast period. One of the main reasons for the low contribution from the APAC region is the absence of strict regulatory requirements. In addition, the governments of most of the countries in the APAC region are slow to adopt advanced technologies, and, thus, have still not adopted privileged identity management solutions. Moreover, the absence of small local players has limited the reach and adoption rate, further reducing the adoption of privileged identity management solutions. However, the introduction of several large organizations and SMEs in this region is expected to support the growth of the market during the forecast period. It has been observed that organizations in the APAC region, especially in India and China, are gradually developing their current IT landscape and are looking for technologies and new capabilities to extract the full potential of the existing systems incorporated in their organizations. Several vendors have started their operations in the developing countries of the APAC region such as China and India, which helps them capitalize on the opportunity of growing with these countries' fast-growing economies.
11. Market Attractiveness
11.1 Market Attractiveness by Product Segmentation
The Global Privileged Identity Management market consists of two major product segments:
Software Licenses and Services. It has been observed that the Services segment is one of the fastest growing segments in the Global Privileged Identity Management market.
Market Attractiveness of Global Privileged Identity Management Market
Exhibit 24:by Product Segmentation
Source: TechNavio Analysis
X-axis: Market Size in 2014 Y-Axis: Market Size in 2019
Size of Bubble: CAGR of Respective segments
The Services segment includes the subscription fees charged by vendors. The adoption of privileged identity management solutions in the Services segment will be observed initially in SMEs and then in large enterprises.
The Software Licenses segment is also expected to grow during the forecast period with a CAGR of 24.29 percent. Software licenses include the cost of the applications and the additional expenses incurred by organizations to monitor, maintain, upgrade, and provide training and support to end-users. Software licenses are installed and run on an organization's premises. Large companies are giving prominence in the adoption of software licenses because of their biggest advantage of ensuring complete control over the critical data of organizations.
11.2 Market Attractiveness by End-user Segmentation
The Large Enterprises segment is the major adopter of privileged identity management solutions.
In large enterprises, privileged credentials and accounts are more prone to exploitation by external threats and malicious insiders, which leads to data loss and service disruption. Large enterprises are adopting privileged identity management solutions to mitigate risk, ensure compliance, and maintain security of data.
Market Attractiveness of Global Privileged Identity Management Market
Exhibit 25:by End-user Segmentation
Source: TechNavio Analysis
X-axis: Market Size in 2014 Y-axis: Market Size in 2019
Size of Bubble: CAGR of Respective segments
It has been observed that SMEs are also increasingly adopting privileged identity management solutions because of the constant changes in the technology and business operations to sustain a position in a competitive business environment.
The Government Organizations segment is also giving prominence toward the adoption of privileged identity management solutions because there has been a substantial increase in the number of cyber-attacks on government departments and installations. Further, government departments such as intelligence, defense, and finance deal with critical data, the theft of which could threaten national security. Hence, to secure their respective countries, governments are installing strong security measures, including privileged identity management solutions.
11.3 Market Attractiveness by Geographical Segmentation
Currently, the Americas and the EMEA region are the major revenue contributors to the Global Privileged Identity Management market because of their early adoption of advanced technologies. However, the market in the APAC region is expected to grow during the forecast period.
Market Attractiveness of Global Privileged Identity Management Market
Exhibit 26:by Geographical Segmentation
Source: TechNavio Analysis
X-axis: Market Size in 2014 Y-axis: Market Size in 2019
Size of Bubble: CAGR of Respective Segments
The market attraction of privileged identity management is expected to be high in the APAC region during the forecast period. The reason for this is the decrease in prices of privileged identity management solutions, which is leading to the high rate of adoption. In addition, the growing awareness of cyber threats and the need for advanced security in the Government and BFSI sectors are leading to an increase in market attraction in this region.
The EMEA region is also expected to witness high market attraction during the forecast period.
The major reason for this is the increase in the number of threats and the growing awareness about the advantages of privileged identity management solutions. Also, the growing price wars among vendors are increasing the demand for privileged identity management solutions because of the decrease in prices.
The market attraction of the Americas is expected to be low during the forecast period because of the saturation of this market. As the Americas is an early and fast adopter of security solutions, the growth of privileged identity management solutions in this region is expected to be low during the forecast period.