Multi-factor Authentication Market Research, 2030
The global multi-factor authentication market size was valued at $10,300 million in 2020, and is projected to reach $40,000 million by 2030, registering a CAGR of 18% from 2021 to 2030.
Multi-factor authentication (MFA) is an authentication method that requires users to provide two or more verification factors to gain access to a resource such as an application, online account, or a VPN. MFA is a core component of a strong identity and access management (IAM) policy. Two-factor authentication (2FA), sometimes referred to as two-step verification or dual-factor authentication is a security process in which users provide two different authentication factors to verify themselves.
In term of design, multi-factor authentication solutions are non-intrusive and have no impact on rest of an organization's digital infrastructure and digital services, which creates high secure operations. In addition, modern multi-factor authentication solutions are available to organizations in the form of APIs that can be integrated seamlessly with organization’s login pages. This flexibility and feasibility of multi-factor authentication solutions promise great opportunities for future growth of the industry.
In 2019, the global multi-factor authentication market share was dominated by password-based authentication and is expected to maintain its dominance in the upcoming years, as password authentication provides a reasonable level of security at a low cost. Rise in instances of security breaches and cyber-attacks, coupled with big increase in online frauds, are among the key factors driving the market. Password less authentication is a type of multi-factor authentication (MFA), which replaces passwords with a more secure authentication factor, such as a fingerprint or a PIN. With MFA, two or more factors are required for verification while logging in.
Within the multi-factor authentication market, password less authentication is estimated to emerge as the fastest growing segment, owing to emergence of advanced technologies such as internet of things (IoT) and AI in devices such as smartphones and tablets. Security points like fingerprint sensors and smartcards are making smooth flow of authentication between point and allowing a seamless experience. Enterprises are making use of face recognition, voice analysis, and iris recognition to authenticate and verify its employees. Furthermore, worldwide rise in applications of fingerprint recognition and face recognition in consumer electronics is predicted to propel password less multi-factor authentication industry.
The report focuses on growth prospects, restraints, and Multi-factor authentication market analysis. The study provides Porter’s five forces analysis of the Multi-factor authentication industry to understand impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the Multi-factor authentication market trends.
By Authentication Type
Passwordless segment is projected as one of the most lucrative segments.
Segment Review
The multi-factor authentication market is mainly segmented into authentication type, model type, component and end user. Based on authentication type, the market is segmented into password and Password less authentication. Based on model type, the market is segmented into two factor, three factor, Multi-factor with four-factor authentication and Multi-factor with five-factor authentication. Based on component, the market is segmented into solution, hardware and services. Based on end user the market is segmented into BFSI, Government, Travel and Immigration, Military and Defense, Commercial Security, IT, Telecommunication, Healthcare, Media and Entertainment and Other. The market primarily focuses on major regions such as North America, Europe, Asia-Pacific and LAMEA.
By Region
APAC is projected as one of the most significant region.
Top Impacting Factors
Factors such as increased cyber-attacks during the pandemic and supporting government policies for increase in data privacy are the major factors that drive the market growth. However, initial installation charges and inconvenient and delay within the operations is mainly restraining the market growth. Further, growing scope for internet application and flexibility of multi-factor authentication solutions is estimated to create a lucrative opportunity during the forecast period.
Increase in cyber-attacks during the COVID-19 pandemic:
Rapid adoption of remote working model. This model further has introduced new cyber-risks for organizations and businesses, which creates a positive scope for the overall market growth. Thus, with emergence of new vulnerabilities and attack points demand for multi-factor authentication systems has increase to a positive scale. For instance, in 2020 the U.S. Department of homeland security reported a 250% increase in the number of data breaches and cyber-related attacks on federal systems over the past two years. Cybercriminals are using the pandemic as a major opportunity to increase their malicious activity by exploiting the vulnerabilities of remote employees and capitalizing on public interest. These factors are driving companies to increase security spending and strengthen their security architecture. This promises a stable growth opportunity for the global multi-factor authentication market trend during the forecast period.
Support in government policies and drive for better privacy
Safety of consumer data is one of the main driving factors for growth of the multi-factor authentication market. Governmental policies such as the General Data Protection Regulation (GDPR) introduced by the European union strictly aim for increase in consumer data security measures. Compliance policies such as GDPR and other similar regulations increases adoption rate of multi-factor authentication solutions into their network infrastructure and user base. Moreover, additional policies such as the European Payment Service Providers Directive 2 (PSD2) and the United States California Consumer Privacy Act of 2018 (CCPA) ensure that business enterprises and organizations have adequate data protection mechanisms in place to prevent the possibility of fraud, data breaches, and identity theft.
Impact Of Covid-19 On Multi-factor Authentication Market
With a sudden rise in cyber-based attacks, during the pandemic the demand for multi-factor authentication solution has increased, creating a higher profit margin. As per a study published by the security solutions provider F5 Labs, an 220% increase in the number of phishing attacks were reported since the first phase of lockdowns started in many countries. Such instances provoked more businesses to enhance their current security infrastructure. Furthermore, with work from home and remote working culture grew in popularity, the world witnessed a sudden surge in cyber-criminal activities that targeted many organizations and their customers. As a result, demand for better security of critical corporate assets increased, and the Multi-factor authentication market grew during the pandemic.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the Multi-factor authentication market along with current trends and future estimations to elucidate imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the multi-factor authentication market growth is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of Multi-factor authentication market forecast for the period 2020–2030 is provided to determine the multi-factor authentication market opportunity.
Multi-factor Authentication Market Report Highlights
| Aspects | Details |
 By Authentication type |
|
 By Model Type |
|
 By Component |
|
 By End User |
|
 By Region |
|
 Key Market Players | RSA SECURITY, HID GLOBAL, ASPECT SOFTWARE, MICROSOFT, THALES, BROADCOM., OKTA, ONESPAN, DUO SECURITY (CISCO), MICRO FOCUS |
Analyst Review
According to CXOs of major companies, the multifactor authentication market is experiencing a rapid growth . Over the past few decades, the world has been experiencing a gradual change toward digitization of various services from entertainment to critical financial and security. This shift toward online and digital services increased further during the COVID-19 pandemic. For instance, JPMorgan Chase Bank, a major banking services provider based in the U.S., reported around 6% increase in their digital services in their third quarter of 2020 and 10% increase in their number of mobile and smartphone-based users for year 2020 in previous years. These trends showcase shift toward rising internet applications and hence, growth in need for adding higher security to them.
The multifactor authentication market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, efficiency of products, and support services. The market is concentrated with major players consuming 45-50% of the share. The degree of concentration is expected to remain same during the forecast period. Additionally, modern multifactor authentication solutions are available to organizations in the form of APIs that can be integrated seamlessly with the organization’s login pages.
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