Global Passwordless Authentication Market Size By Offering (Hardware, Software, Services), By Authentication Type (Single Factor Authentication, Multi-Factor Authentication), By Vertical (Aerospace And Defense, BFSI), By Geographic Scope And Forecast

Passwordless Authentication Market Size And Forecast

Passwordless Authentication Market size was valued at USD 6.6 Billion in 2022 and is projected to reach USD 42.5 Billion By 2030, growing at a CAGR of 26.2% from 2024 to 2030.

Global demand for seamless user experiences, rising cyber threats, and data breaches have all contributed to the market for passwordless authentication explosive expansion in recent years. Due to its practicality and excellent security, biometric identification techniques like fingerprint and face recognition have grown in popularity. Many technology corporations have actively backed passwordless authentication by creating their own solutions and incorporating them into their platforms. The implementation of regulations and standards has also been facilitated. The expansion of passwordless solutions in both consumer and enterprise applications is a result of the rising need for frictionless authentication experiences. The market is anticipated to expand overall as technology develops and data security continues to be a primary issue.

Global Passwordless Authentication Market Definition

The development, use, and adoption of authentication techniques that do not require conventional passwords are collectively referred to as the “Global Passwordless Authentication Market.” Passwordless authentication makes use of alternate mechanisms like biometrics, hardware tokens, push notifications on mobile devices, or other safe ways to verify users. By minimizing password weaknesses including password reuse, weak passwords, and phishing attack vulnerability, it seeks to offer a more secure and user-friendly login experience.

A variety of industry actors, including technology companies, cybersecurity businesses, producers of biometric solutions, creators of authentication platforms, and service providers, are present in the market for passwordless authentication. Significant efforts have been made in passwordless authentication by well-known technology companies like Microsoft, Google, and Apple. These businesses have created their own solutions and integrated them into their platforms and operating systems. Additionally, to improve data security and privacy compliance, organizations have been encouraged to implement passwordless authentication by legislative initiatives and standards like GDPR and PSD2. Passwordless authentication solutions have grown and been adopted across a variety of industries, including finance, healthcare, e-commerce, and government institutions. The market has seen significant advancements in biometric authentication techniques, authentication protocols, and secure hardware tokens.

The global market for passwordless authentication is expanding as a result of a number of important factors. First, the rise in cyberattacks and data breaches has highlighted the shortcomings of standard password-based authentication, prompting businesses to look for stronger security solutions. Second, because passwordless authentication solutions do not need users to remember or manage numerous complex passwords, they have become increasingly popular in response to the demand for frictionless and seamless user experiences. Thirdly, technological developments, particularly those related to biometrics and mobile devices with sensors, have made it easier to incorporate passwordless authentication methods into a variety of applications.

Global Passwordless Authentication Market Overview

The market for passwordless authentication has grown significantly during the past few years. Passwordless authentication is the use of non-password means, such as hardware tokens or biometrics, to confirm user identities instead of relying on conventional passwords. The growing demand for improved cybersecurity safeguards and seamless user experiences is what propels the industry. The market has been significantly shaped by major technological companies, government measures, and developments in biometric technologies. To reduce the dangers associated with passwords and offer a more secure and convenient authentication method, passwordless authentication is becoming widely used across a variety of industries, including finance, healthcare, and e-commerce.

Several important elements are what fuel the global market for passwordless authentication. The drawbacks of password-based authentication have been highlighted by the increasing frequency and sophistication of cyber threats and data breaches, prompting organizations to look for more secure solutions. Second, the adoption of passwordless authentication has been driven by the demand for frictionless user experiences and the desire to do away with the hassles of managing multiple passwords. Additionally, improvements in biometric technologies, such as fingerprint and facial recognition, have increased user accessibility and convenience for passwordless authentication. Additionally, organizations have been urged to incorporate better authentication techniques, such as passwordless solutions, by regulatory initiatives and standards that place an emphasis on data security and privacy compliance.

Even though the market for passwordless authentication has grown significantly worldwide, there are still certain challenges to overcome. The requirement for massive infrastructure and integration work to successfully integrate passwordless authentication solutions is a significant challenge. This could entail updating current systems and making sure they are compatible with different authentication techniques, which could be time-consuming and expensive for organizations. Users’ potential reluctance or skepticism regarding the security and dependability of passwordless authentication techniques is another constraint. For adoption to become widely used, addressing these issues and fostering user trust is essential. Additionally, since various countries and businesses may have distinct needs for authentication procedures and data privacy, it may be challenging to negotiate regulatory and compliance issues.

