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Multi-Factor Authentication (MFA) Market Synopsis

Multi-Factor Authentication (MFA) Market Size Was Valued at USD 15.55 Billion in 2023, and is Projected to Reach USD 61.47 Billion by 2032, Growing at a CAGR of 16.7 % From 2024-2032.

Multi-factor Authentication (MFA) is an authentication measure that demands the user to present two or more distinct mechanisms verification factors in order to validate resources such as an application, online account, or a VPN rather than relying on just a simple username and password combination. Multi-factor authentication (MFA) needs users to provide at least 2 forms of evidence, like their password and a temporary passcode, to approve their identity. MFA is essential to a strong identity and access management (IAM) strategy. MFA consists of one or more extra verification factors Instead of only demanding a username -password, reducing the probability of a cyber-attack. In a digital age characterized by frequent cyber threats and increasingly sophisticated coding techniques, Dependency only on passwords is not enough, as they can be easily compromised and hacked. MFA eliminates and decreases that risk by demanding users to provide at least two authentication methods, such as a password with fingerprint recognition, a code sent to a mobile phone, or facial recognition. This added protection significantly reduces the likelihood of unauthorized use, improves overall data protection and increases trust in digital communications across platforms and devices.

  • The core benefit of MFA is it will enhance and improves the organization's security by requiring users to identify themselves by more than a username and password. While important, usernames and passwords are vulnerable to brute force attacks and can be stolen by third parties. Enforcing the use of an MFA factor like a thumbprint or physical hardware key means increased confidence that your organization will stay safe from cyber criminals. MFA helps to avoid unauthorized access to applications and sensitive data, assisting organizations to defend against identity theft, cyberattacks, and data breaches.
  • The core benefit of MFA is to enhance and improve the security of an organization by requesting consumers to identify them with something other than a username - and password. While usernames and passwords are crucial, they are susceptible to Cyber-Attacks and can be stolen or misused by third parties and cyber attackers. Implementing the use of an MFA factor such as a thumbprint or physical hardware key increases confidence that the organization is protected from cybercriminals. MFA works by requiring additional authentication information (factors). One of the most common MFA problems users encounter is one-time passwords (OTPs). OTPs are those 4-8-digit codes that customers often receive via email, text message, or some mobile app. With OTP, a new code is generated periodically or every time an authentication request is sent. The code is generated based on the initial value assigned to the user when they first sign in, and some other factor, which could simply be an incremented counter or time value.

Multi-Factor Authentication (MFA) Market Trend Analysis

Increasing Applications in the Healthcare and Banking Industry

  • The growing demand for multi-factor authentication systems which confirm the security of businesses and other organizations and their customers is rising due to the development of the healthcare, retail, banking, finance, and insurance (BFSI) sectors. As banks perform various functions such as core banking, trade finance, international payments, and online banking, all of which require secure connections to ensure a smooth user experience and smooth operations.
  • Also, according to Global Data Systems, “Healthcare is the most targeted industry for cyberattacks because the black-market value of medical data is exceptionally high.” Under these circumstances, for healthcare technology to continue advancing, the industry needed a secure solution that protected healthcare data and allowed authorized access.

The Rising Role of Multi-Factor Authentication in IoT Security

  • Multi-factor authentication (MFA) is gaining momentum in the Internet of Things (IoT) ecosystem due to vulnerabilities in traditional single-factor methods such as weak passwords and lack of direct user interaction on IoT devices. MFA provides a higher level of security by requiring multiple credentials to authenticate users, which extends the scope of authentication.
  • MFA includes factors such as passwords, unique identifiers, biometric fingerprints, retina scans, vein scans, voice recognition, signature recognition, and contextual information like login location and time. Multiple authentication factors in these dimensions significantly raise the bar for MFA to potential attackers, eliminating and reducing the risks associated with cyber-attacks. Due to continues growth of Internet of Things (IoT) in various industries, the importance and need for strong security measures are increasingly emphasized.

