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.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 18.2% |
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Base Year Market Size (2022) |
~ USD 49 Billion |
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Forecast Year Market Size (2035) |
~ USD 364.4 Billion |
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Regional Scope |
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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:
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Authentication Type |
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Model Type |
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Enterprise Size |
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End-User |
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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.
Author Credits: Abhishek Verma, Hetal Singh
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