The global multi-factor authentication (MFA) market reached a value of $12.9 billion in 2021, and is expected to reach $34.7 billion by 2027, exhibiting a CAGR of 17.8% during 2022-2027, according to ResearchAndMarkets.
Keeping in mind the uncertainties of COVID-19, they are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end use industries. These insights are included in the report as a major market contributor
The MFA system is designed to protect organizations and business units from potential security breaches through a multi-layered verification process.
The authentication requires the individual to present multiple safety validation variables, such as their login credentials, followed by a security token, one-time password (OTP) or biometric verification, which is unique to the user. This aims to create and elaborate defense system against any unauthorized individual from accessing a computer device, network, database or a physical location.
Key MFA market drivers
The growing instances of security breaches and cyber-attacks, along with a significant increase in online frauds, is among the key factors driving the growth of the market. Cyber-attacks are majorly targeted toward small and medium-sized organizations with ransomware to hijack the corporate’s online and financial accounts. This is prevented by deploying MFA systems in the employees’ smartphones and computer devices to verify the identity of the user.
In addition, the growth of the healthcare, retail, and banking, financial services and insurance (BFSI) industries is boosting the demand for authentication systems to ensure the security of the enterprises and their customers. For instance, banks perform various functions, such as core banking, trade finance, international payments and online banking, which require secure connections for ensuring smooth transaction and seamless user experience.
Moreover, the emerging trend of the Internet of Things (IoT) and cloud-based services is further acting as a growth-inducing factor. Cloud-integrated MFA solutions allow remote fingerprint scanning, facial recognition and document verification.
Advancements in biometrics, software and hardware technologies, coupled with the favorable government measures to enhance national security, are projected to drive the market further. Other factors driving the market growth include increased usage of digital payment methods and the rising penetration rate of smartphones and wireless devices
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