Multi-Factor Authentication Market Size, Share, Opportunities, And Trend By Model (Two Factor Authentication, Three-Factor Authentication, Four-Factor Authentication, Five-Factor Authentication), By Application (BFSI, Defense, Travel And Transport, Others), And By Geography - Forecasts From 2025 To 2030

The Multi-Factor Authentication market is anticipated to grow at a CAGR of 13.56% over the forecast period to reach US$41.369 billion by 2030, increasing from an estimated value of US$21.865 billion in 2025.

The Multi-Factor Authentication Market is experiencing significant growth due to increasing cybersecurity threats and the demand for robust security measures. With the increasing number of data breaches and phishing attacks with identity threats, there is a rising trend for the adoption of MFA with a higher implementation rate in the technology industry. In addition, the increasing requirements for complying with regulations and government mandates, such as US Executive Order 14028, are driving the market demand. Further, the growing adoption of cloud-based platforms and the surge in remote and hybrid work are propelling the demand. As technology is getting advanced, such as the introduction of more user-friendly MFA options, the market is anticipated to see increasing growth.

Multi-Factor Authentication Market Overview & Scope

The Multi-Factor Authentication Market is segmented by:

• Component: By component, the market is segmented into hardware, software, and services. There is high demand for software as a significant portion of users use MFA through software programs, such as a mobile app. This significant demand is due to the convenience and ease of use associated with software solutions. While only a smaller share of users utilise a hardware solution, the reason is that biometrics has a higher cost, technological maturity, and user familiarity.
• Type: By type, the market is segmented into two-factor authentication, three-factor, four-factor, and five-factor authentication. Two-factor authentication is currently in high demand due to its widespread adoption in industries like BFSI, healthcare, and retail for its simplicity and cost-effectiveness. While it will continue to dominate the market, 3-Factor authentication will be growing steadily in industries requiring enhanced security, such as military and healthcare, due to its additional authentication layer. Currently, four-factor authentication is in low demand, but it is an emerging segment in industries such as finance, where there are regulatory requirements. Five-factor authentication demand is very low and can have a niche market in ultra-secure environments like critical infrastructure or top-secret government systems.
• Deployment: MFA is deployed either on the cloud or on-premises. There is a high share for cloud deployment due to the rapid adoption of cloud-based applications and remote work. On-premises have low demand and are losing their share to cloud solutions.
• Application: BFSI, military and defence, retail and e-commerce, IT and telecommunications, and others are key areas where MFA is used. BFSI is the highest and fastest-growing revenue area for its financial data compliance and regulatory mandates. It is further fuelled by digital banking, online transactions, and the expansion of FinTech. There is a considerable market share of military and defense, particularly for encrypted communications and access control, with a focus on 3 authentication and 4 authentication for enhanced security. There is increasing growth in retail and e-commerce, while IT and telecommunications are also growing faster.
• Region: The market is segmented into five major geographic regions, namely North America, South America, Europe, the Middle East, and Africa, and Asia-Pacific. Asia-Pacific is the fastest-growing market, due to digital transformation, rising cyber threats, and expanding IT infrastructure. Government regulations and the presence of key players, along with demand from various sectors and a higher technology adoption rate, are leading the North American region to dominate.

Top Trends Shaping the Multi-Factor Authentication Market

1. Growing Trend Towards  Password-less Authentication

• Password-less authentication is an emerging trend in identity and access management driven by demand for more enhanced security and user experience. It includes biometrics, passkeys, FIDO2-based authenticators, smart cards, and mobile push-based logins, offering stronger security.
• The market is now growing towards passwordless technologies because of the government's new regulations as well. For instance, CISA is mandating MFA implementation in federal systems and actively championing MFA usage within the private sector, leading demand for passwordless due to changing federal identity strategies.

