The Global Multi-Factor Authentication Market size is expected to reach $41.5 billion by 2030, rising at a market growth of 15.2% CAGR during the forecast period.
Military and defense agencies deal with classified and sensitive information regularly. MFA controls access to such data, requiring personnel to provide multiple authentication factors before accessing classified documents, systems, or networks. Consequently, the military & defense segment would generate approximately 9.10% share of the market by 2030. Military personnel frequently engage in secure and encrypted communication through email, messaging apps, or voice communication. MFA ensures the identities of individuals participating in these secure communications. The protection of classified information, national security, and personnel safety are paramount in the military and defense sectors.
The major strategies followed by the market participants are Merger & Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September, 2023, HID Global Corporation has acquired approximately 98.5 percent of Evolis S.A.’s shares. This acquisition brings together two leaders in the desktop printer market, enhancing HID’s printer portfolio, global reach, and capacity to cater to diverse verticals. Moreover, In August, 2023, Cisco Systems, Inc. announced the acquisition of Working Group Two (WG2). WG2’s technology aligns with Cisco’s goal of simplifying mobile network architecture, enhancing service edge deployment, and promoting an API-first strategy for application development, enterprise customers, and service providers.
Based on the Analysis presented in the KBV Cardinal matrix Microsoft Corporation is the forerunner in the AI Camera Market. In July, 2021, Microsoft Corporation is set to acquire AT&T’s Network Cloud technology and intellectual property, offering job opportunities to several hundred AT&T engineers. In reciprocity, AT&T will transition its 5G mobile network to Azure. Companies such as Cisco Systems, Inc., Thales Group S.A. and Oracle Corporation are some of the key innovators in the Market.
Market Growth Factors
Stringent government rules to increase the adoption of MFA solutions.
Many government regulations require organizations to implement specific security measures to protect sensitive information. MFA is often mandated as part of these requirements, ensuring organizations comply with the law. Negligence to comply can result in fines and legal consequences, incentivizing businesses to adopt MFA solutions. Regulations like CCPA in California and GDPR in the European Union strongly emphasize data protection and user privacy. Financial services, such as banking and payment processing, are heavily regulated. This, in turn, fuels the growth of the market.
Rising security breaches and sophisticated cyberattacks
MFA nourishes an additional layer of protection by demanding multiple authentication factors, making it more difficult for attackers to gain unauthorized access. This heightened security is crucial in the face of evolving cyber threats. Sophisticated cyberattacks often involve the theft of usernames and passwords through methods like phishing, keylogging, and credential stuffing. MFA mitigates these risks by requiring additional factors beyond what can be easily stolen. Phishing attacks are a prevalent and effective method used by cybercriminals. MFA can minimize the impact of phishing by requiring a second authentication factor that attackers are less likely to possess. As the threat landscape evolves, the market is expected to grow as organizations seek robust security solutions to counteract increasingly sophisticated and persistent cyberattacks.
Market Restraining Factors
High cost and technical complexities
One of the prior challenges is the cost associated with implementing MFA solutions. This includes the purchase of hardware tokens, smart cards, and biometric devices and integrating MFA systems into existing infrastructure. Smaller organizations may find these costs prohibitive. Beyond the initial implementation, ongoing operational costs are associated with maintaining and supporting MFA systems. This includes software updates, hardware maintenance, and user support for MFA-related issues. Implementing MFA often requires extensive user training and support, especially when introducing new authentication methods or devices. This lack of understanding about advanced security threats has put businesses at risk and is hindering the growth of the market.
Component Outlook
Based on components, the market is fragmented into hardware, software, and services. The hardware segment garnered a significant revenue share in 2022. Hardware components in the market provide robust security and protection against unauthorized access. They are widely used in various industries, including finance, healthcare, government, and corporate environments where data security and access control are paramount. These components contribute to the diverse and flexible options for implementing multi-factor authentication, ensuring that users and organizations can select the most appropriate authentication methods to meet their specific security needs.
Authentication Outlook
On the basis of authentication type, the market is segmented into password-based authentication and Passwordless authentication. The Passwordless authentication segment acquired a substantial revenue share in the market in 2022. Passwordless authentication methods, especially those using biometrics or cryptographic keys, offer higher security than traditional passwords. These methods are more resistant to phishing attacks and password-related breaches. Passwordless authentication eliminates the need to remember and frequently change complex passwords, making the login process more convenient for users. Passwordless authentication is an innovative approach that addresses many security and usability challenges associated with traditional passwords.
Model Type Outlook
By model type, the market is categorized into two factor authentication, three factor authentication, four factor authentication, and five-factor authentication. In 2022, the two-factor authentication segment registered the highest revenue share in the market. Two-factor authentication (2FA) has become increasingly essential in the business landscape due to its ability to enhance security in an era of growing cyber threats. Two-factor authentication adds a layer of protection, making it harder for attackers to access a person’s devices and online accounts. Any two smart cards, PIN, SMS application, tokens, biometrics (iris, face, palm, fingerprint, and so on), passwords, and so on can be used to achieve two-factor authentication.
Vertical Outlook
Based on vertical, the market is classified into BFSI, government, travel & immigration, military & defense, commercial security, healthcare, IT, telecommunication, media & entertainment, and others. The media & entertainment segment covered a considerable revenue share in the market in 2022. The media and entertainment industry is at the cusp of transformation, with digital media expanding rapidly across TV, films, radio, advertising, animation, gaming, Out-Of-Home (OOH) advertising, and music. With the introduction of several digital technologies, content creation and production have given rise to numerous copyright, patent, and fraud-related activities.
Regional Outlook
