Multi-factor Authentication Market by Authentication Type (Password and Passwordless), Model Type (Two Factor, Three Factor, Four Factor, and Five Factor), Industry Vertical (BFSI, Healthcare, Retail & e-commerce, Government & Defense, Transportation, Consumer Electronics, Commercial Security, and Others): Global Market Size Estimates and Forecast (2022–2030)
The multi-factor authentication market crossed US$ 12.6 billion mark in 2022 and is expected to hit US$ 39.6 billion by 2030, recording a CAGR of 15.4% during the forecast period.
Multi-factor authentication market has been significantly growing with the increase in cyber-attack during COVID-19 pandemic.
During the COVID-19 pandemic, the remote working model has increased its pace of adoption among organizations. The remote working model, i.e., works from home, BYOD, and CYOD, has increased the cyber-risks that organization and businesses face, which create a positive outlook for the market’s overall growth. Thus, the need for multi-factor authentication systems has increased to a positive scale with the appearance of new vulnerabilities and attack points. Cybercriminals have used the pandemic to increase their malicious activities by exploiting the capitalization of public interest and vulnerabilities of remote working. These factors are causing businesses to spend more on security and fortify their security architecture. This promise significant growth opportunities for the multi-factor authentication market during the forecast period (2022-2030).
Within the report, the market is segmented into authentication type, model type, industry vertical, and geography. Based on authentication type, the multi-factor authentication market is segmented into Password and Passwordless. On the basis of model type, the multi-factor authentication market is segmented into two factor, three factor, four factor, and five factor. Further, on the basis of industry vertical, the multi-factor authentication market is segmented into BFSI, healthcare, retail & e-commerce, government & defense, transportation, consumer electronics, commercial security, and others. Geographically, the multi-factor authentication market is subsegmented into North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The multi-factor authentication market in Asia Pacific holds the highest growth rate and is expected to retain its position during the forecast period (2022-2030). The high growth is due to the presence of most populous countries such as China and India in the region.
Two factor segment in model type to hold largest share of multi-factor authentication market during the forecast period (2022-2030)
Based on the model type, the two-factor segment is estimated to account for a larger multi-factor authentication market share in 2022 and is expected to hold its position during the forecast period. The two-factor model enables organizations to validate users' digital identities using various criteria, including knowledge-based, possession-based, and inheritance-based factors. Multi-factor authentication technologies are used in various business sectors to improve security and data protection. Technology companies and service providers are developing and implementing many multi-factor authentication solutions to help businesses operate more efficiently.
Rise in online transactions is one of the major factors accelerating the market growth.
The demand for multi-factor authentication is anticipated to rise due to the rising number of online tractions and the high customer adoption rate of digital banking. Big companies are being pushed to implement robust authentication procedures for consumers because of the surge in eCommerce and internet banking usage and mandated rules from central banks. The demand for OTP authenticators is expected to increase due to the increased use of mobile banking for online transactions (both hardware and software). Multi-factor authentication is used to ensure secure transactions and to safeguard customers from fraud and phishing scams. Additionally, there are numerous opportunities for the multi-factor authentication market to expand due to the integrations of online payment systems by the end users, such as healthcare, retail, and BFSI sectors, among others.
Recent strategic developments in multi-factor authentication market
The multi-factor authentication market has undergone several significant developments, and a few of these have been mentioned below:
- In May 2021, Microsoft announced new products, employee plans, and guidance to tackle the global fight against increasingly large-scale and complex cyberattacks. These include additional support on multi-factor authentication and security protection for customers, along with Microsoft’s transition of having employees adopt a Zero Trust approach.
- In March 2021, Okta entered into a definitive agreement to acquire Auth0 for US$ 6.5 billion. Okta, which has focused on serving businesses with products for IAM, SSO, multi-factor authentication, cloud directory services, and more, would be strengthened by this acquisition, which focuses more on serving customer identity and access markets.
The multi-factor authentication market is driven by several players by implementing strategic activities such as investments, new launches, mergers & acquisitions, and partnerships. 3M; CA Technologies; Fujitsu Limited; Gemalto NV; HID Global Corporation; NEC Corporation; RSA Security; Safran SA; Symantec Corporation; and Vasco Data Security International, Inc. are among the prominent players operating in the market.
Target audience for the report:
- Multi-factor authentication software providers
- Multi-factor authentication service providers
- Multi-factor authentication hardware manufacturer
- Multi-factor authentication associations, organizations, forums, and alliances
- Venture capitalists, private equity firms, and start-up companies
- Multi-factor authentication system integrators
- End users of Multi-factor Authentication
- Research institutes, organizations, and consulting companies
Scope of the report:
In this report, the multi-factor authentication market has been segmented on the basis of:
- Authentication Type
- Password
- Passwordless
- Model Type
- Two Factor
- Three Factor
- Four Factor
- Five Factor
- Industry Vertical
- BFSI
- Healthcare
- Retail & e-commerce
- Government & Defense
- Transportation
- Consumer Electronics
- Commercial Security
- Others
- Region
- North America
- Europe
- Asia Pacific (APAC)
- South & Central America
- Middle East & Africa
- Companies profiled
- 3M
- CA Technologies
- Fujitsu Limited
- Gemalto NV
- HID Global Corporation
- NEC Corporation
- RSA Security
- Safran SA
- Symantec Corporation
- Vasco Data Security International, Inc.
- 3M
- CA Technologies
- Fujitsu Limited
- Gemalto NV
- HID Global Corporation
- NEC Corporation
- RSA Security
- Safran SA
- Symantec Corporation
- Vasco Data Security International, Inc.