2. Zero Trust Policies Catalyze MFA Adoption Across Sectors

• Zero-trust cybersecurity objectives have established MFA as a mandated foundation of security rather than an optional security measure of the past. It is a foundational change in the cybersecurity strategy, which is shaping the market technology adoption for MFA across sector.
• The USDA deployment of phishing-resistant MFA is a good example of how swiftly and scalably agencies can act, as they utilised zero trust principles to implement security changes by using identity credentials and access management systems that secure not just dozens or hundreds of applications and services, but essentially the entire department.
• By leveraging identity credentials and access management systems, zero trust policies are pushing organizations to adopt stronger authentication measures. This shift is not limited to government entities—private sector industries such as finance and healthcare are also seeking to match or exceed federal-level protections. As identity frameworks evolve to include passkeys, smart cards, and biometrics, zero trust policies are driving a broader transformation in compliance readiness, interoperability, and cybersecurity architecture across industries.

Multi-Factor Authentication Market Growth Drivers

Drivers:

• Growing Cybersecurity Threats: Multi-factor authentication has been established as a quintessential aspect of digital security and is now being directly incorporated into enterprise systems rapidly, and has progressed from early use to widespread mandatory policies of use. Most notably, Microsoft stated that enabling multi-factor authentication can prevent more than ninety-nine per cent of account compromise attempts. Therefore, the company has made MFA mandatory for all sign-ins to the Azure portal and now all Microsoft Entra sign-ins. This transition implies a monumental shift in the perspective of MFA. MFA is moving from a prominent practice to a baseline requirement simply for secure access management across platforms. Prominent security breaches continue to affirm that MFA is categorised as an important aspect of the defence layer/user security amidst new cyber/physical threats. According to the Federal Bureau of Investigation’s “Internet Crime Report 2024”, in 2024, the number of data breach complaints reached 3,204, marking a considerable growth of 14.6% over the complaints filed in 2022.
• Government Regulations: It is also one of the key factors driving the market. For instance, Regulatory authorities such as the Australian Prudential Regulation Authority seem to imply that MFA is deemed standard not only at login, but also in account management in high-risk transactions. This firmly denotes how MFA is changing from valuable for businesses to essential in maintaining a protective aspect of risk in sensitive industries/financial services. For example, in Australia, superannuation funds with millions of accounts are implementing compulsory MFA. This came in the wake of high-profile credential stuffing incidents and government regulations. Also, for instance, In April 2025, CISA (Cybersecurity and Infrastructure Security Agency) published its most recent report on federal progress, confirming that all civilian agencies have established or are in the final stages of implementing phishing-resistant multi-factor authentication. The renewed momentum is driven by the Office of Management and Budget's (OMB) Memo M-22-09, which will be in effect in 2025. The memo outlines necessary requirements that federal employees, contractors, and partners must establish phishing-resistant MFA like FIDO2, smart cards, or biometric techniques, at all points of access, rather than only privileging accounts. Additionally, federal websites and applications now must establish MFA options for public use, further entrenching its identity as a public-facing cybersecurity measure.

Challenges:

• Rising OTP Token Pricing May Hinder Market Growth: Rising OTP token pricing might hinder the growth of the industry. OTP tokens have become expensive due to high initial capital outlays and ongoing replacement costs. For instance, these aspects include initial purchase price and licensing fees, mechanical and structural requirements, warranty for tokens, as well as inputs of time and resources during deployment and operation of solutions. This is partly due to limited vendor penetration rates in Eastern Europe and South America.

Multi-Factor Authentication Market Regional Analysis

• North America: Government regulations and the presence of key players, along with demand from various sectors and a higher technology adoption rate, are leading the North American region to dominate. The USA, being a global economy, is investing in digitization, and with the growing smart device and 5G penetration, the data traffic has witnessed significant growth in the country. This has propelled the demand for multi-factor authentication platforms to prevent data fraud and breaches. Likewise, the booming e-commerce sector, followed by the improved prevalence of digital banking, has increased the overall scale of online transactions in the USA. For instance, according to the Census Bureau of the Department of Commerce, in Q1 2025, the adjusted e-commerce sales reached US$300.2 billion and accounted for nearly 16.2% of the total retail sales, marking a 6.07% growth over the sales incurred in Q1 2024.