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region garnered a significant revenue share in the market in 2022. Asia Pacific experiences considerable security spending owing to the ever-growing threat landscape of the region. Asia Pacific invested more in security due to the growing threat of identity and visa breaches. The region comprises emerging economies like India, Japan, China, South Korea, Australia, and other Asia Pacific countries. Asia Pacific is increasingly targeted by cybercriminals using advanced and sophisticated attack vectors. MFA helps secure online banking by requiring customers to provide multiple verification forms before gaining access to their accounts or authorizing transactions.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Microsoft Corporation, Thales Group S.A., CyberArk Software Ltd., Broadcom, Inc., Micro Focus International PLC, HID Global Corporation, Cisco Systems, Inc., Oracle Corporation, RSA Security LLC, and Salesforce, Inc.
Recent Strategies Deployed in Multi-Factor Authentication Market
Partnerships, Collaborations, and Agreements:
Sep-2023: Oracle Corporation and Mastercard, Inc., the second-largest payment-processing corporation worldwide, partnered to automate B2B payment transactions, connecting Oracle Fusion Cloud ERP directly with banks for streamlined processes and offering corporate customers simplified access and banks enhanced services.
Sep-2023: Oracle Corporation collaborated with Microsoft Corporation, an American multinational technology corporation, offering Oracle Database Services through Oracle Cloud Infrastructure on Microsoft Azure. This expansion allows Microsoft customers with existing commitments to access Oracle Database Services via Microsoft Azure, as noted by Karan Batta, Vice President of Oracle Cloud Infrastructure.
Jul-2022: Microsoft Corporation had partnered with Birlasoft, a global IT services provider specializing in multi-shore business applications, to establish a Center of Excellence for Generative AI. Through this partnership, Birlasoft utilized features from the Azure OpenAI Service for various purposes within the manufacturing sector, including product design, process optimization, quality and defect detection, predictive maintenance, and the implementation of digital twins.
Product Launches and Product Expansions:
Oct-2023: CyberArk Software Ltd. unveiled enhanced capabilities for secure access to cloud services and modern infrastructure, leveraging risk-based privilege controls. These security controls ensure secure access across all layers of cloud environments without disrupting existing access methods for users, aligning with CyberArk’s commitment to robust cloud security.
May-2023: CyberArk Software Ltd. upgraded its identity security platform, establishing it as the most powerful in its class. CyberArk’s strategy includes contextual authentication and dynamic authorization for the least privilege needed, breaking down operational silos. The company is also strategically incorporating machine learning and AI to enhance customer defenses against evolving attack strategies.
Apr2023: Thales Group S.A. introduced the SafeNet eToken Fusion series, integrating FIDO2 with PKI/CBA in a single USB token. Specifically designed for Microsoft Azure AD users, these tokens enhance security against account compromise, offering robust protection for cloud and web application access. The series facilitates passwordless authentication and is resistant to phishing, thereby strengthening security for enterprise resources accessed from any device.
Apr-2023: Cisco Systems, Inc. enhanced its Cisco Security Cloud vision with an AI-driven XDR solution and advanced Duo MFA features, enhancing IT ecosystem protection through early detection and efficient response.
Acquisition and Mergers:
Sep-2023: HID Global Corporation has acquired approximately 98.5 percent of Evolis S.A.’s shares, a prominent card printer and consumables manufacturer. This acquisition brings together two leaders in the desktop printer market, enhancing HID’s printer portfolio, global reach, and capacity to cater to diverse verticals. Leveraging Evolis’s well-established channel network, the merger strengthens HID’s position in the instant issuance of physical credentials, encompassing ID cards, access control badges, payment cards, and other personalized credentials.
Aug-2023: Cisco Systems, Inc. announced the acquisition of Working Group Two (WG2), a Norwegian company known for its cloud-native mobile services platform. WG2’s technology aligns with Cisco’s goal of simplifying mobile network architecture, enhancing service edge deployment, and promoting an API-first strategy for application development, enterprise customers, and service providers.
Mar2023: Cisco Systems, Inc. has completed the acquisition of Valtix, a privately held company based in San Jose, CA. The acquisition will contribute to the expansion of Cisco’s product and engineering talent and accelerate Cisco’s delivery of the Cisco Security Cloud.
Aug-2022: CyberArk Software Ltd. took over C3M, a cloud security posture management software company. This acquisition would enable MSSP and MSP partners to find and fix cloud security misconfigurations across Google Cloud, Microsoft Azure, and AWS.
Jul-2022: Thales Group S.A. revealed plans to acquire OneWelcome, a leading European firm in customer identity and access management. The move aimed to enhance Thales’s identity services, creating a comprehensive identity platform by integrating OneWelcome’s expertise in digital identity lifecycle management.
May-2022: hales Group S.A. entered into an agreement with Sonae Investment Management to acquire S21sec and Excellium, two prominent European cybersecurity companies. This strategic acquisition enhanced Thales’s cybersecurity portfolio, particularly in incident detection and response services such as the Security Operations Center (SOC), along with bolstering consulting, audit, and integration services. The addition of S21sec and Excellium brought valuable industrial expertise and expanded Thales.
Jul-2021: Microsoft Corporation is set to acquire AT&T’s Network Cloud technology and intellectual property, offering job opportunities to several hundred AT&T engineers. In reciprocity, AT&T will transition its 5G mobile network to Azure. Starting with AT&T’s 5G core, the collaboration expands on a preexisting $2 billion agreement where AT&T shifted its back-end office to Microsoft Azure, designating Microsoft as AT&T’s preferred cloud provider for "non-network applications," with many of these applications migrating to Azure.
Jul-2021: Salesforce, Inc. completed the acquisition of Slack Technologies, Inc., shaping the future of enterprise software by establishing a digital headquarters for organizations to achieve customer and employee success from any location. The integration of Slack and Salesforce Customer 360 provides every company with a unified source of truth for their business and a singular platform for connecting employees, customers, and partners, along with the everyday apps they use.
May-2020: CyberArk Software Ltd. completed the acquisition of IDaptive Holdings, Inc., a provider of cyber and data protection services. Through this acquisition, both companies have provided the industry’s only modern identity platform with a security-first approach.
Scope of the Study
Market Segments covered in the Report:
By Component

