Passwordless Authentication Market

Passwordless Authentication Market Outlook for 2024 to 2034

The passwordless authentication market is projected to register a CAGR of 15.30%, valued at USD 17.50 billion in 2024, and is estimated to reach USD 72.48 billion by 2034.

Rigid security with minimal cyberattacks and improvisation in customer data retention skyrockets the demand for zero-password authentication.

Attributes	Details
Market Value for 2024	USD 17.50 billion
Market Value for 2034	USD 72.48 billion
Market Forecast CAGR for 2024 to 2034	15.30%

Consumption Analysis of Passwordless Authentication

• The password-free authentication market relies on unique biological characteristics for authenticity, operated by enhanced security and convenient data access, despite some still requiring usernames.
• Smartphone penetration and multilayered authentication adoption guide the growth of the password-free authentication market, providing additional security beyond traditional passwords.
• The zero-password authentication solutions market is augmenting due to improvements in the Internet of Things (IoT) and artificial intelligence in devices like smartphones and tablets.
• Establishments increasingly employ fingerprint and smart card authentication in their offices, advancing the sales of zero-password authentication systems.
• Fingerprint sensors, smartcards, facial recognition, voice analysis, and iris recognition enhance security, while the ridge in consumer electronics is foreseen to push the development of the password-free authentication market.
• The BFSI sector is adopting token-based authentication systems due to boosted risk from weak or stolen passwords, highlighting the growing importance of IT in minimizing security vulnerabilities.

Historical Performance and Future Growth of the Passwordless Authentication Market

The demand for passwordless authentications is divined to develop at an adequate pace. The historical CAGR of 13.10% was recorded for the market and a 15.30% CAGR is calculated up to 2034.

Attributes	Details
Market Historical CAGR for 2019 to 2023	13.10%

The rise in remote work and work-from-home cultures has led to a surge in cyber-criminal activities such as data phishing, hampering password-free authentication market development and businesses' security infrastructure.

Acute aspects that are anticipated to influence the demand for password-free authentication through 2034.

• Market players anticipate highlighting a beneficial opportunity by improving technologies such as artificial intelligence and machine learning to perform security scanning.
• Opportunities exist to develop demand for passwordless authentications by devising databases with updated security protocols to protect against cyberattacks.
• The introduction of cybersecurity frameworks and data privacy has paved the way for extending the remote authentication market.

Market players are going to desire to be prudent and flexible over the anticipated period since these challenging attributes position the industry for accomplishment in subsequent decade.

Key Trends Influencing the Passwordless Authentication Market

Biological Impregnation Offer Fertile Ground to the Passwordless Authentication Industry

• Passwordless authentication technologies like security tokens, biometrics, and multi-factor authentication provide high security without compromising employee convenience, enabling businesses to manage user accounts efficiently.
• Businesses increasingly use biometric passwords like face recognition, CRAM, and fingerprint/thumbprint authentication, attracting a new consumer base in the zero-password authentication industry.
• Technology companies are developing innovative biometric infrastructure platforms with updated protocols, envisioned to strengthen the market in several industries such as BFSI, government, healthcare, and manufacturing.

The Passwordless Authentication Industry Widespread the Adoption of FIDO Standards

• The Fast Identity Online (FIDO) alliance is leading the development of zero-password authentication standards, including FIDO2 and WebAuthn, which utilize secure cryptographic protocols and biometric methods, developing a novel consumer base for the password-free authentication market.
• The need for FIDO authentication is significant in the password-free authentication sector as it uses public key cryptography to provide phishing-resistant authentication, creating unique passkeys with no shared secrets, unlike passwords.
• Various platforms and services increasingly adopt FIDO standards, creating a more secure and seamless user authentication experience across multiple IoT devices and applications, boosting the demand for passwordless authentication.

