PUBLISHER: The Business Research Company | PRODUCT CODE: 1659256
PUBLISHER: The Business Research Company | PRODUCT CODE: 1659256
Multi-factor authentication (MFA) signifies an authentication approach designed to create layered security, bolstering protection against unauthorized access to user information. This strategy enhances organizational security by necessitating users to validate their identity using more than just a username and password, creating a robust authentication process.
The primary models of multi-factor authentication encompass two factors, three factors, four factors, and five factors. Two-factor authentication, a subset of MFA, requires users to employ two distinct authentication factors as part of the security procedure. These factors could include password and password-less authentication. Components integral to multi-factor authentication include hardware, software, and associated services. This authentication method finds application across various sectors, catering to both large enterprises and small to medium-sized businesses. Its implementation spans industries such as BFSI, government, travel and immigration, military and defense, commercial security, healthcare, IT, telecommunication, media and entertainment, and other verticals.
The multi-factor authentication market research report is one of a series of new reports from The Business Research Company that provides multi-factor authentication market statistics, including multi-factor authentication industry global market size, regional shares, competitors with a multi-factor authentication market share, detailed multi-factor authentication market segments, market trends and opportunities, and any further data you may need to thrive in the multi-factor authentication industry. This multi-factor authentication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The multi-factor authentication market size has grown rapidly in recent years. It will grow from $17.4 billion in 2024 to $20.08 billion in 2025 at a compound annual growth rate (CAGR) of 15.4%. The growth in the historic period can be attributed to increased cyberattacks, vendor innovations, MFA integration, industry-specific applications, legacy security vulnerabilities.
The multi-factor authentication market size is expected to see rapid growth in the next few years. It will grow to $41.59 billion in 2029 at a compound annual growth rate (CAGR) of 20.0%. The growth in the forecast period can be attributed to integration with IAM solutions, industry-specific applications, biometric adoption growth, continuous authentication demand, enhanced user experience. Major trends in the forecast period include escalating cyber threats, remote workforce expansion, zero trust security models, advancements in authentication technologies, data privacy concerns.
The increase in data breaches and cyber-attacks is anticipated to drive the growth of the multi-factor authentication market. Cyber data breaches involve unauthorized access to computer systems or networks to obtain sensitive personal and financial information from users. The rising frequency of these breaches highlights the urgent need for multi-factor authentication, which can prevent unauthorized access through measures such as endpoint detection and response (EDR), biometric technology, cloud security, code audits, and embedded system security assessments. For instance, in May 2024, IT Governance, a UK-based IT service management company, reported that the number of known records breached in January 2024 skyrocketed to 29,552,913,557, a dramatic increase from 2,306,294,320 records breached in December 2023. This surge underscores the escalating data security challenges. Consequently, the rise in data breaches and cyber-attacks is propelling the demand for multi-factor authentication solutions.
The burgeoning telecommunications industry is expected to drive the expansion of the multi-factor authentication solutions market. This sector encompasses technology, services, and infrastructure for long-distance information transmission. Within the MFA ecosystem, telecommunications plays a pivotal role, offering the necessary infrastructure and services to support various authentication methods and bolster overall digital transaction security and access control. Projections from October 2023 anticipate global revenue for telecom services to reach £1.13 billion ($1.38 billion) in 2023, surging to an estimated $1.58 trillion by 2028. Moreover, global Information Technology (IT) spending specifically on telecommunications services is projected to grow by 2.8% from $1.42 trillion in 2022 to $1.5 trillion in 2023. Therefore, the expanding telecommunications industry will fuel the growth of the multi-factor authentication solutions market.
Technological advancement emerges as a prominent trend in the multi-factor authentication market. Leading companies in this domain are focused on developing sophisticated security services and solutions, such as smart cards and password-less authentication systems, to fortify their market positions. For instance, in June 2022, Xage Security launched a multi-layer, multi-factor authentication protection tailored for critical infrastructure. This solution combines zero-trust access control with a defense-in-depth authentication approach, requiring users to verify their identity at each access privilege layer.
In the realm of zero trust security, major companies are emphasizing the adoption of educational-focused multi-factor authentication solutions to strengthen their market presence. These solutions cater to the specific security needs of educational institutions, safeguarding sensitive academic data and ensuring compliance with regulations. They play a pivotal role in advancing MFA adoption across diverse sectors, offering tailored and user-friendly security measures. For instance, Clever launched multi-factor authentication solutions in April 2023, aiming to enhance cybersecurity in K-12 schools. Clever MFA+ provides a dual-layer authentication system, addressing cybersecurity threats and ensuring a secure learning environment.
In October 2022, Intercede Group LLC, a cybersecurity firm based in the UK, acquired Authlogics for an undisclosed amount. This acquisition aims to enhance Intercede's product portfolio by providing a comprehensive range of authentication solutions, which include everything from basic password management to advanced techniques such as Public Key Infrastructure (PKI) and FIDO. This strategy is designed to meet the diverse security requirements of a broader market. Authlogics specializes in multi-factor authentication solutions and is also based in the UK.
Major companies operating in the multi-factor authentication market are Microsoft Corporation, Broadcom Inc., OneSpan Inc., Okta Inc., Thales Group, Dell Technologies Inc., Cisco Systems Inc., HID Global Corporation, Yubico AB, Micro Focus, OneLogin Inc., Ping Identity Corporation, SecureAuth Corporation, Entrust Datacard Corporation, Oracle Corporation, IBM Corporation, Google LLC, RSA Security LLC, Duo Security, LastPass MFA, ForgeRock, Auth0, Idaptive, CyberArk, Beyond Identity, HYPR, Transmit Security, Idemia, SecureKey Technologies Inc., Trusona
North America was the largest region in the multi-factor authentication market share in 2024. The regions covered in the multi-factor authentication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the multi-factor authentication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The multi-factor authentication market consists of revenues earned by entities by providing SMS token authentication, email token authentication, phone authentication, and biometric authentication. The market value includes the value of related goods sold by the service provider or included within the service offering. The multi-factor authentication market also includes sales of hardware tokens for authentication. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Multi-Factor Authentication Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on multi-factor authentication market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for multi-factor authentication ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The multi-factor authentication market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.