Password Based Authentication Market Report 2024

The password based authentication market size has grown exponentially in recent years. It will grow from $4.57 billion in 2023 to $5.56 billion in 2024 at a compound annual growth rate (CAGR) of 21.8%. The growth during the historical period can be attributed to the rising use of the internet, the expansion of e-commerce, heightened cybersecurity threats, requirements for regulatory compliance, and the increasing use of mobile devices.

The password based authentication market size is expected to see exponential growth in the next few years. It will grow to $12.3 billion in 2028 at a compound annual growth rate (CAGR) of 21.9%. The anticipated growth in the forecast period is driven by escalating cyberattacks and data breaches, increased adoption of multi-factor authentication, expanding digital transformation initiatives, heightened awareness of cybersecurity issues, and government regulations regarding data protection. Key trends expected in this period include the emergence of AI-driven authentication systems, integration with blockchain technology, development of quantum-resistant algorithms, wider adoption of single-sign-on (SSO) solutions, and a focus on adaptive authentication methods.

The password-based authentication market is expected to experience significant growth due to the increasing volume of online transactions conducted over the internet. These transactions involve various financial activities and rely on password-based authentication to verify users' identities and secure access to their accounts and sensitive information. This approach effectively prevents unauthorized access and fraudulent activities. For instance, according to the Canadian Payment Methods and Trends Report 2023 by Payments Canada, the value of online transactions through electronic payments in 2022 increased by 11%, reaching 1.11 billion from 1.0 billion in 2021. This trend underscores how the rising frequency and scale of online transactions are contributing to the expansion of the password-based authentication market.

Major players in the password-based authentication market are actively developing advanced solutions such as multi-factor authentication (MFA) to enhance both security and user convenience. MFA systems require users to authenticate their identity using two or more methods. For example, in July 2024, Cybernexa, an India-based cybersecurity firm, launched CyLock SSPR, an advanced portal for managing passwords within active directories. This solution addresses the growing need for robust password management in today's dynamic digital landscape, ensuring compliance with organizational policies on password length, complexity, and history. It also assists users in generating strong passwords capable of withstanding brute force attacks and unauthorized access attempts, while facilitating compliance reporting.

In October 2022, Intercede, a UK-based provider of identity and access management (IAM) solutions, acquired Authlogics, a UK-based company specializing in password management and MFA solutions. This acquisition enables Intercede to expand its product portfolio across various authentication technologies. By integrating Authlogics' offerings into a unified management console, Intercede aims to streamline authentication management for its clients, enhancing operational efficiency and security measures.

Major companies operating in the password based authentication market are Google LLC, Microsoft Corporation, International Business Machines Corporation, Fujitsu Limited, NEC Corporation, Thales Group, Twilio Inc., HID Global Corporation, Okta Inc., Entrust Corporation, Rippling Inc., secunet Security Networks AG, Duo Security Inc., M2SYS Technology LLC, Yubico Inc., LastPass LLC, Cognitec Systems GmbH, Aware Inc., Stytch Inc., SUPREMA Inc., Precise Biometrics AB, Cybernexa.

North America was the largest region in the password based authentication market in 2023. Asia-Pacific is expected to be the fastest-growing region in the market going forward. The regions covered in the password based authentication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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

Password-based authentication involves users providing a unique password to verify their identity, where the system checks this password against a stored password hash for access authorization. This method ensures that only users with the correct password can access protected resources.

The primary types of password-based authentication include various biometric methods such as fingerprint recognition, iris recognition, palm print recognition, face recognition, vein recognition, signature recognition, voice recognition, and others. Fingerprint recognition, for instance, uses biometric technology to identify individuals based on unique fingerprint patterns. It is widely utilized for secure access control, smartphone authentication, and forensic investigations. These technologies are available through both hardware and software solutions, offering functionalities such as contact, non-contact, and combined approaches. End-users span across sectors including government, military and defense, healthcare, banking and finance, consumer electronics, travel and immigration, security, automotive, and others.

The password based authentication market research report is one of a series of new reports that provides password based authentication market statistics, including the password based authentication industry's global market size, regional shares, competitors with a password based authentication market share, detailed password based authentication market segments, market trends and opportunities, and any further data you may need to thrive in the password based authentication industry. This password based 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 password based authentication market consists of revenues earned by entities by providing services such as authentication as a service (AaaS), consulting services, advanced password management tools, and multi-factor authentication (MFA) integration services. The market value includes the value of related goods sold by the service provider or included within the service offering. The password based authentication market also includes sales of biometric devices, hardware security modules (HSMs), and password recovery tools. 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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