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Multi-Factor Authentication Market Size and Forecast, by Authentication Type (Password, Passwordless); Model Type (Two-Factor Authentication, Three-Factor Authentication, Four-Factor Authentication, Five-Factor authentication); Enterprise Size (SMEs, Large Enterprises); End-user (BFSI, Government, Travel & Immigration, Military & Defense, Commercial Security, Healthcare) - Growth Trends, Key Players, Regional Analysis 2026-2035

  • Report ID: 5191
  • Published Date: May 09, 2025
  • Report Format: PDF, PPT

Multi-Factor Authentication Market Outlook:

Multi-Factor Authentication Market size was over USD 19.41 billion in 2025 and is poised to exceed USD 89.39 billion by 2035, growing at over 16.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of multi-factor authentication is estimated at USD 22.29 billion.

Multi-Factor Authentication Market Size
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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.

Key Multi-Factor Authentication Market Insights Summary:

  • Regional Highlights:

    • The North America multi-factor authentication market is projected to achieve a 34% share by 2035, driven by high technology adoption and strong provider presence.
    • The Europe market is expected to experience significant growth from 2026 to 2035, fueled by GDPR-driven data protection needs and MFA adoption.

  • Segment Insights:

    • The authentication type (passwordless authentication) segment in the multi-factor authentication market is expected to capture a 57% share by 2035, attributed to the enhanced security and lower vulnerability of passwordless authentication.

  • Key Growth Trends:

    • Cloud Computing Adoption
    • Mobile Device Proliferation

  • Major Challenges:

    • Complexity and User Friction 
    • High investment cost

  • Key Players: OneSpan, RSA Security LLC, NEC Corporation, Broadcom Inc., Trust Stamp, Open Text Corporation, Oracle, Secret Double Octopus, Microsoft, Appsian Security.

Global Multi-Factor Authentication Market Forecast and Regional Outlook:

  • Market Size & Growth Projections:

    • 2025 Market Size: USD 19.41 billion
    • 2026 Market Size: USD 22.29 billion
    • Projected Market Size: USD 89.39 billion by 2035
    • Growth Forecasts: 16.5% CAGR (2026-2035)

  • Key Regional Dynamics:

    • Largest Region: North America (34% Share by 2035)
    • Fastest Growing Region: Asia Pacific
    • Dominating Countries: United States, China, Germany, Japan, United Kingdom
    • Emerging Countries: China, India, Japan, South Korea, Singapore

    • Last updated on : 9 May, 2025

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 Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Period

2026-2035

CAGR

16.5%

Base Year Market Size (2025)

USD 19.41 billion

Forecast Year Market Size (2035)

USD 89.39 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)
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Multi-Factor Authentication Market Segmentation:

Authentication Type Segment Analysis

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 Segment Analysis

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
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Multi-Factor Authentication Market Regional Analysis:

North American Market Insights

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 Insights

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.

Multi-Factor Authentication Market Share
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Multi-Factor Authentication Market Players:

    • 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.

Recent Developments

  • 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.
  • Report ID: 5191
  • Published Date: May 09, 2025
  • Report Format: PDF, PPT
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Frequently Asked Questions (FAQ)

In the year 2026, the industry size of multi-factor authentication is estimated at USD 22.29 billion.

The global multi-factor authentication market size was more than USD 19.41 billion in 2025 and is anticipated to grow at a CAGR of over 16.5%, reaching USD 89.39 billion revenue by 2035.

The North America multi-factor authentication market is projected to achieve a 34% share by 2035, driven by high technology adoption and strong provider presence.

Key players in the market include OneSpan, RSA Security LLC, NEC Corporation, Broadcom Inc., Trust Stamp, Open Text Corporation, Oracle, Secret Double Octopus, Microsoft, Appsian Security.

Multi-Factor Authentication Market Report Scope

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