Multi-Factor Authentication Market Size, Share, Opportunities, And Trend By Model (Two Factor Authentication, Three-Factor Authentication, Four-Factor Authentication, Five-Factor Authentication), By Application (BFSI, Defense, Travel And Transport, Others), And By Geography - Forecasts From 2024 To 2029

The multi-factor authentication market is expected to grow at a CAGR of 14.12%, reaching a market size of US$37.266 billion in 2029 from US$19.255 billion in 2024.

MFA is an electronic authentication security technology that authenticates and allows a user access to an application, web portal, or VPN through various authentication mechanisms. MFA is intended to create barriers against unauthorized access to a target such as a computing device, network, physical location or database. This boosts security since users must identify themselves through another method in addition to username and password combinations. Nonetheless, although usernames and passwords cannot be disregarded, they can still be vulnerable to brute force attacks and hacking activities. Enforcing an MFA factor that serves as a thumbprint or physical hardware key increases the organization's confidence in its security. The rising use of cloud networking by numerous public and private institutions in their fundamental functions, and consequently the possibility of security attacks, have all contributed to an increase in the craving for multifactor authentication solutions. The universe of MFA is subdivided into groups according to its model types, application areas and regional classifications.

Multi-Factor Authentication Market Drivers:

• High demand for online transactions

The rise in online transactions and the high customer adoption rate of digital banking are expected to drive up demand for MFA. The rise in Internet banking and e-commerce, along with central bank mandates, is forcing large organizations to institute strong customer authentication protocols. Because more people are using mobile banking for online transactions, there will likely be a demand for OTP authenticators (both hardware and software). MFA is used to protect customers from fraud and phishing scams, as well as to guarantee secure transactions. Moreover, the healthcare, retail, and BFSI sectors' integration of various payment systems presents a potential opportunity for the MFA authentication industry.

• Increasing need for multi-factor authentication in banking and financial institutions

Financial sector security is so important that affiliated banking companies have allocated much of their budget to it. Cyber attacks in the UK are largely focused on payment systems and financial services. Some programs seek to support developing countries in creating such systems to increase their official identity-holding citizens. For example, the World Bank Group’s Identification for Development (ID4D) project engages new technologies. Thus, it is recommended that BFSI organizations operate a zero-trust security framework that demands strict username verification from every customer and device attempting to get to their resources. To enforce this, MFA, which involves using more than one piece of evidence to grant user authentication, must be applied.

• High demand in the e-commerce sector

Various factors have led to the increased use of multifactor authentication solutions, including the exponential growth of e-commerce, the rise in the number of online transactions and the provision of digital welfare and financial services. As a consequence of the increased popularity of online shopping, it has also become subject to cybercrimes like identity theft and payment fraud in retailing and e-commerce. Hence, many retailers are adopting multifactor authentication as an operational measure against such issues that can jeopardize customers’ data, hence making them hesitant to make payments for goods/services. This aims at protecting sensitive customer information including payment details as well as personal information so that they can regain their confidence. However, in the case of customers making purchases online are usually worried about security hence requiring cautious sellers who can shield their personal information using authenticated means.

Multi-Factor Authentication Market Restraints:

• High cost of OTP token prices

Rising OTP token pricing might hinder the growth of the industry. Optimal assets have become expensive because they require a high initial capital outlay and recurring costs of replacement. For instance, these aspects include; initial purchase price and licensing fees; mechanical and structural requirements; warranty for tokens; as well as inputs of time and resources during deployment and operation of solutions. This is partly due to limited vendor penetration rates in Eastern Europe or South America.

Multi-Factor Authentication Market Geographical Outlook

• The Asia Pacific is witnessing exponential growth during the forecast period

Asia-Pacific region is anticipated to have the highest growth rate in the multi-factor authentication market as there are increased instances of Bring Your Device (BYOD) policies/chains, and also high incidences of cyber thefts that result from data leakage. CREALOGIX now provides a solution to major banks in Asia that allows users to access a single app for both authentication and banking activities. Moreover, the hard token for performing OTP actions is becoming obsolete in multi-factor authentication systems with hardware-based devices. The soft token assumes the role of hard tokens while maintaining all their security features.

