The Global Multi-Factor Authentication Market size is expected to reach $41.5 billion by 2030, rising at a market growth of 15.2% CAGR during the forecast period.
Military and defense agencies deal with classified and sensitive information regularly. MFA controls access to such data, requiring personnel to provide multiple authentication factors before accessing classified documents, systems, or networks. Consequently, the military & defense segment would generate approximately 9.10% share of the market by 2030. Military personnel frequently engage in secure and encrypted communication through email, messaging apps, or voice communication. MFA ensures the identities of individuals participating in these secure communications. The protection of classified information, national security, and personnel safety are paramount in the military and defense sectors.
The major strategies followed by the market participants are Merger & Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September, 2023, HID Global Corporation has acquired approximately 98.5 percent of Evolis S.A.'s shares. This acquisition brings together two leaders in the desktop printer market, enhancing HID's printer portfolio, global reach, and capacity to cater to diverse verticals. Moreover, In August, 2023, Cisco Systems, Inc. announced the acquisition of Working Group Two (WG2). WG2's technology aligns with Cisco's goal of simplifying mobile network architecture, enhancing service edge deployment, and promoting an API-first strategy for application development, enterprise customers, and service providers.
Based on the Analysis presented in the KBV Cardinal matrix Microsoft Corporation is the forerunner in the AI Camera Market. In July, 2021, Microsoft Corporation is set to acquire AT&T’s Network Cloud technology and intellectual property, offering job opportunities to several hundred AT&T engineers. In reciprocity, AT&T will transition its 5G mobile network to Azure. Companies such as Cisco Systems, Inc., Thales Group S.A. and Oracle Corporation are some of the key innovators in the Market.
Many government regulations require organizations to implement specific security measures to protect sensitive information. MFA is often mandated as part of these requirements, ensuring organizations comply with the law. Negligence to comply can result in fines and legal consequences, incentivizing businesses to adopt MFA solutions. Regulations like CCPA in California and GDPR in the European Union strongly emphasize data protection and user privacy. Financial services, such as banking and payment processing, are heavily regulated. This, in turn, fuels the growth of the market.
MFA nourishes an additional layer of protection by demanding multiple authentication factors, making it more difficult for attackers to gain unauthorized access. This heightened security is crucial in the face of evolving cyber threats. Sophisticated cyberattacks often involve the theft of usernames and passwords through methods like phishing, keylogging, and credential stuffing. MFA mitigates these risks by requiring additional factors beyond what can be easily stolen. Phishing attacks are a prevalent and effective method used by cybercriminals. MFA can minimize the impact of phishing by requiring a second authentication factor that attackers are less likely to possess. As the threat landscape evolves, the market is expected to grow as organizations seek robust security solutions to counteract increasingly sophisticated and persistent cyberattacks.
One of the prior challenges is the cost associated with implementing MFA solutions. This includes the purchase of hardware tokens, smart cards, and biometric devices and integrating MFA systems into existing infrastructure. Smaller organizations may find these costs prohibitive. Beyond the initial implementation, ongoing operational costs are associated with maintaining and supporting MFA systems. This includes software updates, hardware maintenance, and user support for MFA-related issues. Implementing MFA often requires extensive user training and support, especially when introducing new authentication methods or devices. This lack of understanding about advanced security threats has put businesses at risk and is hindering the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Mergers & Acquisitions.
On the basis of authentication type, the market is segmented into password-based authentication and Passwordless authentication. The Passwordless authentication segment acquired a substantial revenue share in the market in 2022. Passwordless authentication methods, especially those using biometrics or cryptographic keys, offer higher security than traditional passwords. These methods are more resistant to phishing attacks and password-related breaches. Passwordless authentication eliminates the need to remember and frequently change complex passwords, making the login process more convenient for users. Passwordless authentication is an innovative approach that addresses many security and usability challenges associated with traditional passwords.
Based on components, the market is fragmented into hardware, software, and services. The hardware segment garnered a significant revenue share in 2022. Hardware components in the market provide robust security and protection against unauthorized access. They are widely used in various industries, including finance, healthcare, government, and corporate environments where data security and access control are paramount. These components contribute to the diverse and flexible options for implementing multi-factor authentication, ensuring that users and organizations can select the most appropriate authentication methods to meet their specific security needs.
By model type, the market is categorized into two factor authentication, three factor authentication, four factor authentication, and five-factor authentication. In 2022, the two-factor authentication segment registered the highest revenue share in the market. Two-factor authentication (2FA) has become increasingly essential in the business landscape due to its ability to enhance security in an era of growing cyber threats. Two-factor authentication adds a layer of protection, making it harder for attackers to access a person's devices and online accounts. Any two smart cards, PIN, SMS application, tokens, biometrics (iris, face, palm, fingerprint, and so on), passwords, and so on can be used to achieve two-factor authentication.
Based on vertical, the market is classified into BFSI, government, travel & immigration, military & defense, commercial security, healthcare, IT, telecommunication, media & entertainment, and others. The media & entertainment segment covered a considerable revenue share in the market in 2022. The media and entertainment industry is at the cusp of transformation, with digital media expanding rapidly across TV, films, radio, advertising, animation, gaming, Out-Of-Home (OOH) advertising, and music. With the introduction of several digital technologies, content creation and production have given rise to numerous copyright, patent, and fraud-related activities.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 13.7 Billion |
| Market size forecast in 2030 | USD 41.5 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 15.2% from 2023 to 2030 |
| Number of Pages | 363 |
| Number of Table | 513 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Authentication Type, Model Type, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
|
| Restraints |
|
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region garnered a significant revenue share in the market in 2022. Asia Pacific experiences considerable security spending owing to the ever-growing threat landscape of the region. Asia Pacific invested more in security due to the growing threat of identity and visa breaches. The region comprises emerging economies like India, Japan, China, South Korea, Australia, and other Asia Pacific countries. Asia Pacific is increasingly targeted by cybercriminals using advanced and sophisticated attack vectors. MFA helps secure online banking by requiring customers to provide multiple verification forms before gaining access to their accounts or authorizing transactions.
Free Valuable Insights: The Global Multi-Factor Authentication Market size to reach USD 41.5 Billion by 2030
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Microsoft Corporation, Thales Group S.A., CyberArk Software Ltd., Broadcom, Inc., Micro Focus International PLC, HID Global Corporation, Cisco Systems, Inc., Oracle Corporation, RSA Security LLC, and Salesforce, Inc.
By Component
By Authentication Type
By Model Type
By Vertical
By Geography
This Market size is expected to reach $41.5 billion by 2030.
Stringent government rules to increase the adoption of mfa solutions are driving the Market in coming years, however, High cost and technical complexities restraints the growth of the Market
Microsoft Corporation, Thales Group S.A., CyberArk Software Ltd., Broadcom, Inc., Micro Focus International PLC, HID Global Corporation, Cisco Systems, Inc., Oracle Corporation, RSA Security LLC, and Salesforce, Inc.
The expected CAGR of this Market is 15.2% from 2023 to 2030.
The Password-Based Authentication segment is leading Market by Authentication Type in 2022; thereby, achieving a market value of $29.5 billion by 2030.
The North America region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $14,385.6 million by 2030.
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
Unique Offerings 