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

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.