The global market for passwordless authentication offers several opportunities for development and innovation. There is an increasing market demand for reliable and usable authentication solutions as organizations prioritize cybersecurity and user experience. With the development of biometrics, multi-factor authentication, and secure hardware tokens, technology firms and solution providers have an opportunity to innovate and improve passwordless authentication techniques. Furthermore, the possibility of passwordless authentication in enterprise environments provides tremendous growth beyond consumer-facing services. Employer authentication using passwordless solutions can help organizations increase security for sensitive data and systems. A further opportunity for market expansion and innovation is provided by the growing use of passwordless authentication in developing industries like the IoT (Internet of Things) and connected devices.

Global Passwordless Authentication Market Segmentation Analysis

The Global Passwordless Authentication Market is Segmented on the basis of Offering, Authentication Type, Vertical, and Geography.

 Passwordless Authentication Market, By Offering

• Hardware
• Software
• Services

Based Offering, The market is segmented into Hardware, Software, and Services. Software products frequently have a significant market presence and hold a sizable share. Software vendors provide platforms, SDKs, and APIs for passwordless authentication, allowing businesses to use them. These software options are frequently the foundation of passwordless authentication systems and are essential for integrating and managing the authentication process. However, the hardware sector, which includes hardware tokens, biometric sensors, and other authentication devices, is equally important. For the purpose of collecting biometric information or creating safe authentication codes, hardware components are required. Passwordless authentication techniques are becoming more popular as a result of the rising need for biometric sensors in smartphones and other devices.

Passwordless Authentication Market, By Authentication Type

• Single Factor Authentication
• Multi-Factor Authentication

Based Authentication Type, The market is segmented into Single Factor Authentication and Multi-Factor Authentication. Multi-Factor Authentication (MFA) holds the largest share of the market in Global Passwordless Authentication Market. Using various verification factors, such as biometrics, hardware tokens, or mobile push alerts, to confirm a user’s identity is known as multi-factor authentication. Compared to Single Factor Authentication, which normally depends on a single form of verification, such as a password, MFA offers a better level of security. Multi-Factor Authentication has become more popular due to the increased focus on cybersecurity and the requirement for more robust authentication techniques. MFA solutions are being implemented by businesses in a variety of sectors, including finance, healthcare, and e-commerce, to reduce the risks associated with passwords and improve overall security. Additionally, multi-factor authentication is frequently required or advised by regulatory requirements and compliance standards.

Passwordless Authentication Market, By Vertical

• Aerospace & Defense
• BFSI
• IT and Telecom
• Healthcare
• Government & Law Enforcement
• Retail & Consumer Electronics
• Transportation & Logistics
• Others

Based on Vertical, The market is segmented into Aerospace & Defense, BFSI, IT and Telecom, Healthcare, Government & Law Enforcement, Retail & Consumer Electronics, Transportation & Logistics, and Others. The retail and consumer electronics industry owns a sizeable share of the Global Passwordless Authentication Market. Businesses engaged in retail, e-commerce, and the sale of consumer electronics gadgets are included in this segment. The need for secure authentication solutions to safeguard client accounts, personal information, and payment information has been acknowledged by the retail and consumer electronics industries.

Retailers are implementing passwordless authentication techniques to improve security and stop fraudulent activity in response to the growing popularity of online shopping and digital transactions. The retail and consumer electronics industries also place a strong emphasis on giving customers a seamless and easy-to-use experience. Passwordless authentication streamlines the authentication process and increases user satisfaction by removing the need for users to remember and manage complicated passwords.

Passwordless Authentication Market, By Geography

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

On the basis of Regional Analysis, the Global Passwordless Authentication Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. North America constituted the largest proportion of the worldwide Passwordless Authentication Market. The region’s broad adoption of passwordless authentication technologies has been facilitated by North America’s technological leadership and a high degree of digital maturity. Furthermore, several significant technology firms based in North America have actively advocated and created passwordless authentication techniques. The adoption of passwordless authentication in this area has been accelerated by the existence of a strong cybersecurity ecosystem and strict data privacy rules.

Key Players

The “Global Passwordless Authentication Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are HID Global, Stytch, Duo Security, Microsoft, Signicat, Fujitsu, Trusona, Okta, Yubico, Thales, Authentiq, Beyond Identity, Veridium, Entrust, OneLogin, Ping Identity, EmpowerlD, IBM, Secret Double Octopus, LogMeOnce, LastPass, IDEE, Prove, HYPR, Cisco.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In April 2023, Fast IDentity Online 2.0 (FIDO2) and PKI/CBA are combined into a single authenticator in the new SafeNet eToken Fusion series, which was introduced by Thales, a renowned provider of security and technology globally. The new tokens from Thales are made to shield users of Microsoft Azure Active Directory (Azure AD) against account breaches and to boost security for access to web and cloud apps. With the help of the SafeNet eToken Fusion Series, businesses may use passwordless authentication techniques that are resistant to phishing attacks, enhancing the security of enterprise resources used on any device.
• In March 2021, Passwordless authentication by Duo from Cisco enables users to safely log into cloud applications without using passwords by using security keys or platform biometrics.

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