Multi-Factor Authentication Market Size & Share, Forecast Report 2035

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Multi-Factor Authentication Market size is estimated to reach USD 364.4 Billion by the end of 2035, growing at a CAGR of 18.2% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of multi-factor authentication was over USD 49 Billion. Cyberattacks' escalating frequency and sophistication have compelled organizations to adopt more robust security measures in turn boosting the market growth. In a survey conducted it was found that, in 2022, organizations around the world recorded a total of 493.33 million ransomware attacks, also the average cost of infringements resulting from stolen or compromised identification documents was USD 4.5 million.

MFA provides an effective defined mechanism against unauthorized access and compromises, making it a crucial solution for safeguarding sensitive information.

The proliferation of remote work and the Bring Your Device (BYOD) trend have expanded the attack surface for cybercriminals. MFA is crucial in securing remote access to corporate networks, cloud services, and critical applications. The proportion working from home has increased to 12.7% of total employed persons and 28.2% work in hybrids as of 2023, providing surplus opportunities for the multi-factor authentication industry.

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Multi-factor Authentication Market: Key Insights

Base Year	2022
Forecast Year	2023-2035
CAGR	~ 18.2%
Base Year Market Size (2022)	~ USD 49 Billion
Forecast Year Market Size (2035)	~ USD 364.4 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Multi-Factor Authentication Sector: Growth Drivers and Challenges

Growth Drivers

Cloud Computing Adoption – The migration of businesses to cloud-based platforms has increased the need for robust authentication solutions. MFA ensures secure access to cloud services and prevents unauthorized users from gaining access to sensitive data stored in the cloud, and with 61% of businesses switching workloads to the cloud in 2020, the markets for MFA is constantly increasing.
Mobile Device Proliferation – The ubiquity of smartphones and mobile devices has enabled the adoption of mobile-based MFA methods, such as biometric authentication and one-time passwords delivered via SMS or mobile apps, providing convenient yet secure ways to verify user identities. with global smartphone network subscriptions reaching 6.4 billion in 2022, the use of MFA increased several fold.
Advancement in Technology – Technological advancements have led to the development of innovative MFA methods, such as behavioral biometrics, geolocation, and hardware tokens. These emerging solutions offer improved user experiences while maintaining a high level of data protection.

Challenges

Complexity and User Friction – Some MFA methods can introduce complexity and friction for users during the authentication process. Remembering multiple authentication factors or navigating through additional verification steps can lead to user frustration and potential abandonment of the process, restraining market growth.
High investment cost
Integration challenges, especially in a heterogeneous environment

Multi-Factor Authentication Segmentation

Authentication Type (Password Authentication, Password-less Authentication)

Passwordless authentication is anticipated to hold the 57% share of the multi-factor authentication market in the Authentication Type segment. The password-less authentication methods are more difficult to brute force than legacy passwords, and less vulnerable to cyber-attacks. In India, 77 percent of respondents were considering implementing a strategy without passwords in their companies. This came as a major boost for the segment.

Enterprise Size (Small& Medium Enterprises, Large Enterprises)

Large enterprises are expected to have a dominant position throughout the forecast period, accounting for more usage of MFA to protect against cyber-attacks. Two-factor authentication systems can be used widely in large enterprises as it reduces the risk of password theft. Multi-factor authentication can successfully prevent 99.9% of current automated cyberattacks. Overall, MFA is quite effective at stopping cyberattacks because it also foils 76% of targeted attacks and 96% of large-scale phishing attempts. Large businesses are drawn to implement multi-factor authentication because of its reliability.

Our in-depth analysis of the global market includes the following segments:

Authentication Type	Password Authentication Passwordless Authentication
Model Type	Two-Factor Authentication Three-Factor Authentication Four -Factor Authentication Five -Factor authentication
Enterprise Size	Small& Medium Enterprises Large Enterprises
End-User	BFSI Government Travel & Immigration Military & Défense Commercial Security Healthcare

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Multi-Factor Authentication Industry - Regional Synopsis

North American Market Forecast

The multi-factor authentication market is anticipated to hold a 34% revenue share by the end of 2035. Factors that underpin this are the presence of important providers, regulatory environment, innovation and investment as well as a high rate of technology adoption.

Businesses in the region have started using MFA solutions to prevent cyber-attacks. As per a report 53.35 million US citizens were affected by cybercrime in the first half of 2022. Also, identity theft and trade espionage by giving greater protection of personal data and protecting sensitive information to make it easier for them to grow.

European Market Statistics

The European multi-factor authentication market is growing at a significant rate owing to the country’s economic development and technological maturity. The General Data Protection Regulation (GDPR) has heightened the importance of data protection, leading to increased MFA adoption in various sectors. Data breach costs have been lowered for GDPR Ready companies. In 2019 alone, 37 % of these firms lost over USD 500,000, this has led companies to adopt MFA as a precursor, increasing market demand.

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Companies Dominating the Multi-Factor Authentication Landscape

OneSpan
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

RSA Security LLC
NEC Corporation
Broadcom Inc.
Trust Stamp
Open Text Corporation
Oracle
Secret Double Octopus
Microsoft
Appsian Security.

In The News

Trust Stamp has introduced a biometric multifactor authentication solution based on Biometric MFA. The Biometric MFA automates reliable identity assurance with only a selfie. It adds a second and third authentication factor by verifying that the data from the selfie is still active and irreversibly tokenizing it, doing away with the requirement for passcodes from SMS, email, authenticator applications, or hardware tokens.
OneSpanTM, a firm that secures digital agreements, today unveiled its most recent high-assurance identity verification and authentication tools. These tools are intended to boost the security, confidence, and trust that have grown to be essential to how we communicate and carry out significant digital transactions. The latest generation of OneSpan's cloud-connected DIGIPASS CX devices offers the highest level of assurance in response to the growing issue of identity and credential theft as well as the relentlessness of cyber adversaries.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the Multi-Factor Authentication market?

Ans: Escalating cyber-attacks, increasing remote work culture, and penetration of mobile devices are some of the major growth factors for the multi-factor authentication market.

2) What would be the CAGR of the Multi-Factor Authentication market over the forecast period?

Ans: The market size of Multi-Factor Authentication is anticipated to attain a CAGR of 18.2% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the Multi-Factor Authentication market?

Ans: The major players in the market are, Broadcom Inc., Thales, Open Text Corporation, Oracle, ,Microsoft, Duo, Broadcom, SQUARE ENIX CO., LTD. And others.

4) Which segment captures the largest market size in the End-User segment in the Multi-Factor Authentication market?

Ans: The BFSI segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

5) Which region will provide more business opportunities for the growth of the Multi-Factor Authentication market in the future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.