The Multi-factor authentication market - growth, trends, and forecast (2020 - 2027) size was US$9.24 Billion in 2019 and is expected to reach US$26.57 Billion by 2027; This converts into a compounded annual growth rate (CAGR) of 19.2% for the forecast period.
A multi-factor authentication, also known as M.F.A., ensures the security of confidential and sensitive information. It requires users to provide additional information such as OTP, biometrics, answers to security questions, etc. in order to grant access to private information.
Security is one the of the major challenges of the digital age. The development of complex tools is further posing a threat to data security and privacy. Due to the rising cybercrime incidences and the shift towards remote work since the advent of the pandemic, numerous corporations are demanding technologies that mitigate these threats. The use of MFA, as proved by Google in its 2019 study, significantly reduces cyber-attacks and enhances data security. As a result, the MFA market is projected to register a steady growth during the forecast years.
A survey report published by the Identity Theft Resource Center stated that the number of data breaches in 2019 in the United States alone amounted to nearly 1500 with over 150 million records exposed. It is, therefore, crucial to guard vital information especially in today’s day and age when hackers have access to advanced tools and technologies. Single-factor authentication does not provide enough protection against security breaches. During a recent study by Google, the addition of just a recovery mobile phone restricted over 60% of the targeted attacks. Thus, the adoption of multi-factor authentication by global governments, BFSI, IT & telecom and others to reduce incidences of security breach will propel the market forward.
A multi-factor authentication involves an increased query handling time. Although, its integration with advanced technologies such as artificial intelligence or IoT may provide better security, it would require multiple processes and increase service time. Furthermore, the costs incurred on implementing an MFA is quite high. Therefore, the major restraining factor for the multi-factor authentication market is the implementation and cost complexities involved.
1) During May 2021, Okta Inc., a leading independent identity provider, acquired Auth0, a leading identity platform for application teams, for approximately USD 6.5 billion. The two companies together aim to provide secure access and enable the safe use of any technology. The acquisition is expected to accelerate Okta’s growth.
2) Micro Focus collaborated with Snowflake, a data cloud company, in March 2021, to deliver data-centric protection to organization globally. The collaboration permits the seamless and secure shift of data to Snowflake’s platform while adhering to privacy regulations and permits the access to secure data analytics capabilities offered by Micro Focus.
A software MFA provides equal levels of security as a hardware MFA and yet overcomes several limitations of its counterpart. Consequently, the segment’s popularity led to its dominance of the multi-factor authentication market in 2019. It accounted for over 95% of the market which in terms of revenue, is equivalent to more than USD 8.5 billion. Software MFAs can be automatically updated to increase security levels without the need to replace any device or additional costs. Therefore, the segment is anticipated to witness an approximate 19.5% CAGR during the forecast timeline.
Most individuals come across two-factor authentication (2FA) in the form of OTPs and PINs while accessing their e-mail accounts or switching on their electronic devices. Most organizations prefer 2FA due to its faster response time. Also, multi-factor authentication is generally used by governments or corporations that store highly confidential data. The widespread use of 2FA among individuals and organizations has resulted in the segment’s lead in 2019. It captured approximately 75% of the market, accumulating USD 7 billion in revenues. The segment is also predicted to expand at a CAGR of 19% from 2020 to 2027.
BFSIs store high amounts of sensitive and private financial data and are therefore subjected to large number of security threats. The industry is also expected to comply with security regulations set by different governments/regulatory authorities. The BFSI vertical, hence, secured over 30% of the market in 2019. However, the rise of the IT & telecom industry is estimated to grow the segment by nearly 20% annually during the forecast period.
Factors such as rising cases of cybercrimes, widespread network and enhanced connectivity, high demand for digital services and more are contributing to the growth of the market in North America. Asia – Pacific is predicted to expand at the highest CAGR during the forecast years due to the growing investments in cloud and IoT technologies. Moreover, the implementation of government regulations to minimize security breach will also play a vital role in the regional market growth.
Some of the key players operating in the multi-factor authentication market - growth, trends, and forecast (2020 - 2025) include, but not limited to:
Okta Inc.; Microsoft Corporation; Duo Security Inc. (Cisco Systems); Broadcom Inc.; OneLogin Inc.; ForgeRock Inc.; SecureAuth Corporation; Gemalto NV(Thales Group); Yubico AB; HID Global Corporation(ASSA ABLOY AB); OneSpan Inc.; Entrust Datacard Corporation; RSA Security LLC.
A few key players of the multi-factor authentication market include, but not limited to: Okta Inc., Microsoft Corporation, Duo Security Inc. (Cisco Systems), Broadcom Inc., OneLogin Inc., ForgeRock Inc., SecureAuth Corporation, Gemalto NV (Thales Group), Yubico AB, HID Global Corporation (ASSA ABLOY AB), OneSpan Inc., Entrust Datacard Corporation, RSA Security LLC."
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