The global sales of FIDO Authentication are estimated to be worth USD 1,779.9 million in 2024 and anticipated to reach a value of USD 11,391.7 million by 2034. Sales are projected to rise at a CAGR of 22.7% over the forecast period between 2024 and 2034. The revenue generated by FIDO Authentication in 2023 was USD 1,468.7 million. The market is anticipated to exhibit a Y-o-Y growth of 21.2% in 2024.
FIDO authentication, which means Fast Identity Online Authentication, is an open standard and a set of rules created to offer secure and easy-to-use ways to verify identities for online services and apps. It tries to fix the problems and weak points linked to old-fashioned username and password login methods.
FIDO authentication brings in a no-password approach by using public-key cryptography and strong identity checks, like fingerprints or security keys, to make sure users are who they say they are. The FIDO rules allow safe talk between the user's device and the online service or app's server to check the user's identity without needing passwords.
The goal of FIDO authentication is to offer a robust, user-friendly, and compatible way to verify identity. This approach boosts security, does away with passwords, and makes it easier for people to use online services and apps. It presents a different method compared to old-school ways of proving who you are pushing for a password-free and safer internet experience.
FIDO authentication rules make sure everything works together across different systems, gadgets, and web browsers. This means users can use the same login methods for many services without any hiccups. These common rules also help more places adopt FIDO authentication, which leads to more online services and apps using it. In the end, this creates a steadier and secure experience for users all over the digital world.
Global FIDO Authentication Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 1,468.7 million |
| Estimated Size, 2024 | USD 1,779.9million |
| Projected Size, 2034 | USD 11,391.7million |
| Value-based CAGR (2024 to 2034) | 22.7% |
The global FIDO (Fast Identity Online) authentication market is growing fast fueled by the rising demand for safe and smooth digital authentication methods. The increase in online threats, along with the wider use of biometric and passwordless authentication solutions across sectors, is driving market expansion.
Leading players like Yubico, Google, Microsoft, and RSA Security are leading the way aiming to improve security protocols and make things easier for users. FMI predicts the market will grow a lot, with a CAGR of over 27.7% in the coming years, as companies and individuals put more emphasis on secure easy-to-use authentication methods.
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The below table presents the expected CAGR for the global FIDO Authentication market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 22.7%, followed by a slightly higher growth rate of 23.1% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 19.2% (2023 to 2033) |
| H2, 2023 | 20.3% (2023 to 2033) |
| H1, 2024 | 22.7% (2024 to 2034) |
| H2, 2024 | 23.1% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 22.7% in the first half and remain relatively moderate at 23.1% in the second half. In the first half (H1) the market witnessed a decrease of 40 BPS while in the second half (H2), the market witnessed an increase of 60 BPS.
Rapid Rise in Cyber Security Concerns Such as Phishing, Password Spraying, Keylogging Or Brute Force Attacks.
The rise in online security threats like phishing, password spraying, keylogging, and brute force attacks has an impact on the quick uptake of FIDO (Fast Identity Online) authentication.
The clever attack methods used by cybercriminals make standard password-based authentication systems more at risk. These attacks make it easier to break into user accounts and steal important data by compromising the usual username and password-based login steps.
FIDO authentication makes the user experience better by speeding up the login process. Users don't have to worry about password-related security issues or remember complex passwords anymore. With FIDO, customers can log in right away by plugging in a security key to their device or using body-based methods (like fingerprints or face recognition).
For Instance, in year 2022, the microsoft's digital defense report on password threats showed that phishing attacks caused 70% of password breaches.
This led to a 220% increase in the use of strong authentication compared to the year before. However, not all MFA methods can resist tampering. Instead of attacking the MFA, hackers try to fool users into giving away important information to steal logins, credit card numbers, and other private data.
Rapid Development Of Digital Technology And Increasing Awareness of the Importance of Information Security
The rapid development of digital tech has led to better connections and has caused a revolution in the Internet of Things (IoT). IoT gadgets and linked systems create intricate digital settings that need safe ways to verify users. The progress of mobile tech has changed how people use and engage with online services. Phones and portable devices have become the main way to access the web and do online deals.
The growth of digital tech has sparked a boom in digital services and answers across many fields. These services often deal with private user info, money transfers, and key data. FIDO authentication offers a strong and safe way to check users that goes beyond old-school password methods.
It meets the growing need for tighter security in the digital world. As digital change keeps reshaping many industries and areas, the need for solid user-checking solutions becomes key. The rise of mobile devices, cloud computing, and Internet of Things (IoT) gadgets calls for better ways to check users that can keep up with these tech advances.
Rules and industry guidelines are putting more stress on the need for safe login methods. Countries in Asia like Taiwan, Korea, Japan, India, and Thailand have started to use FIDO standards in government, business, and consumer apps to boost service safety and make things easier for users.
Yet when we look at the big picture, we can spread FIDO standards to factories, supply chains, healthcare, and other fields so more people and businesses can get something good out of it.
