Global Two-Factor Authentication Market Set to Thrive: Projected to Grow at a CAGR of 17.2% by 2027
Published | 20 September 2021
Because of the increasing incidences of cyber-attacks worldwide and severe government regulations to embrace biometric authentication, the global two-factor authentication market is growing at a high CAGR..
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global two-factor authentication market was worth USD 4.8 billion in 2020. According to the study, the market is estimated to grow at a CAGR of 17.2%, earning around USD 14.5 Billion by the end of 2027. The increasing rates of cybercrime and identity theft cases worldwide, as well as the growing number of online transactions and emerging online payment platforms, are driving the growth of the global two-factor authentication market. Two-factor authentication is now used by almost all businesses and organizations, which in turn is moving the sector forward. In addition, the Cyber security and Infrastructure Security Agency (CISA) has included single-factor authentication, such as a username and password, to its list of illegal activities. Such initiatives are expected to boost market growth throughout the forecast period. However, two-factor authentication also has imitations, such as its high cost, complexity, inconvenience of carrying hardware tokens, and vulnerability to threats that can stifle its market growth.
Stringent Government Regulations to Protects Consumers Is Expected to Drive the Global Two-Factor Authentication Market
In the light of increasing cyber security attacks worldwide, various countries are implementing structured regulations to ensure the safety of users and consumers from potential data theft. For instance, the Sarbanes-Oxley (SOX) Act of 2002 mandates that financial institutions have strict internal controls. The 2FA requirements, however, are not explicitly stated in the policy. Likewise, as part of the Health Insurance Portability and Accountability Act (HIPAA), healthcare organizations are required to implement protective measures to enforce password security. These factors play a crucial role in driving the growth of the global two-factor authentication market.
Increasing Adoption of 2FA In Banking and Finance Is Anticipated to Boost the Global Two-Factor Authentication Market
Based on end-users, the global two-factor authentication market is categorized into banking& finance, government, military & defense, commercial security, travel & immigration, healthcare, consumer electronics, aerospace, and others. The banking and financial sector dominates the market as financial organizations are 300 times more likely to become the target of a cyber-attack. That’s why cyber security is the major concern among banks, as the loss associated with the attack is much higher for financial institutions than any other sector. Likewise, the government sector holds a substantial portion of the market due to its direct link with national security.
Global Two-Factor Authentication Market - By Technology
Based on technologies, the global two-factor authentication market is segmented into OTP authenticators, PKI authenticators, physical & logical access control, out-of-band authenticators, mobile PKI office suite, and others. The OTP authenticators hold the largest market share and are likely to maintain their dominance even during the forecast period. The OTP authenticator sends a one-time password to the smartphone, which verifies the user’s identity. Financial institutions, commercial security providers, and remote and on-premise organizations utilize OTP authenticators to log into applications or software or access documents, driving the segment’s growth.
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Global Two-Factor Authentication Market - Regional Insights
Geographically, the global two-factor authentication market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among these regions, North America accounts for the largest market share in the global two-factor authentication market. However, the Asia-Pacific region is projected to witness healthy growth in the forecast period because of the flourishing banking sector in emerging nations. FIS Global states that India controls about 41 million payments every day, making it the global leader in real-time payments. Nevertheless, it is also a country that experiences a lot of cyber threats. It is also one of the countries with the most cyber security attacks. Increasing IT infrastructure investment and development in emerging economies like China, Japan, South Korea, etc., are expected to drive the two-factor authentication market.
Impact of COVID-19 on Global Two-Factor Authentication Market
Remote working became a rapidly advancing trend following the advent of the COVID-19 pandemic, providing lucrative growth potential to the global two-factor authentication market. As soon as different countries imposed nationwide lockdowns to check the spread of the virus, various industries such as healthcare, banking & finance, manufacturing, retail, logistics, etc., started offering their services online. This led to increased cybercrime activities, with malware and malicious software constituting the key forms of attack. As a result, organizations and businesses invest in multi-factor authentication methods such as 2-factor authentication to ensure their systems’ safety and reduce the possibility of sensitive information being stolen by cyber attackers.
The leading players in the global two-factor authentication market are Gemalto NV, Fujitsu Ltd., Suprema Inc., OneSpan Inc., NEC CORPORATION, Symantec Corporation, RSA Security LLC, IDEMIA, HID Global Corporation, CA Inc., Google LLC, Entrust, SecurEnvoy, VASCO Data Security International, OneLogin, LastPass, Okta, Ping Identity, Auth0, and other prominent players.
The market is highly competitive and consolidated with the presence of leading global and regional industry participants. The companies significantly invest in innovations and infrastructure to improve and advance their security level to minimize any risks of breaches. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations is also very prominent in this market to utilize resources and skills to gain a market edge. For instance, Stellar Cyber recently announced their distribution partnership with Pentium Co., Ltd., for reselling of former’s security operation platforms.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global two-factor authentication market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global two-factor authentication market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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