Multi-Factor Authentication Market is expected to reach US$ 55.04 billion by 2031

Increasing Volume of Online Transactions to Provide Opportunities for Multi-Factor Authentication Market Growth During 2023–2031

According to our latest market study, “Multi-Factor Authentication Market Size and Forecast (2020–2030), Global and Regional Share, Trends, and Growth Opportunity Analysis – by Component, Authentication Type, Model Type, and End User," the market was valued at US$ 14.44 billion in 2023 and is projected to reach US$ 55.04 billion by 2031; it is anticipated to record a CAGR of 18.2% from 2023 to 2031.

The digital payments ecosystem has gained traction in recent years. The internet penetration and the rise in the usage of smartphones are a few of the prominent factors boosting the growth of digital payments. The rise in online shopping and e-commerce sector has significantly increased after the onset of the COVID-19 crisis, which has led to the growth of online financial transactions. According to the information by The World Bank in “Global Findex Database 2021,” ~40% of adults in the developing economies, excluding China, made a digital merchant payment by phone, card, or the internet, and over one-third of adults in developing economies paid a utility bill directly from an account. These transactions were made for the first time after the start of the pandemic. With this, the number of digital transactions has been growing year by year. According to Razorpay, online payments more than doubled in 2021, growing by 104% when compared to 2020. Similarly, ACI Worldwide claimed that over 70.3 billion real-time payment transactions were processed globally in 2020, a surge of 41% compared to 2019. The increasing adoption and preference for online transactions have exposed banks to a higher risk of cyber threats. Multi-factor authentication helps banks secure online banking by requiring customers to provide multiple verification forms before gaining access to their accounts or authorizing transactions. Thus, the rise in online transactions generates significant demand for multi-factor authentication systems, which drives the multi-factor authentication market. Apart from growth drivers, the report covers the multi-factor authentication market trends and their foreseeable impact during the forecast period.

Multi-Factor Authentication Market Share — by Geography, 2023

Source: The Insight Partners Analysis

The multi-factor authentication market forecast can help stakeholders plan their growth strategies. Microsoft; Thales.; Okta; OneSpan; HID Global Corporation; Cisco Systems, Inc.; Ping Identity.; RSA Security; and CyberArk Software Ltd. are among the key players profiled in the multi-factor authentication market report. Several other major market players were studied and analyzed during this market research study to get a holistic view of the market and its ecosystem. The multi-factor authentication market report provides detailed market insights, which help the key players strategize their growth.

Based on model type, the multi-factor authentication market analysis is carried out by considering the following subsegments: two-factor authentication, three-factor authentication, four-factor authentication, and five-factor authentication. The two-factor authentication segment in the market is likely to record the highest CAGR during the forecast period. A two-factor authentication solution is a security system that requires two distinct factors of identification to access accounts. Two-factor authentication requires two types of information from the user such as a password or personal identification number (PIN) and a code sent to the user's smartphone or a fingerprint. The adoption of two-factor authentication has increased among companies, governments, and the public, as the application of only one password is not secure enough to protect a user’s account in the current technical landscape. Organizations are increasingly adopting two-factor authentication solutions to protect against many security threats, such as phishing, brute-force attacks, and credential exploitation. For instance, according to LastPass, the use of two-factor authentication has increased by 51% from 2017 to 2021. Moreover, 61% of individuals employ at least one form of two-factor authentication (2FA) for their accounts. 45% of internet users have activated 2FA for at least one of their accounts. All these factors contribute to the growth of the two-factor authentication segment in the multi-factor authentication market.

The North America multi-factor authentication market is segmented into the US, Canada, and Mexico. In terms of revenue, the US dominated the multi-factor authentication market share. The increasing number of identity theft and cybercrime in the US is driving the adoption of multi-factor authentication solutions in the country. Data breaches are becoming more common and expensive, and businesses and consumers are adopting identity verification solutions to protect themselves. As per the National Council on Identity Theft Protection, the number of identity theft scenarios in the US is approximately three times higher than in other countries. Approximately 33% of Americans have faced identity theft issues; further, Georgia reported the highest number of cases of identity theft. Further, according to the Federal Bureau of Investigation’s (FBI) 2021 Internet Crime Report, the US recorded 51,629 victims of identity theft in 2021, and over 50,000 cases of identity theft are reported each year in the country. Thus, the growing threat of cyberattacks leads to increased adoption of multi-factor authentication in the US, which fuels the multi-factor authentication market growth.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com