Growing Demand for FIDO Identity Verification
The growing number of online activities has an impact on the demand for FIDO identity verification. As more people shop, bank, and use other web services, it's essential to check that users are who they say they are. FIDO authentication helps solve this problem by offering a safe and quick way to verify identities. This protects against fraud, identity theft, and stops unauthorized people from accessing private information. People now see the drawbacks of old-school identity checks, which makes FIDO identity verification more popular.
User expectations for easy and smooth login processes are also driving up the need for FIDO identity checks. FIDO login gets rid of the need to remember tricky passwords. It lets users sign in with methods they know and like such as fingerprints, face scans, or security keys. This simple login process makes things better for users, keeps them happy, and leads more people to use FIDO-based login options.
For instance, in year 2023, Source, the top provider of digital identity checking and fraud solutions, has become a member of the FIDO (Fast Identity Online) Alliance. This group brings together different industries to create open compatible authentication standards.
These standards aim to make identity verification easy, private, and secure while cutting down on the use of unreliable passwords. This approach helps to spot trustworthy consumers and with little hassle.
Device Alert Authentication Can Cause Issues When a Device Gets Lost or Disabled, Such Factors Are Projected to Limit the Market Growth
FIDO authentication needs a specific device, like a phone or security key, to verify the user's identity. This device serves as the second proof of identity working alongside the user's login details. But if someone loses gets their device stolen, or it breaks, they might struggle to log into their accounts or systems.
If a user can't use their device because it's gone or not working, they could have a hard time getting back into their accounts if there's no other way to prove who they are. This can be annoying and might stop the user from doing their work or getting to important systems.
There's a danger in depending on just one device for authentication. If that device is your only way to get in and it's not available, you could end up locked out of key accounts or systems. This weak point shows how crucial it is to have backup ways to log in or emergency plans ready to go. These measures help reduce the risk of getting shut out if your device is lost or stops working.
Principal Consultant
The global FIDO Authentication industry recorded a CAGR of 22.7% during the historical period between 2019 and 2023. The growth of FIDO Authentication industry was positive as it reached a value of USD 1,468.7 million in 2023 from USD 711.0 million in 2019.
Between 2019 and 2023, the global FIDO authentication market saw strong sales growth. This growth had its roots in the growing awareness of cybersecurity new rules from regulators, and the move to authentication without passwords. During these years more businesses in fields like finance, healthcare, and tech started using FIDO authentication.
Looking ahead from 2024 to 2034, FMI predicts a jump in demand as companies speed up their shift to digital and more industries start using FIDO standards to increase security.
The outlook points to a major growth in market size, with demand growing faster than in the last five years backed by improvements in biometric tech and the rising need for secure scalable ways to verify users. The market is set to keep up a strong yearly growth rate doubling in size by the end of the forecast period.
Companies in Tier 1, such as Thales Group, HID Global (ASSA ABLOY Group), Microsoft, Google, Cisco, and Yubico, are the dominant players in the FIDO authentication market. These companies have a big global presence lots of money, and well-known brands. This lets them stay ahead in coming up with new ideas and using FIDO standards.
They provide full authentication packages that fit into bigger cybersecurity systems. Many industries use their products. They have a strong influence and a large part of the market. This puts them in a position to shape market trends and push technology forward.
Tier 2 includes companies like Onespan, RSA Security, FEITIAN Technologies, Duo Security, and Identiv. These companies are tough competitors in the FIDO authentication market. They provide specialized solutions that focus on security and following rules.
While they might not reach as many customers as the biggest companies, they're well-known and serve many different industries. People know these firms for their fresh ideas about safe authentication. They often target specific markets or particular situations where their products work really well, like in banking or government areas.
Tier 3 consists of emerging and niche players like mk Group, Crayonic, Hypersecu, LoginID, heylogin GmbH, Bluink, Ensurity, and Octatco. These firms are newer players in the FIDO authentication field or specialize in certain areas within the broader market.
They tend to move faster often bringing groundbreaking and game-changing solutions to customers. While they might not have reached as many users as Tier 1 or Tier 2 companies, they play a key role in pushing specific advances and meeting unique customer needs in local markets or specialized industries.
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The section below covers the industry analysis for the FIDO Authentication market for different countries. The market demand analysis on key countries in several countries of the globe, including USA, Germany, Italy, China and India are provided.
The united states is expected to remains at the forefront in North America, with a value share of 76.3% in 2024. In East Asia, China is projected to witness a CAGR of 26.1% during the forecasted period.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 22.1% |
| China | 26.1% |
| India | 28.1% |
| Germany | 25.2% |
| UK | 22.4% |
The need for FIDO authentication in the United States is growing because data breaches and cyberattacks happen more often pushing companies to make secure, pass wordless login methods a top priority.
FMI reports show the USA makes up over half of all data breaches worldwide, so businesses are putting FIDO standards into action to boost security and follow strict rules like CCPA and HIPAA. The widespread use of mobile and online services in the USA market also drives this trend, as these services need secure and easy-to-use login methods.
Sales prospects for FIDO authentication solutions in the UK look good. This has an influence on the growing focus on cybersecurity and the need to comply with rules like GDPR. The UK's digital economy is growing, with more than 80% of businesses moving to digital platforms.
