According to Future Market Insights, the multi-factor authentication market is expected to document a CAGR of 13.5% during the period of 2023 to 2033. The multi-factor authentication market is expected to reach US$ 31.12 billion in 2033 from US$ 8.77 billion in 2023.
Hundreds of billions of IoT devices are connecting the world through the Internet and improving the quality of life on a daily basis. Data collection and automation provided by IoT are beneficial to several industries including health care, smart homes, and manufacturing.
Ransomware attacks on Britain's National Health Service in 2017 affected IoT devices including MRI scanners, equipment, and computers, all of which were vulnerable to attack. The security of data and lives across the globe seems critical to IoT.
IoT security was enhanced by using multi-factor authentication (MFA), which requires multiple forms of authentication to access devices and networks. Smart fridges and health monitoring devices were greatly affected by this method.
Companies and individuals are adopting multi-factor authentication (MFA) more rapidly, but attackers are adapting quickly to the ever-changing security landscape. Data breaches continue to increase, with over 37 billion records breached in 2020. Passwords alone are not adequate for securing personal data, so users often change them to increase safety.
Approximately 80% of cyber breaches are caused by weak passwords or stolen credentials, so multi-factor authentication provides extra security layers that protect financial information and users.
Due to the need to protect customer's sensitive data and assets, financial institutions rely on multi-factor authentication. Several factors of authentication are implemented by banks and other financial institutions in order to ensure that only authenticated users can access online financial accounts, such as checking accounts, savings accounts, etc.
Every organization and industry recognizes that personal data and sensitive information must be secured. Multi-factor authentication boosts security by protecting against unauthorized access with multiple layers of authentication.
MFA may be pushed by tech giants to some organizations, but a real rise in its adoption will require a fundamental shift in the way security practices are approached. By implementing least privilege account management and privileged account management across all accounts, organizations will be able to improve the security of logins across all users.
Organizations are putting more effort into balancing security and employee productivity. Multi-factor authentication with granular, customizable options will be in high demand. Cyberattacks and data breaches can be prevented with multi-factor authentication (MFA). MFA is likely to evolve in the following ways and directions:
Authentication via biometrics, such as fingerprints, facial recognition, and iris scans, is becoming more prevalent as a factor for multi-factor authentication. Voice recognition and gait analysis may become more important biometric factors in the future. To identify anomalies or suspicious activities, behavioral analytics can analyze user behavior patterns. An additional layer of security could be added to MFA by using this factor in the future. In recent years, passwords have become a common target for hackers due to their ease of compromise. In recent years, mobile devices and smart cards have become popular methods of password less authentication.
Identifying patterns and anomalies in large datasets can be accomplished with machine learning. Further authentication steps may be triggered when suspicious activity is detected in real-time by machine learning algorithms. As part of risk-based authentication, factors such as the location, device, and behavior of the user are taken into account in determining the level of risk associated with login attempts. A high-risk login attempt could trigger additional authentication steps for future multifactor authentication.
The adoption of multifactor authentication has increased the importance of interoperable authentication methods and systems to ensure seamless user experiences. The use of multifactor authentication will continue to be a significant security measure in the future. The future will bring new authentication technologies and methods to enhance the effectiveness and safety of multi-factor authentication.
| Data Points | Key Statistics |
|---|---|
| Estimated Base Year Value (2022) | US$ 8 billion |
| Expected Market Value (2023) | US$ 8.77 billion |
| Anticipated Forecast Value (2033) | US$ 31.12 billion |
| Projected Growth Rate (2023 to 2033) | 13.5% CAGR |
The authentication basically includes a security token and a password in the form of mobile application, voice, text message, biometrics, or push notification among others. In the past years, there has been a prominent increase in the number of data breaches or incidents of data theft, which has increased the demand for multi-factor authentication technology.
The rising need for protecting any individual’s information is the primary factor anticipated to propel the growth of the multi-factor authentication market in the coming years. Thus the multi-factor authentication helps the user to increase control and awareness of the environment. At this moment, cloud service providers are playing a significant part.
With the continuous advancements in technology and cloud security, more and more enterprises are going in for cloud services, be it cloud storage or SaaS (software-as-a-service). For multi-factor authentication software and solution vendors, cloud service providers create new opportunities in terms of providing cost-effective solutions to users.
Cloud service providers can also assist multi-factor authentication solution vendors to expand their business in multiple geographies without expanding their physical distribution channel.
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Increasing Security Threats to Boost Growth of the Multi-Factor Authentication Market
The scale and frequency of data breaches are increasing all over the world. As a result, taking measures for breach prevention is becoming a high priority for IT department and security teams. The multi-factor authentication solutions come with security features particularly for active directory identities, owing to which these solutions serve as good prospects for decreasing the risks of data breaches. Hence, the demand of multi-factor authentication solutions is anticipated to increase during the forecast period.
In addition, there have been strict privacy regulations that vary by region, industry, company, and even from person-to-person. Meeting organization’s privacy regulations has been a difficult task for companies.
Multi-factor authentication solutions have many capabilities such as providing the centralized data access governance policies that help ensure the compliance of regional data storage, data sharing consent, and other privacy mandates.
Configurable Password Strength Issue Hampering Growth of the Market
The applications today are built with a level of password security that matches the current needs and issues.With the evolving nature of technology, the threats and exploits have also evolved, and applications are not able to keep up with the changes, the password strength, and schemes in multi-factor authentication market, as most of the applications are not flexible to security concerns that should configure password strengths to a level that works in the current scenario, and adjusts the security features for the coming concerns with least requirement of extra code.
Examples of some of the market participants in the global multi-factor authentication market identified across the value chain include
Following are some key strategies and developments in the global multi-factor authentication market:
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Advancements in enterprise management systems have revolutionised several industry verticals in various developed and developing regions. To keep up with the growing demand from the South Asia, East Asia & Middle East & Africa regions, several technology providers have started investing heavily in these regions.
The report suggests that established and growing multi-factor authentication solutions providers should focus on expanding their businesses across the untapped market to increase share in the global market. In addition, several technological changes are taking place in the manufacturing industries in these regions. Hence, Asia Pacific and Middle East & Africa are creating new business models for multi-factor authentication solutions providers.
The multi-factor authentication market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The market report also maps the qualitative impact of various market factors on market segments and geographies.
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The multi-factor authentication market can be segmented on the basis of model, application and region.
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Multi-Factor Authentication Market
