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

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.