USD 14.36 Billion
Global Passwordless Authentication Market Size, Share, Growth Analysis, By Component(Hardware, Software and Services), By Product Type(Fingerprint Authentication, Palm Recognition), By Authentication Type(Single-factor Authentication, and Multi-factor Authentication), By Portability(Fixed and Mobile), By End-user(IT & Telecom, Retail) - Industry Forecast 2024-2031
Report ID:
SQMIG45B2039 |
Region:
Global |
Published Date: April, 2024
Pages:
197
|
Tables:
149 |
Figures:
76
Global Passwordless Authentication Market Insights
Global Passwordless Authentication Market size was valued at around USD 14.36 Billion in 2022 and is expected to rise from USD 16.11 billion in 2023 to reach a value of USD 40.47 Billion by 2031, at a CAGR of 12.20% during the forecast period (2024–2031).
One of the key drivers boosting the market for biometric or password authentication is the increasing use of smartphones and other consumer electronics. Additionally, the increase in need for security precautions beyond passwords is also propelling growth of this market. Passwordless authentication techniques are still increasing in popularity due to increased security and the ease of accessing data from anywhere. As an illustration, WinMagic declared the availability of MagicEndpointTM, its passwordless authentication and encryption solution, in June 2022. With MagicEndpointTM, WinMagic joined the password-less market and offered data and user security solutions for authentication and encryption. The solution allows CISOs and other IT security and technology professionals to easily implement passwordless authentication, satisfying their requirements for cyber security while removing password friction and lowering password management costs.
Passwordless technology alters the fundamental security architecture by moving verification to the device rather than sending credentials via an online connection. Traditional multi-factor authentication (MFA) enhances the authentication process's safety and ease of use, although it is less sophisticated than passwordless systems. In addition to handling supply chain security, which is crucial for B2B financial infrastructure, organizations frequently try to strike a balance between workforce access security and user experience.
According to Verizon's June 2022 data breach investigations report, 81% of hacking-related breaches are the result of weak and frequently used passwords (DBIR). The banking sector is leaning towards passwordless authentication as an additional security safeguard for their clients' accounts because over 90% of consumers reuse their passwords for both personal and professional accounts. There are various approaches to reduce risk in IT, but this is where most professional security employees focus their attention. Due to the vulnerability of authentication and the possibility of passwords being stolen or leaked, passwordless authentication techniques are increasingly being used in the banking sector.
US Passwordless Authentication Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024–2031
Global Market Size
Largest Segment
Fixed
Fastest Growth
Mobile
Growth Rate
12.20% CAGR
Global Passwordless Authentication Market ($ Bn)
Country Share for North America Region (%)
Global Passwordless Authentication Market Size By Portability ($ Bn)
Global Passwordless Authentication Market Size By Portability (%)
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Global Passwordless Authentication Market Segmental Analysis
The global passwordless authentication market is segmented based on product type, component, authentication type, portability, end-user, and region. In terms of components, the Passwordless Authentication Market is segmented into software, hardware, and services. Based on product type the Passwordless Authentication Market is segmented into fingerprint authentication, palm recognition, iris recognition, face recognition, voice recognition, smart card, and others. In terms of authentication type, the Passwordless Authentication Market is segmented into single-factor authentication, and multi-factor authentication. With respect to classification by portability, the market is classified into fixed and mobile. By end-user, the market is categorized into IT & Telecom, Transportation & Logistics, Retail, Aerospace & Defence, BFSI, Healthcare, Government, and others. Region Wise, the global passwordless authentication market is widespread into North America, Europe, Asia-Pacific, South America, and MEA.
Passwordless Authentication Market Analysis by Portability
The fixed category was in first position in 2021, with close to 65% of the market. The rise of this market is due to the extensive biometric infrastructure utilized in time management and attendance systems, such as those used in the business sector. For instance, the global technology giant Cisco Systems Inc. launched the security platform Duo in March 2021. The product's infrastructure independence sets the stage for a world without passwords and ensures that businesses can easily secure any mix of cloud and on-premises apps without the need for several authentication systems or generating huge security flaws.
The mobile category is expected to expand quickly in the years to come. Mobile authentication systems combine one or more biometric modalities for authentication or identity with wearable technologies, Internet of Things (IoT) devices, tablets, smartphones, and other forms of handhelds for flexible deployment. As mobile authentication systems do not even need as much installation as fixed authentication systems, they may be moved more easily as well. In those features like Wi-Fi and remote operations that are typically included in these systems, a user can operate and monitor these devices from areas other than their actual location. The characteristics of the system are to blame for the segment's expansion.
Passwordless Authentication Market Analysis by End User
The government sector came in first position in 2021 with a market share of about 18%. The government is investing a lot in digital programmers since internet services are quickly replacing other forms of communication between citizens and their governments. Because of the serious problem with the security of digital government services, a number of government agencies are evaluating their national authentication procedures.
It is expected that the BFSI sector would grow rapidly in the coming years. Financial institutions can take their passwordless authentication to new heights by giving users access to more formerly password-protected data. Wider access as well as increased employee productivity are facilitated by this. In May 2022, the fintech supplier of mobile-based authentication and app security software Intersect enabled the financial technology company Bonifii to expand its biometric authentication method for credit unions. It also chose a MasterCard affiliate as the authorized open banking provider for Member Pass, its certified biometric digital identity service.
Global Passwordless Authentication Market By Portability, 2022 (%)
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Global Passwordless Authentication Market Regional Insights
North America dominated the market in 2021, bringing in more than 39% of global revenue. Passwordless authentication technology can improve user experience and security while also lowering total cost of ownership and increasing investment in developed nations like the United States, Canada, and Mexico. These benefits serve as major market expansion drivers. Growing data security concerns in these countries have also led to the expansion of passwordless authentication. The region's increasing use of technologies like artificial intelligence (AI) and the internet of things (IoT)is also helping the market's growth.
