Multi-Factor Authentication Market Analysis Report & Industry Growth by 2030

The multi-factor authentication market size was valued at US$ 14.44 billion in 2022 and is projected to reach US$ 55.04 billion by 2030; it is estimated to record a CAGR of 18.2% from 2022 to 2030.

Analyst Perspective:

Digital security is important in today's business environment as businesses and users store crucial and sensitive information online. There is an increase in interaction with services, applications, and data that are stored over the Internet. A data breach or misuse of this online stored information could lead to serious financial theft, business disruption, and loss of privacy. In such a scenario, multi-factor authentication solutions can provide protection, creating an additional layer of security to block unauthorized users from accessing online accounts. Businesses use multi-factor authentication solutions to validate user identities and also to provide quick and convenient access to authorized users. The impact caused by the COVID-19 crisis forced many companies to adopt remote work solutions, making multi-factor authentication a requirement to protect the company’s data. A majority of companies have started to deploy multi-factor authentication solutions. Further, the adoption of MFA was largely driven by government regulations for enhanced cybersecurity to protect consumer data. Moreover, increasingly costly attacks and rising BYOD trends are significantly driving organizations to adopt and deploy multi-factor authentication solutions.

Multi-Factor Authentication Market Overview:

Multi-factor authentication (MFA) refers to an authentication method that involves a multi-step account login process rather than just a password. A multi-factor authentication (MFA) solution needs the user to provide two or more verification parameters to gain access to their resources such as an application, online account, or a VPN. MFA is a key component of identity and access management, and it creates extra security to prevent unauthorized users from accessing critical accounts. The goal of multi-factor authentication is to create a layered defense that makes it more difficult for cyberattacks to access resources such as physical location, network, computing device, or database. MFA provides numerous benefits such as improved trust, reduced costs, enhanced organization security, and compatibility with Single Sign-On (SSO), along with meeting regulatory compliances and enabling enterprise mobility.

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Multi-Factor Authentication Market: Strategic Insights

Market Size Value in	US$ 14.44 billion in 2022
Market Size Value by	US$ 55.04 billion by 2030
Growth rate	CAGR of 18.2% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Multi-Factor Authentication Market Driver:

Increasing Number of Cyberattacks Across Enterprises Fuels Growth of Multi-Factor Authentication Market 

Cyberattacks were considered the fifth top-rated risk in 2020, and cases continue to rise with technological advancements. Computer malware, data breaches, and denial of service (DoS) are a few examples of cyber risks. Businesses are under continuous threat of cybercrimes, as they have grown more widespread in recent years. During the COVID-19 pandemic period, cybercriminals took advantage of misaligned networks as businesses were shifting to remote working environments. For instance, according to OneLogin, cybercrime cost over US$ 1 trillion worldwide; wherein 37% of organizations were affected by ransomware, and 61% were affected by malware attacks in 2020. Between 2019 and 2020, cyberattacks in the US have increased by 139% as the country registered a staggering 145.2 million cases in Q3 2020. Malware attacks increased by 358% in 2020 when compared to 2019. Similarly, according to the Clusit Report, cyberattacks across the globe have increased by 10% in 2021 when compared to the previous year. For instance, according to AAG, the UK had the highest figure of cybercrime victims per million internet users (4,783 users) in 2022, an increase of 40% over 2020 figures. The average cost of a cyber breach was US$ 4.35 million in 2022, and it is predicted that this value is expected to reach US$ 10.5 trillion by 2025.

Cyber threats are a concern in today's digital environment. They have serious consequences for individuals, corporations, and governments. The rise in the number of cyberattacks has increased the importance of cybersecurity to safeguard critical infrastructures and to ensure the safety of individuals and organizations. Multi-factor authentication is emerged as the most important solution that companies can adopt in order to defend against online attacks. According to Microsoft, using a multi-factor authentication solution can block 99.9% of all attacks. Multi-factor authentication mandates users to provide additional information or credentials in order to gain access to an account. So, even if an attacker steals passwords, it is difficult for them to be able to steal or compromise the additional authentication factors required in multi-factor authentication.

Thus, the increasing number of cyberattacks across enterprises drives the growth of the multi-factor authentication market

Multi-Factor Authentication Market Report Segmentation and Scope:

The multi-factor authentication market is segmented on the basis of component, authentication type, model type, end user, and geography. Based on component, the market is segmented into hardware, software, and services. Based on authentication type, the market is bifurcated into password-based authentication and passwordless authentication. Based on model type, the multi-factor authentication market is segmented into two-factor authentication, three-factor authentication, four-factor authentication, and five-factor authentication. Based on end user, the multi-factor authentication market is segmented into IT & telecom, BFSI, education, government, healthcare, and others. The multi-factor authentication market, based on geography, is segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South America.

Multi-Factor Authentication Market Segmental Analysis:

Based on model type, the multi-factor authentication market is segmented into two-factor authentication, three-factor authentication, four-factor authentication, and five-factor authentication. The two-factor authentication segment in the multi-factor authentication market is significantly likely to record the highest CAGR during the forecast period.

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Multi-Factor Authentication Market Regional Analysis:

The North America multi-factor authentication market was valued at US$ 5.40 billion in 2022 and is projected to reach US$ 19.16 billion by 2030; it is expected to record a CAGR of 17.1% during the forecast period. North America is one of the fastest-growing regions in terms of both technological innovations and the adoption of advanced technologies. The region also has a well-established IT & cloud infrastructure. In the past three years, North America has witnessed huge adoption of emerging technologies such as artificial intelligence, machine learning, and blockchain across all the major industry verticals. With the increasing penetration of digitization in various industries, identity verification has become a vital component of business transaction ecosystems, especially in financial institutions and online retail. The demand for multi-factor authentication solutions in companies is increasing rapidly as these solutions allow companies to comply with various rules and regulations. A few of these regulations include anti-money laundering (AML), know your customer (KYC), and digital fraud prevention. The North America multi-factor authentication market growth is primarily driven by rising demand from industrial sectors such as BFSI, government, defense, and healthcare, where protection against cyberattacks is a crucial business requirement for successful operations.

Multi-Factor Authentication Market Key Player Analysis:

The multi-factor authentication market analysis consists of players such as Microsoft; Thales.; Okta; OneSpan; HID Global Corporation; Cisco Systems, Inc.; Ping Identity.; RSA Security; CyberArk Software Ltd. are among the key multi factor authentication market players profiled in the report.

Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the market. A few recent key market developments are listed below: 

• In October 2023, Amazon Web Services (AWS) announced a plan to mandate multi-factor authentication from 2024 to improve default security and reduce the risk of account hijacking.
• In April 2022, Trust Stamp announced the launch of a multi-factor authentication solution named “Biometric MFA” to replace traditional password-based MFA with selfie biometrics. Biometric MFA lets partners layer intuitive, convenient, and seamless identity authentication where vulnerable passcodes are used. 
• In August 2022, ForgeRock entered into a strategic partnership with Secret Double Octopus (SDO) to extend passwordless and multi-factor authentication capabilities in the enterprise. Under this partnership, ForgeRock leveraged technology from SDO enables a unified MFA experience for employees, contractors, and vendors.