|Status : Published||Published On : Dec, 2021||Report Code : VRSME9084||Industry : Semiconductor & Electronics||Available Format :||Page : 300|
The global multifactor authentication (MFA) market is anticipated to grow from USD 10.9 billion in 2021 to USD 23.9 billion by 2027, registering a CAGR of 16.3% during the forecast period 2021-2027.
The multifactor authentication method is an advanced security system that entails users providing two or more validation factors in order to access resources like Components, online accounts, and Virtual Private Networks (VPN). The increased number of verification processes will decrease the probability of security breaches like hacking and data theft will accelerate the demand for MFA systems. The MFA system comprises logical, biometric, and physical procedures so as to pass the security system. Multifactor authentication is gaining prominence as it provides a high degree of security and various models of multi-factor authentication are adopted in various industry verticals like BFSI, government, immigration and travel, commercial security, electronics, and healthcare.
The COVID-19 outbreak has increased the demand for multifactor authentication solutions owing to an increase in cyber-based attacks. Moreover, there is increasing prominence of work from home and remote working culture globally, resulting in a sudden increase in cybercriminal activities. As a result, the multi-factor authentication market has grown significantly during the COVID 19 pandemic, as the demand for improved security for critical corporate assets has increased.
Insight by Model Type
Based on the model type, the global multifactor authentication market is divided into two-factor authentication, multifactor with three-factor authentication, multifactor with four-factor authentication, and multifactor with five-factor authentication. The two-factor authentication is subdivided into a smart card with pin, a smart card with biometric technology, biometric technology with pin, two-factor biometric technology, and a one-time password with pin. The multifactor with three-factor authentication is sub-divided into a smart card with pin and biometric technology, a smart card with two-factor biometric technology, pin with two-factor biometric technologies, and three-factor biometric technology. The two-factor authentication dominates the multifactor authentication market as it helps organizations to authenticate the identification of users digitally via parameters such as possession-based factors, knowledge-based factors, and inherence-based factors. The multifactor with five-factor authentication is anticipated to be the fastest-growing segment owing to its application by the government like homeland security services, access to top-secret national data/files, safeguards data, and technology in national research centers. Thus, it is used for a high level of security.
Insight by Component
Based on components, the global multifactor authentication market is divided into solutions, hardware, and services. The service segment contributes to the highest share and is essential to deploy, execute, and maintain MFA solutions and services in an organization. The more the adoption of MFA solutions, the more demand for services will also increase. The COVID-19 pandemic has led to increased data breaches and privacy compliance regulations. So, the companies are focused on adopting MFA solutions to attain compliance, enhanced data security, and better flexibility in operations.
Insight by Authentication Type
Based on authentication type, the multifactor authentication market is bifurcated into password authentication and passwordless authentication. Password authentication is anticipated to contribute to the largest share in the multifactor authentication market as it provides a reasonable level of security at less cost. Passwordless authentication is expected to grow at a faster pace owing to the emergence of developed technologies like IoT and AI in devices like smartphones and tablets. Moreover, the mounting adoption of fingerprint recognition and face recognition is projected to drive the passwordless multi-factor authentication industry.
Insight by Industry Vertical
Based on industry vertical, the global multifactor authentication market is divided into BFSI, government, travel and immigration, military and defense, commercial security, IT, telecommunication, healthcare, media and entertainment, and other verticals (education, and retail, and eCommerce). The BFSI industry is the most regulated industry as it has to meet many security requirements. Due to the sensitive and private data they handle, the BFSI industry has strict data security requirements. Due to various government obligations such as PSD2 and PCI DSS, financial institutions must meet the conditions and standards related to the protection of customer data. The multifactor authentication solutions helps the BFSI industry to provide robust security, secure identities, and manage regulatory compliance.
Multifactor authentication is a service solution that provides advanced security and authentication to organizations. Blockchain and decentralized authentication systems are an industry trend that replaces centralized data servers and application servers, providing computer networks for mutually encrypting, storing, and synchronizing data.
Factors attributing to the growth MFN market include increasing security breaches, fraud, and data identity thefts, rise in adoption of BYOD/IoT devices, increased demand for cloud-based MFA solutions and services, increased volume of online transactions, and strict government regulations like GDPR, CCPA, and PSD2 emphasized on the deployment of security practices in enterprises to eradicate frauds, data leaks, and identity thefts. The increased internet penetration, growing investment in cloud technologies, enterprise mobility, mounting adoption of smartphones with built-in authentication technology, and robust e-commerce growth will bolster the growth of the multifactor authentication market.
Multi-factor authentication systems are complex and require significant capital investment in procurement, implementation, maintenance, and management. In addition, the uncertainty and reluctance of end-users to adopt MFA solutions are challenging the multi-factor authentication market.
The multifactor authentication in terms of design is non-intrusive and has no impact on the organization’s digital infrastructure and digital services, resulting in the creation of high-security operations. Moreover, these solutions are available in the form of APIs which integrate seamlessly with the company’s login pages. Therefore, multifactor authentication provides flexibility and feasibility, resulting in providing favorable opportunities for the market to grow. The rising IT industry globally and high volume of online transactions will also provide opportunities for MFA manufacturers.
North America dominates the multifactor authentication market owing to increased penetration of smartphones, mounting adoption of digital services, technological development, and improved network connectivity. Furthermore, the rising cases of cyber-attacks and the presence of major players like CA Technologies, Symantec Corporation, Vasco Data Security International Inc., etc. are also factors that led to growth in the region.
Asia-Pacific is anticipated to be the fastest-growing region in the multifactor authentication market owing to the increased spending on connected devices, rising investment in cloud and IoT technologies, and mounting demand for digital services.
The industry players are innovating and deploying various solutions to handle operational efficiencies of organization and investing in research and development activities to develop novel authentication products, solutions, and services. Moreover, the market players are adopting inorganic strategies like M&A with small firms to enhance their product portfolio and have a competitive edge in the market.
Okta is one of the leading independent providers of identity for enterprises and provides flexibility in multifactor authentication solutions and includes single sign-on, access gateway, universal directory, and authentication.
Fujitsu tablets and work-related data systems are easy and authentication happens very fast. Thus, the staff are freed from handling multiple, complicated passwords and security is stronger.
In March 2021, Okta has signed a definitive agreement to acquire Auth0 for USD 6.5 billion so as to offer customer identity for the internet
Some of the key players operating in the multifactor authentication market: Broadcom, OneSpan, Okta, Microsoft, RSA Security LLC, Safran, Thales Group, SUPREMA, Ping Identity, and Fujitsu.
Source: VynZ Research