FIDO Authentication Market: Current Analysis and Forecast (2022-2028)

FIDO (Fast Identity Online) is a set of open standards for strong authentication that can be used to secure online accounts and services. It aims to replace passwords with more secure forms of authentication, such as biometrics (e.g. fingerprint, facial recognition) or hardware tokens (e.g. security keys). FIDO authentication provides better security and convenience for users, as well as improved fraud protection for service providers.

The FIDO Authentication Market is expected to grow at a steady rate of around 10% owing to the increasing trend of implementing solid security and reducing cyber security risk globally. The driving factors behind the adoption of FIDO (Fast IDentity Online) authentication are increased security, user convenience, and industry support. FIDO utilizes strong cryptography and eliminates the need for shared passwords, reducing the risk of password-related data breaches. It provides a simplified and seamless login experience for users, reducing the frustration associated with forgotten passwords and multiple usernames. Additionally, FIDO has broad industry support, with major technology companies and financial institutions integrating the standard into their products and services. These factors have contributed to FIDO's growing popularity as a secure and user-friendly method of online authentication. Furthermore, the growing number of thefts and data breaches are expected to significantly influence the market growth during the forecast period. For instance, according to Theft Resource Center (ITRC), a total of 1862 data breaches occurred in the year 2021 in the U.S. which is a 68% increase from 2020.

Based on components, the market is segmented into FIDO authentication devices, FIDO authentication SDKs, and support services. The FIDO authentication devices segment is expected to grow with the highest CAGR and is expected to maintain a similar trend throughout the forecast period. As organizations increasingly seek secure and convenient authentication methods. Meanwhile, support services such as implementation and management services are also in demand as organizations seek assistance in deploying and utilizing FIDO technology. Furthermore, FIDO authentication devices provide a secure and convenient alternative to traditional passwords.

On the basis of application, the market is segmented into payment processing, PKI/credential management, document signalling, user authentication, and others. The payment processing segment is expected to grow with the highest CAGR and is expected to maintain a similar trend throughout the forecast period. The growth of the segment is mainly attributed to factors such as the growing number of online transactions. The data associated with the monitory transactions are highly confidential and contain sensitive information driving the market for payment processing of FIDO authentication.

For a better understanding of the market adoption of the FIDO authentication industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The North American region led the FIDO authentication market and is expected to maintain a similar trend throughout the forecast period. Factors such as increased awareness of online security and privacy have led to a greater demand for secure and convenient authentication methods in the region. Furthermore, the growth of e-commerce and online transactions has created a need for secure and streamlined authentication processes which is expected to drive the market during the forecast period. Additionally, government regulations and industry standards have played a vital role in promoting the use of secure authentication methods such as FIDO. Moreover, the higher adoption of smartphones and mobile devices, which provide an easy and convenient platform for FIDO authentication is expected to elevate the market during the analysis time period.

Some of the major players operating in the market include: Nok Nok Labs, Inc; Daon, Inc; Movenda S.P.A; RSA Security LLC; Thales; HYPR Corp; Yubico; FEITIAN Technologies Co., Ltd; Aware, Inc; Egis Technology Inc.