The multi-factor authentication (MFA) market is expected to witness exponential growth by 2027 owing to soaring demand for effective solutions to enhance data security and privacy. Additionally, rising occurrences of cyberattacks and data breaches are speculated to boost market growth over the forecast timeline.
Multi-factor authentication (MFA) refers to a method of authentication wherein users need to provide two or more verification factors in order to get access to a resource, such as an online account, an application, or a VPN. Apart from a username and password, MFA asks for one or more verification factors with the aim to lower the chances of a successful cyberattack. It has gained massive prominence as a core component of a robust identity and access management (IAM) policy, which has positively influenced market dynamics in recent years.
Notably, key companies have been integrating MFA into their workings to strengthen the security of their organization as well as their users’ data, thereby bolstering business growth. For instance, in August 2021, ManageEngine, Zoho Corporation’s enterprise IT management arm, announced the addition of MFA for Exchange admin center (EAC) and Outlook on the Web (OWA) logins to its ADSelfService Plus, the Active Directory integrated self-service password management and single sign-on solution, to augment the security of Exchange ecosystems.
Citing another instance, in August 2021, software developer GitHub urged its users to switch to two-factor authentication (2FA) for their accounts. The firm recommended the use of one of the 2FA options available on its website due to the advantages of multi-factor authentication in protecting users against a broad range of attacks like phishing.
The multi-factor authentication (MFA) market has been segmented on the basis of component, application, authentication model, and region. From the application perspective, the market has further been bifurcated into BFSI, IT & telecom, government & defense, healthcare, tourism & hospitality, retail, and others.
The government & defense application segment held a market share of over 20% in 2020 and is estimated to grow at a sizable pace over 2021-2027. Surging emphasis on protecting sensitive government and defense information is set to boost segmental adoption through the following years.
The retail application segment is projected to see substantial growth by 2027, progressing at a CAGR of over 10% through the analysis period. Notable rise in online shopping users across the globe is likely to fuel segmental demand in the future.
The multi-factor authentication (MFA) market from the others application segment is anticipated to expand at approximately 15% CAGR over the assessment timeframe. Rapid digitalization across the tourism industry is expected to be a key factor propelling segmental expansion through 2027.
In the regional landscape, the Latin America multi-factor authentication (MFA) market held over 5% revenue share in 2020 and is speculated to amass lucrative gains by 2027. Increasing data breach incidents across LATAM are slated to stimulate market adoption in the region in the forthcoming years.