Global Multi-Factor Authentication Industry Research Report

Market Overview:

The global multi-factor authentication market size reached US$ 18.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 65.9 Billion by 2032, exhibiting a growth rate (CAGR) of 15% during 2024-2032. The growing focus on data privacy and security regulations, rising demand for advanced cybersecurity to reduce fraud, and increasing awareness about the importance of securing remote access are some of the major factors propelling the market.

Multi-factor authentication (MFA) is an advanced security protocol that is designed to enhance the protection of digital accounts and systems. It works by requiring users to provide multiple forms of identification, such as a password, fingerprints, or facial recognition, before gaining access. It assists in strengthening security by making it more challenging for unauthorized individuals to breach accounts or systems. As it aids in reducing fraud and threats, the demand for MFA is increasing across the globe.

At present, the rising need to safeguard sensitive information and reduce the risk of unauthorized access is supporting the growth of the market. Besides this, the increasing adoption of cloud-based applications and services that require enhanced security measures is strengthening the growth of the market. Additionally, the growing demand for MFA to maintain customer trust by preventing data leakage is positively influencing the market. Apart from this, innovations in biometrics, mobile authentication, and hardware tokens assist in providing more user-friendly and effective solutions to individuals around the world, which is offering lucrative growth opportunities to industry investors. Furthermore, the rising integration of MFA with identity and access management (IAM) solutions to streamline the management of user identities and access permissions is bolstering the growth of the market.

Multi-Factor Authentication Market Trends/Drivers:

Rising demand for advanced cybersecurity

The rising demand for advanced cybersecurity to reduce the number of threats and crimes is bolstering the growth of the market. In addition, the emergence of these cyber threats poses a significant risk to organizations across all sectors. Cybercriminals are increasingly utilizing techniques to steal sensitive information from individuals. Besides this, MFA is a critical solution to combat these threats as it offers an additional layer of defense against unauthorized access. Various companies are rapidly investing in advanced cybersecurity solutions to safeguard their data, protect their customers, maintain their reputation, and prevent huge financial losses, which is contributing to the growth of the market.

Increasing focus on data privacy and security regulations

The increasing focus on data privacy among various business organizations across the globe is propelling the growth of the market. In line with this, governing agencies and various private organizations of several countries are implementing stringent measures to protect sensitive information. In addition, compliance with these regulations is not optional but it is legally required. Apart from this, MFA is a fundamental component of compliance efforts, as it significantly enhances data security. Organizations are implementing MFA to mitigate the risk of data breaches and ensure the privacy of personal and sensitive data as it can result in severe financial penalties and lower the reputation of an organization.

Growing awareness about the importance of securing remote access

The rising awareness about the importance of securing remote access is impelling the growth of the market. In addition, there is an increase in the popularity of remote working in various organizations across the globe. Besides this, MFA is an essential tool that ensures only authorized individuals can access critical systems and data. Moreover, there is a rise in chances of expanded cybercriminals as employees access corporate networks and sensitive data from various locations. The increasing demand for MFA solutions as organizations adapt to remote work arrangements is contributing to the growth of the market. Employers recognize that securing remote access is essential in maintaining the operational continuity of a business.

Multi-Factor Authentication Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global multi-factor authentication market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on model, deployment type, application and vertical.

Breakup by Model:

• Two-Factor Authentication
• Three-Factor Authentication
• Four-Factor Authentication
• Five-Factor Authentication
   

Two-factor authentication represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the model. This includes two-factor authentication, three-factor authentication, four-factor authentication, and five-factor authentication. According to the report, two-factor authentication represented the largest segment. Two-factor authentication (2FA) is a security process that requires users to provide two separate authentication factors to access a system, account, or application. The two factors typically fall into three categories, such as a password, a smartphone or hardware token, and biometric data like fingerprints. By combining any two of these factors, 2FA significantly enhances security as compared to relying solely on a password. This approach mitigates the vulnerabilities associated with password-based authentication, such as weak passwords or password reuse.

Breakup by Deployment Type:

• On-Premises
• On-Cloud
   

On-premises accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the deployment type. This includes on-premises and on-cloud. According to the report, on-premises represented the largest segment. On-premises deployment refers to the installation and management of authentication systems within the physical infrastructure of an organization rather than relying on cloud-based or off-site solutions. It provides organizations with complete control over their authentication systems and allows them to tailor security measures to their specific needs and compliance requirements. This level of control is especially crucial for industries with stringent data security regulations, such as finance and healthcare. Furthermore, on-premises deployment often offers enhanced security as sensitive authentication data remains within the own secure network of organization, which reduces exposure to external threats.

