Multi factor authentication Market Size, Share & Segmentation, By Model (Two Factor Authentication, Three Factor Authentication, Four Factor Authentication, Five Factor Authentication), By Application (BFSI, Government & Defense, Healthcare, Travel & Immigration, Retail & Ecommerce, Others), By Region And Global Forecast 2024-2032

Multi factor authentication Market Size

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The Multi-factor authentication Market size was valued at USD 16.00 billion in 2023 and is expected to grow to USD 54.12 billion by 2032 and grow at a CAGR of 14.5% over the forecast period of 2024-2032.

The majority of total revenue in 2022 was generated by the two-factor authentication model. With the use of this approach, organizations can verify the digital identities of users using a variety of criteria, including knowledge-based, possession-based, and inheritance-based criteria. Technologies that use multifactor authentication are used in a variety of industry sectors because they improve security and data protection. Technology companies and service providers are developing and implementing a wide range of solutions that help businesses run more efficiently.

The Multifactor Authentication market is further divided into the following end-user categories: BFSI, Government, Travel and Immigration, Military and Defense, Commercial Security, IT and Telecommunication, Healthcare, and Others. BFSI is the most targeted industry sector since it handles massive amounts of private and sensitive financial documents. The BFSI industry is an early user of cutting-edge MFA solutions since they deal with extremely sensitive financial data.

KEY DRIVERS: 

• Increased demand for sophisticated cybersecurity

The growing demand for sophisticated cybersecurity to lessen threats and crimes. Additionally, the emergence of these cyber dangers presents a serious risk to businesses in all industries. Cybercriminals are using increasingly sophisticated methods to steal personal information from people. In addition, MFA, which adds a second line of defense against illegal access, is a crucial barrier against these dangers. The market is expanding as a result of the numerous businesses investing quickly in cutting-edge cybersecurity solutions to secure their data, consumers, brand reputation, and avert significant financial losses.

•  Increasing understanding of the value of safeguarding remote access

RESTRAIN:

• Expensive and difficult-to-implement MFA solutions

The significant expense associated with establishing MFA solutions is the main barrier to adoption for businesses. MFA solutions assist users and businesses in lowering the risk of data loss. Due to financial constraints, these solutions tend to be an expensive option for SMEs. Additionally, the expenditures of timely maintenance and upgrades contribute to the total rise in an organization's expenses. For small businesses with limited resources, deploying software involves high license, maintenance, and user support expenses. The high cost of MEA solutions is a result of a number of reasons, including hardware tokens, software tokens, biometric authentication, and the need for certification in MFA to meet compliance standards.

OPPORTUNITY:

• Numerous internet transactions

The demand for MFA is anticipated to rise as a result of the rising number of online transactions and the high rate of client adoption of digital banking. Large organizations are being pushed to implement robust authentication procedures for consumers because to the surge in eCommerce and internet banking usage as well as mandated rules from central banks. The need for OTP authenticators (both hardware and software) is expected to increase due to the increasing use of mobile banking for online transactions. Additionally, there are numerous opportunities for the multifactor authentication market to expand due to the integration of these payment systems by the healthcare, retail, and BFSI sectors.

• Advancement in Technology

CHALLENGES:

• Lack of knowledgeable cybersecurity personnel

Lack of cybersecurity specialists is the main reason limiting the multi-factor authentication market's expansion. Organizations underinvest in their security infrastructure due to a lack of knowledge about sophisticated cyber threats, which leads to significant data loss and monetary losses. Additionally, businesses with urgent cybersecurity requirements have noticed a severe lack of competent personnel in their operations, leaving them more susceptible to assaults.

IMPACT ANALYSIS

IMPACT OF RUSSIAN UKRAINE WAR

The Ukrainian invasion by Russia in 2022 has highlighted the dangers of using cybersecurity in combat. Russia pre-emptively interfered with government operations by knocking down Ukrainian government websites and infecting several local organizations with malicious information (malware) before the country was physically invaded. Even though these attacks might seem far away, they might possibly be employed against companies all over the world in order to disrupt, weaken, or prohibit access to vital systems. Given that one of the most well-known Advanced Persistent Threats (APTs) of the current era is sponsoring these attacks, they are especially worrisome. Russian APT outfits are well renowned for their cunning techniques for breaking into networks, gathering useful information, and remaining undiscovered. The organizations will be covered in the blog that follows. Although SMS-based MFA has been a popular solution for adding an extra layer of protection, it has serious flaws that attackers can use against it. Risks linked with SMS-based MFA include lack of encryption, network disruptions, SS7 attacks, social engineering, and SIM-swapping. Best practices can reduce these dangers, but there are other MFA options that offer more security, including hardware tokens, biometric authentication, and mobile authenticator apps. CyberHoot, a cybersecurity veteran, advises people and companies to take these alternative solutions into consideration in order to improve their security posture and safeguard their valuables and critical information.