Asia Pacific is expected to witness the fastest CAGR, at 21.0%, between 2023 and 2030. This can be attributed to the local passwordless authentication market's primary growth factors, including the increasing use of smartphones and tablets in this region as well as technologies like facial and fingerprint identification. A strategic technological partnership involving Israeli software company Secret Double Octopus and PwC is launched in September 2022 in order to assist enterprises in the Asia-Pacific region in compliance with forthcoming multi-factor authentication rules (MFA). The premium desktop and passwordless MFA solution for organizations, the Octopus Authentication Platform (OAP), will be made accessible as a result of the agreement with Secret Double Octopus and PwC India.
Global Passwordless Authentication Market By Region, 2024–2031
- Largest
- Fastest
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Global Passwordless Authentication Market Dynamics
Passwordless Authentication Market Drivers
Growing need for Better User Experience
- In order to gain a competitive edge, businesses are working on improving user experiences because a reduction in login friction may convince customers to choose one provider over another: To generate and remember multiple passwords at once is impossible. A forgotten password is frequently difficult to alter, too. Users regularly choose passwords that are easier for them to remember as a result.
Increasing Demand for Better Security Protocols
- The market for passwordless authentication is developing as a result of the increasing demand for better security protocols beyond passwords. Smartcards and fingerprint sensors are used to authenticate identities, and these security points enable a seamless user experience and cross-location data transfer.
Passwordless Authentication Market Restraint
Rise in Deployment Costs
- Passwordless authentication must be deployed after a comprehensive strategy involving staff training and the launch of novel software or hardware. A project and change management plan take time to develop and implement, time that may be used on other tasks or important projects. Moreover, staff training is required. Adoption of passwordless authentication also includes the associated costs for hardware and software: The cost of procuring devices, tokens, and cards for each employee is included in the hardware installation costs. And although using the software could prove less expensive, there could still be a few unexpected costs, such as those related to software administration, migration, and maintenance. The market for passwordless authentication is thus constrained by the cost of deployment.
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Global Passwordless Authentication Market Competitive Landscape
The passwordless authentication market is generally fragmented, with different combinations, as well as new and medium-sized businesses, accounting for a significant global market share of the overall market. To minimize data breaches, businesses are investing heavily in research and development to launch improved technology in passwordless authentication. To ensure long-term viability in this market, these companies often use tactical mergers and acquisitions, joint ventures and partnerships, and expansions.
Passwordless Authentication Market Top Player’s Company Profiles
- Fujitsu
- HID Global Corporation
- M2SYS Technology
- Microsoft
- NEC Corporation
- Safran
- Thales
- NEC Corporation
- Accu-Time Systems Inc.
- EyeVerify, Inc.
- Crossmatch Technologies
- East Shore Technologies, Inc
- Broadcom Inc. (CA Technologies)
- Dell Technologies Inc.
- Others.
Passwordless Authentication Market Recent Developments
- In March 2024, Microsoft’s Surface Pro 10 for Business enabled NFC-based passwordless authentication with YubiKeys.
- In February 2024, Times Internet, a digital venture of Times Group, formed a strategic alliance with Sekura.id to introduce a secure, passwordless mobile identity authentication service in India.
- In February 2024, Dashlane announced that it is rolling out passwordless login technology to over 18 million users, eliminating the need for a master password to access the application. The announcement came on the eve of World Password Day.
Global Passwordless Authentication Key Market Trends
- Human physical characteristics, such as fingerprinting, the retina, iris, palm, speech, and voice, among others, are used in biometrics to assess and authenticate people. The non-repudiation, non-transferable, and non-identifiable feature of this authentication method, which offers a high level of security against fraud, is one of its main advantages and has led to its wide adoption.
- Several end users have effectively applied the technology, including forensics, governments, financial institutions, and enterprise identity management, among others. As well, the widespread use of fingerprint sensors in reasonably priced mobile devices and the government's national ID efforts have raised awareness and adoption of this technology.
- Also, a contract was signed in June 2022 in between Capital Development Authority (CDA) and the National Database and Registration Authority (Nadra) to develop a robust biometric verification system for secure property transfers in Islamabad. The method is going to detect frauds and prevent shady people or organizations’ attempts to deceive in the transfer of properties in Islamabad. Around 20,000 property sales, purchases, and transfers occur in CDA per year.
Global Passwordless Authentication Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, we found that the Passwordless authentication market is A major element driving the passwordless authentication market is the increasing use of smartphones and other consumer electronics. Another factor driving the market for passwordless authentication is the growing requirement for security precautions beyond passwords. There are various approaches to reduce risk in IT, but this is where most professional security employees focus their attention. Due to the vulnerability of authentication and the possibility of passwords being stolen or leaked, passwordless authentication techniques are increasingly being used in the banking sector. Human physical characteristics, such as fingerprinting, the retina, iris, palm, speech, and voice, among others, are used in biometrics to assess and authenticate people. The non-repudiation, non-transferable, and non-identifiable feature of this authentication method, which offers a high level of security against fraud, is one of its main advantages and has led to its wide adoption.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 14.36 Billion |
| Market size value in 2031 | USD 40.47 Billion |
| Growth Rate | 12.20% |
| Base year | 2023 |
| Forecast period | 2024–2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Passwordless Authentication Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Passwordless Authentication Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Passwordless Authentication Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Passwordless Authentication Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Passwordless Authentication Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Passwordless Authentication Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Passwordless Authentication Market Report Snapshots
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