Multi-Factor Authentication Market

[298 Pages Report] The global MFA market size is projected to grow from USD 15.2 billion in 2023 to USD 34.8 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 18.0% during the forecast period. The expansion of the MFA market can be attributed to stringent government regulations to increase the adoption of MFA solutions.

Moreover, the MFA market is experiencing growth due to the proliferation of cloud-based MFA solutions and services. These factors contribute to the market’s promising growth potential, providing organizations with enhanced security measures.

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MFA Market Dynamics

Driver: Stringent government regulations to increase the adoption of MFA solutions

Various regulatory compliances are designed for industries to provide a standard for data protection in industries. These compliances assure organizations of their data safety and enable them to tackle security-related issues effectively. PCI DSS v4.0 was released in March 2022 and differs significantly from its predecessor, v3.2.1, in many important ways. One of the most significant changes in the most recent edition is the requirement for MFA for all accounts that can access cardholder data. Earlier versions of the PCI DSS had considered MFA to be a best practice.

Similarly, the Federal Trade Commission (FTC) published updates to the FTC Safeguards Rule on October 27, 2021. There are new technological requirements, which are the most significant modifications in this amendment. The regulation explicitly mentions multi-factor authentication (MFA) as a necessary feature. These government mandates and regulatory compliances are pushing organizations to deploy MFA solutions and services to ensure information security, which is expected to drive the growth of the MFA market.

Restraint: Increasing response time in higher-order authentication models.

Two-factor authentication systems require less time to handle a single query than three-, four-, and five-factor authentication. This added layer of security requires users to invest a few extra seconds in the authentication process, which may seem like a minor inconvenience in high-stress or fast-paced business environments. An authentication system has to be simple and perfect to implement it successfully. Authentication systems with multiple factors are being designed and prototyped with the advancement of technology. However, this would increase the time required to handle a single query as it would involve multiple processes for the authentication of data or users. As a result, this would result in long queues and increase the service/response time. The impact of this restraint is currently high but will be reduced in the future because of the ease of access techniques.

Opportunity: Rising adoption of interconnected devices in the IoT environment

As organizations integrate an array of IoT devices into their operations, they become potential entry points for cyber threats. MFA steps in as a critical security measure to safeguard against unauthorized access and potential breaches. These devices, ranging from smart thermostats to industrial sensors, are diverse in their applications but share a common vulnerability: the potential for exploitation. By implementing MFA, organizations add a layer of protection, requiring not just knowledge of a password but also the possession of an authorized device or biometric data for authentication. This multi-layered approach mitigates the risks associated with IoT devices. It enhances the overall security posture, assuring businesses that their IoT investments are not compromising their data integrity or customer trust. Thus, interconnected devices in the IoT environment will create more opportunities for MFA.

Challenge: Lack of awareness related to MFA among enterprises

The major limitation to the growth of the MFA market is the lack of awareness about the correct use of MFA solutions. The growing threat to on-premises and cloud data has increased the overall IT spending for on-premises and cloud security. The inability of in-house enterprise security teams to safeguard on-premises data has forced enterprises to move their data to the cloud. Lack of adequate MFA knowledge may lead to errors and enormous business losses. Chief information security officers are essential in ensuring that enterprises are well-equipped with the best-in-class MFA solutions and that employees do not fall prey to adversaries, such as malware, phishing, spoofing, ransomware, and APT. With changes in the business environment, security requirements are also evolving with the rise in zero-day threats and phishing attacks. This lack of awareness about advanced security threats has put businesses at risk and is hindering the growth of the MFA market.

MFA Market Ecosystem

By end-user industry, the media & entertainment industry is expected to grow at the highest CAGR during the forecast period.

The media and entertainment industry is at the cusp of transformation, with digital media expanding rapidly across TV, films, radio, advertising, animation, gaming, Out-Of-Home (OOH) advertising, and music. With the introduction of several digital technologies, content creation and production have given rise to numerous copyright-, patent-, and fraud-related activities. The media and entertainment sectors are essential in forming public opinion and the nation’s image, making them a tempting target for cybercriminal organizations. Government-sponsored APT groups frequently target sensitive information from media organizations, such as press releases, intellectual property, partnerships, country operations, and sources. Mobile apps and linked TVs are now in high demand for online video streaming. Cybercriminals have started to entice customers into using fraudulent streaming sites due to the sharp increase in traffic to online streaming services.

By Two-factor authentication, the smart card with biometric technology segment is to grow at the highest CAGR during the forecast period.

The adoption of “Smart card with biometric technology” Two-Factor Authentication is gaining momentum in the business landscape, driven by several compelling factors. It combines two distinct factors: something the user possesses (the smart card) and a unique biological trait (biometric data like fingerprints or facial features) to offer an exceptionally high level of security. This dual-factor approach significantly bolsters security, ensuring that only authorized individuals with the physical card and the matching biometric data can access sensitive systems and data. Electronics identification technology is widely adopted for its better performance and reliability. Smart cards are highly secure and reliable. Also, biometric technology is the safest to identify and authenticate genuine users. Many biometrics and other data can be stored in smart cards, which can be used to verify and identify the person. When the combination of biometrics and the smart card is employed, it creates a very secure environment, as no external database is required to access the guarded system. The complete biometrics template data is stored on the smart card, and the data comparison is made locally.

By region, North America accounts for the highest market size during the forecast period.

North America is one of the most affected regions in the world by cyberattacks, especially identity-related crimes. Cybersecurity is identified as the most severe economic and national security challenge by governments in North America. According to the US Federal Trade Commission (FTC), more than 5.88 million fraud reports were received on their portal in 2021. With 1,434,695 complaints, identity theft complaints topped the list of fraud reports received by the FTC. The rising threat of identity fraud is a compelling driver for adopting MFA across various industries. As organizations and individuals recognize the limitations of traditional authentication methods, MFA offers a powerful means to enhance security and protect against unauthorized access and identity theft. Moreover, North America is home to major MFA vendors such as Microsoft, Broadcom, OneSpan, OKTA, and Micro Focus. The presence of such prominent vendors drives the adoption of MFA solutions and services in the region.

Key Market Players

The key players in the MFA market are Microsoft (US), Thales (France), Okta (US), Broadcom (US), OneSpan (US), Micro Focus (UK), HID Global (US), Cisco (US), Ping Identity (US), RSA Security (US), ESET (Slovakia), Yubico (US0, ForgeRock (US), CyberArk (US), OneLogin (US), SecureAuth (US), Oracle (US), SalesForce (US), Secret Double Octopus (Israel), Silverfort (Israel), Trusona (US), FusionAuth (US), HYPR (US), Keyless (US), Luxchain (China).

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Scope of the Report

The study categorizes the MFA market by authentication type, components, model type, end-user industry, and regions.

By Authentication type:

• Password-Based Authentication
• Passwordless Authentication

By Components:

• Hardware
• Software
• Services

By Model Type:

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

By End-user Industry

• Banks Financial Services and Insurance
• Government
• Travel & Immigration
• Military & Defense
• Commercial Security
• Healthcare
• Information Technology
• Telecommunication
• Media & Entertainment
• Other End-user Industry

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• In April 2023, Thales launched the SafeNet eToken Fusion series, a new set of USB tokens. With the help of the SafeNet eToken Fusion Series, businesses may use passwordless authentication techniques resistant to phishing attacks, enhancing the security of company resources used on any device.
• In November 2022, Okta launched Okta Customer Identity Cloud, an easy-to-implement and customizable customer identity solution. The Okta Customer Identity Cloud for Consumer Apps helps any organization with advanced security features like Adaptive MFA.
• In September 2022, Microsoft partnered with Silverfort to bring unified identity protection to on-premises and cloud. Silverfort developed a suitable identity protection system with the aid of Microsoft’s MFA.
• In April 2022, HID Global partnered with Microsoft to Improve Certificate-Based Authentication. This partnership will combine HID’s smart credentials and credential management capabilities with Azure AD.
• In May 2021, OneSpan announced that Belfius Bank had incorporated OneSpan Mobile Security Suite (MSS) into its mobile application. For the 1.5 million mobile customers of the bank, OneSpan’s technology offers biometric authentication, risk analysis, and other best practices for app security in the background.

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