Multi-Factor Authentication (MFA) Market Segment Analysis:

Multi-Factor Authentication (MFA) Market is Segmented on the Authentication Type, by Component, by Model Type and by End User.

By Type, Two - Factor Authentication segment is expected to dominate the market during the forecast period

  • In Two Factor Authentication Use of smart cards is rising. Smart card as a physical component delivers multi-layered security. Cards shaped with advanced encryption features are highly resistant to hacking, cloning or counterfeiting. Their anti-knock design, reinforced by built-in security elements such as metal layers and sensors that detect and sense various attacks, guarantees the integrity of the authentication process. Smart cards integrate encryption elements that protect stored information and require secure search methods.
  • The demand and necessity for smart cards in two-factor authentications is because of their effectiveness in reducing and eliminating the risks of unauthorized use and identity theft. In an environment where cyber threats are increasing rapidly, organizations and individuals alike understand the importance of strong security actions. Smart cards not only reliably verify the user's identity, but also provide security against various attack vectors. Associating a physical thing (smart card) with something known (PIN) creates a strong defense against unauthorized access and protects sensitive digital assets in a cybersecurity environment. Therefore, the introduction of smart cards and 2FA represents a proactive response to evolving threats and highlights their central role in strengthening digital security frameworks.

By End User, Banking and financial institutions segment dominates the market.

  • Banks and financial institutions are endlessly under threat from cybercriminals. They aim to take advantage of weaknesses in Bank and financial systems. The banking and finance industry's uncompromising nature leads to the popularity of MFA due to the possibility for significant financial loss along with reputational damage by compromising sensitive information. It is projected that each company in the banking sector is facing a cost of 15.4 million euros per year due to cyber-attacks.
  • In the arena of banking and finance, individuals use passwords, biometrics, or one-time codes prior for accessing accounts and conducting transactions. Mostly purpose of the attack is to acquire private user information such as usernames, passwords, credit card numbers, and social security numbers, regardless of the variety of attacks.
  • The main problem with old-style logins using usernames and passwords is that hackers can easily access and steal passwords, leading to potential millions of dollars in damage. Automated password cracking tools are a significant worry due to the possibility of brute force cyberattacks, where cybercriminals systematically test various login and password combinations until successful. Rules like FFIEC guidelines commanded that financial institutions need to have robust security measures like MFA to safeguard and protect customer data and stay in accordance.
  • Various applications utilize biometric authentication, fingerprint, facial recognition, Voice recognition, Retina scanner in banking apps and ATMs. Banks and financial institutions utilize token-based authentication systems that require customers to use physical tokens or mobile applications to produce unique passwords for account access or transaction approval.

Multi-Factor Authentication (MFA) Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

  • Cyberattacks, particularly identity-related crimes, have a significant impact on the Unite States compared to other regions globally. Growing cyber threats in the region are leading to a higher need for strong security solutions. More strict regulations like GDPR and HIPAA are prompting organizations to implement MFA for regulatory compliance.
  • Governments in North America recognize cybersecurity as the most critical economic and national security threat. The rising risk of identity theft is a robust promoter for executing MFA in multiple sectors. As traditional authentication methods are acknowledged to have limitations, MFA provides a strong way to increase security and prevent unauthorized access and identity theft for both organizations and individuals.
  • MFA is mandatory in the United States for government agencies, individuals who utilize tokens and PINs for remote entry, and for those who access government websites.
  • The Government has directed the NCSA, along with public-private and non-profit groups, to collaborate with technology companies like Google, Microsoft, and Facebook to encourage the adoption of two-factor authentication.