Adoption of Cloud-Based Identity and Access Management Boost up the Demand for the Zero-password Authentications

• Cloud-based IAM solutions are achieving popularity for centralized identity management, security improvements, and remote access control, conducting the zero-password authentication operations.
• Cloud-based IAM platforms are integrating password-free authentication, enhancing security and efficiency for organizations by utilizing biometric and security keys for user verification across cloud applications and devices.
• The zero-trust security framework improves Cloud-based identity and access management integration by continuously verifying user identities based on device health, behavior, and contextual information, thereby augmenting zero-password authentication.

Category-wise Insights

The following part offers in-depth analyses sectors of passwordless authentication market. The demand for passwordless authentication software is significant whereas the demand for the multi-factor authentication is augmented in 2024.

Passwordless Authentications Software Records Almost 71.4% of Market Share

Attributes	Details
Top Solution	Software
Market share in 2024	71.40%

The passwordless authentication software acquires a market share of 71.4% in 2024. The following aspects share the development of demand for zero-password authentication software:

• Several businesses utilize passwordless authentication software to perform their security checks and verification with the help of a database, developing a surge in the demand for zero-password authentication solutions.
• The password-free authentication market is flooded with different and novel software platforms that are able to perform biometric authentication with the integration of remote sensors.
• Growth in the demand for zero-password authentication software is more significant in BSFI applications, where the data is very sensitive and requires utmost confidentiality.

Multi-factor Authentication Cultivates Around 58.2% of Market Share

Attributes	Details
Top Authentication Type	Multi-factor Authentication
Market share in 2024	58.20%

The demand for multi-factor authentication is prevalent, with a market share of 58.2% in 2024. The development of demand for multi-factor authentication from the following drivers:

• IoT devices improve daily life, collect data, and automate industries like healthcare, smart homes, and manufacturing, raising demand for multi-factor authentication in manufacturing IoT devices.
• Financial institutions improve the demand for multi-factor authentication to protect customer data and assets, ensuring only authenticated users can access online accounts, improving user base and security.
• The development of machine learning can identify patterns in large datasets, trigger real-time authentication steps, and consider factors like location, device, and user behavior for risk-based authentication, potentially triggering multi-factor authentication.

Country-wise Insights

Based on the statistical data, industries in Germany and Japan are developing relatively in the upcoming decade. Simultaneously, the password-free authentication industry in the United States and China is hitting the roof due to several factors. Australia's zero-password authentication sector is anticipated to climb sharply in the upcoming decade.

Countries	CAGR from 2024 to 2034
United States	12.10%
Germany	10.70%
China	15.80%
Japan	10.00%
Australia	18.80%

The United States Paves the Way to Growth of the Password-free Authentication

The passwordless authentication market in the United States is witnessing a wave of change with a CAGR of 12.10% through 2034, with collaboration on improving biometric and multi-factor authentication.

• The impact of the rigid security process of remote password authentication development is anticipated to aid the development of several industries in the United States.
• The emerging businesses in the United States are anticipated to study the zero-password authentication market analysis before entering the market.

Industries Demands Technological Progression in Germany’s Zero-password Authentication Market

Demand for token-based authentications in Germany is estimated to progress at a CAGR of 10.70%, and security companies are developing rigid security procedures alongside the German government.

• The German government offers regular updates on the rules and regulations for FIDO authentication, which can be implemented in several German industries.
• The progression of Germany's password-free authentication industry demonstrates the betterment of software-operated, token-based, and FIDO authentications.
• Germany’s industries are anticipated to develop a demand for technological improvement in token-based and FIDO authentication solutions, propelling a revolution in the zero-password authentication system.

China’s BFSI Sector Kicks the Novel Opportunities for Passwordless Authentications

Demand for zero-password authentications in China is anticipated to highlight a CAGR of 15.80% between 2024 and 2034, with China's developed banking, financial services, and insurance hubs standing on the grounds of rigid development of multi factor authentications.

• The government and regulatory bodies strictly monitor any alteration in the password-free authentication market trends and demand improvement in the China's banking and sensitive financial operations.
• China's financial data protection operations follow a rigid infrastructure of multi-factor authentications, developing demand for improving the BFSI sector.

