Multi-factor Authentication Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 18.12 Billion |
| Market Size (2029) | USD 38.90 Billion |
| CAGR (2024 - 2029) | 16.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Multi-factor Authentication Market Analysis
The Multi-factor Authentication Market size is estimated at USD 18.12 billion in 2024, and is expected to reach USD 38.90 billion by 2029, growing at a CAGR of 16.5% during the forecast period (2024-2029).
With the increasing frequency and sophistication of cyber threats, including phishing attacks and data breaches, organizations are pressured to implement strong security measures, such as multi-factor authentication, to protect confidential information and prevent unauthorized access. Strict data protection legislation and compliance standards, including the General Data Protection Regulation, Health Insurance Portability and Accountability Act, and PCI Security Standards, are driving MFA adoption.
To drive demand for multi-factor authentication solutions, regulatory compliance is crucial. Governments and industry regulators worldwide, such as the General Data Protection Regulation, HIPAA, or PCI DSS, have set strict security standards to protect sensitive data. Organizations increasingly rely on MFA as a reliable means of enhancing authentication security to comply with these requirements. The failure to comply with these regulations may lead to significant sanctions and possible judicial consequences, making the implementation of MFA a key element in risk mitigation for companies.
The rising instances of cyber-attacks in various end-user industries, including BFSI, healthcare, IT, and telecom, supported by their increasing usage of the internet to have digitalized operational processes, are fueling the demand for multi-factor authentication (MFA) solutions in the market. MFA adds a layer of protection to the user's access control, endpoint systems, or company data, which effectively helps prevent stolen passwords, malware, phishing, and ransomware attacks.
Multi-factor authentication (MFA) has been significantly used to enhance security measures in the Industrial Internet of Things (IIoT). It helps integrate two or more authentication factors such as biometrics, possession, one-time passwords (OTP), timestamps, challenges, and passwords, which can be used for the secure access of IIOT users, network administrators, and maintenance personnel, driving the demand for NFA solution in the market in line with the growth of IIOT worldwide.
Technology is only one of the components of MFA. Effective data security primarily requires the best practices of MFA, including detailed policies and procedures for handling and storing critical data and dealing with security violations. An effective MFA also depends upon the IT staff’s knowledge of data security requirements and end-user awareness of data security practices.
Furthermore, the Israel-Palestine issue has also prompted an increase in cyber attacks. For instance, various hacktivist groups have targeted critical infrastructure, government agencies, and organizations in both Israel and Palestine. DDoS attacks, defacements, and data breaches are also included in these attacks. As other countries take a stand on the war, the conflict has spread beyond the immediate region, affecting several other countries. Therefore, the growing geopolitical concerns are expected to cause several cyber threats, indicating an upward trend in adopting and implementing cybersecurity strategies and solutions during the forecast period.
Multi-factor Authentication Market Trends
Two-factor Authentication Type to Witness Major Growth
- There has been a growing demand for two-factor authentication globally as it adds a layer of authentication, typically requiring something the user knows, such as a password or an OTP. This multi-tiered approach significantly reduces the vulnerability to phishing attempts and credential stuffing, thereby providing strong security to digital assets.
- Additionally, the growing number of data breaches and cyber-attacks has underscored the inadequacy of reliance solely on passwords. The compromised credentials of one platform often serve as the keys to unlocking multiple accounts, leading to reduced breaches with far-reaching repercussions. Due to this, most companies are integrating two-factor authentication into their authentication frameworks. With this, organizations can eliminate unauthorized access even during password compromises, driving the demand for two-factor authentication.
- Furthermore, as the demand grows, most companies have started implementing two-factor authentication systems to provide more security to their users, driving the market’s growth. For instance, in April 2024, the Pension Fund Regulatory and Development Authority (PFRDA) of India announced that the organization planned to revamp its current login process for the National Pension System (NPS) to enhance its security system. The organization has implemented a two-factor Aadhaar authentication and made the new security mandatory for all password-based users logging into the Central Recordkeeping Agency system of the NPS.
- Furthermore, the growing cloud-based services and the advent of Internet of Things (IoT) devices have expanded the cyber threats exponentially. As of March 2023, GSMA reported that the Internet of Things (IoT) connections across the world in enterprises are increasing significantly, and these connections would reach 44 billion by 2030, raising the risk of data breaches. Due to this, cloud service providers and enterprises have started implementing two-factor authentication, which can authenticate users and devices across disparate platforms and environments.
North America Holds the Largest Market Share
- The United States faces a sophisticated and evolving cyber threat landscape. It is at the epicenter of cybercrime due to the growing penetration of digital technologies in end-user industries compared to other countries. Businesses in the United States face a higher volume of cyber-attacks, which incur costly consequences. Cybersecurity has become an increasingly important area of focus in the country, owing to the rising number of cyber threats and attacks that organizations and individuals face.
