Industry Overview
The forecasted period from 2025 to 2030 is expected to witness significant growth in the global multifactor authentication (MFA) market. With a compound annual growth rate (CAGR) of 16.3%, the market is projected to expand from USD 12.2 billion in 2023 to USD 27.3 billion by 2030.
The multifactor authentication method is an advanced security system that entails users providing two or more validation factors to access resources like Components, online accounts, and Virtual Private Networks (VPN). The increased number of verification processes will decrease the probability of security breaches like hacking and data theft and will accelerate the demand for MFA systems. The MFA system comprises logical, biometric, and physical procedures to pass the security system. Multifactor authentication is gaining prominence as it provides a high degree of security and various models of multi-factor authentication are adopted in various industry verticals like BFSI, government, immigration and travel, commercial security, electronics, and healthcare.
Market Segmentation
Insight by Model Type
The global multifactor authentication (MFA) market is segmented by its model types into two-factor authentication, multifactor with three-factor authentication, multifactor with four-factor authentication, and multifactor with five-factor authentication segments. The two-factor authentication is further divided into a smart card with a pin, a smart card with biometric technology, biometric technology with a pin, two-factor biometric technology, and a one-time password with the pin. The multifactor with three-factor authentication is further segmented into a smart card with pin and biometric technology, a smart card with two-factor biometric technology, a pin with two-factor biometric technologies, and three-factor biometric technology. Out of these segments and subsegments, the two-factor authentication segment will dominate the market due to higher adoption and ability to authenticate the identification of users digitally using different factors such as possession-based factors, knowledge-based factors, and inherence-based factors. On the other hand, the multifactor with five-factor authentication segment will be the fastest growing segment during the forecast period due to its high level of security and higher application in government agencies such as homeland security services, safeguarding access to top-secret files and national data, and technology in national research centers.
Insight by Component
The global multifactor authentication (MFA) market is also divided by its components into solutions, hardware, and services. Out of these segments, the service segment will dominate the market during the forecast period due to its growing demand and adoption of MFA solutions that need proper deployment, execution, and maintenance. Proper functioning of the MFA solutions results in higher flexibility in operations improvement in data security and compliance.
Insight by Authentication Type
According to the authentication type, the global multifactor authentication (MFA) market is divided into password authentication and passwordless authentication. Out of these two segments, the password authentication segment is expected to grow and contribute more to the market share during the forecast period, as it is a low-cost solution that offers significantly good security. However, the password-less authentication segment will grow at a faster rate due to tech developments and higher implementation of sophisticated technologies like AI and IoT in electronic devices like tablets and smartphones. It is also attributed to the growing adoption of fingerprint and face recognition techniques.
Insight by Industry Vertical
Industry verticals split the global multifactor authentication (MFA) market into BFSI, government, travel and immigration, military and defense, commercial security, IT, telecommunication, healthcare, media and entertainment, education, retail, and eCommerce segments. Out of all these segments, the BFSI industry sector is expected to dominate the market due to higher security requirements to protect the large number of sensitive data they handle. Typically, these solutions help them meet strict government regulations such as PSD2 and PCI DSS to protect customer data.
Global Multifactor Authentication Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. 12.2 Billion
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Revenue Forecast in 2030
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U.S.D. 27.3 Billion
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Growth Rate
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16.3%
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Segments Covered in the Report
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By Model Type, By Component, and By Authentication, Industry Vertical
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia-Pacific, Middle East, and Rest of the World
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Industry Dynamics
Industry Trends
The most notable trend in the industry is the implementation of advanced technologies such as blockchain. Another notable trend is the incorporation of decentralized authentication systems that minimize the use of centralized data and application servers, facilitating computer networks in encrypting, synchronizing, and storing data.