Multi-Factor Authentication Market Key Launches

• In April 2023, Clever, a digital learning platform serving more than 75% of K-12 schools in the U.S., unveiled its Clever MFA+. Clever's new offering. It is intended to assist districts dealing with an increasing number of cybersecurity incidents in schools and safeguard sensitive data by offering an intuitive dual layer of authentication for administrators and teachers to use. The Clever MFA+ software offers diverse authentication techniques, including biometrics, SMS codes, hardware tokens, voice calls, and app tokens (TOTP). This solution also works with Google Workspace and can support Azure, AD, and ADFS platforms, as well as any applications that support SAML, OpenIDConnect, or OAuth2. Furthermore, it is compatible with Chromebooks and Windows devices.
• In April 2023, The SafeNet Token Fusion series was unveiled by Thales, a prominent worldwide provider of technology and security solutions. This creative set of USB tokens creates a single authenticator by fusing PKI/CBA and Fast IDentity Online 2.0 (FIDO2). The principal aim of Thales's novel tokens was to protect users of Microsoft Azure Active Directory (Azure AD) by reducing the possibility of account compromise and providing improved security for cloud and web application access.
• In April 2022, Thales, a leading global provider of technology and security solutions, will unveil the SafeNet Token Fusion series. This creative set of USB tokens creates a single authenticator by fusing PKI/CBA and Fast IDentity Online 2.0 (FIDO2). The principal aim of Thales's novel tokens was to protect users of Microsoft Azure Active Directory (Azure AD) by reducing the possibility of account compromise and providing improved security for cloud and web application access.

The Multi-Factor Authentication market is segmented and analyzed as follows:

• By Type
  • Two-Factor Authentication
  • Three-Factor Authentication
  • Four-Factor Authentication
  • Five-Factor Authentication
• By Application
  • BFSI
  • Defence
  • Travel and Transport
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • Indonesia
    • South Korea
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. MULTI-FACTOR AUTHENTICATION MARKET BY TYPE

5.1. Introduction

5.2. Two-Factor Authentication

5.3. Three-Factor Authentication

5.4. Four-Factor Authentication

5.5. Five-Factor Authentication

6. MULTI-FACTOR AUTHENTICATION MARKET BY APPLICATION

6.1. Introduction

6.2. BFSI

6.3. Defence

6.4. Travel and Transport

6.5. Others

7. MULTI-FACTOR AUTHENTICATION MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. By Model

7.2.2. By Application

7.2.3. By Country

7.2.3.1. USA

7.2.3.2. Canada

7.2.3.3. Mexico

7.3. South America

7.3.1. By Model

7.3.2. By Application

7.3.3. By Country

7.3.3.1. Brazil

7.3.3.2. Argentina

7.3.3.3. Others

7.4. Europe

7.4.1. By Model

7.4.2. By Application

7.4.3. By Country

7.4.3.1. Germany

7.4.3.2. UK

7.4.3.3. France

7.4.3.4. Spain

7.4.3.5. Italy

7.4.3.6. Others

7.5. Middle East and Africa

7.5.1. By Model

7.5.2. By Application

7.5.3. By Country

7.5.3.1. Saudi Arabia

7.5.3.2. UAE

7.5.3.3. Others

7.6. Asia Pacific

7.6.1. By Model

7.6.2. By Application

7.6.3. By Country

7.6.3.1. China

7.6.3.2. Japan

7.6.3.3. India

7.6.3.4. Indonesia

7.6.3.5. South Korea

7.6.3.6. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. EMC Corporation (RSA)

9.2. Thoma Bravo (Entrust)

9.3. Thales Group

9.4. ASSA ABLOY (HID Global)

9.5. One Identity (OneLogin)

9.6. Okta (AuthO)

9.7. Avago Technologies Limited (Broadcom Inc)

9.8. Microsoft

EMC Corporation (RSA)

Thoma Bravo (Entrust)

Thales Group

ASSA ABLOY (HID Global)

One Identity (OneLogin)

Okta (AuthO)

Avago Technologies Limited (Broadcom Inc)

Microsoft