Multi-Factor Authentication Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Multi-Factor Authentication Market is Segmented By Authentication(Password Authentication, Passwordless Authentication), By Component(Solutions, Hardware, Services), By End-User(BFSI, Healthcare, Retail & E-Commerce, Education, IT & IT Services, Government, Others), By Organization Size(Small & Medium Enterprises, Large Enterprises), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Multi-Factor Authentication Market Overview

The Global Multi-Factor Authentication Market size reached USD 12 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 29 billion by 2030. The market is growing at a CAGR of 13.5% during the forecast period 2023-2030. MFA- Multi-Factor Authentication is a method of verifying a person's identity based on criteria provided by the individual.

The authentication criteria are divided into 'Something you know,' 'Something you are,' and 'Something you have.' PINs, hardware tokens, biological features and passwords are examples of these three factors. Another authentication factor that has achieved widespread appeal and is frequently utilized across all apps is OTP – One Time Password. 

Multi-factor authentication ensures the protection of personal and sensitive information by providing high security. The system outperforms traditional methods in which only one-factor authentication, such as a login and PIN/password, can be readily guessed or forgotten. 

Multi-Factor Authentication Market Scope

To know more Insights - Download Sample

Multi-Factor Authentication Market Dynamics

The Rapid Increase in Online Transactions 

Customers' high adoption of digital banking and increased online transactions are projected to drive demand for MFA. Large organizations are told to verify customers using strong authentication procedures to the surge in eCommerce and the use of internet banking and the necessary rules enacted by central banks.

Demand for OTP authenticators is expected to rise as mobile banking for online transactions (hardware and software) grows. Multi-factor authentication protects clients from phishing attempts and fraud during transactions. Furthermore, integrating these systems for payment by healthcare, retail and BFSI sectors is a big opportunity for the MFA authentication industry to develop.  

Increasing Response Time 

Compared to three-, four- and five-factor authentication systems, the average amount of time needed to handle a single question for two-factor authentication systems is less. To be successful, an authentication system must be both easy and perfect. With the evolution of technology, multi-factor authentication methods are being devised and prototyped.

However, because numerous data or user authentication procedures would be necessary, the duration of the ability to manage a single query would grow. As a result, long lines would form and service/response times would increase. Because of the simplicity of access techniques, the impact of this constraint is currently high but will decrease in the future.

Multi-Factor Authentication Market Segment Analysis

The Global Multi-Factor Authentication Market is segmented based on authentication, component, organization size, end-user and region.

BFSI is expected to dominate the end-user segment

The BFSI industry is predicted to have the largest global multi-factor authentication market share. As it deals with enormous amounts of sensitive and private financial data, BFSI is the most targeted industry. The demand for these solutions is growing with the growing cyber threat scenario and risk surface. Multi-factor authentication uses a multi-layered method to build a layer of protection and make it harder for an unauthorized person to obtain access.

Because they handle highly sensitive financial data, the BFSI sector is an early adopter of cutting-edge multi-factor authentication solutions. Financial institutions increasingly appreciate the value of technological innovations in improving the customer experience and safeguarding themselves and their customers from security breaches. The organizations also thoroughly understand how multi-factor authentication solutions can be utilized to prevent fraud and identity theft risks.

Because of the sensitivity and confidentiality of data, BFSI sectors have stringent data security regulations. Various regulatory mandates, such as PSD2 and PCI-DSS, require financial firms to comply with terms and standards relating to consumer data protection. MFA solutions and services also benefit the BFSI sector to ensure strong security and safe identities.

Source: DataM Intelligence Analysis (2023)

Multi-Factor Authentication Market Geographical Penetration

Due to Early Adoption, North America is Expected to Account for a Significant Share of the Global Market

The Global Multi-Factor Authentication Market is expected to have the largest market share in North America. The region's growth is likely to be boosted by the early adoption of MFA. Multi-factor authentication (MFA) solutions are quickly being adopted by businesses in this region to enable data protection, prevent cyber-attacks, identity theft and commercial espionage and assure business continuity, data security and privacy.

North America's market growth is mostly due to investments and developments, a stringent regulatory environment and strong technology adoption rates. Furthermore, an increase in the number of cyber-attacks in North America is driving the adoption of multi-factor authentication solutions. It is expected that significant technological players such as CA Technologies, Symantec Corporation, Vasco Data Security International, Inc. and RSA Security LLC will aid the region’s growth.

Source: DataM Intelligence Analysis (2023)

Multi-Factor Authentication Market Players

The major global players include Okta Inc., Duo Security Inc., (Cisco Systems), Microsoft Corporation, OneLogin Inc., ForgeRock Inc., SecureAuth Corporation, Gemalto NV(Thales Group), OneSpan Inc., Entrust Datacard Corporation and RSA Security LLC.

COVID-19 Impact on Multi-Factor Authentication Market

COVID Impact

The COVID-19 outbreak in resulted in a significant increase in the number of people who use the internet for work, education and recreation. Banking, finance, insurance, retail and government have seen significant growth in user traffic on their online portals and websites.

During the pandemic, demand for multi-factor authentication solutions grew due to increased cyber-based threats, resulting in a bigger profit margin. According to a survey produced by security solutions firm F5 Labs, since the first wave of lockdowns began in many nations, there has been a 220 percent increase in phishing assaults.

Due to such incidents, more firms have been prompted to improve their security infrastructure. Furthermore, as working from home and remote work became more common, the world saw an uptick in cybercriminal activity that targeted numerous businesses and customers. As a result, demand for enhanced security of vital corporate assets soared during the pandemic and the multi-factor authentication industry developed. 

AI Impact 

Artificial intelligence (AI) has significantly impacted the global multi-factor authentication (MFA) market. AI-powered authentication solutions have improved the accuracy and efficiency of multi-factor authentication systems, enabling intelligent user verification and threat detection. 

AI algorithms can analyze vast amounts of data, identify patterns, and detect anomalies, enhancing the security and usability of MFA solutions. The integration of AI technologies has further strengthened the authentication process, driving the growth and adoption of MFA in various industries worldwide.

Key Developments

• In May 2023, Keyless Technologies, a UK-based company specializing in biometric authentication, announced a partnership with Synpulse, a technology-consulting firm to accelerate the adoption of multi-factor authentication solution in the UK.
• In May 2023, Microsoft began rolling out system-preferred options for two-factor authentication solutions for its Azure Portal or Graph APIs. The company aims to gradually move commercial users to multi-factor authentication on all its platforms.
• In March 2023, the social media company Twitter announced that it will no longer support multi-factor authentication for free users, in a step to increase subscription for its paid Twitter Blue service. 

Why Purchase the Report?

• To visualize the global multi-factor authentication market segmentation based on the authentication, component, organization size, end-user understanding of key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous multi-factor authentication market-level data points all for segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Multi-Factor Authentication Market Report Would Provide Approximately 64 Tables, 69 Figures and 182 Pages.