12 Password Manager Statistics that Matter to Users

The average internet user has 100 passwords. Shocking, huh? With platforms requiring unique and complex login credentials, memorizing them all is virtually impossible.

The good news? 

Password managers, also known as vaults, are here to help. They enable users to generate and keep track of their passwords. Using one also lowers the chances of falling victim to hackers. As such, many people are increasingly embracing such tools for their convenience. 

Wondering how many web users rely on vaults and how secure these systems are? 

We’ve found the most interesting and up-to-date password manager statistics that matter to both existing and prospective users. 

Let’s jump right into them!

Curious Password Manager Statistics 

Below are some of the most fascinating password manager usage statistics you need to know: 

  • 24% of people worldwide rely on password managers.
  • 25% of workplaces require employees to use password managers.
  • Password vault users are three times less likely to experience identity theft.
  • 84% of password manager users employ them on mobile devices.
  • LastPass leads the password manager industry with a 22% market share.
  • 27% of users don’t see the importance of password managers.

General password manager statistics and facts

These stats may convince you to rethink how you manage your passwords.

1. Almost a quarter of internet users rely on password managers.

(Source: Bitwarden)

According to Bitwarden, almost a quarter of global internet users find vaults the best way to manage their passwords. This is attributed to the unreliability of human memory to keep up with login details.

Another reason is the complex credential requirements by platforms across the web. Examples include differences in length and a mixture of letters, symbols, and numbers.

In addition, password managers can generate complex passwords. Such convenience is helping drive up their adoption among internet users.

2. 25% of workplaces require employees to use password managers.

(Source: Bitwarden)

Around 32% of employers in the US require employees to use password managers. The figure is 7% higher than the global average of 25%.

Interestingly, 64% of global respondents believe their employers should provide them with a password manager to protect their credentials.

3. You’re three times less likely to get hacked using a password vault correctly. 

(Source: Security.org)

Security.org password manager cyber attack statistics show using a vault correctly reduces identity theft by up to three times. The research involving 1,000+ participants established 32% of them lost credentials to hackers due to improper usage.

In comparison, only about 12% that employed password managers correctly fell victim to cybercriminals. Over half of the affected attributed to reusing their vault’s master passwords on other online platforms.

4. 84% of password vault users employ them on mobile phones.

(Source: Security.org)

Mobile usage of password managers is on the rise. In 2022, 84% of password vault users employed them on their phones. This is a 7% increase from 2021. 

Surprisingly, desktop usage remains stagnant at 75% between 2021 and 2022. However, tablet installations dropped by 2% from 46% to 44% over a similar period.

5. LastPass dominates the password manager industry with a 22% market share. 

(Source: Statista)

According to Statista, LastPass is the leading vendor in the industry. Its 21.42% market share is five times greater than the 3.85% of the closest rival, 1Password

Other big vendors include Dashlane, RoboForm, and Keeper, with 3.63%, 2.89%, and 2.31%, respectively. 

6. 27% of web users don’t see the need for password managers.

(Source: TechRadar)

A 2022 research by OnePulse, exclusive to TechRadar, discovered 27% of users don’t see the point in using password managers. A further 26% of the sampled 1,000 respondents opt to note down their credentials somewhere. 

About 20% depend on free vaults to manage their login credentials. A further 27% rely on built-in browser tools to keep track of their passwords.

Statistics for password manager hacks

Even with the popularity of password managers, data breach cases still make headlines. That’s partly to blame on the vendors and the users, as you’re about to see. 

Here are some exciting password manager facts for hacking incidents:

7.  Only 35% of users trust password managers.

(Source: Password Manager)

An analysis by Password Manager discovered a jaw-dropping 65% of users don’t trust vaults. A majority express fear of losing sensitive information to vendors of such services.

The survey conducted among 1,283 Americans revealed people aged 55 and above worry the most – 34.7% said they don’t use such systems due to the risks of getting hacked.

Around 10% of the sampled respondents mentioned they prefer multi-factor authentication (MFA) over password managers. Still, most users hardly know about it and how it works.