IMPACT OF ONGOING RECESSION

The present downturn has hampered the speed of economic recovery from the COVID-19 crisis, raising the possibility of a recession in multiple nations, both developed and developing, in 2023 amid rising inflation, aggressive monetary tightening, and increased uncertainty. In 2022, the United States, the European Union, and other developed economies' growth pace drastically slowed down, negatively affecting the rest of the world's economy through a number of ways, The dollar's strength and tightening global financial conditions made developing nations' budgetary and debt vulnerabilities worse. Since late 2021, about 85% of central banks around the world have tightened monetary policy and increased interest rates rapidly in an effort to curb inflationary pressures and prevent a recession. It is anticipated that global inflation, which peaked at a multi-decade high of around 9% in 2022, will moderate but still be high at 6.5% in 2023.

MARKET SEGMENTATION

By Model

• Two Factor Authentication

• Three Factor Authentication

• Four Factor Authentication

• Five Factor Authentication

By Application

• BFSI

• Government & Defense

• Healthcare

• Travel & Immigration

•  Retail & Ecommerce

• Others

REGIONAL ANALYSIS

North America is anticipated that rising investments, rising R&D spending, and rising innovations will fuel market revenue growth. Other factors that are anticipated to contribute to the market revenue growth in the region over the forecast period include the rising need to prevent cyberattacks, commercial espionage, frauds and theft, and to provide data security and privacy. By the end of 2035, the multi-factor authentication industry is projected to possess a 34% revenue share. The existence of significant providers, the regulatory environment, innovation and investment, as well as a high rate of technology adoption, are factors that support this.

In Acia Pacific Population growth, increasing urbanization, and increased digitalisation have made nations like India, Indonesia, and China and other factors are anticipated to fuel the MFA market's revenue growth. The trend of industry areas including banking, insurance, and trading towards effective and seamless authentication procedures for the increasing importance of MFA in the area is anticipated to fuel market revenue development over the research period by ensuring users have safe remote access. MFA solutions are now being used by companies in the area to stop cyberattacks. According to a survey, cybercrime affected 53.35 million US people in the first half of 2022. Additionally, identity theft and commercial espionage can be prevented by enhancing the protection of sensitive information and personal data.

The developed economy and technological sophistication of Europe are driving the market for multi-factor authentication at a rapid rate. The General Data Protection Regulation (GDPR) has boosted awareness of the value of data protection, which has encouraged MFA adoption across a number of industries. For businesses that have adopted the GDPR, data breach costs have decreased. 37% of these enterprises lost more than USD 500,000 in just; as a, businesses adopted MFA as a forerunner, driving up market demand.

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REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

KEY PLAYERS

Some of key players of Multi-Factor Authentication Market are Okta Inc., Microsoft Corporation, Broadcom Inc., Gemalto NV (Thales Group), D RSA Security LLC, Aware Inc., HID Global, Trust Stamp, Feitian Technologies and other players are listed in a final report.

RECENT DEVELOPMENT

• April 2022 - The Biometric Multi-Factor Authentication (Biometric MFA) solution from Trust Stamp has been made available. By testing liveness and irreversibly tokenizing data from a simple selfie, the Biometric MFA automates comprehensive identity assurance and adds a second and third authentication factor, eliminating the need for passcodes from SMS, email, and other types of communication. Hardware tokens or authenticator applications.

• MIRACL, a cybersecurity software company that specializes in one-step, secure multifactor authentication, announced in March 2022 a collaboration with Aware Inc., an organization that uses adaptive authentication that has been shown to be effective. utilize biometrics to solve typical business problems. Aware may be able to expand its cloud-based biometric system thanks to this agreement. data breaches and ransomware, which are still a concern in many companies, can be prevented with authentication solutions, such as finance.

• In order to provide businesses with a cloud-based solution for managing, issuing, and utilising digital identification credentials for logical and physical access control, HID Global announced WorkforcelD Authentication in April 2021.

• In order to offer Feitian's multi-factor authentication and biometric solutions to the U.K. market, Feitian Technologies teamed with Northamber, a distributor of AV and IT systems.

  Multi factor authentication Market Report Scope:

  Report Attributes	Details
  Market Size in 2023	US$ 16.00 billion
  Market Size by 2032	US$ 54.12 billion
  CAGR	CAGR of 14.5%  From 2024 to 2032
  Base Year	2023
  Forecast Period	2024-2032
  Historical Data	2020-2022
  Report Scope & Coverage	Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
  Key Drivers	•Increased demand for sophisticated cybersecurity •Increasing understanding of the value of safeguarding remote access
  Market Restrain	•Expensive and difficult-to-implement MFA solutions