Multi-Factor Authentication Market by Component (Hardware, Solutions, and Services), Model Type (Two-, Three-, Four-, Five-factor), Organization Size, Vertical (BFSI, Healthcare, Media & Entertainment, Government) and Region - Global Forecast to 2027

Multi-Factor Authentication Market by Component (Hardware, Solutions, and Services), Model Type (Two-, Three-, Four-, Five-factor), Organization Size, Vertical (BFSI, Healthcare, Media & Entertainment, Government) and Region - Global Forecast to 2027

The MFA market size is projected to grow from an estimated value of USD 12.9 Billion in 2022 to USD 26.7 Billion by 2027, at a Compound Annual Growth Rate (CAGR) of 15.6% from 2022 to 2027. The demand for MFA is driven by the need for more secure digital payments and rising breaches and threats. There is also a growing demand for AI/ ML-powered MFA solutions to identify any suspicious activity and detect any anomalous user behavior in real-time.

Based on component, the solutions segment to hold the largest market share during the forecast period

The MFA market by component is bifurcated into hardware, solutions, and services. The need for securing highly confidential and sensitive information, a surge in BYOD trends, and an emphasis on stringent regulatory norms are fueling the adoption of MFA solutions. Some of the prominent solution vendors in the MFA market are Micro Focus, Duo Security, Broadcom, Ping Identity, RSA Security, OneSpan, and Microsoft. Key players in the MFA market continuously invest in new product launches/ enhancements and inorganic growth strategies to expand their footprint and improve their MFA portfolio in the market to attract more end-users.

By model type, the two-factor authentication segment to hold the largest market size during the forecast period

Based on model type, the global MFA market is segmented into two-factor authentication, three-factor authentication, four-factor authentication, and five-factor authentication. The two-factor authentication segment is expected to hold the largest market size during the forecast period. According to Duo Labs (Duo Security) State of the Auth report, two-factor authentication has gained significant adoption with 79% of respondents reported to having used it in 2021. The increasing number of online transactions, rising security breaches, and compliance to regulatory norms is expected to boost the two-factor authentication segment market growth.

Based on vertical, the BFSI segment to hold the largest market size during the forecast period

The overall market for the MFA technology is categorized into several applications, based on its end user usage, such as BFSI, government, military & defense, travel & immigration, commercial security, healthcare, IT, telecom, media & entertainment, and others.

The BFSI vertical is expected to hold the largest market size among other end-users. Financial companies are increasingly embracing digital transformation. The BFSI organizations possess highly confidential and sensitive information (financial data of customers, user IDs, passwords, and other personal information). Hence, this vertical is the major adopter of MFA solutions to avoid any instances of fraud or identity theft. In addition, government mandates such as Personal Information Protection and Electronic Documents Act (PIPEDA), Gramm-Leach-Bliley Act (GLBA), Federal Financial Institutions Examination Council (FFIEC), along with standards that include Payment Card Industry Data Security Standard (PCI DSS) and Sarbanes–Oxley Act (SOX), require financial institutions to ensure protection from cyber criminals.

Asia Pacific to register the highest growth rate during the forecast period

Asia Pacific is expected to record the highest CAGR in the MFA market during the forecast period. The region comprises of countries such as China, Japan, India, Australia, and rest of APAC. The market growth rate in the region can be attributed to the increasing threat of identity and access breaches.

Asia Pacific is a home to several established SMEs; they deploy MFA to protect themselves against advanced cyber threats. The rising penetration of the internet and smartphones is strong driving force for Asia Pacific to increase demand for effective MFA solutions and services in the region. With the proliferation of IoT, AI, and big data, security and fraud concerns have arisen. When it comes to identity fraud, the BFSI is the most targeted vertical in APAC. This is expected to drive the need for MFA solutions in the region.

Breakdown of primary participants:

By Company Type: Tier 1 = 40%, Tier 2 = 35%, and Tier 3 = 25%

By Designation: C-Level Executives = 40%, Directors = 35%, and Others = 25%

By Region: North America = 30%, Europe = 20%, APAC = 45%, and RoW = 5%

Key and innovative vendors in MFA market include Microsoft (US), Broadcom (US), OneSpan (US), Okta (US), Micro Focus (UK), Thales (France), RSA Security (US), Cisco (US), Ping Identity (US), HID Global (US), ESET (Slovakia), Yubico (US), ForgeRock (US), CyberArk (US), OneLogin (US), SecureAuth (US), Oracle (US), Salesforce (US), Secret Double Octopus (Israel), Silverfort (Israel), Trusona (US), FusionAuth (US), HYPR (US), Keyless (US), and Luxchain (Hong Kong).

Research Coverage

The market study covers the MFA market size across segments. It aims at estimating the market size and the growth potential of this market across different segments by component, by model type, by organization size, by verticals, and by regions. The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Key Benefits of Buying the Report

The report will help the market leaders/new entrants with information on the revenue numbers' closest approximations for the overall MFA market and its sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report will also help stakeholders understand the market's pulse and provide them with information on key market drivers, restraints, challenges, and opportunities.