    • Software
    • Hardware
    • Services

By Authentication Type

  • • Password-Based Authentication
    • Passwordless Authentication

By Model Type

  • • Two-Factor Authentication
    • Three-Factor Authentication
    • Four-Factor Authentication
    • Five-Factor Authentication

By Vertical

  • • BFSI
    • Government
    • Travel & Immigration
    • Military & Defense
    • Commercial Security
    • IT
    • Telecommunication
    • Healthcare
    • Media & Entertainment
    • Others

By Geography

  • • North America

o US
o Canada
o Mexico
o Rest of North America

  • • Europe

o Germany
o UK
o France
o Russia
o Spain
o Italy
o Rest of Europe

  • • Asia Pacific

o China
o Japan
o India
o South Korea
o Singapore
o Malaysia
o Rest of Asia Pacific

  • • LAMEA

o Brazil
o Argentina
o Saudi Arabia
o South Africa
o Nigeria
o Rest of LAMEA
Companies Profiled

  • • Microsoft Corporation
    • Thales Group S.A.
    • CyberArk Software Ltd.
    • Broadcom, Inc.
    • Micro Focus International PLC
    • HID Global Corporation
    • Cisco Systems, Inc.
    • Oracle Corporation
    • RSA Security LLC
    • Salesforce, Inc.

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