- Additionally, as per the Identity Theft Resource Center (ITRC) report published in February 2024, in 2023, the United States recorded 3,205 data breaches, a 78% increase from 2022 and a 72% increase since 2021. Such high-profile data breaches and cybersecurity incidents have raised awareness among businesses and consumers about the importance of implementing robust security measures to safeguard personal and sensitive information. Hence, companies are increasingly adopting multi-factor authentication solutions to help organizations mitigate the risk of account takeover and identity-related fraud.
- The cybersecurity market in Canada is evolving with the increasing digitalization trends in the private and public sectors. For instance, the country's energy sector is witnessing a transformation driven by digital technologies such as cloud, AI, IoT, and quantum computing. As the industry evolves, the country's cybersecurity demand is growing.
- The shift toward cloud deployment of security solutions to minimize the total cost of ownership is anticipated to offer multi-factor authentication solution providers the opportunity to develop solutions to suit customer demands in the country.
Multi-factor Authentication Industry Overview
The multi-factor authentication market is fragmented due to the presence of both global players and small and medium-sized enterprises. Some of the major players in the market are Yubico AB, Giesecke+Devrient GmbH, Thetis, GoTrustid Inc., and Thales. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- February 2024 - Giesecke+Devrient bolstered its digital portfolio in financial platforms by increasing its stake in software firm Netcetera. This move aims to enhance Giesecke+Devrient's offerings in digital payments and banking, paving the way for the company to introduce MFA-based solutions to the financial sector, thereby strengthening its market presence.
- November 2023 - Okta Inc. teamed up with Trio, a mobile device management (MDM) provider. This collaboration empowers Trio to deliver a holistic solution for device management and security across workplaces of all sizes. This partnership is poised to amplify Okta's footprint in the MFA market, aligning with its strategic emphasis on identity access management solutions.
Multi-factor Authentication Market Leaders
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Yubico AB
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Giesecke+Devrient GmbH
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Thetis
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GoTrustid Inc.
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Thales
*Disclaimer: Major Players sorted in no particular order
Multi-factor Authentication Market News
- March 2024: Identiv Inc., a global leader in digital security and identification within the Internet of Things (IoT) realm, unveiled ScrambleFactor, enhancing its portfolio of high-security physical access control systems. Tailored for the federal market, the ScrambleFactor reader combines fingerprint biometrics with an LCD touchscreen keypad, offering multiple authentication methods that emphasize security, speed, functionality, and convenience.
- March 2024: Intercede, a specialist in digital identity management, rolled out MyID MFA (multi-factor authentication) 5.0. This newest iteration in the MyID lineup elevates security standards, empowering organizations to safeguard both on-premise and cloud applications alongside Windows desktop logins. It offers a suite of phishing-resistant MFA solutions, such as OTPs (one-time passwords), mobile applications, syncable FIDO passkeys, and hardware devices secured by biometrics.
Multi-Factor Authentication (MFA) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Analysis of Macro Economic Scenarios
4.3 Insights on the Regulatory Landscape Related to Cyber Security
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Cybercrime, Digital Disruption, and Increased Compliance Demands