Moreover, according to the Federal Reserve’s “2024 Findings from the Diary of Consumer Payment Choice”, the percentage share of online payments for P2P (Person-To-Person) payments increased from 19% in 2022 to 22% in 2023. Additionally, the growing trend of contactless payments is driving the adoption of digital wallets in the country, with major options, namely Apple Pay, Google Pay, Amazon Pay, and PayPal, providing a much more convenient way of making online purchases. Moreover, the growing number of internet crimes and cyber threats has further escalated the need for multi-factor authentication solutions for safeguarding data. Furthermore, the ongoing development to improve online authorized access by government-backed policies to prevent cyber threats has further propelled the development of multi-factor authentication solutions in the United States. Private players such as Token are raising investments to bolster their product development, which is an additional driving factor for the market expansion.

• Asia-Pacific: The Asia-Pacific region is anticipated to have the highest growth rate in the multi-factor authentication market as there are increased instances of Bring Your Device (BYOD) policies/chains and also high incidences of cyber thefts that result from data leakage. CREALOGIX now provides a solution to major banks in Asia that allows users to access a single app for both authentication and banking activities. Moreover, the hard token for performing OTP actions is becoming obsolete in multi-factor authentication systems with hardware-based devices. The soft token assumes the role of hard tokens while maintaining all their security features.

Multi-Factor Authentication Market Competitive Landscape

Major players in the industry are RSA Security LLC (Symphony Technology Group), Entrust Corporation, Thales S.A., HID Global Corporation (ASSA ABLOY AB), OneLogin Inc. (One Identity, a Quest Software Company), Okta Inc., Broadcom Inc., Microsoft Corporation, Google LLC, IBM Corporation, Yubico AB, Ping Identity Corporation, Duo Security, Inc. (Cisco Systems, Inc.). A few major players in the industry hold a significant portion of the market share, ranging from 45% to 50%, indicating dominance of a few key players due to their established presence, technological advancements, and comprehensive MFA solutions. Some of the key developments in the market are:

• Government-led Security Policy Implementation: In late 2024, the United States Department of Agriculture (USDA) collaborated with the Cybersecurity and Infrastructure Security Agency (CISA) to deploy phishing-resistant MFA (FIDO authentication) to over 40,000 staff members. This effort acknowledged that traditional MFA methods, such as SMS codes and push notifications, were increasingly vulnerable to attacks such as phishing and push bombing.
• Innovation: In October 2024, Microsoft announced advancements in Microsoft Authenticator, including a refreshed public preview of device-bound passkey support in the Microsoft Authenticator app for iOS and Android. It also introduced attestation support, leveraging mobile OS APIs to validate the authenticity of the Authenticator app before allowing passkey registration, as well as the introduction of FIDO2 security key support in native brokered applications.
• Product Launch: Clever, a digital learning platform serving more than 75% of K-12 schools in the U.S., unveiled its Clever MFA+. Clever's new offering. It is intended to assist districts dealing with an increasing number of cybersecurity incidents in schools and safeguard sensitive data by offering an intuitive dual layer of authentication for administrators and teachers to use. The Clever MFA+ software offers diverse authentication techniques, including biometrics, SMS codes, hardware tokens, voice calls, and app tokens (TOTP). This solution also works with Google Workspace and can support Azure, AD, and ADFS platforms, as well as any applications that support SAML, OpenIDConnect, or OAuth2. Furthermore, it is compatible with Chromebooks and Windows devices.
• Technological Innovation: In April 2023, the SafeNet Token Fusion series was unveiled by Thales, a prominent worldwide provider of technology and security solutions. This creative set of USB tokens creates a single authenticator by fusing PKI/CBA and Fast IDentity Online 2.0 (FIDO2). The principal aim of Thales's novel tokens was to protect users of Microsoft Azure Active Directory (Azure AD) by reducing the possibility of account compromise and providing improved security for cloud and web application access.