Breakup by Application:

• Smart Card Authentication
• Phone-Based Authentication
• Hardware OTP Token Authentication
   

Phone-based authentication holds the biggest market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes smart card authentication, phone-based authentication, and hardware OTP token authentication. According to the report, phone-based authentication represented the largest segment. Phone-based authentication offers a convenient and secure means of verifying user identities. It leverages mobile devices, such as smartphones, as a key component in the authentication process. It typically involves the generation of one-time passwords (OTP) or the use of mobile apps to validate the identity of users. OTPs are sent via short message service (SMS), voice calls, or generated by mobile apps. This authentication method is highly versatile and widely adopted across industries. It is commonly used to secure online accounts, mobile banking, and two-factor authentication (2FA) for various applications.

Breakup by Vertical:

• Banking & Finance
• Government
• Travel & Immigration
• Military & Defence
• IT and Telecom
• Healthcare
• Retail and Ecommerce
• Others
   

Banking and finance dominate the market segment

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes banking and finance, government, travel and immigration, military and defence, IT and telecom, healthcare, retail and ecommerce, and others. According to the report, banking and finance represented the largest segment. The banking and finance sector is one of the most security-conscious industries due to its responsibility for managing and protecting vast amounts of monetary assets and personal information. Authentication methods like MFA and biometrics are extensively deployed to secure online banking, mobile banking apps, and transactions. MFA adds an extra layer of protection that assists in preventing losses. Moreover, biometric authentication, such as fingerprint recognition and facial recognition, is increasingly used in this sector due to its high level of security and convenience. It ensures that only authorized individuals can access accounts and conduct financial transactions.

Breakup by Region

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Chile
  • Peru
  • Others
• Middle East and Africa
  • Turkey
  • Saudi Arabia
  • Iran
  • United Arab Emirates
  • Others
     

North America exhibits a clear dominance, accounting for the largest multi-factor authentication market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others); and the Middle East and Africa (Turkey, Saudi Arabia, Iran, United Arab Emirates, and Others). According to the report, North America accounted for the largest market share.

North America held the biggest market share due to the increasing adoption of advanced authentication methods. In addition, the rising focus on security to protect the vast amounts of financial data is strengthening the growth of the market in the region. Apart from this, the growing demand for MFA due to stringent data protection regulations is positively influencing the market. In line with this, the increasing number of data breaches is supporting the growth of the market in the North America region.

Competitive Landscape:

Key players are continuously developing and refining authentication methods, such as mobile-based authentication, behavioral analytics, and biometrics, including facial recognition and fingerprint scanning, to offer more secure and user-friendly options. In addition, they are working on ensuring their MFA solutions seamlessly integrate with a wide range of applications, systems, and devices. This enhances the overall user experience and makes it easier for organizations to implement MFA across their IT environments. Apart from this, many MFA providers are offering cloud-based solutions that provide scalability and flexibility for businesses. Furthermore, companies are investing in enhancing the security features of their MFA solutions to stay ahead of evolving threats. Additionally, they are ensuring compliance with data protection regulations.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• CA Technologies
• Crossmatch
• Deepnet Security Ltd.
• Entrust Datacard Corporation
• Fujitsu
• Gemalto NV
• Microsoft Corporation
• NEC Corporation of America
• Okta
• Ping Identity
• RSA Security
• SecureAuth
• SecurEnvoy Limited (Shearwater Group plc Company)
• Suprema Inc.
• Symantec Corporation

Recent Developments:

• In 2021, Microsoft Corp. announced new products, employee plans, and guidance to tackle the global fight against increasingly large-scale and complex cyberattacks. These include additional support for multifactor authentication (MFA) and security protection for customers.
• In 2020, Ping Identity, announced the availability of its PingID multi-factor authentication (MFA) in AWS marketplace. These cloud-ready solutions enable enterprises to secure remote work and boost employee productivity.
• In 2021, SecureAuth, a provider of identity and access management solutions acquired Acceptto, an emerging leader in passwordless authentication. The acquisition of Acceptto accelerates SecureAuth’s vision of AI-driven continuous authentication and allows SecureAuth to be the preferred choice for user-friendly passwordless login.

Multi-Factor Authentication Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the multi-factor authentication market from 2018-2032.
• The research report study provides the latest information on the market drivers, challenges, and opportunities in the global multi-factor authentication market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the multi-factor authentication industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.