Multi-Factor Authentication Market - Growth, Trends, and Forecast (2022 - 2030)
Market Overview
The multi-factor authentication market is expected to register a CAGR of 15.2% over the forecast period of 2019–2024. Blockchain and decentralized authentication systems are coming in trends which will replace centralized data and application servers with a network of computers that encrypt and store data and stay in sync with each other. The general concept is to represent user identities with encryption key-pairs which can be tied to additional parameters such as the user’s biometric data instead of passwords to make a high authentification.
- Growing number of cyberattacks across enterprises is driving the market, as nearly half of all cyber attacks target small business with mostly ransomware attacks and hijacking corporate online and financial accounts. OneLogin's own authentication app (OneLogin Protect) where users can verify their identities via their smartphones. It also integrates with other third-party authentication factors like Google Authenticator and Yubico’s YubiKeys and provides a single sign-on option for company's desktops.
- Cloud-based multi-factor authentication is driving the market. Mobile is a key focus for today’s Cloud MFA solutions, where mobile options such as fingerprint scan, facial recognition deliver ease of use, making the authentication experience as frictionless as possible for users. SAASPASS provides cloud-based two-factor authentication to sign into applications and devices anywhere securely.
- However, false security and high cost is a key restraint for the market, as there is always possibility of mobile phones and tokens being stolen, potentially allowing the thief to gain access to the user’s accounts. Due to the requirement of specialized hardware, the total cost becomes high which is a major challenge for the market growth.
Scope of the Report
The multi-factor authentication market is an authentication method in which the user is granted access only after successfully presenting two or more pieces of evidence. It provides hardware and software solutions offered by various vendors of the market. It is popular due to the high degree of security and different models of multi-factor authentication have found various applications in verticals, such as BFSI, government, immigration & travel, commercial security, electronics and healthcare.
Key Market Trends
Biometric in BFSI to Hold a Significant Share
- For banks and finance organizations like trading houses, credit card providers, investment funds, etc., protecting the sensitive data and money of the customers is of the utmost importance. There are several links that make it quite easier for hackers or attackers to get into customer's bank accounts online and steal money. Hence banking and finance need 2FA solution having biometric solution for better security of customers’ bank accounts and data.
- Combining image authentication with biometric characteristics like iris, retina and face scan gives image response confirmation of a previously saved image allocated to each user during registration into the authentication server, which gives user satisfaction that he is on correct site, which provide security to online transaction.
- The support for audio capturing with the increased availability of voice recognition services, which is a characteristic of biometric solution is available over HTTP-based APIs making it really simple to grant access during transaction through smartphone in multifactor authentification.
- CaixaBank in Spanish is offering customers to use biometric facial recognition technology with pin code as an option, which offers security benefit and giving the rise of opportunity for multi-factor authentification market.
Asia-Pacific Expected to Register the Fastest CAGR
- The Asia Pacific region is expected to be the fastest-growing region in the multifactor authentication market because of a higher level of implementation of bring your own device (BYOD) and choose your own device (CYOD) policies, as well as mobility services, which are increasing cyber attacks and data breaches.
- CREALOGIX has rolled out the solution to major banks in Asia, providing their customers with one single app for banking and authentication. There is no longer a One-Time-Password (OTP) hardware token, generated by a hardware device for each action as part of a multifactor authentication system. The soft token replaces the hard token and provides all the security advantages of multifactor authentication.
- China market is growing highest among the countries, as with the progression of electronic information technology, obtaining personal information becomes relatively simple and it is estimated that China constitutes more number of cyber attacks in banking than United States.
- In China, to enhance the online security level, the internet banking service of the company provides customers with a comprehensive range of two-factor authentication tools to safeguard the designated transactions and designated investment transactions performed by customers via internet banking / mobile banking, which drives the MFA market.
Competitive Landscape
The multi-factor authentication market is fragmented as the market comprises of global and local players where the product penetration with innovation is growing. Software firms are also looking in this market which increases the rivalry among the players. Key players are CA Technologies, Inc., Fujitsu Limited, Gemalto NV, etc. Recent developments in the market are -
- May 2019 - Truxtun Capital reached an unachieved milestone in the payment industry by releasing the first broadly available FIDO Certified, multi-factor strong authentication payment solution for consumers. It provides customers with mobile, virtual and physical card products in a simple user experience where customer takes control of their own digital identity and security profile on a mobile phone, while activating security credentials.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
The multi-factor authentication market is expected to register a CAGR of 15.2% over the forecast period of 2019–2024. Blockchain and decentralized authentication systems are coming in trends which will replace centralized data and application servers with a network of computers that encrypt and store data and stay in sync with each other. The general concept is to represent user identities with encryption key-pairs which can be tied to additional parameters such as the user’s biometric data instead of passwords to make a high authentification.
