Multi-Factor Authentication Industry Overview

The global multi-factor authentication market size was valued at USD 14.28 billion in 2022 and is expected to grow at a compound annual growth rate CAGR of 14.2% from 2023 to 2030. Multi-factor authentication (MFA) introduces additional layers of security to authenticate the user identity and secure transactions over the Internet. One of the key trends escalating market growth is the mounting cases of cyberattacks and data breaches across organizations. It coupled with increasing stringency in regulations to protect sensitive data, it is expected to bolster the growth of the MFA market.

Rising investments in cloud technologies, enterprise mobility, and increasing adoption of BYOD across enterprises are anticipated to boost the adoption of multi-factor authentication solutions further. The advent of authentication-as-a-service solutions, which offer advanced security and authentication to organizations, is also projected to bolster the market's growth.

Gather more insights about the market drivers, restrains and growth of the Multi-Factor Authentication Market

Detailed Segmentation:

Model Insights

The two-factor authentication segment accounted for the largest revenue share of 76.6% in 2022. This model enables organizations to authenticate the digital identities of users using multiple parameters such as knowledge-based, possession-based, and inherence-based factors. The four-factor authentication segment is expected to grow at the fastest CAGR of 18.6% during the forecast period. Four-factor authentication offers an additional layer of security compared to traditional multifactor authentication methods. 

Application Insights

MFA enables secured access control, tracks fraudulent activities, and facilitates authentication of online transactions. The BFSI sector has witnessed the highest adoption of MFA solutions, which enable organizations to secure transactions and curb data loss and fraudulent activities. The healthcare industry will likely be the fastest-growing segment during the forecast period, followed by the government and defense industry. Increasing online transactions, e-commerce, and the growing digitalization of financial and welfare services are key drivers leading to the high adoption of multifactor authentication solutions.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 30.3% in 2022, and it is expected to witness the fastest CAGR of 15.4% over the forecast period. The region's growth can be attributed to increasing spending on connected devices, growing investments in various cloud and IoT technologies, and spiraling demand for digital services. Soaring emphasis on the security of personal data and authentication of online transactions, coupled with increasingly stringent regulatory compliances, is stimulating the demand for MFA. North America is expected to witness significant growth during the forecast period. Technological advancements, the proliferation of smartphones, enhanced network connectivity, and a high adoption rate of digital services are some of the key factors supplementing the regional market's growth. 

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Key Multi-Factor Authentication Companies:

• Vasco Data Security International, Inc.
• RSA Security LLC
• Fujitsu America, Inc.
• NEC Corporation
• Symantec Corporation
• Thales
• 3M
• aPersona, Inc.
• CA Technologies.
• Safran S.A.

Multi-factor Authentication Market Segmentation

Grand View Research has segmented the global multi-factor authentication market based on model, application, and region:

Multi-factor Authentication Model Outlook (Revenue, USD Million, 2017 - 2030)

• Two Factor Authentication
• Three Factor Authentication
• Four Factor Authentication
• Five Factor Authentication

Multi-factor Authentication Application Outlook (Revenue, USD Million, 2017 - 2030)

• BFSI
• Government Defense
• Healthcare
• Travel Immigration
• Retail E-commerce
• Others

Multi-factor Authentication Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE

Recent Developments

• In April 2023, Thales, a leading global technology and security solutions provider, unveiled the SafeNet Token Fusion series. This innovative collection of USB tokens combines Fast IDentity Online 2.0 (FIDO2) with PKI/CBA, creating a single authenticator. The primary objective of Thales's new tokens was to safeguard Microsoft Azure Active Directory (Azure AD) users by mitigating the risk of account compromise by delivering enhanced security for accessing cloud and web applications.
• In April 2022, Trust Stamp unveiled a Biometric Multi-Factor Authentication (Biometric MFA) solution. This innovative system revolutionizes identity verification by automating a strong level of assurance through a simple selfie. By leveraging biometric technology, the Biometric MFA adds two additional layers of authentication to verify the user's liveliness and secure tokenizing data from the selfie.
• In March 2022, MIRACL, a cybersecurity software firm and Aware Inc., an authentication company, announced a strategic partnership to continue their cloud-based biometric authentication technology. The collaboration aims to address common challenges in business authentication by leveraging MIRACL's single-step, secure multi-factor authentication technology and Aware's recognized expertise in biometrics.
• In May 2021, Microsoft announced the launch of new products, guidance, and employee plans to enhance security and provide enhanced customer support. Additionally, Microsoft revealed its commitment to adopting a zero-trust approach, ensuring that its employees embrace this security framework.
• In April 2021, HID Global made its WorkforceID Authentication solution available to the public, offering enterprises a cloud-based platform for issuing, managing, and utilizing digital identity credentials for physical and logical access control. This solution enables organizations to streamline and enhance the security of user logins across all applications within their enterprise environment.
• In July 2020, Ping Identity announced a collaboration with One Identity, a leading provider of security solutions centered around identity. This partnership aimed to deliver comprehensive identity management strategies and enhance access security and control. Both companies offered a powerful solution that covers consumers' end-to-end identity management needs by combining the capabilities of Ping Identity's access management technology with One Identity's Identity Governance and Administration (IGA) technology.

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