Global Two-Factor Authentication Market, By Type (One Time Password (OTP), Public Key Infrastructure (PKI)), By Model (Smart Card with PIN, One Time Password with PIN, Biometric Technology with PIN, Smart Card with Biometric Technology, Others), By Technology (OTP Authenticators, PKI Authenticators, Physical & Logical Access Control, Out-Of-Band Authenticators, Mobile PKI Office Suite, Others), By End-User (Banking and Finance, Government, Military & Defense, Commercial Security, Travel & Immigration, Healthcare, Consumer Electronics, Aerospace, Others), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA) Trend Analysis, Competitive Market Share & Forecast, 2017-2027
- Published Date: September 2021
- Report ID: BWC21100
- Available Format: PDF
- Page: 119
Report OverviewThe global two-factor authentication market is growing as a result of driving factors such as increased online transactions and emerging online payment platforms, as well as stringent government regulations pertaining to user privacy.
Global Two-Factor Authentication Market- Industry Trends & Forecast Report 2027
Global two-factor authentication market was worth USD 4.8 billion in 2020 and is further projected to reach USD 14.5 billion by the year 2027, growing at a CAGR of 17.2% in the forecast period. The industry is growing at a rapid pace as a result of new online payment platforms such as PayPal, Stripe, and others, as well as an increase in cybercrime cases worldwide. Furthermore, the weak nature of passwords, as well as the annoyance related to password generation and use, is propelling the worldwide two-factor authentication market forward.
Source: BlueWeave Consulting
Global Two-Factor Authentication Market- Overview
Two-factor authentication or 2FA or two-step verification is an add-on step during the sign-in or log-in step. This may refer to the commonly used methods of sending a code or a fingerprint scan verifying your identity and protecting you from cyber attackers. Using two-factor authentication, you can overcome the weaknesses of passwords without the hassle of creating or remembering them. In addition to reducing fraud and data theft cases, two-factor authentication is also crucial for establishing secure online relationships. Global Two-Factor Authentication Market Forecast and Trends.
Rising Volume of Online Transactions
According to The Nilson Report, around 1.01 billion credit card transactions occur every day around the world. Adding online payment platforms such as PayPal and debit card transactions will further increase this number. The large number of transactions made via the Internet and Internet banking makes this a popular target for hackers looking for critical information. Therefore, financial institutions and online payment applications are increasingly adopting two-factor authentication to protect their clients from phishing and fraud during transactions. This factor is expected to influence the global two-factor authentication market significantly.
Increasing Cases of Cyber Crime Activities
According to a report conducted by McAfee and the Center for Strategic and International Studies in partnership, cybercrime costs around USD 1trillion to the world’s economy, which is a little more than 1% of the global GDP. This loss is projected to jump even higher during the COVID-19 pandemic as the hackers receive new opportunities to attack businesses and organizations working remotely through online networks.Therefore, the government is issuing various stringent regulations for industries to adopt strict internal controls for safeguarding their customer’s financial information.
Lack of Proper Security and Vulnerability
Even though two-factor authentication might increase security, it is far from perfect, and malicious acts are still possible. A lack of thorough security scans is to blame for the extensive abundance of malicious apps on Google Play and the Apple App Store. Consequently, you can successfully secure the applications with the OTP that you enter. Additionally, all forms of MFA (Multi-Factor Authentication), especially SMS-based MFA, can be easily hacked. Thus, if hackers are interested in the information, they will invest more effort into breaking the 2FA system. This may act as a major restraining factor for market growth.
Impact of COVID-19 on Global Two-Factor Authentication Market
In the wake of COVID-19, the global market for two-factor authentication grew tremendously. The boom in this market is due to the increasing dependence on the internet, leading to a rise in cybercrimes during the lockdown phase. With major shifts towards remote working and rapid deployment of remote systems and networks, the cyber security attacks have shifted from individuals to corporations, government and public organizations, such as healthcare. These organizations are more vulnerable to data theft. As a result, businesses and corporations are investing in two-factor authentication (2FA) to safeguard their systems and protect their users from potential data theft.
Global Two-Factor Authentication Market - By Type
Based on type, the global two-factor authentication market is segmented into one-time password (OTP) and public key infrastructure (PKI). The one-time password (OTP) holds the largest market share. OTPs are unique and automatically generated passwords that can only be used once. This method of authentication is extremely safe because the SMS is only transmitted to the linked mobile number. Moreover, the password changes every time, and it can only be used only once. This offers an extra layer of protection and protects users from intrusive attacks.
Global Two-Factor Authentication Market - By Model
Based on models, the global two-factor authentication market is categorized into smart cards with PIN, one-time passwords with PIN, biometric technology with PIN, smart cards with biometric technology, and others. The smart card with PIN segment holds the highest market share and is also projected to witness the highest CAGR during the forecast period as well. It is gaining huge popularity in the two-factor authentication market as it acts like a portable, personal security device. Debit/credit cards are one of the most prominently used smart cards that make millions of transactions securely every day.
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. North America accounts for the largest share in the global two-factor authentication market because of the strong data security infrastructure and stringent government regulations regarding the use of multi-factor authentication for cyber security purposes. For instance, in the USA, financial organizations that process and store card payment information have to comply with PCI-DSS and offer two authentication factors to ensure their customer’s security.
Source: BlueWeave Consulting
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. To minimize the risk of security breaches, these companies heavily invest in new technologies and infrastructure to improve their security level. Moreover, competitive strategies such as partnerships, mergers, acquisitions, and collaborations are also very prominent in this market to maximize resources and skills. For instance, Stellar Cyber recently announced their distribution partnership with Pentium Co., Ltd., for reselling of former’s security operation platforms.
- In August 2021, CEQUENS, an Egyptian Communication Platform as a Service (CPaaS) provider, announced the launch of its new product, 'Verify.'Any company can use the solution to verify online identities and protect online accounts using two-factor authentication.
- In August 2021, Google confirmed that the YouTube creators would be required to use 2-step verification to access YouTube Studio to access key functions.
Scope of the Report
Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Revenue in USD Billion
U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia
By Type, By Model, By Technology, By End-User, By Region
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.
- One Time Password (OTP)
- Public Key Infrastructure (PKI)
- Smart Card with PIN
- One Time Password with PIN
- Biometric Technology with PIN
- Smart Card with Biometric Technology
- OTP Authenticators
- PKI Authenticators
- Physical & Logical Access Control
- Out-Of-Band Authenticators
- Mobile PKI Office Suite
- Banking and Finance
- Government, Military & Defense
- Commercial Security
- Travel & Immigration
- Consumer Electronics
- North America
- Latin America
- Middle East & Africa
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