Multi-factor Authentication Market Size, Share, Growth Analysis, By Enterprise (Large Enterprises, Small and Medium Enterprises), By Industry Vertical (IT & Telecommunication, BFSI), By Deployment, (On-premises, Cloud), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG45A2374 |
Region:
Global |
Published Date: November, 2024
Pages:
197
|Tables:
0
|Figures:
0
Multi-factor Authentication Market Insights
Global Multi-factor Authentication Market size was valued at USD 14.28 Billion in 2022 and is poised to grow from USD 16.31 Billion in 2023 to USD 47.18 Billion by 2031, growing at a CAGR of 14.2% during the forecast period (2024-2031).
Multifactor authentication (MFA) brings additional layers of security to ensure user identity and secure communication over the Internet. One of the major factors driving the market growth is the increasing incidence of cyber-attacks and data breaches in organizations. It coupled with increasing stringent regulations to protect sensitive data; it is expected to bolster the multi-factor authentication industry. Companies such as CA Technologies, Vasco Data Security International, Inc., RSA Security LLC, and Symantec Corporation are investing heavily in R&D to develop new validation products, solutions, and services. The requirement of additional drivers for physical authenticators and interoperability with varying IT environments increase the complexity of deployment. Hence, issues pertaining to the procurement cost and implementation complexity are poised to limit the widespread adoption of multi-factor authentication solutions.The cost and operational complexity will restrain the market; however, its effectiveness will decrease over time. With the increase in data and security breaches, most businesses have introduced data security standards. Companies have adopted various MFA solutions to combat security breaches and cyberattacks. These solution implementations are complex and, at the same time, require significant investments to procure, deploy, maintain and manage. Complexity is further compounded by differing IT environments across industries.
Market Snapshot - (2024-2031)
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Multi-factor Authentication Market Segmental Analysis
Global multi-factor authentication market is segmented based on authentication type, organization size, industry vertical, and region. Based on authentication type, the market is segmented into two-factor authentication, biometrics or multi-factor authentication, passwords, soft tokens, and other. Based on organization size, the market is segmented into small and medium enterprises and large enterprises. Based on industry vertical, the market is segmented into education, government and defense, BFSI, retail, information technology and telecom, manufacturing, healthcare and others. Based on region the market is segmented as, North America, Asia-Pacific, Europe, Latin America, Middle East and Africa.
Analysis by Organization Size
As per multi-factor authentication market analysis, large enterprises currently dominate due to their extensive IT infrastructure, high data sensitivity and stringent compliance requirements. Industries such as banking, healthcare, government, where data breaches can have financial and reputational costs into strong results. Large enterprises accounted for the largest share (70.4%) as large enterprises needed this platform to provide advanced services to customers without any problems with 5G networks and Internet of Things (IoT) deployments. These organizations generally have the budget to invest in advanced authentication solutions, including biometric systems and AI-powered adaptive MFA, to ensure complete security on applications and networks. Vendors such as Microsoft, Thales, and Cisco address this category broadly, offering scalable and integrated MFA solutions.
As per multi-factor authentication market analysis, the small and medium enterprises segment plays an important role. The segment is emerging as the fastest growing segment in the market, driven by increasing awareness of cybersecurity threats, affordable and easy-to-implement MFA solutions. Government initiatives and regulatory mandates are also pushing SMEs to adopt MFA. For instance, data protection laws in regions like Europe (GDPR) and Asia Pacific (China’s Cybersecurity Law) require businesses of all sizes to ensure secure data handling. The small and medium enterprises (SMEs) segment play an important role in the global market. Accepting mobile users involves ensuring that users are people who can access services or information through mobile devices. SMEs are important contributors to the adoption and growth of mobile user trust solutions.
Analysis by Industry Vertical
As per the multi-factor authentication market outlook, the BFSI segment is dominant. The BFSI segment recorded the highest revenue share of 33.7% in 2022 during the forecast period. The BFSI segment consumes more critical financial data processes, making it an attractive target for cybercriminals. Financial institutions are increasingly adopting multifactor authentication as an important security measure to protect customer accounts, transactions and personal information to reduce the risk of data breaches. Furthermore, customer expectations of online banking experience of safer and easier varieties are increasing.
The retail segment is expected to grow at a significant CAGR of 15.5% during the forecast period. With the growing popularity of online sales, the retail industry faces the threat of cyber-attacks such as payment fraud, identity theft, etc. Moreover, consumers are recognizing greater security concerns when shopping online, and retailers are expected to be offering robust data capture solutions to protect their personal information. Advances in the scanning technology, mobile authentication services, and biometric technologies have led to a variety of new MFA solutions. Other verticals such as education, utilities, manufacturing, and logistics have found new ways to incorporate multifactor authentication technology to secure corporate transactions and protect private data. To combat these risks and build customer confidence, retailers recognize multifactor authentication as an effective security mechanism to protect sensitive customer information, including payment information, personal information.
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Multi-factor Authentication Market Regional Insights
Asia-Pacific dominated the market and held the highest revenue share of 30.3% in 2023. The growth of the region is expected to witness the fastest CAGR of 15.4% during the forecast period due to expenditure, increased demand for the connected devices, cloud-IoT types. Heightened emphasis on security of personal data and authentication of online transactions, with regulations along with increasingly strong compliance is driving demand for MFAs. The region's diverse market landscape, including SMEs and large enterprises, creates a demand for scalable and cost-effective MFA solutions. Additionally, increasing incidences of data breaches and stricter regulatory frameworks, like India’s Personal Data Protection Bill and China’s Cybersecurity Law, are pushing organizations to adopt MFA practices.
