The Multi-factor Authentication market was valued at USD 9.17 billion in 2019 and is expected to reach USD 21.44 billion by 2025.
Blockchain and decentralized authentication systems are trends which will replace centralized data and application servers with a network of computers that encrypt and store data and stay in sync with each other.
The general concept is to represent user identities with encryption key-pairs which can be tied to additional parameters such as the user’s biometric data instead of passwords to make a high authentication.
A growing number of cyberattacks across enterprises is driving the market, as nearly half of all cyber attacks target small business with mostly ransomware attacks and hijacking corporate online and financial accounts. OneLogin’s own authentication app (OneLogin Protect) allows users to verify their identities via their smartphones. It also integrates with other third-party authentication factors like Google Authenticator and Yubico’s YubiKeys and provides a single sign-on option for company’s desktops.
Cloud-based multi-factor authentication is driving the market. Mobile is a key focus for today’s Cloud MFA solutions, where mobile options such as fingerprint scan and facial recognition deliver ease of use, making the authentication experience as frictionless as possible for users. SAASPASS provides cloud-based two-factor authentication to sign into applications and devices anywhere securely.
However, false security and high costs are key restraints for the market, as there is always possibility of mobile phones and tokens being stolen, potentially allowing the thief to gain access to the user’s accounts. Due to the requirement of specialized hardware, the total cost becomes high which is a major challenge for the market growth.
Key Market Trends
Biometric in BFSI to Hold a Significant Share
For banks and finance organizations like trading houses, credit card providers, investment funds, etc., protecting the sensitive data and money of customers is of the utmost importance. There are several links that make it easier for hackers or attackers to get into customer’s bank accounts online and steal money. Hence banking and finance need 2FA solutions for better security of customers’ bank accounts and data.
The support for audio capturing with increased availability of voice recognition services, which is a characteristic of biometric solutions is available over HTTP-based APIs, making it really simple to grant access during transactions through smartphone in multi-factor authentication.
CaixaBank in Spain is allowing customers to use biometric facial recognition technology with pin codes as an option, which offers security benefits and provides opportunities for the multi-factor authentication market.
Asia-Pacific Expected to Register the Fastest CAGR
The Asia Pacific region is expected to be the fastest-growing region in the multi-factor authentication market because of a higher level of implementation of bring your own device (BYOD) and choose your own device (CYOD) policies, as well as mobility services, which are increasing cyber attacks and data breaches.
CREALOGIX has rolled out the solution to major banks in Asia, providing their customers with one single app for banking and authentication. There is no longer a One-Time-Password (OTP) hardware token, generated by a hardware device for each action as part of a multi-factor authentication system. The soft token replaces the hard token and provides all the security advantages of multi-factor authentication.
China’s market is growing, as with the progression of electronic information technology, obtaining personal information becomes relatively simple and it is estimated that China constitutes a higher number of cyber attacks in banking than the United States.
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