Multi-Factor Authentication Market Segmentation:

By Component

• Hardware
• Software
• Services

By Type

• Two-Factor Authentication
• Three-Factor Authentication
• Four-Factor Authentication
• Five-Factor Authentication

By Deployment

• Cloud
• On-Premise

By End-User Industry

• BFSI
• Military And Defence
• Retail & E-Commerce
• IT & Telecommunication
• Others

By Region

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • Japan
  • China
  • India
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL ADVANCEMENTS

5. MULTI-FACTOR AUTHENTICATION MARKET BY COMPONENT

5.1. Introduction

5.2. Hardware

5.3. Software

5.4. Services

6. MULTI-FACTOR AUTHENTICATION MARKET BY TYPE

6.1. Introduction

6.2. Two-Factor Authentication

6.3. Three-Factor Authentication

6.4. Four-Factor Authentication

6.5. Five-Factor Authentication

7. MULTI-FACTOR AUTHENTICATION MARKET BY DEPLOYMENT

7.1. Introduction

7.2. Cloud

7.3. On-Premise

8. MULTI-FACTOR AUTHENTICATION MARKET BY END-USER INDUSTRY

8.1. Introduction

8.2. BFSI

8.3. Military And Defence 

8.4. Retail & E-Commerce

8.5. IT & Telecommunication 

8.6. Others

9. MULTI-FACTOR AUTHENTICATION MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. By Component

9.2.2. By Type

9.2.3. By Deployment

9.2.4. By End-User Industry

9.2.5. By Country

9.2.5.1. USA

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. South America

9.3.1. By Component

9.3.2. By Type

9.3.3. By Deployment

9.3.4. By End-User Industry

9.3.5. By Country

9.3.5.1. Brazil

9.3.5.2. Argentina

9.3.5.3. Others

9.4. Europe

9.4.1. By Component

9.4.2. By Type

9.4.3. By Deployment

9.4.4. By End-User Industry

9.4.5. By Country

9.4.5.1. United Kingdom

9.4.5.2. Germany

9.4.5.3. France

9.4.5.4. Spain

9.4.5.5. Others

9.5. Middle East and Africa

9.5.1. By Component

9.5.2. By Type

9.5.3. By Deployment

9.5.4. By End-User Industry

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.2. UAE

9.5.5.3. Others

9.6. Asia Pacific

9.6.1. By Component

9.6.2. By Type

9.6.3. By Deployment

9.6.4. By End-User Industry

9.6.5. By Country

9.6.5.1. China

9.6.5.2. Japan

9.6.5.3. India

9.6.5.4. South Korea

9.6.5.5. Taiwan

9.6.5.6. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. RSA Security LLC (Symphony Technology Group)

11.2. Entrust Corporation

11.3. Thales S.A.

11.4. HID Global Corporation (ASSA ABLOY AB)

11.5. OneLogin Inc. (One Identity, a Quest Software Company) 

11.6. Okta Inc.

11.7. Broadcom Inc.

11.8. Microsoft Corporation

11.9. Google LLC

11.10. IBM Corporation

11.11. Yubico AB

11.12. Ping Identity Corporation

11.13. Duo Security, Inc. (Cisco Systems, Inc.)

12. APPENDIX

12.1. Currency 

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology 

12.6. Abbreviations 

RSA Security LLC (Symphony Technology Group)

Entrust Corporation

Thales S.A.

HID Global Corporation (ASSA ABLOY AB)

OneLogin Inc. (One Identity, a Quest Software Company) 

Okta Inc.

Broadcom Inc.

Microsoft Corporation

Google LLC

IBM Corporation

Yubico AB

Ping Identity Corporation

Duo Security, Inc. (Cisco Systems, Inc.)

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