This increases the demand for secure ways to authenticate users. The market will grow as more organizations use FIDO standards to protect customer data and build user trust. This is true in areas like finance and online shopping.
India has a big chance to adopt FIDO authentication. This is because more people are using the internet, with over 700 million users in 2023. As more people go digital online threats are growing too.
This is pushing companies to use safer ways to check who's who online. Banks online shops, and government services are keen on this. The Indian market could grow a lot in this area. More and more companies want to use FIDO-approved solutions. These solutions help protect digital identities and keep online transactions safe.
The section contains information about the leading segments in the FIDO authentication industry. By enterprise size, the medium-sized enterprise (100-499 employees) segment is estimated to grow at a CAGR of 25.3% during the forecasted period. Moreover, by Solution, the FIDO U2F Authentication Devices (Security Keys) segment has holding the share of 49.8% in 2024.
| Tools | medium-sized enterprise (100-499 employees) |
|---|---|
| CAGR (2024 to 2034) | 25.3% |
Companies with 100-499 employees fall into the medium-sized enterprise segment. This segment is set to grow at a strong rate of 19.0% CAGR from 2024 to 2034. This growth happens because more and more medium-sized businesses realize they need strong cybersecurity as they expand their online presence.
These companies are turning to FIDO authentication solutions to guard against rising online threats and to follow new rules. FIDO authentication is easy to scale up and cost-effective. This makes it a good choice for medium-sized enterprises that want better security without the hassles of old-school authentication methods.
| Application | FIDO U2F Authentication Devices (Security Keys) |
|---|---|
| Share (2024) | 40.5% |
The FIDO U2F Authentication Devices segment, which includes security keys, is likely to have the biggest market share in 2024. These devices are popular because they offer strong security features. They protect against phishing attacks and stop unauthorized access, which makes them a top pick across industries.
The segment leads the market because more people want hardware-based security solutions. These solutions give more certainty than software-based methods. As companies focus on security in fields like finance, healthcare, and tech, FIDO U2F devices are becoming the go-to choice for secure easy-to-use authentication.
The FIDO authentication market faces tough competition, as more industries want secure login solutions without passwords. Big names like Thales Group, Microsoft, Google, and Yubico lead the pack.
These companies use their money and global presence to come up with new ideas and grab a big slice of the market. They're working hard to make logging in easier and safer for users using things like multi-step checks and body scans.
Companies like Onespan and RSA Security, which are mid-sized also play a key role. They offer specialized solutions customized for specific industries such as finance and healthcare. New companies are bringing fresh ideas in niche markets. This adds to a lively and changing competitive scene. The market shows strategic partnerships new product releases, and a focus on following global security rules. This sets it up for strong growth in the years to come.
Recent Industry Developments in FIDO Authentication Market:
In terms of Solution, the industry is segregated into FIDO U2F Authentication Devices (Security Keys), FIDO Authentication SDKst and Services.
In terms of Enterprise Size, the End User is distributed into Small Offices (1-9 employees), Small Enterprises (10-99 employees), Medium-sized Enterprise (100-499 employees), Large Enterprises (500-999 employees) and Very Large Enterprises (1,000+ employees).
In terms of Industry, the End User is distributed into BFSI, Healthcare, Telecom, Retail & eCommerce, Government, IT/Professional Services and Others.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & pacific, Middle East and Africa (MEA) have been covered in the report.
The global FIDO Authentication industry is projected to witness CAGR of 22.7% between 2024 and 2034.
The global FIDO Authentication industry stood at USD 1,468.7 million in 2023.
The global FIDO Authentication industry is anticipated to reach USD 11,391.7 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 26.1% in the assessment period.
The key players operating in the global FIDO Authentication industry include Thales Group, HID Global (ASSA ABLOY Group), Microsoft, Google, Onespan and RSA Asecurity.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-Economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Solution 6.2. Enterprise Size 6.3. Industry 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Solution 7.1. FIDO U2F Authentication Devices (Security Keys) 7.2. FIDO Authentication SDKs 7.3. Services 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Enterprise Size 8.1. Small Offices (1-9 employees) 8.2. Small Enterprises (10-99 employees) 8.3. Medium-sized Enterprise (100-499 employees) 8.4. Large Enterprises (500-999 employees) 8.5. Very Large Enterprises (1,000+ employees) 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Industry 9.1. BFSI 9.2. Healthcare 9.3. Telecom 9.4. Retail & eCommerce 9.5. Government 9.6. IT/Professional Services 9.7. Others 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. Eastern Europe 10.5. East Asia 10.6. South Asia and Pacific 10.7. Middle East and Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Solution, Enterprise Size and Industry for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Yubico 20.2. Google 20.3. Microsoft 20.4. RSA Security (a division of Symphony Technology Group) 20.5. Thales Group 20.6. HYPR 20.7. OneSpan 20.8. Nok Nok Labs 20.9. Aware, Inc. 20.10. Egis Technology Inc.
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FIDO Authentication Market