Multi-Factor Authentication (MFA) Market Top Key Players:

  • 3M (U.S.)
  • RSA Security (U.S.)
  • Okta, Inc. (U.S.)
  • Duo Security (U.S.)
  • Microsoft Corporation (U.S.)
  • IBM Corporation (U.S.)
  • Giesecke+Devrient Mobile Security GmbH (Brazil)
  • IDTECH (Brazil)
  • Auth0 (Czech Republic)
  • Yubico (Sweden)
  • Nok Nok Labs (Slovakia)
  • Gemalto NV (Netherlands)
  • Vasco Data Security International, Inc. (Belgium)
  • Thales Group (France)
  • Ping Identity (U.K)
  • OneSpan (Switzerland)
  • Entersekt (South Africa)
  • NEC Corporation (Japan)
  • Fujitsu Ltd. (Japan)
  • HID Global Corporation (Singapore)
  • Symantec Corporation (India)
  • NetIQ Corporation (India)
  • RSA Security (India)
  • MFA Security (Australia)
  • SecureAuth Corporation (Australia)

Key Industry Developments in the Multi-Factor Authentication (MFA) Market:

  • In May 2024, RSA is working with Microsoft to secure environments with new external authentication methods. RSA announced that it is strengthening Microsoft environments through an ongoing collaboration that brings additional security to Office environments. With the new External Authentication Methods (EAM) feature, more customers can extend the use of RSA solutions, including RSA authentication and access capabilities, to many other Microsoft environments.
  • In September 2023, Microsoft and Oracle are expanding their partnership to offer Oracle database services on Microsoft Azure, Oracle's cloud infrastructure. Oracle Corp and Microsoft Corp announced Oracle Database Azure, which offers customers direct access to Oracle database services running on Oracle Cloud Infrastructure (OCI) and deployed in Microsoft Azure data centers.

Global Multi-Factor Authentication (MFA) Market

Base Year:

2023

Forecast Period:

2024-2032

Historical Data:

2017 to 2023

Market Size in 2023:

USD 15.55 Bn.

Forecast Period 2024-32 CAGR:

16.7 %

Market Size in 2032:

USD 61.47 Bn.

Segments Covered:

By Authentication Type

  • Password-Based
  • Password less

By Component

  • Hardware, Software
  • Services

By Model Type

  • Two-factor Authentication
  • Three-factor Authentication
  • Four-factor Authentication
  • Five-factor Authentication

By End User

  • Government
  • Military and Defense
  • Commercial Security
  • Travel and Immigration
  • Banking and Financial Institutions
  • Others

By Region

  • North America (U.S., Canada, Mexico)
  • Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)
  • Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
  • Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)
  • Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)
  • South America (Brazil, Argentina, Rest of SA)

Key Market Drivers:

  • Increasing Applications in the Healthcare and Banking Industry

Key Market Restraints:

  • Client convenience challenges

Key Opportunities:

  • The Rising Role of Multi-Factor Authentication in IoT Security

 

Companies Covered in the report:

  • 3M (U.S.), RSA Security (U.S.), Okta, Inc. (U.S.), Duo Security (U.S.), Microsoft Corporation (U.S.), and Other Major Players.
  1. INTRODUCTION
    1. RESEARCH OBJECTIVES
    2. RESEARCH METHODOLOGY
    3. RESEARCH PROCESS
    4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
    5. MARKET SEGMENTATION
  2. EXECUTIVE SUMMARY
  3. MARKET OVERVIEW
  4. GROWTH OPPORTUNITIES BY SEGMENT
  5. MARKET LANDSCAPE
    1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
    2. INDUSTRY VALUE CHAIN ANALYSIS
    3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
    4. MARKET TREND ANALYSIS
    5. REGULATORY LANDSCAPE
    6. PESTLE ANALYSIS
    7. PRICE TREND ANALYSIS
    8. PATENT ANALYSIS
    9. TECHNOLOGY EVALUATION
    10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
      1. Geopolitical Market Disruptions
      2. Supply Chain Disruptions
      3. Instability in Emerging Markets
    11. ECOSYSTEM
  6. MULTI - FACTOR AUTHENTICATION (MFA) MARKET BY AUTHENTICATION TYPE (2017-2032)
    1. MULTI - FACTOR AUTHENTICATION (MFA) MARKET SNAPSHOT AND GROWTH ENGINE
    2. MARKET OVERVIEW
    3. PASSWORD - BASED
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
    4. PASSWORD LESS
  7. MULTI - FACTOR AUTHENTICATION (MFA) MARKET BY COMPONENT (2017-2032)
    1. MULTI - FACTOR AUTHENTICATION (MFA) MARKET SNAPSHOT AND GROWTH ENGINE
    2. MARKET OVERVIEW
    3. HARDWARE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
    4. SOFTWARE
    5. SERVICES
  8. MULTI - FACTOR AUTHENTICATION (MFA) MARKET BY MODEL TYPE (2017-2032)
    1. MULTI - FACTOR AUTHENTICATION (MFA) MARKET SNAPSHOT AND GROWTH ENGINE
    2. MARKET OVERVIEW
    3. TWO-FACTOR AUTHENTICATION
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
    4. THREE-FACTOR AUTHENTICATION
    5. FOUR-FACTOR AUTHENTICATION
    6. FIVE-FACTOR AUTHENTICATION
  9. MULTI - FACTOR AUTHENTICATION (MFA) MARKET BY END USER (2017-2032)
    1. MULTI - FACTOR AUTHENTICATION (MFA) MARKET SNAPSHOT AND GROWTH ENGINE
    2. MARKET OVERVIEW
    3. BANKING AND FINANCIAL INSTITUTIONS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
    4. MILITARY AND DEFENSE
    5. COMMERCIAL SECURITY
    6. TRAVEL AND IMMIGRATION
    7. GOVERNMENT
    8. OTHERS
  10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
      1. Competitive Positioning
      2. Luxury Goods Market Share By Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
    2. 3AM
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
    3. RSA Security (U.S.)
    4. Okta, Inc. (U.S.)
    5. Duo Security (U.S.)
    6. Microsoft Corporation (U.S.)
    7. IBM Corporation (U.S.)
    8. Giesecke+Devrient Mobile Security GmbH (Brazil)
    9. IDTECH (Brazil)
    10. Auth0 (Czech Republic)
    11. Yubico (Sweden)
    12. Nok Nok Labs (Slovakia)
    13. Gemalto NV (Netherlands)
    14. Vasco Data Security International, Inc. (Belgium)
    15. Thales Group (France)
    16. Ping Identity (U.K)
    17. OneSpan (Switzerland)
    18. Entersekt (South Africa)
    19. NEC Corporation (Japan)
    20. Fujitsu Ltd. (Japan)
    21. HID Global Corporation (Singapore)
    22. Symantec Corporation (India)
    23. NetIQ Corporation (India)
    24. RSA Security (India)
    25. MFA Security (Australia)
    26. SecureAuth Corporation (Australia)
  11. GLOBAL MULTI - FACTOR AUTHENTICATION (MFA) MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Authentication Type
      4. Historic And Forecasted Market Size By Component
      5. Historic And Forecasted Market Size By Model Type
      6. Historic And Forecasted Market Size By End User
      7. Historic And Forecasted Market Size By Country
        1. USA
        2. Canada
        3. Mexico
    3. EASTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. Russia
        2. Bulgaria
        3. The Czech Republic
        4. Hungary
        5. Poland
        6. Romania
        7. Rest Of Eastern Europe
    4. WESTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. Germany
        2. United Kingdom
        3. France
        4. The Netherlands
        5. Italy
        6. Spain
        7. Rest Of Western Europe
    5. ASIA PACIFIC
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. China
        2. India
        3. Japan
        4. South Korea
        5. Malaysia
        6. Thailand
        7. Vietnam
        8. The Philippines
        9. Australia
        10. New-Zealand
        11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. Turkey
        2. Bahrain
        3. Kuwait
        4. Saudi Arabia
        5. Qatar
        6. UAE
        7. Israel
        8. South Africa
    7. SOUTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
  12. INVESTMENT ANALYSIS
  13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies

Global Multi-Factor Authentication (MFA) Market

Base Year:

2023

Forecast Period:

2024-2032

Historical Data:

2017 to 2023

Market Size in 2023:

USD 15.55 Bn.

