The Global Multi-factor Authentication Market size was valued at USD 12.9 Billion in 2022 and is expected to surpass USD 47.56 Billion by 2031, expanding at a CAGR of 15.6% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing number of cyberattacks and data breaches across enterprises.
Multi-factor authentication (MFA) adds extra levels of security to validate the user's identity and safeguard online transactions. MFA solutions strengthen enterprise security by requiring extra authentication methods such as a text message or a fingerprint before users can access to accounts containing critical financial information or controls. This system allows to prevent outsiders from gaining access to accounts in the event of a password breach.
Users of online transaction have to go through MFA systems, which would be sent through an email, SMS message, or perform a biometric check such as a FaceID check or fingerprint scan to complete the login process. For instance, Duo Security, which Cisco purchased in 2018, offered an access management system that could secure employee access to corporate accounts, assisting organizations in reducing credential-based security threats and meeting regulatory compliance.
The COVID-19 pandemic outbreak has impacted adverse consequences including flight cancellations, travel bans, and quarantines, as well as restaurant closures. However, the increasing use of online platforms for various transaction purposes during the pandemic played a crucial role for the market expansion.
Market Trends, Drivers, Restraints, and Opportunities
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Rising investments in cloud technologies, workplace mobility, and more enterprise BYOD usage are expected to drive the market growth during the forecast period.
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Increasing demand for data security compliances as rules of government agencies to secure sensitive data are becoming more stringent. This is projected to drive the market expansion.
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Wide adoption of MFA across several industries and rising number of online platforms for shopping present key drivers of the market.
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High cost of implementation, lack of awareness related to MFA among organizations, and increasing time-taken for higher-order authentication models are major challenges can hinder the market growth in the coming years.
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High adoption of digital banking along with increase in online transactions for various payment methods is projected to create lucrative opportunity for the market growth.
Scope of Multi-factor Authentication Market Report
The report on the global multi-factor authentication market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Multi-factor Authentication Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Applications (Healthcare, Travel & Immigration, Retail & E-commerce, BFSI, Government & Defense, and Others), and Models (Two Factor Authentication, Three Factor Authentication, Four Factor Authentication, and Five Factor Authentication)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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NEC Corporation; Symantec Corporation; Gemalto N.V.; 3M; Vasco Data Security International, Inc.; RSA Security LLC; Fujitsu Ltd.; aPersona, Inc.; CA Technologies; and Safran SA
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Multi-factor Authentication Market Segment Insights
BFSI segment to expand at a considerable CAGR
On the basis of applications, the multi-factor authentication market is segmented into healthcare, travel & immigration, retail & e-commerce, BFSI, government & defense, and others. The BFSI segment is projected to expand at a considerable CAGR during the forecast period as it enables businesses to secure online transactions and prevent data loss and fraudulent transaction. On the other hand, the healthcare segment is anticipated to account for a major market share during the forecast period owing to digitization of financial and social services as well as an increase in online transactions and e-commerce.
Two factor authentication segment to register a robust CAGR
In terms of models, the market is divided into two factor authentication, three factor authentication, four factor authentication, and five factor authentication. The two factor authentication segment is expected to register a robust CAGR during the targeted period. Using several metrics such as knowledge-based factors, possession-based factors, and inherence-based factors, two factor authentication allows companies to verify individuals' digital identities. Technology companies and service providers are developing and implementing a wide range of solutions to help businesses improve their operational efficiency.
North America is anticipated to constitute a key market share
In terms of regions, the multi-factor authentication market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period owing to technological improvements, the proliferation of smartphones, improved network connection, and a high rate of acceptance of digital services. However, the market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to increased expenditure on connected devices, increased investments in different cloud and IoT technologies, and ballooning demand for digital services in the region.
Segments
The global multi-factor authentication market has been segmented on the basis of
Applications
- Healthcare
- Travel & Immigration
- Retail & E-commerce
- BFSI
- Government & Defense
- Others
Models
- Two Factor Authentication
- Three Factor Authentication
- Four Factor Authentication
- Five Factor Authentication
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- NEC Corporation
- Symantec Corporation
- Gemalto N.V.
- 3M
- Vasco Data Security International, Inc.
- RSA Security LLC
- Fujitsu Ltd.
- aPersona, Inc.
- CA Technologies
- Safran SA
Competitive Landscape
Key players competing in the global multi-factor authentication market are NEC Corporation; Symantec Corporation; Gemalto N.V.; 3M; Vasco Data Security International, Inc.; RSA Security LLC; Fujitsu Ltd.; aPersona, Inc.; CA Technologies; and Safran SA.
In order to expand their product portfolios and get a greater portion of the market, majority of these players have been relying on inorganic development techniques such as mergers and acquisitions of smaller enterprises. For example, Dell's acquisitions of Quest Software and RSA Data Security, as well as EMC's acquisition of Virtustream, allowed the former company to expand its data security operation worldwide.
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