- Growing number of cyberattacks across enterprises is driving the market, as nearly half of all cyber attacks target small business with mostly ransomware attacks and hijacking corporate online and financial accounts. OneLogin's own authentication app (OneLogin Protect) where users can verify their identities via their smartphones. It also integrates with other third-party authentication factors like Google Authenticator and Yubico’s YubiKeys and provides a single sign-on option for company's desktops.
- Cloud-based multi-factor authentication is driving the market. Mobile is a key focus for today’s Cloud MFA solutions, where mobile options such as fingerprint scan, facial recognition deliver ease of use, making the authentication experience as frictionless as possible for users. SAASPASS provides cloud-based two-factor authentication to sign into applications and devices anywhere securely.
- However, false security and high cost is a key restraint for the market, as there is always possibility of mobile phones and tokens being stolen, potentially allowing the thief to gain access to the user’s accounts. Due to the requirement of specialized hardware, the total cost becomes high which is a major challenge for the market growth.
Scope of the Report
The multi-factor authentication market is an authentication method in which the user is granted access only after successfully presenting two or more pieces of evidence. It provides hardware and software solutions offered by various vendors of the market. It is popular due to the high degree of security and different models of multi-factor authentication have found various applications in verticals, such as BFSI, government, immigration & travel, commercial security, electronics and healthcare.
Key Market Trends
Biometric in BFSI to Hold a Significant Share
- For banks and finance organizations like trading houses, credit card providers, investment funds, etc., protecting the sensitive data and money of the customers is of the utmost importance. There are several links that make it quite easier for hackers or attackers to get into customer's bank accounts online and steal money. Hence banking and finance need 2FA solution having biometric solution for better security of customers’ bank accounts and data.
- Combining image authentication with biometric characteristics like iris, retina and face scan gives image response confirmation of a previously saved image allocated to each user during registration into the authentication server, which gives user satisfaction that he is on correct site, which provide security to online transaction.
- The support for audio capturing with the increased availability of voice recognition services, which is a characteristic of biometric solution is available over HTTP-based APIs making it really simple to grant access during transaction through smartphone in multifactor authentification.
- CaixaBank in Spanish is offering customers to use biometric facial recognition technology with pin code as an option, which offers security benefit and giving the rise of opportunity for multi-factor authentification market.
Asia-Pacific Expected to Register the Fastest CAGR
- The Asia Pacific region is expected to be the fastest-growing region in the multifactor authentication market because of a higher level of implementation of bring your own device (BYOD) and choose your own device (CYOD) policies, as well as mobility services, which are increasing cyber attacks and data breaches.
- CREALOGIX has rolled out the solution to major banks in Asia, providing their customers with one single app for banking and authentication. There is no longer a One-Time-Password (OTP) hardware token, generated by a hardware device for each action as part of a multifactor authentication system. The soft token replaces the hard token and provides all the security advantages of multifactor authentication.
- China market is growing highest among the countries, as with the progression of electronic information technology, obtaining personal information becomes relatively simple and it is estimated that China constitutes more number of cyber attacks in banking than United States.
- In China, to enhance the online security level, the internet banking service of the company provides customers with a comprehensive range of two-factor authentication tools to safeguard the designated transactions and designated investment transactions performed by customers via internet banking / mobile banking, which drives the MFA market.
Competitive Landscape
The multi-factor authentication market is fragmented as the market comprises of global and local players where the product penetration with innovation is growing. Software firms are also looking in this market which increases the rivalry among the players. Key players are CA Technologies, Inc., Fujitsu Limited, Gemalto NV, etc. Recent developments in the market are -
- May 2019 - Truxtun Capital reached an unachieved milestone in the payment industry by releasing the first broadly available FIDO Certified, multi-factor strong authentication payment solution for consumers. It provides customers with mobile, virtual and physical card products in a simple user experience where customer takes control of their own digital identity and security profile on a mobile phone, while activating security credentials.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Frequently Asked Questions
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