Multifactor Authentication Market - Forecast(2024 - 2030)

Multifactor Authentication Market Overview

The Multifactor Authentication Market is currently valued at $10.4 billion in 2022 and is expected to reach a valuation of $26.8 billion by 2027 growing at a CAGR of 15.08%. The increasing number of cyber-attacks, data breaches, and stringent government regulations regarding the privacy of sensitive data are the major factors that will be driving the growth of this market. The rapid digitization of the infrastructure of many end-user industries such as BFSI, healthcare, governmental entities and others are also accelerating the expansion of the Multifactor Authentication Market. The voluminous amount of data and the threat of such sensitive data getting exposed has resulted in many high performing organizations across industries deploying extremely sophisticated security technology. Although password authentication remains the most common method for access authentication, the increasing number of phishing attacks, automated bots, and similar other types of sinister attacks. This has resulted in the deployment of more advanced security authentication systems such as use of One Time Password to verify the registered mobile number, biometric verification, and others. These are very important components of the identity and access management architecture. These aforementioned factors will positively influence the Multifactor Authentication industry outlook during the forecast period.

Multifactor Authentication Report Coverage

The report: “Multifactor Authentication Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Multifactor Authentication Industry.

By Authentication Type: Password Authentication and Password-less Authentication.
By Model Type: One-factor Authentication Systems, Two-factor authentication systems, Three-factor Authentication Systems, Four-factor Authentication Systems, Five-factor authentication systems and others.
By End-user: BFSI, Government, Defence, Healthcare, E-Commerce Organizations, Telecommunications, IT, Manufacturing and Others.
By Geography: North America (the U.S., Canada, Mexico), Europe (UK, Germany, France, Italy, Spain, Others), APAC (China, Japan, South Korea, India, Australia, Others), South America (Brazil, Argentina, Others) and RoW (Middle East, Africa).

Key Takeaways

• BFSI will be the fastest-growing segment by end-users in this market with a CAGR of about 16.28% due to increasing incidences of phishing attacks, data breaches, and government regulations regarding the handling of sensitive data.
• Password less Authentication is the fastest-growing segment by Authentication Type in this market with a CAGR of 16.84% due to increasing frequency of brute force attacks via botnets, password spraying, and reduced costs in the long run.
• North America region holds the largest market share at 31% due to increasing frequency of industrial patent theft, phishing attacks against prominent individuals, and attacks by automated bots to spread fake news and shape public opinion.

Multifactor Authentication Market Segment Analysis - by Authentication Type

The Multifactor Authentication Market can be classified into two segments according to Type such as Password Authentication and password less Authentication. Between them, password less Authentication is projected to have the fastest growth at a CAGR of 16.3% in the forecast period of 2022-2027. Increasing frequencies of phishing attacks, brute force attacks by botnets, and sophisticated malware attacks which can bypass security safeguards are the main factors that are driving the growth of this segment. In June 2022, LastPass announced that it will allow its users access to their vaults via a password less authentication system whereby the users will be sent a login request on the LastPass Application. This mechanism removes the need for users to copy and paste their passwords for login and also removes the risk of compromised passwords. Such developments are likely to propel the rapid expansion of this segment in the market.

Multifactor Authentication Market Segment Analysis - by End-user

Multifactor Authentication has varied applications across different sectors such as BFSI, Government, Defense, Healthcare, E-Commerce Organizations, Telecommunications, IT, Manufacturing, and others. Among them, BFSI segment will exhibit the fastest growth at a CAGR of 16.28% in the forecast period 2022-2027. The increasing specificity of cyber-attacks such as phishing attacks, suspicious malware, and brute force attacks capable of overpowering the security safeguards of the system has led to a number of central banks mandating extremely stringent regulations regarding the handling of such sensitive data. In May 2022, the Saudi Central Bank (SAMA) underlined the need to take proactive and preemptive measures to confront the growing cyber threats and advanced trickeries of hackers that hamper the smooth functioning of the financial sector. Such developments will result in widespread of adoption of these systems by financial institutions which will lead to rapid expansion of this segment in the market.