Companies in Japan Advances the Identity Verification on Zero-password Security

Japan's passwordless authentication market is anticipated to extend by 10.00% from 2024 to 2034, manipulated by emerging data security solutions and identity verification trends.

• Several companies in Japan are anticipated to perform their operation by utilizing identity verification on zero-password security systems, augmenting the demand from several regulatory bodies.
• Demand for zero-password authentication solutions in Japan is significant as it advances businesses' regulatory and security operations.

Australia’s Zero-password Authentication Solution Industry to Shoot up in the Forthcoming Decade

Australia's password-free authentication industry is projected to develop at an 18.80% CAGR by 2034 due to the country's growth in banking, incurrence, and financial services sectors.

• The banking sector of Australia is anticipated to perform on the rigid infrastructure of the password-free authentication system, which advances banking data protection.
• The development of the biometric authentication sector in Australia develops demand for novel technologies such as remote sensors and protection software.

Market Players Shaping the Outlook of the Passwordless Authentication Market

The market is fragmented, with traditional tech giants and new start-ups accounting for a substantial significance in the business environment. Firms invest in research and development to develop new technologies to minimize data breaches. The market players perform strategic mergers, acquisitions, joint ventures, partnerships, and expansions to ensure long-term market viability.

The password-free authentication market has recently developed its user base as remote working and mobile data security concepts have developed. The businesses are developing novel services to improve business operations and data security. The improvement in cybersecurity is envisioned to create a zero-password authentication market in the forthcoming decade.

Recent Developments

• In March 2024, Infisign launched a passwordless authentication solution for Oracle EBS, PeopleSoft, and Netsuite, enhancing security and user experience. The innovative platform uses a reusable identity concept, allowing users to selectively disclose parts of their identity for accessing applications.
• In March 2024, JumpCloud Go was named a silver winner in the 20th Annual 2024 Globee Cybersecurity Awards, recognizing excellence in risk management, threat detection, cloud security, and data privacy.
• In October 2023, SecureW2, an authentication startup, raised USD 80 million in it’s first-ever round from Insight Partners, showcasing its ability to simplify the deployment and maintenance of zero-password authentication infrastructure.
• In July 2023, Dove Soft, a leading cloud communication and engagement solutions provider, directing to enhance data privacy and cost efficiency, launched OTPfree, a pioneer in password-free authentication.

Key Companies in the Passwordless Authentication Market

• Fujitsu Ltd.
• NEC Corporation
• Accu-Time Systems Inc.
• EyeVerify, Inc.
• Crossmatch Technologies
• M2SYS Technology
• Thales Group
• Safran
• Dermalog Identification Systems GmbH
• East Shore Technologies, Inc.
• Others

Key Coverage in the Passwordless Authentication Market Report

• Rising Growth of the Passwordless Authentication in the United States
• Growth Analysis of the Authentication Solution Market
• Top 10 Emerging Trends in Token-based and FIDO Authentication
• Analysis of Growth Overview of Biometric Authentication Market in the United States
• Sales Assessment of Market Dynamics of Biometric and Multi-factor Authentication

Key Segments

By Solution:

• Passwordless Authentication Software
• Services
  • Professional Services
  • Managed Services

By Authentication Type:

• Single-factor Authentication
• Multi-factor Authentication

By End-use Industry:

• BFSI
• Consumer Electronics
• Logistics
• Government
• Aerospace & Defense
• Healthcare
• Retail
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East and Africa

Frequently Asked Questions

How Big is the Passwordless Authentication Market?

The market is valued at USD 17.50 billion in 2024.

What is the Future of the Passwordless Authentication Market?

The market is set to be valued at USD 72.48 billion by 2034.

What is the Size of Password-free Authentication Market in the United States?

In the United States, demand for password-free authentications is anticipated to develop a CAGR of 12.1% by 2034.

What is the Future Forecast for the Passwordless Authentication Industry?

The market is set to register a CAGR of 15.30% from 2024 to 2034.

How is the Demand for Passwordless Authentication Software in 2024?

Passwordless authentications software are anticipated to acquire a 71.40% market share in 2024.