5.1.2 Rising Adoption of Interconnected Devices
5.1.3 Increased Instances of Identity Theft and Fraud
5.2 Market Challenges
5.2.1 Lack of Technical Expertise
5.2.2 Complexities in Implementing and Using Multi-factor Authentication
5.3 Market Opportunities
5.3.1 Standards/Specifications for Authentication Solutions (ACE, FBA, FIDO, etc.)
5.3.2 Pricing Analysis for MFA Tools (Hardware and Software)
6. MARKET SEGMENTATION
6.1 By Offering Type
6.1.1 Hardware
6.1.1.1 Token
6.1.1.2 Biometric Devices
6.1.1.3 Other Devices
6.1.2 Software
6.1.2.1 Authenticator Solutions
6.1.2.2 Mobile Apps
6.1.3 Services
6.2 By Authentication Type
6.2.1 Two-factor Authentication
6.2.2 Three-factor Authentication
6.2.3 Four-factor Authentication
6.2.4 Other Types of Authentication
6.3 By End-user Industry
6.3.1 Banking and Financial Institutions
6.3.2 Cryptocurrency
6.3.3 Technology-based Companies (SaaS and IT Service Vendors)
6.3.4 Government - Federal, State, and Local Entities (Including System Integrators)
6.3.5 Healthcare and Pharmaceutical
6.3.6 Retail and E-commerce
6.3.7 Process-based Applications - Energy and Manufacturing
6.3.8 Other End-user Verticals - Education, Immigration, Etc.
6.4 By Geography***
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 United Kingdom
6.4.2.2 Germany
6.4.2.3 France
6.4.3 Asia
6.4.3.1 China
6.4.3.2 India
6.4.3.3 Japan
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Vendor Positioning Analysis
7.2 Company Profiles
7.2.1 Yubico AB
7.2.2 Giesecke+Devrient GmbH
7.2.3 Thetis
7.2.4 GoTrustid Inc.
7.2.5 Thales
7.2.6 Duo (Cisco Systems Inc.)
7.2.7 RSA SECURITY LLC
7.2.8 Okta Inc.
7.2.9 Google LLC (ALPHABET INC.)
7.2.10 Ping Identity Corporation
7.2.11 ManageEngine (Zoho Corporation Pvt. Ltd)
7.2.12 Microsoft Corporation
7.2.13 Telesign Corporation (Proximus Group)
- *List Not Exhaustive
8. FUTURE OUTLOOK OF THE MARKET
Multi-factor Authentication Industry Segmentation
The multi-factor authentication market is defined based on the revenues generated from the hardware, software, and services used in various end-user industries across the globe. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the market in terms of drivers and restraints.
The multi-factor authentication market is segmented by offering type (hardware [token, biometric devices, and other devices], software [authenticator solutions and mobile apps], and services), authentication type (two-factor authentication, three-factor authentication, four-factor authentication, and other types of authentication), end-user industry (banking and financial institutions, cryptocurrency, technology-based companies [SaaS and IT service vendors], government [federal, state, and local entities (including system integrators)], healthcare and pharmaceutical, retail and e-commerce, process-based applications [energy and manufacturing], and other end-user industries [education and immigration]), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The report offers market sizes and forecasts in terms of value (USD) for all the above segments.
| By Offering Type | |||||
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| Services |
| By Authentication Type | |
| Two-factor Authentication | |
| Three-factor Authentication | |
| Four-factor Authentication | |
| Other Types of Authentication |
| By End-user Industry | |
| Banking and Financial Institutions | |
| Cryptocurrency | |
| Technology-based Companies (SaaS and IT Service Vendors) | |
| Government - Federal, State, and Local Entities (Including System Integrators) | |
| Healthcare and Pharmaceutical | |
| Retail and E-commerce | |
| Process-based Applications - Energy and Manufacturing | |
| Other End-user Verticals - Education, Immigration, Etc. |
| By Geography*** | |||||
| |||||
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| Australia and New Zealand | |||||
| Latin America | |||||
| Middle East and Africa |
Multi-Factor Authentication (MFA) Market Research FAQs
How big is the Multi-factor Authentication Market?
The Multi-factor Authentication Market size is expected to reach USD 18.12 billion in 2024 and grow at a CAGR of 16.5% to reach USD 38.90 billion by 2029.
What is the current Multi-factor Authentication Market size?
In 2024, the Multi-factor Authentication Market size is expected to reach USD 18.12 billion.
Who are the key players in Multi-factor Authentication Market?
Yubico AB, Giesecke+Devrient GmbH, Thetis, GoTrustid Inc. and Thales are the major companies operating in the Multi-factor Authentication Market.
Which is the fastest growing region in Multi-factor Authentication Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Multi-factor Authentication Market?
In 2024, the North America accounts for the largest market share in Multi-factor Authentication Market.
What years does this Multi-factor Authentication Market cover, and what was the market size in 2023?
In 2023, the Multi-factor Authentication Market size was estimated at USD 15.13 billion. The report covers the Multi-factor Authentication Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Multi-factor Authentication Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Multi-Factor Authentication (MFA) Industry Report
The Multi-Factor Authentication (MFA) market is segmented by offering type, including hardware, software, and services. The hardware segment comprises tokens, biometric devices, and other devices, while the software segment includes authenticator solutions and mobile apps. The services segment is also a significant part of the market. The market is further divided by authentication type, such as two-factor, three-factor, four-factor, and other types of authentication.
The MFA market serves various end-user industries, including banking and financial institutions, cryptocurrency, technology-based companies, government entities, healthcare and pharmaceutical, retail and e-commerce, process-based applications like energy and manufacturing, and other verticals such as education and immigration. Geographically, the market covers North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
The industry reports indicate a comprehensive market forecast and market growth outlook. The market size and market share are key metrics analyzed in the industry analysis. The report provides a detailed market overview, including market segmentation and market value. The industry trends and market predictions are essential for understanding the future market outlook.
The market leaders in the MFA industry are highlighted in the report, providing insights into market data and market review. The report also includes industry statistics and industry information, which are crucial for market research and industry research. The report example and report PDF are available for a deeper understanding of the market dynamics.
The MFA market is expected to witness significant growth rate due to increasing demand across various sectors. The industry sales and industry size are projected to rise, driven by advancements in technology and increasing security concerns. The market forecast and market growth are supported by detailed industry outlook and market predictions, ensuring a comprehensive understanding of the MFA market landscape.
