The global multi-factor market accrued USD 4.85 Bn in 2016 and projected to grow to approximately USD 11.24 Bn by 2023, at 13% CAGR during the forecast period (2017-2023), asserts Market Research Future (MRFR). Multifactor authentication is implemented in different sectors such as banking and financial institutions, government institutions, travel & immigration, military & defense, commercial security, consumer electronics, and healthcare to fortify their defenses against external online threats. Increasing demand for online transaction and growing e-commerce sector is propelling the multi-factor authentication system.
The banking and financial institution sector is presumed to have a huge market share due to various applications such as online payments, foreign exchange, bank guarantee, trade finance, banking cards personalization system, and other banking and financial services. Also, rise in national security concerns, increase in a number of cyber theft cases, and rise in demand for advanced authentication systems is fuelling the multi-factor authentication market over the forecast period. Moreover, integration of smartphones with multi-factor authentication system is presumed to be one of the driving factors. One of the key trends escalating market growth is the mounting cases of cyber-attacks and data breaches across organizations coupled with increasing stringency in regulations to protect sensitive data which is expected to bolster the growth of the MFA market. Rising investments in cloud technologies, enterprise mobility, and increasing adoption of Bring Your Own Device (BYOD) across enterprises are expected to further boost the adoption of multi-factor authentication solutions.
On the other hand, high initial investment along with complex maintenance is anticipated to undermine the growth of the multi-factor authentication market over the forecast period. However, emergence of Out-of-Band (OOB) authentication, evolving cloud-based application as well as increased adoption of unified platforms for authentication purposes are some emerging trends of multi-factor authentication market which will aid the market growth.
The multi-factor authentication is segmented on the basis of model, deployment, and application.
By model type, the market is segmented into two-factor authentication, multi-factor with three-factor authentication, multi-factor with four-factor authentication, and multi-factor with five-factor authentication. The two-factor authentication segment is sub-segmented into smartcard with pin, smart card with biometric technology, biometric technology with pin, and smart-card with pin. Similarly, the three-factor authentication is segmented into three-factor biometric technology, smart card with two-factor biometric technologies, pin with two-factor biometric technologies, and smart card with pin & biometric technology. The two-factor authentication model is highly popular globally as this model enables organizations to authenticate digital identities of users using multiple parameters such as knowledge-based factors, possession-based factors, and inherence-based factors.
On the basis of deployment, the multi-factor authentication market is segmented into on-premises, and on-cloud.
Lastly, the multi-factor authentication market is segmented on the basis of application which is banking & finance, government institutions, travel & immigration, military & defense, commercial security, healthcare, and others. Many applications like military and defense have been implementing multi-factor system for a long time. For instance, Defense Advanced Research Projects Agency’s (DARPA) has developed a multifactor authentication system which will use biometrics and behavioral analysis to verify the identity of the person using the network. Multifactor authentication system has also gained traction in healthcare, with healthcare industry adopting multi-factor identity authentication. This process keeps the data safe because it combines two or more identity authentication methods to establish identity.
Geographically, Multi-Factor Authentication Market Size is spread across North America, Asia Pacific, Europe, and Rest-of-the-World (RoW).
Among all regions, North America is presumed to be the leading multi-factor authentication market over the forecast period. The United States and Canada are the leading countries in this region. Advanced IT infrastructure, a large number of financial organizations, surging demand for trustworthy techniques for the mobile-based transaction, along with increased adoption rate of cloud technologies have stimulated the market growth. Moreover, many companies from the multi-factor authentication market in North America are focusing on strategic mergers and acquisitions for deeper geographical penetration.
On the other hand, Europe is expected to have a sizeable growth over the multi-factor authentication market over the forecast period. The key factors contributing to the growth of this region are advanced infrastructure and accelerated adoption of smart devices.
Additionally, Asia Pacific region is projected to be the fastest growing region of this market owing to the increase in demand for surveillance and security systems in government institutions and military and defense sector, the presence of emerging economies such as China and Japan, as well as increasing demand from end-user industries. Also, higher level of implementation of bring your own device (BYOD) and choose your own device (CYOD) policies in Asia-Pacific countries, along with mobility services has given way to multifactor authentication market in this market and has strengthened the demand for it.
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