Multi-Factor Authentication Market Forecasts to 2030 – Global Analysis By Authentication Type (Passwordless Authentication and Password-Based Authentication), Model Type, Component, End User, and By Geography

Multi-Factor Authentication Market Forecasts to 2030 – Global Analysis By Authentication Type (Passwordless Authentication and Password-Based Authentication), Model Type, Component, End User, and By Geography

According to Stratistics MRC, the Global Multi-Factor Authentication Market is accounted for $16.59 billion in 2023 and is expected to reach $47.47 billion by 2030 growing at a CAGR of 16.2% during the forecast period. Multi-Factor Authentication (MFA) is a security measure that requires users to provide multiple forms of verification to access an account or system. Typically, this involves combining something the user knows (like a password) with something they have (like a smartphone for receiving a code via SMS or a token generator) and/or something they are (like a fingerprint or facial recognition). MFA enhances security by adding layers of protection against unauthorized access, as it makes it more difficult for attackers to breach an account solely by obtaining one piece of authentication information.

According to the US Federal Trade Commission (FTC), more than 5.88 million fraud reports were received on their portal in 2021.

Market Dynamics:

Driver:

Increasing adoption of cloud services

MFA solutions play a critical role in securing access to cloud resources by adding an additional layer of authentication beyond traditional passwords. Cloud services, such as Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS), enable users to access data and applications from anywhere, at any time, using various devices. In addition, these solutions address challenges by requiring users to authenticate their identities, which drive this market further.

Restraint:

High cost

Implementing MFA solutions involves several expenses, including upfront investments in hardware tokens, biometric devices, software licenses, and ongoing maintenance costs. For smaller businesses or organizations with limited budgets, the initial investment required for MFA may be perceived as prohibitively high. Additionally, ongoing expenses related to maintenance, upgrades, and user support further contribute to the total cost of ownership for MFA solutions.

Opportunity:

Rising awareness and education

Organizations are investing in employee training programs and cybersecurity awareness initiatives to educate users about the risks of weak authentication practices and promote the adoption of MFA technologies. Education initiatives, cybersecurity awareness campaigns, and media coverage of high-profile security breaches have contributed to a greater understanding. Moreover, by empowering users with knowledge about the benefits and importance of MFA, organizations can drive adoption and implementation efforts more effectively.

Threat:

Lack of standardization

The absence of universal standards for MFA can lead to fragmentation within the market, with different vendors offering proprietary authentication methods and protocols. This lack of standardization complicates integration efforts, increases implementation costs, and limits the interoperability of MFA solutions with existing IT infrastructure and applications. Additionally, inconsistencies in MFA implementations can lead to confusion, frustration, and resistance to using secure authentication methods, hence hindering market growth.

Covid-19 Impact

The COVID-19 pandemic has had a mixed impact on the Multi-Factor Authentication (MFA) market. The economic uncertainty caused by the pandemic prompted some organizations to postpone or scale back investments in cybersecurity initiatives, including MFA projects, as they prioritized cost-cutting measures and business continuity efforts. However, some businesses may have struggled to allocate resources and prioritize cybersecurity investments amidst the immediate challenges posed by the pandemic, which thereby impeded market expansion.

The password-based authentication segment is expected to be the largest during the forecast period

The password-based authentication segment is estimated to hold the largest share because it involves users providing a single factor—typically a password or passphrase—to access their accounts or systems. This includes methods such as biometric authentication, one-time passwords (OTPs), and authentication codes. Moreover, there is a growing demand for MFA solutions that enhance security by requiring users to provide additional forms of verification beyond just a password, which is boosting this segment’s expansion.

The hardware segment is expected to have the highest CAGR during the forecast period

The hardware segment is anticipated to have highest CAGR during the forecast period due to its crucial role in providing secure and reliable authentication solutions to organizations and individuals. It involves the use of physical devices, such as tokens or smart cards, to generate or store authentication credentials. Furthermore, these solutions offer advantages such as offline functionality, resilience to phishing attacks, and compliance with industry regulations and standards, thereby driving this segment’s growth.

Region with largest share:

North America commanded the largest market share during the extrapolated period owing to increasing cybersecurity concerns, stringent regulatory requirements, and widespread adoption of digital technologies across various industries. The region encompasses the United States, Canada, and Mexico, which are home to a large number of technology companies, financial institutions, government agencies, and enterprises that prioritize cybersecurity. Additionally, businesses and government entities are increasingly investing in MFA solutions to protect sensitive data and prevent unauthorized access, which thereby increases this region’s size.

Region with highest CAGR:

Europe is expected to witness highest CAGR over the projection period, owing to a strong focus on data protection, privacy regulations, and cybersecurity awareness. Additionally, the rise in cyber threats, including identity theft, phishing attacks, and data breaches, has propelled organizations to adopt MFA solutions to mitigate risks. Collaborations between industry stakeholders, government agencies, and regulatory bodies contribute to the growth and adoption of MFA technologies in Europe.

Key players in the market

Some of the key players in the Multi-Factor Authentication Market include IBM Corporation, Vasco Data Security International, Inc., Thales, Safran S.A., Gemalto NV, Microsoft Corporation, Okta,, Fujitsu America, Inc., Salesforce.com, Inc. , 3M, RSA Security LLC, Google LLC, CA Technologies, Symantec Corporation and Ping Identity Corporation.

Key Developments:

In January 2024, Google and Worldline announced a strategic partnership designed to leverage cutting-edge cloud-based technologies from google cloud to take worldline's digital transformation further.

In December 2023, IBM announced that it has entered into a definitive agreement with Software AG, a company majority owned by Silver Lake, to purchase StreamSets and webMethods, Software AG's Super iPaaS (integration platform-as-a-service) enterprise technology platforms, for €2.13 billion in cash.

In September 2023, Thales and Kyndryl announced partnership for comprehensive response to cybersecurity incidents.

Authentication types Covered:
• Passwordless Authentication
• Password-Based Authentication

Model Types Covered:
• Two Factor Authentication
• Three Factor Authentication
• Four Factor Authentication
• Five-Factor Authentication
• Other Model Types

Components Covered:
• Hardware
• Services
• Software

End Users Covered:
• Banking, Financial Services, and Insurance (BFSI)
• Government and Defense
• Healthcare
• IT and Telecommunications
• Retail
• Energy and Utilities
• Manufacturing
• Education
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements