By Avinash Dhanwani, Research Director, Brainy Insights Private Limited
The increasing demand for high-level security technologies, especially in the BFSI industry, to provide effective risk management systems and help tackle the issues of identity theft and fraud drives the market’s growth. Furthermore, the increasing number of stringent government regulations to curb the risk of data breaches and identity theft adds impetus to the market’s growth during the forecast period. However, a drawback of this market is its high cost, which limits the market’s growth. The time up-gradation and maintenance cost add to the multi-factor services’ overall cost and hampers the market’s growth. However, the increasing penetration of the internet and the wide adoption of IoT devices are also promoting the wide use of multi-factor solutions to ensure data safety, which is an opportunity for the market’s growth during the forecast period. According to a report published by The Brainy Insights, The global multi-factor authentication market is expected to grow from USD 13.8 billion in 2021 to USD 48.1 billion by 2030, at a CAGR of 14.9% during the forecast period 2022-2030.
During the outbreak of the Covid-19 pandemic, there was a sudden rise in cyber-based attacks, which increased the demand for multi-factor authentication solutions. According to a study report published by F5 Labs, the security solutions provider, there has been an increase of 220% in phishing attacks since the first phase of lockdowns imposed in many countries. Increasing penetration of the internet and the wide adoption of IoT devices are also promoting the wide use of multi-factor solutions to ensure data safety. For instance, in February 2020, nearly 7,992 data breaches occurred within Canadian federal agencies due to employee negligence. Almost 144,000 citizens were affected by cyberattacks that occurred in Canadian federal agencies. Several governmental regulations, such as CCPA, GDPR, and PSD2, have been deployed to focus on security practices across various sectors and enterprises to help eliminate data leaks, fraud, and identity thefts. Furthermore, security points such as smartcards and fingerprint sensors are widely used to allow a seamless experience. Moreover, organizations increasingly use voice recognition, face recognition, and iris recognition to verify and authenticate their employees.
The rising penetration of the internet and smartphones increases the number of data breaches and identity theft cases, driving the market’s growth. Furthermore, the increasing number of stringent government measures to curb data theft and breaches adds impetus to the market’s growth. The multi-factor authentication system has been designed with multiple processes and advanced technology to authenticate data which restrains the market’s growth. This results in increased response time, service time, and a long queue of consumers, which hampers the market’s growth. The increasing initiatives by the government to reduce the incidences of data breaches and identity theft is expected to provide an opportunity for the market’s growth during the forecast period. Multi-factor authentication faces the challenges of uncertainty and pushback from end-users in adopting multi-factor authentication solutions.
The two-factor authentication segment dominated the market with market revenue of 6.3 billion in 2021
The authentication model segment is divided into two-factor authentication, three-factor authentication, and four-factor authentication. In 2021, the two-factor authentication segment dominated the market with a market revenue of 6.3 billion. The increasing demand to reduce password resets and authentication time drives the segment’s growth.
The BFSI segment is expected to grow at the fastest CAGR of 16.6% over the forecast period.
The industry vertical segment is divided into automotive, consumer, enterprise, BFSI, retail, healthcare, government, military, education, legal, and others. Over the forecast period, the BFSI segment is expected to grow at the fastest CAGR of 16.6%. The BFSI industry deals with a large volume of data from private and government enterprises, increasing the need for multi-factor authentication solutions.
Regional Segmentation Analysis:
The multi-factor authentication market is analyzed based on five regions: North America, Europe, Asia Pacific, South America, Middle East, and Africa. North America is expected to be the largest market during the forecast period. The demand for multi-factor authentication in North America has been growing owing to the faster evolution of technology and rapid penetration of the internet in the daily life of humans. The increasing trend for online transactions also adds to the market’s growth in the region.
To enhance their market position in the global multi-factor authentication market, the key players are now focusing on adopting the strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.
- In June 2021, Ping identity launched PingOne for enterprises at Identiverse 2021. PingOne is a unique identity solution for individuals to ensure that organizations give their customers complete control over how to share verified personal data and store them. Up-to-date information about the consumers is also shared with businesses or individuals using a digital wallet on their mobile devices.
Avinash Dhanwani is a Research Director, Brainy Insights Private Limited, monitoring & engaging with lastest innovations and market delevopment in beauty and cosmetics industry.