Multi-factor Authentication Market Size, Share & Trends Report

Multi-factor Authentication Market Size, Share & Trends Analysis Report By Model, By Application (BFSI, Healthcare, Government and Defense, Travel and Immigration, Retail), And Segment Forecasts, 2018 - 2025

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-330-0
  • Format: Electronic (PDF)
  • Historical Data: 2014-2016
  • Number of Pages: 98

Industry Outlook

The global multi-factor authentication market size was valued at USD 5,052.5 million in 2016. Multi-factor authentication (MFA) introduces additional layers of security to authenticate the user identity and secure transactions over the internet. One of the key trends escalating market growth is the mounting cases of cyberattacks and data breaches across organizations. This coupled with increasing stringency in regulations to protect sensitive data is expected to bolster the growth of the MFA market.

North America multi-factor authentication market

Rising investments in cloud technologies, enterprise mobility, and increasing adoption of BYOD across enterprises are anticipated to further boost the adoption of multi-factor authentication solutions. Advent of authentication-as-a-service solutions, which offer advanced security and authentication to organizations, is also projected to bolster the growth of the market.

Companies such as CA Technologies; Vasco Data Security International, Inc.; RSA Security LLC; and Symantec Corporation are making significant investments in R&D to develop new authentication products, solutions, and services.

Cost and implementation complexities will act as a restraint for the market; however, their impact will decrease with time. With the rise in data and security breaches, most of the industries have launched data security standards. To address security breaches and cyber-attacks, enterprises have adopted MFA solutions. These solution implementations are complex in nature and at the same time require more capital investment for procurement, implementation, maintenance, and management. Heterogeneous IT environments across industries further increase the complexity.

The overall investment for implementing MFA is estimated to be high owing to increase in support services, training, SMS gateway, and hardware and software tokens. Requirement of additional drivers for physical authenticators and interoperability with varying IT environments increase the complexity of deployment. Hence, issues pertaining to cost of procurement and complexity of implementation are poised to limit the widespread adoption of multi-factor authentication solutions.

Model Insights

The two factor authentication model accounted for the leading share of the overall revenue in 2016. 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.

Multi-factor authentication technologies find application across several industry verticals as they offer enhanced security and data protection. Technology firms and service providers are innovating and deploying a wide range of solutions that deliver operational efficiencies for organizations.

Application Insights

MFA enables secured access control, tracks fraudulent activities, and facilitates authentication of online transactions. The BFSI sector has witnessed the highest adoption of MFA solutions, which enable organizations to secure transactions and curb data loss and fraudulent activities.

The healthcare industry is likely to be the fastest growing segment during the forecast period, followed by the government and defense industry. Increasing online transactions, e-commerce, and growing digitalization of financial and welfare services are some of the key drivers leading to high adoption of multi-factor authentication solutions.

Global multi-factor authentication market

Advancements in scanning technology, mobile authentication services, and biometric technologies have led to various innovative MFA solutions. Other verticals such as education, utilities, manufacturing, and logistics have discovered new ways to incorporate multi-factor authentication technologies for securing access to corporate networks and safeguarding confidential data.

Regional Insights

North American is expected to lead the market throughout the forecast period. Technological advancements, proliferation of smartphones, enhanced network connectivity, and high adoption rate of digital services are some of the key factors supplementing the growth of the regional market. Moreover, growing cases of cyber-attacks are triggering the adoption of multi-factor authentication solutions in North America. Presence of major technology players such as CA Technologies; Symantec Corporation; Vasco Data Security International, Inc.; and RSA Security LLC is anticipated to help the market in North America to gain tremendous traction over the forecast period.

On the other hand, Asia Pacific is estimated to  be the most promising region. The growth of the region can be attributed to increasing spending on connected devices, growing investments in various cloud and IoT technologies, and spiraling demand for digital services. Soaring emphasis on security of personal data and authentication of online transactions, coupled with increasingly stringent regulatory compliances, are stimulating the demand for MFA.

Multi-factor Authentication Market Share Insights

The market is competitive in nature. Some of the prominent companies operating in the market are Vasco Data Security International, Inc.; RSA Security LLC; Fujitsu Ltd.; NEC Corporation; Symantec Corporation; Gemalto N.V.; 3M; and Safran SA.

Industry players have been focusing on inorganic growth strategies such as mergers and acquisitions of smaller firms to augment their product portfolios and gain a larger share of the market. For instance, Dell’s acquisition of Quest Software and RSA Data Security and EMC’s acquisition of Virtustream have enabled the acquirers to gain easy entry to the market. Similarly, the acquisition of LifeLock by security leader Symantec Corp. has helped the latter to develop a new range of services and solutions for the cyber security market. Major technology players are investing in innovation labs and centers of excellence and collaborating with various research institutes to consolidate their position.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, and Rest of the World (RoW)

Country scope

U.S., Canada, U.K., Germany, China, India, Japan, Brazil, Mexico and Others

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global multi-factor authentication market report based on model, application, and regions:

  • Model Outlook (Revenue, USD Million, 2014 - 2025)

    • Two Factor Authentication

    • Three Factor Authentication

    • Four Factor Authentication

    • Five Factor Authentication

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • BFSI

    • Government & Defense

    • Healthcare

    • Travel & Immigration

    • Retail & E-commerce

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Rest of the World (RoW)

      • Brazil

      • Mexico

      • Others

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