North America leads the multi-factor authentication market, driven by its advanced cybersecurity policies, widespread adoption of cloud services and stringent regulatory requirements. The presence of technology giants like Microsoft, Cisco (Duo Security), and Okta has solidified the region's dominance. Companies in industries such as finance, healthcare and government are early adopters of MFAs to mitigate cyber threats and stringent data security regulations such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA). Rapid adoption of new technologies such as AI-powered authentication and biometric solutions will further accelerate the growth of the market.
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Multi-factor Authentication Market Dynamics
Drivers
Increasing Cloud Adoption is Driving Market Growth
- Cloud technologies are an important trend in fraud detection and prevention. It provides robust power generation, storage space and the Internet and cloud technology, which enables faster investigations into cybercrime. In addition, small and medium-sized companies operating in banks and financial institutions are actively implementing cloud-based fraud detection and prevention services in their organizations.
Rise in Adoption of Mobile Devices
- Increased growth in the use of mobile devices such as smartphones and tablets, and widespread adoption of mobile applications across industries is a key driver of the global market. Mobile user authentication solutions for easy and secure access to ensure user identity, so organizations can reduce the risk of unauthorized access and potential data breaches and ensure a seamless user experience.
Restraints
Lack of Knowledge and Awareness for Deployment of Authentication Technology
- There are a variety of options available to protect smartphones and other electronic devices from phishing and other security threats. However, limited knowledge about authentication applications such as behavioral biometrics, keystroke mobility touch kinetics, among others hinders the market growth potential. Furthermore, potential awareness among the consumers about emerging technologies such as new smartphone authentication software acts as a valid restraint to the growth of the market.
Security Concerns and Usability Challenges
- Despite the increasing demand for mobile user authentication solutions, security concerns and usability concerns act as major restraints on the market. Mobile devices are inherently more susceptible to protection threats along with device theft, malware scams. Moreover, it is able to be hard for corporations to implement strong authentication techniques on cellular platforms without compromising the user experience.
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Multi-factor Authentication Market Competitive Landscape
The multi-factor authentication market growth is characterized by fierce competition between established technology giants and innovative start-ups, all vying to address the growing demand for authentication solutions. The competitive environment is shaped by continuous product innovation, strategic collaborations, and targeted expansions into emerging markets. Cisco Duo’s integration with platforms such as Microsoft 365 and Google Workspace increases its appeal to businesses adopting cloud-based collaboration tools.
Top Player’s Company Profiles
- Symantec Corporation
- CA Technologies Inc.
- Gemalto N.V.
- Vasco Data Security International
- Tele Sing Corp.
- Entrust Datacard Corporation
- Authentify Inc.
- Plurilock Security Inc.
- Securenvoy Plc
- SECUREAUTH Corporation
- EMC Corporation.
- Stytch
- Aware Inc
- RSA Security LLC (Dell Technologies)
- OneSpan Inc.
- Duo Security (Cisco Systems Inc.)
- Nexus Group
- Entrust Datacard Corporation
Recent Developments
- March 2024: Digital identity management specialist Intercede released MyID MFA (multifactor authentication) 5.0. This latest iteration in the MyID lineup raises security standards, empowering organizations to secure both on-premises and cloud applications.
- February 2024: Giesecke+Devrient strengthened its digital portfolio financially by increasing its stake in software company Netcetera.
- November 2023: October Inc. partnered with Trio, a mobile device management (MDM) provider. This collaboration empowers Trio to provide equipment management and security solutions for enterprises.
Multi-factor Authentication Key Market Trends
Shift Towards Passwordless Authentication
- The multi-factor authentication market is witnessing a significant shift towards passwordless authentication methods, driven by the demand for increased security and enhanced user experience. Passwordless applications functionality, such as biometric authentication (fingerprint, facial recognition) and hardware tokens, prevent vulnerabilities associated with traditional passwords, such as phishing prevention and credential theft. Big players like Okta are adding passwordless options to their MFA platforms to address these challenges.
Integrating Artificial Intelligence (AI) and Behavioral Analysis
- AI and behavioral analytics are transforming the market by enabling adaptive authentication. Rather than relying solely on static objects, this technology analyzes user action patterns, devices used, and location to assess risk in real time. This dynamic approach makes safety greater without compromising user comfort, because it changes the need for authentication based on risk levels.
Multi-factor Authentication Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the multi-factor authentication market is growing exponentially, driven by increasing cyber-attacks and the need for robust identity verification techniques. Organizations with services such as banking, healthcare and government are adopting MFA solutions to enhance security and comply with stringent regulations. Meanwhile, North America is emerging as a fast-growing region, driven by increasing digitization and growing awareness of cybersecurity threats. In a competitive environment, acquisitions and innovations are still the main strategies for market competition, with established players such as Microsoft, IBM, Okta, and start-ups offering innovative solutions, including low cost designed for SMEs. Regional growth plays an important role, with Asia Pacific dominating the market due to technological advancement and regulatory framework. Overall, the market is poised for continued growth as organizations prioritize security in an increasingly interconnected digital environment.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 14.28 Billion |
| Market size value in 2031 | USD 47.18 Billion |
| Growth Rate | 14.2% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Multi-factor Authentication Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Multi-factor Authentication Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Multi-factor Authentication Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Multi-factor Authentication Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Multi-factor Authentication Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Multi-factor Authentication Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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