Single Factor Authentication System Market Report 2024

The single factor authentication system market size has grown exponentially in recent years. It will grow from $10.5 billion in 2023 to $12.61 billion in 2024 at a compound annual growth rate (CAGR) of 20.1%. The growth during the historic period can be attributed to several factors, including the rise in online services, increased use of mobile devices, heightened cyber threats, more stringent regulatory compliance requirements, availability of cost-effective security solutions, greater demand for convenient authentication methods, and the surge in online banking and e-commerce.

The single factor authentication system market size is expected to see exponential growth in the next few years. It will grow to $26.36 billion in 2028 at a compound annual growth rate (CAGR) of 20.2%. In the forecast period, growth is expected to be driven by rising cybersecurity threats, increased adoption of digital services, a growing emphasis on user convenience, expansion of cloud-based authentication services, higher demand for cost-effective security solutions, more widespread use of mobile and online banking, and an increase in connected devices. Key trends anticipated during this period include advancements in biometric solutions, integration with IoT devices, development of user-friendly interfaces, enhancements in AI for improved security, and innovations in authentication models.

The growth of the single-factor authentication system market is expected to be driven by increasing cybersecurity threats. These threats involve a rising number and increasing sophistication of malicious activities and attacks targeting digital systems, networks, and data. They stem from advanced attack techniques, the proliferation of connected devices, inadequate cybersecurity awareness, and insufficient investment in cybersecurity measures. Single-factor authentication systems, utilizing passwords or PINs, play a crucial role in mitigating these threats by providing a fundamental layer of defense against unauthorized access to systems, applications, and data. For example, from 2022 to 2023, cyber-related incidents accounted for 25.9% of personal data breaches, rising to 32.5%, as reported by the Information Commissioner's Office, a UK-based regulatory body. Thus, the escalating cybersecurity threats are fueling the expansion of the single-factor authentication system market.

Leading companies in the single-factor authentication system market are innovating with devices based on palm vein recognition technology to enhance security and reliability. Palm vein recognition is a biometric authentication method that identifies individuals based on unique vein patterns in their palms. For instance, in July 2023, Keyo, a US-based software company specializing in biometric identity platforms, launched the Keyo Wave+. This device utilizes palm vein recognition as a single-factor authentication method to verify users' identities by meticulously analyzing millions of points both inside and outside their hands. The Keyo Wave+ enables users to make payments at stores, redeem tickets, access premises, and more with a simple wave, aiming to replace traditional items such as wallets, keys, and fobs.

In October 2022, Intercede Group PLC, a software company based in the UK, completed the acquisition of Authlogics Ltd. for $2.69 million. This strategic move aims to strengthen Intercede's footprint in the Middle East by integrating Authlogics' established portfolio in multi-factor authentication (MFA) and password security management (PSM) software. The acquisition is anticipated to drive advancements in biometric technologies, enhancing precision and dependability. Authlogics Ltd., also headquartered in the UK, specializes in the development of single-factor authentication (SFA) and multi-factor authentication (MFA) systems.

Major companies operating in the single factor authentication system market are Fujitsu Limited, NEC Corporation, Thales Group, IDEMIA, HID Global Corporation, Nuance Communications Inc., M2SYS Technology LLC, Anviz Global Inc., Daon Inc., BioEnable Technologies Pvt Ltd, Cognitec Systems GmbH, Integrated Biometrics LLC, Iris ID Systems Inc., Iritech Inc, Suprema Inc, Precise Biometrics AB, BIO-key International Inc., Fulcrum Biometrics Inc., IrisGuard Ltd, BioSec Group Ltd., Facebanx, SecuGen Corporation, Touchless Biometric Systems AG, Zvetco LLC, NITGEN Co. Ltd.

North America was the largest region in the single factor authentication system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the single factor authentication system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the single factor authentication system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A single factor authentication (SFA) system is a method of verifying a user's identity using only one type of authentication factor. This is the simplest form of authentication, requiring just one factor to confirm identity. It offers a more convenient user experience compared to multi-factor authentication (MFA), which involves additional verification steps.

The main types of single factor authentication systems include fingerprint recognition, iris recognition, palm print recognition, face recognition, vein recognition, signature recognition, and voice recognition. Fingerprint recognition is a biometric technology that identifies individuals based on the unique patterns on their fingertips. These systems can be offered as hardware or software and can function in contact, noncontact, or combined modes. They are utilized in various sectors such as government, military and defense, healthcare, automotive, banking and finance, consumer electronics, travel and immigration, security, and more.

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

The single factor authentication system market consists of revenues earned by entities by providing services such as password-based authentication, PIN-based authentication, biometric authentication, and CAPTCHA authentication. The market value includes the value of related goods sold by the service provider or included within the service offering. The single factor authentication system market also includes sales of biometric devices, smart cards and card readers, USB security keys, and radio frequency identification (RFID) tags. 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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