Growth Drivers
The most significant growth factor of the global multifactor authentication (MFA) market is the rising concern for security breaches and fraud activities among organizations that handle sensitive data that needs to be protected from theft. Also, the rise in the adoption of BYOD and IoT technology propels market growth, as does the rise in demand for cloud-based MFA services and solutions. Moreover, today's large volume of online transactions requires a robust authentication system to push the market forward. Some other important growth factors of the market include the strict government regulations such as GDPR, CCPA, and PSD2 and compliance requirements that push the demand for foolproof security practices in organizations to prevent data leaks, thefts, frauds, and identity thefts. Furthermore, growing investment in cloud technologies and services, higher internet penetration, growing need for higher enterprise mobility, higher adoption of smartphones with built-in authentication technology, and growth of e-commerce bolster the market growth.
Challenges
The complexities involved in multifactor authentication, as well as the higher cost of procurement, implementation, management, and maintenance, along with the reluctance of end-users to adopt these solutions due to uncertainties, hinder the growth of the global multifactor authentication (MFA) market.
Opportunities
The non-intrusive design of the multifactor authentication systems allows easy and non-disruptive integration into the existing digital infrastructure of an organization. This, along with the ability to promote security in digital services, offers higher growth opportunities. It is also attributed to well-designed APIs that integrate effortlessly with the login pages, offering more flexibility and feasibility in authentication practices. Also, the rise in online transactions and the IT industry provides lucrative growth opportunities to MFA manufacturers.
Geographic Overview
North America dominates the market due to the growing penetration of smartphones, higher adoption of digital services, and rapid developments in the technological field. Moreover, upgraded network connectivity, along with growing instances of cyberattacks, promotes the market. The existence of major players like Symantec and CA Technologies also promotes market growth in this region.
Asia-Pacific, on the other hand, will also grow at a faster rate due to rapid technological developments and higher investments in advanced technologies like IoT and cloud, a rise in consumer spending on connected devices, and growing demand for digital services.
Competitive Insight
The industry players are innovating and deploying various solutions to handle the operational efficiencies of organizations and investing in research and development activities to develop novel authentication products, solutions, and services. Moreover, the market players are adopting inorganic strategies like M&A with small firms to enhance their product portfolio and have a competitive edge in the market.
Okta is one of the leading independent providers of identity for enterprises and provides flexibility in multifactor authentication solutions and includes single sign-on, access gateway, universal directory, and authentication.
OneSpan Inc. is a publicly traded cybersecurity technology company based in Boston, Massachusetts, with offices in Montreal, Brussels and Zurich. The company offers a cloud-based and open-architected anti-fraud platform and is historically known for its multi-factor authentication and electronic signature software.
Some of the key players operating in the multifactor authentication market: are Broadcom, OneSpan, Okta, Microsoft, RSA Security LLC, Safran, Thales Group, SUPREMA, Ping Identity, and Fujitsu.
Recent Developments by Key Players
OneSpan’s Integration Platform enables organizations to easily integrate OneSpan Sign into the application of their choice. These pre-built integrations, which range from popular business apps including Microsoft Apps, Google Workspace, Salesforce, and Workday allow organizations to manage a seamless, modern digital agreement process.
Okta has entered into a definitive agreement to acquire Spera Security, an Identity security platform, to broaden its identity threat detection and security posture management capabilities.
The Multifactor Authentication Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Model Type
- Two-Factor Authentication
- Smart Card with Pin
- Smart Card with Biometric Technology
- Biometric Technology with Pin
- Two-Factor Biometric Technology
- One-Time Password with Pin
- Multifactor with Three-Factor Authentication
- Smart Card with Pin and Biometric Technology
- Smart Card with Two-Factor Biometric Technology
- Pin with Two-Factor Biometric Technologies
- Three-Factor Biometric Technology
- Multifactor with Four-Factor Authentication
- Multifactor with Five-Factor Authentication
- By Component
- Solutions
- Hardware
- Services
- By Authentication Type
- Password Authentication
- Passwordless Authentication
- By Industry Vertical
- BFSI
- Government
- Travel and Immigration
- Military and Defense
- Commercial Security
- IT
- Telecommunication
- Healthcare
- Media and Entertainment
- Other Verticals (Education, and Retail, and eCommerce
Region Covered in the Report
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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Source: VynZ Research