And they’re right not to trust password vaults fully. There are password manager vulnerability issues to be aware of.

8. LastPass 2022 data breach exposed over 30 million passwords.

(Source: Bloomberg) 

In December 2022, a data breach on LastPass’s systems exposed over 30 million passwords. However, the company only confirmed hackers got hold of its software’s source code. Users’ credentials remained secure.

This is a cause to worry, however, given that this was the password manager’s second data leak incident for the year. 

9. About three password manager providers face security issues every year. 

(Source: Bestreviews)

Bestreviews’ password manager breach events tracker covers risks that exist in the industry. However, none has ever had a significant impact on the users.  

An average of three vendors report existing flaws in their systems every year. Luckily, the service providers issue security fixes early enough to prevent damage.

Global password manager usage habits and facts

Vaults have been around for quite some time. However, the below password manager stats show usage varies depending on the country and users’ habits.

10. Password managers are popular in the United States.

(Source: Bitwarden)

Data by Bitwarden shows the United States leads the world in password manager usage. Nearly 44% of the US population depends on them to protect their credentials. 

The research also established 67% of US residents prioritize the security of passwords over memorization. Moreover, data breaches affecting 31% of users pushed them to use vaults.

To compare, around 37% of UK residents use password managers. Another notable region with considerable adoption is Japan, with 22%.

11. Spouses and parents play a significant role.

(Source: Bitwarden)

Parents and spouses have a strong influence on users embracing password managers. For example, 38% of users in the UK recommend their partners embrace vaults. 

The US comes next with 36%, closely followed by the rest of the world with 33%. Japan’s 28% also shows how much couples push loved ones to secure passwords. 

On the other hand, Bitwarden’s password manager facts show parents in Japan lead the pack with 22%. The US trails that number with a figure that’s 4% lower.

12. The human memory is still king.

(Source: Bitwarden)

Even though it’s unreliable, 55% of people prefer memorizing their passwords. Users additionally prefer reusing credentials across multiple platforms to make things easier.

Another 32% prefer to write login details on paper, and 23% save the data on their computers. Shockingly enough, a further 20% opt to use their emails. 

Regardless of security threats, the figures above show people still prefer to use easy ways to keep passwords.

Wrap-Up

Now you have the latest password manager stats. We hope the data provides valuable insights for strengthening the security of your login information.

Most importantly, vaults reduce your chances of losing your credentials to malware attacks. Even though some vendors frequently face data breaches, nothing alarming has happened due to the additional encryption these systems apply.

Password managers also lift the burden of memorizing complex passwords. Above all, you can take them everywhere you go for your convenience.

Frequently Asked Questions

What percentage of people have weak passwords?

Around 80% of people lose their accounts to hackers due to having insecure passwords. Most include commonly used phrases, numbers, birth dates, etc. These are easy to crack using social engineering, phishing, and brute force attacks.

How many people use 123456 as their password?

Over 100 million people use 123456 as a password. While it’s easy to remember, hackers include it among the first credentials for compromising accounts.

Why don’t people use password managers?

About 65% of people don’t trust password managers. This is mainly due to fear of losing user credentials to providers of such services. Another 34.7% believe the apps are easy to compromise by hackers.

Do hackers use password managers?

Yes, they do. Password managers offer the convenience of using hundreds of passwords without the need to remember any. As such, hackers that maintain accounts across multiple platforms find them user-friendly.

What percentage of people use password managers?

Password manager statistics suggest that 34% of users rely on vaults to secure login credentials globally. Currently, the United States has the highest number of users, with 44%. Other notable mentions include the UK and Japan, with 37% and 22%, respectively.

Do security experts recommend password managers?

Of course, they do. Security experts recommend password managers as the most secure way to keep your credentials safe. That’s because such services store your login details in encrypted environments that are virtually hack-proof.

Sources:

  1. Bitwarden
  2. Security.org
  3. Statista
  4. TechRadar
  5. Password Manager
  6. Bloomberg
  7. Bestreviews