Passwordless Authentication Global Market Report 2024

The passwordless authentication market size has grown rapidly in recent years. It will grow from $17.13 billion in 2023 to $20.07 billion in 2024 at a compound annual growth rate (CAGR) of 17.2%. The historical growth can be attributed to factors including heightened cybersecurity threats and data breaches, the widespread use of mobile devices, regulatory compliance obligations, increased adoption of cloud computing, and greater awareness of best practices in password management.

The passwordless authentication market size is expected to see rapid growth in the next few years. It will grow to $38.3 billion in 2028 at a compound annual growth rate (CAGR) of 17.5%. The anticipated growth in the forecast period is expected to be driven by an increased emphasis on user experience and convenience, a transition towards zero-trust security architectures, a growing demand for robust authentication methods, the widespread integration of passwordless authentication, and heightened regulatory focus on data protection. Key trends in the forecast period include the adoption of multi-factor authentication (MFA) solutions, the implementation of behavioral biometrics, the use of continuous authentication technologies, and the development of innovative authentication solutions.

Growing concerns regarding data security are poised to drive the expansion of the passwordless authentication market in the foreseeable future. Data security encompasses safeguarding digital information throughout its lifecycle to prevent unauthorized access, corruption, or theft. Heightened connectivity, the increasing complexity of IT systems, and sophisticated hacking techniques contribute to the mounting concern for data security. Passwordless authentication addresses these concerns by replacing traditional password-based methods with more secure authentication factors such as biometrics, hardware tokens, or cryptographic keys, thereby enhancing authentication and minimizing the risk of unauthorized access to sensitive data. For instance, as reported by the Federal Bureau of Investigation (FBI) in March 2024, cybercrime complaints received by the FBI from the public reached 880,418 in 2023, indicating a 10% increase from the previous year. Additionally, global cyberattacks saw a 38% surge in 2022 compared to 2021, according to Check Point Software Technologies Ltd. Therefore, the escalating concerns about data security are propelling the growth of the passwordless authentication market.

Key players in the passwordless authentication market are introducing innovative solutions to capitalize on market opportunities. One such solution is secret location authentication services, which utilize a user's physical location as a means of verifying their identity, thus eliminating the need for complex passwords. For example, in April 2024, Center Identity, a US-based cybersecurity company, unveiled its Patented Secret Location Authentication, enabling users to authenticate via a chosen map location. This method utilizes geolocation data to confirm the user's presence in a specific, pre-defined location, leveraging artificial intelligence to ensure robust security standards and offering an easy recovery mechanism. Unlike hardware-dependent solutions, secret location authentication is cost-effective and requires no additional devices, optimizing productivity while fortifying businesses with stringent security measures and simplified access management.

In January 2023, Bitwarden, a US-based open-source password management service company, acquired Passwordless.dev, a Sweden-based startup specializing in passwordless authentication, for an undisclosed amount. This acquisition underscores Bitwarden's commitment to enhancing its support for passwordless authentication, enabling developers to seamlessly integrate biometric sign-in technologies such as Touch ID, Face ID, and Windows Hello into their applications.

Major companies operating in the passwordless authentication market are Microsoft Corporation, International Business Machines Corporation (IBM), Fujitsu Limited, NEC Corporation, Thales Group, Okta Inc., HID Global Corporation, Entrust Corporation, LogMeIn Inc., Ping Identity Corporation, Duo Security LLC, Signicat AS, Prove Identity Inc., OneLogin Inc., Beyond Identity Inc., Stytch Inc., Trusona Inc., HYPR Corp., Ubisecure Limited, Secret Double Octopus Ltd., EmpowerID LLC, Veridium Ltd., IDEE GmbH, Yubico AB, LogMeOnce LLC.

North America was the largest region in the passwordless authentication market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the passwordless authentication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the passwordless authentication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Passwordless authentication is a method of authentication that allows users to access applications or IT systems without the need to input a password or answer security questions. This technology is often combined with multi-factor authentication (MFA) and single sign-on solutions to improve the user experience, enhance security measures, and streamline IT operations by reducing costs and complexities.

The primary types of passwordless authentication include fingerprint authentication, palm recognition, iris recognition, face recognition, voice recognition, and smart cards. Fingerprint authentication involves verifying an individual's identity by analyzing unique patterns in their fingerprints. This authentication method encompasses various components such as hardware, software, and services, catering to different types of authentication, including single-factor and multi-factor authentication. In terms of portability, it is categorized into fixed and mobile, serving diverse end users such as IT and telecom, retail, transportation and logistics, aerospace and defense, banking, financial services and insurance (BFSI), healthcare, and government sectors.

The passwordless authentication market research report is one of a series of new reports that provides passwordless authentication market statistics, including the passwordless authentication industry global market size, regional shares, competitors with passwordless authentication market share, detailed passwordless authentication market segments, market trends, and opportunities, and any further data you may need to thrive in the passwordless authentication industry. This passwordless authentication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The passwordless authentication market consists of revenues earned by entities by providing services such as identity as a service, biometric authentication services, and mobile authentication services. The market value includes the value of related goods sold by the service provider or included within the service offering. The passwordless authentication market also includes sales of biometric readers, USB (Universal Serial Bus) tokens, and smart cards. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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