Forecast Period 2024-32 CAGR:

16.7 %

Market Size in 2032:

USD 61.47 Bn.

Segments Covered:

By Authentication Type

  • Password-Based
  • Password less

By Component

  • Hardware, Software
  • Services

By Model Type

  • Two-factor Authentication
  • Three-factor Authentication
  • Four-factor Authentication
  • Five-factor Authentication

By End User

  • Government
  • Military and Defense
  • Commercial Security
  • Travel and Immigration
  • Banking and Financial Institutions
  • Others

By Region

  • North America (U.S., Canada, Mexico)
  • Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)
  • Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
  • Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)
  • Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)
  • South America (Brazil, Argentina, Rest of SA)

Key Market Drivers:

  • Increasing Applications in the Healthcare and Banking Industry

Key Market Restraints:

  • Client convenience challenges

Key Opportunities:

  • The Rising Role of Multi-Factor Authentication in IoT Security

 

Companies Covered in the report:

  • 3M (U.S.), RSA Security (U.S.), Okta, Inc. (U.S.), Duo Security (U.S.), Microsoft Corporation (U.S.), and Other Major Players.
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Frequently Asked Questions :

What would be the forecast period in the Multi-Factor Authentication (MFA) Market research report?

The forecast period in the Multi-Factor Authentication (MFA) Market research report is 2024-2032.

Who are the key players in the Multi-Factor Authentication (MFA) Market?

3M (U.S.), RSA Security (U.S.), Okta, Inc. (U.S.), Duo Security (U.S.), Microsoft Corporation (U.S.), IBM Corporation (U.S.), Giesecke+Devrient Mobile Security GmbH (Brazil), IDTECH (Brazil), Auth0 (Czech Republic), Yubico (Sweden), Nok Nok Labs (Slovakia), Gemalto NV (Netherlands), Vasco Data Security International, Inc. (Belgium), Thales Group (France), Ping Identity (U.K), OneSpan (Switzerland), Entersekt (South Africa), NEC Corporation (Japan), Fujitsu Ltd. (Japan), HID Global Corporation (Singapore), Symantec Corporation (India), NetIQ Corporation (India), RSA Security (India), MFA Security (Australia), SecureAuth Corporation (Australia) and Other Major Players.

What are the segments of the Multi-Factor Authentication (MFA) Market?

The Multi-Factor Authentication (MFA) Market is segmented into Authentication Type, Component, Model Type, End User. By Type, the market is categorized into Password-Based, Password less. By Component, the market is categorized into Hardware, Software, Services. By Model Type, the market is categorized into Two-factor Authentication, Three-factor Authentication, Four-factor Authentication, Five-factor Authentication. By End User, the market categorized into Government, Military and Defense, Commercial Security, Travel and Immigration, Banking and Financial Institutions, Others. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

What is the Multi-Factor Authentication (MFA) Market?

Multi-factor Authentication (MFA) is an authentication measure that demands the user to present two or more distinct mechanisms verification factors in order to validate resources such as an application, online account, or a VPN rather than relying on just a simple username and password combination. Multi-factor authentication (MFA) needs users to provide at least 2 forms of evidence, like their password and a temporary passcode, to approve their identity. MFA is essential to a strong identity and access management (IAM) strategy.

How big is the Multi-Factor Authentication (MFA) Market?

Multi-Factor Authentication (MFA) Market Size Was Valued at USD 15.55 Billion in 2023, and is Projected to Reach USD 61.47 Billion by 2032, Growing at a CAGR of 16.7% From 2024-2032.