Multifactor Authentication Market Segment Analysis - by Geography

The Multifactor Authentication Market in the North America region will account for the highest share at 31% in 2021. Increasing number of attacks on corporations leading to theft of sensitive industrial secrets, rising incidences of attacks on small businesses, and financial fraud has resulted in widespread adoption of these systems. Rapid digitization of the economy, adoption of cloud and enterprise solutions to secure sensitive data and government legislation are some of the key factors that will accelerate the growth of the market in this region. In February 2022, U.K. and U.S. intelligence announced that Russian hackers were behind an operation targeting a communications company Viasat in Ukraine that led to outages for several thousand Ukrainian customers, and impacted windfarms and internet users in central Europe. Such developments will positively impact he rapid adoption of such systems which will rapidly accelerate the growth of the market.

Multifactor Authentication Market Drivers 

Rising number of cyber-attacks, governmental legislation and user experience:

The increasing frequencies of sophisticated cyber-attacks such as phishing, vishing and other malware attacks across multiple sectors are some of the major factors that are driving the growth of this market. The rising incidences of financial fraud, sophisticated forms of hacking, and spreading of fake news on social media to mould public perception has resulted in government to mandate legislation regarding data protection and privacy. In June 2022, Microsoft announced that they had suspended 20 One Drive accounts associated with the group called “Polonium” which in collaboration with Iran’s Ministry of Intelligence and Security was abusing the file hosting services and conducting cyberattacks on Israeli firms across multiple industries such as defense and financial services. Such developments will drive the rapid adoption of these systems which will accelerate the rapid expansion of this market.

Rapid Adoption of Multifactor Authentication due to incorporation of advanced technologies such as Public Key Infrastructure, behaviour-based authentication, and others:

Rapid technological advancements in Multifactor Authentication Systems such as advances in Public Key Infrastructure, authentication systems, and other such technological advances will lead to widespread adoption of these systems across industries. The deployment of advanced features in existing authentication systems such as Iris recognition systems and Voice Authentication Systems has drastically enhanced the capabilities to check fraudulent activities. Other technologies that are revolutionizing the industry are geolocation and facial recognition systems which incorporate the current location and facial pattern recognition technologies to authenticate the person’s identity. In May 2022, the Bangalore Metro Rail Corporation (BMRCL) announced to replace smart cards, tokens, and passes with facial recognition systems in a bid to make processes hands-free in the IT hub of the country. Such developments will rapidly accelerate the growth of the market.

Multifactor Authentication Market Challenges

High Initial cost of installation and maintenance, increased complexity of operations, and increased response time for authentication tools:

High initial cost of installation of multifactor authentication systems, increased complexity of operations, and increased service time are some of the key factors that are restricting the growth of this market. The increase in the number of layers of protection of Multifactor Authentication Systems has resulted in a much longer service time since it requires multiple identifying factors of the user. Also, the lack of understanding among the business community regarding the utility of these systems and the concern of having a possible breach that might expose the most sensitive data of their employees is inhibiting the growth of this market.

Key Market Players

Product launches, collaborations, and R&D activities are key strategies adopted by players in the Multifactor Authentication Market. The top 10 companies in the Multifactor Authentication Market include:

1. MicroFocus
2. Broadcom
3. Microsoft
4. One Span
5. Okta
6. Thales
7. Oracle
8. SalesForce
9. CyberArk
10. SilverFort

Recent Developments

• In April 2022, CyberArk announced that it has achieved SOC2 Certification which makes it the first Identity Security provider offering SOC 2 Type 2-certified SaaS solutions for privileged access management (PAM), endpoint privilege management, remote vendor access, Identity and Access Management, and cloud infrastructure entitlements management. 
• In February 2022, Smart Communications and One Span Inc. announced a partnership that integrates OneSpan’s e-signature product, OneSpan Sign, into the Smart Communications platform to extend the value of the total customer experience. Such developments will rapidly accelerate the growth of the market.
• In September 2021, Bank Id announced its decision to use OneSpan’s cloud authentication and anti-fraud offerings to improve the customer experience and help secure one of the most widely used applications in Norway. Such developments will positively impact the growth of the market.

Relevant Reports

Passive Authentication Market- Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis 
Report Code: ITR 10003

Risk-based Authentication Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: ITR 12230

Mobile User Authentication Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: ITR 74624

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