The multi-factor authentication market is projected to grow at a CAGR of 16.88% during the forecast period to reach US$34.497 billion by 2027, up from US$11.543 billion in 2020. Multifactor Authentication is an electronic authentication security technology that authenticates and grants access to a user to an application, web portal, or VPN through multiple methods of authentication mechanism. MFA aims to build a layered defence to present barriers to unauthorized personnel from accessing a target, such as a computing device, network, physical location, or database. The main advantage of MFA is that it increases the security of the organization by requiring users to identify themselves with more than just a username and password. While usernames and passwords are important, they are vulnerable to brute force attacks and can be easily compromised. Enforcing the use of an MFA factor that serves as a thumbprint or physical hardware key increases the organization's confidence in its security. Increasing adoption of cloud-based networking in the core operations by multiple private and public organizations and the subsequent threat of security breaches are growing the demand for multifactor authentication solutions in the market. The global market landscape of MFA is segmented based on the model type, applications, and geographical regions.
The emergence of cloud computing has necessitated the need for MFA to become even more indisputable. As organizations are transitioning towards cloud computing technology, security has become the main concern. The number of security breaches in recent years has grown exponentially. According to the Identity Theft Resource Centre's 2021 Data Breach report, the number of data breaches increased by 68% in the said year when compared to the previous year. Banking and financial services, for instance, are more vulnerable to such attacks. According to the statistical inferences of the UK’s HM Revenue and Customs department, the period between August 2020 and July 2021 saw more than 450 financial support scams related to COVID 19. Furthermore, in December 2021, a crypto trading platform, Bitmart, suffered a cyberattack wherein hackers withdrew assets worth a whopping $200 million. In November of the same year, hackers breached a decentralized finance platform, bZx, and reportedly stole an estimated amount of $55 million. Also, at the beginning of the same month, the FBI issued a warning related to increasing scams related to cryptocurrency ATMs and QR codes. Multiple such cyberattacks are prompting organizations and individuals to adopt better and more stringent authentication solutions. Consequently, additional security measures must be implemented to ensure that access is only restricted to the related personnel. Furthermore, MFA further prompts additional authentication factors that are more difficult to imitate or crack using brute force methods.
The growing concerns over cyber security and the enterprise’s initiatives to seek a better security solution to restrict the security breach is one of the main factors attributed to the surge in demand for the Threat Intelligence market. Amidst rising data breaches, the stringent compliances issued by various governments from multiple regions is further propelling the market. Europe’s General Data Protection Regulation, Brazil’s Lei Geral de Proteçao de Dados, the California Consumer Privacy Act, China’s Personal Data Protection Law, India’s Personal Data Protection Bill, and Nigeria’s Data Protection Regulation are a few of the prime examples of this. Non-compliance with these regulations would result in a hefty fines ranging as high as 5% of the global turnover. Thus, in such a scenario, to meet the increasing demand, authentication solution providers are gearing up to produce new offerings and various other strategic deployments to expand brand presence and meet their client’s demands. For instance, in February 2021, Tynec and Averon, an open communication provider and security solution provider, announced a strategic partnership. Together, the duo is aiming to transform the high data breaches scenario with their Direct Autonomous Authentication solution, offering stringent security via a back-end and 2-factor authentication without the need for user actions or SMS. Further, in February 2022, IPification, a Hong Kong-based authentication and fraud prevention solution provider, launched a one-click phone verification service in the UK. Post-launch, the solution was made available to all banks, fintech, app developers, gaming, and various other business. According to the data recorded by the company, among the app businesses adopting IPification’s one-click verification, the user registration drop-out rate decreased by 5-40 percent based on the business applications. At the same time, the increasing technological advancements have also changed the way authentication solutions work. BAXE’s new Facial Authentication is the best example of this. In February 2022, BAXE, an Australia-based Fintech start-up, teamed up with IDEMIA, a French technology solutions provider, and Haventec, a Sydney-based start-up, to launch the first-ever Decentralized Finance ecosystem comprised of facial authentication. This new offering aims to aid BAXE users in authenticating large transactions, unlocking locked accounts via biometrics, and also recovering access for the accounts to forgotten credentials.
The growing trend of digitization has mandated businesses to deploy efficient, secure, and reliable preventive solutions. At the same time, digitization is also transforming authentication solutions like never before. Such changes are expected to propel the MFA market onward during the forecasted period.
Though MFA solutions aid in strengthening the company’s security, they also have a few cons and aren’t without any risks either. Firstly, setting up multi-factor authentication can be taxing, time-consuming, and expensive. As the number of authentication factors increases, the time taken to complete a single action also increases. Furthermore, acts like sim swapping or switching deployed by cybercriminals can provide them with easy access to the user’s physical sim card and access IDs. Such factors are expected to hinder the market growth.
COVID-19 has a positive impact on the MFA market. The mandated social distancing measures and lockdowns implemented by various governments have led to the closure of several companies. Consequently, many adopted work-from-home models and digitized their operations by integrating cloud-based platforms to provide remote access. Such a scenario caught many companies unprepared and they suffered from cyberattacks. Thus, the growing cyber threats have resulted in increased demand for MFA solutions.
|Market size value in 2020||US$11.543 billion|
|Market size value in 2027||US$34.497 billion|
|Growth Rate||CAGR of 16.88% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Model, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||RSA, Entrust, Thales Group, HID Global, Deepnet Securities, OneLogin, Okta, AuthO, Broadcom Inc, Microsoft|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the multi-factor authentication market size by 2027?
A1. The multi-factor authentication market is projected to reach a total market size of US$34.497 billion in 2027.
Q2. What is the size of the multi-factor authentication market?
A2. Multi-Factor Authentication Market was valued at US$11.543 billion in 2020.
Q3. What are the growth prospects for the multi-factor authentication market?
A3. The global multi-factor authentication market is projected to grow at a CAGR of 16.88% during the forecast period.
Q4. How is the global multi-factor authentication market segmented?
A4. The multi-factor authentication market has been segmented by model, application, and geography.
Q5. What factors are anticipated to drive the multi-factor authentication market growth?
A5. The increasing adoption of cloud computing and the growing security breaches are attributed to the multi-factor authentication market growth.
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