Multi-Factor Authentication Market Size, Share & Industry Analysis By Authentication Type (Password authentication,Passwordless authentication), By Component (Solution, Services), By Model Type (Two-factor Authentication, Three-factor Authentication, Four-factor Authentication, Five-factor Authentication), By End User (Government,Retail and E-commerce, Military and Defense, Commercial Security) And Regional Forecast, 2024-2032

In multi-factor authentication (MFA), the user is required to provide two or more verification factors to access any online account, an application, or a VPN. The different types of multi-factor authentication technologies are biometric authentication, mobile authentication, hardware tokens, and out-of-band authentication. Since past few years, businesses are witnessing account takeover fraud (ATO) which is fueled by mobile malware, sophisticated social engineering, and other attacks. Appropriately designed and implemented MFA methods are more effective and reliable against sophisticated attacks compared to single-factor authentication, which are likely to be compromised by hackers through widely available hacking tools. Besides, multi-factor authentication enables companies to comply with their industry regulations. For instance, MFA is mandatory to satisfy the strong authentication requirement of Payment Services Directive Two (PSD2) for Strong Customer Authentication (SCA).

With the advent of cloud computing, multi-factor authentication has become even more essential. As companies are moving their systems to the cloud, they need MFA to authenticate users. Many cloud-providers offer their own MFA offerings like Microsoft’s Office 365 or Amazon’s AWS. Many financial institutions, banks, and other financial organizations are to cloud-based software-as-a-service (SaaS) applications, such as Salesforce, Office 365, OneSpan Sign and Slack. Consequently, the amount of sensitive file and data hosted in the cloud is increasing every day, elevating the risk of a data breach. This is driving the need of MFA in almost every sector.

IMPACT OF COVID-19 ON MULTI-FACTOR AUTHENTICATION MARKET

The COVID-19 pandemic has created unprecedented challenges for companies across the globe. In 2020, with millions of employees suddenly working from remote places, forced companies to install security tools that ensured connectivity, productivity, and security. Multi-factor authentication plays an important role in shielding remote workforce from outside threats. As per Businesses @ Work (from Home) report, most of the companies are adapting collaboration and network security tools, like MFA to better protect access to their resources during pandemic.

In 2020 alone, there were approximately 304 million ransomware attacks across the world, which was seen a 62% increase from the previous year. Companies like Microsoft had also faced ransomware attacks. To avoid such incidents in future, enterprises have implemented a variety of authentication tools for extra protection. Okta Verify, Symantec VIP, Google Authenticator, and YubiKey witness high sales during 2020 and are expected to grow at roughly similar growth trajectory.

KEY INSIGHTS

The report will cover following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends and Opportunities


• Business Strategies Adopted by the Players


• Impact of COVID-19 on Multi-factor Authentication Market


• Consolidated SWOT Analysis of Key Players

REGIONAL ANALYSIS

Adoption of mobile devices for mobile banking, electronic payments, and electronic financial services varies from country to country. It is particularly driven by socio-economic development and consumer lifestyles. North America and the European countries tend to drive most of the new payment technology advancements, exhibiting high growth potential in coming years. Countries with emerging economies such as Latin America, Africa and most od Asia Pacific are adopting mobile money solutions for underbanked and unbanked consumers. It is anticipated that Asia Pacific (APAC) countries such as China, Japan and South Korea is expected to overtake North American countries to be the largest online retail market within a few years. Therefore, the growth of online payments in APAC countries has been of particular interest to the regulators and various industries.

In the U.S., MFA is compulsory for government agencies, those using tokens and PINs for remote access and for accessing government websites. The Government has also instructed the National Cyber Security Alliance (NCSA), public-private, and non-profit organizations to partner with technology vendors such as Google, Microsoft, and Facebook to promote the use of two-factor authentication.

The U.K. financial institutions and banks have been using SMS MFA to secure financial transactions. As per Microsoft Defender Antivirus’ telemetry, the rate of malware encounter in Asia Pacific countries have increased –80% in China, 23% in Australia, 16% in Japan, 15% in India, 43% in Singapore, and 19% in New Zealand in 18 months during pandemic. Likewise, ransomware attacks have also increased 463% in China; 453% in Australia; 541% in Japan; 100% in India; 296% in Singapore; and 825% in New Zealand; over the same period. To minimize such attacks companies are launching advanced solution to protect data. For instance, in May 2021, Microsoft Corporation introduced employee plans, new products, and guidance to tackle the global fight against exponentially increasing complex and large-scale cyberattacks. These include security protection for customers, and additional support for MFA.

KEY PLAYERS COVERED

The report will include the profiles of key players such as Microsoft, Broadcom, Onespan, Okta, Micro Focus, Thales, RSA Security, Duo Security (Cisco), Ping Identity, HID Global, among others.

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• April 2021- HID Global launched WorkforceID Authentication, workforce multi-factor authentication solution, to give enterprises a cloud solution for managing, issuing, and using digital identity credentials for logical and physical access control.


• February 2021- Feitian Technologies partnered with Northamber, the U.K. AV and IT solutions distributor, to provide Feitian’s multi-factor authentication and biometric solutions to the U.K. market.