Multi-Factor Authentication Market Size & Share 2021 to 2027
Market Size by Component (Solution, Service), by Authentication Model (Two-Factor, Three-Factor, Four-Factor), by Application (BFSI, Government & Defense, Healthcare, Retail, IT & Telecom) & Forecast.
Report ID: GMI1761
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Published Date: August 2021
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Multi-Factor Authentication Market Size
Multi-Factor Authentication Market size exceeded USD 8 billion in 2020 and is expected to grow at a CAGR of over 10% from 2021 to 2027. The growing number of cyberattacks in the security sector is driving the industry growth.
High internet penetration and the wide adoption of IoT devices are also promoting the use of MFA solutions. For instance, in February 2020, it was reported that nearly 7,992 data breaches occurred within the Canadian federal agencies due to employee negligence, with about 144,000 citizens affected by cyberattacks. Regulations, such as GDPR, CCPA, and PSD2, are focusing on the deployment of security practices across enterprises to eliminate frauds, data leaks, and identity thefts.
During the COVID-19 pandemic, a significant increase in the number of BYOD devices due to the growing work-from-home trend across the enterprises has resulted in an increase in the number of devices accessing the enterprise resources. The increase in BYOD devices resulted in the growing adoption of MFA solutions across enterprises.
Multi-Factor Authentication Market Analysis
In Canada, MFA solutions market held around 65% of the share in 2020 and is expected to garner USD 2 billion revenue in 2027. Growing demand to authenticate the devices accessing the enterprise network across various industry verticals is boosting the segment growth. MFA solutions ensure that only an authorized employee can access the company information, ensuring the account’s data integrity and reducing the risks of the account being compromised.
The two-factor authentication model in the UK is forecast to register growth rate of above 10% through 2027. According to Microsoft, a two-factor authentication blocks 99.9% of automated attacks. The increasing volume of online transactions and initiatives taken by governments to adopt biometric authentication will fuel multi-factor authentication market share. In day-to-day transactions, the two-factor authentication is a game changer as it requires only two verification factors, reducing the time for authentication during transactions.
The Chinese BFSI industry captured the largest MFA market share in 2020 on account of the rising demand for a digital financial platform that provides services to enable the need for customers to identify themselves online. MFA solutions answer the increasing needs of banking, trading, and insurance-based enterprises to provide strong authentication procedures to ensure a secure remote access for mobile users. This solution has been widely adopted and now processes approximately 10 million transactions per month.
The North America MFA market size is poised to reach more than USD 7 billion by 2027 led by the presence of key vendors, regulatory environment, innovations & investments, and a high adoption rate of the technology. Enterprises are increasingly implementing MFA solutions in the region to prevent cyberattacks, identity thefts, and commercial espionage by offering a high level of data security and ensuring privacy & security of sensitive information to ease business progression.
Multi-Factor Authentication Market Share
Major players operating in multi-factor authentication market are:
Companies are emphasizing on the development of innovative digital identity solutions to gain a competitive advantage over their competitors. For instance, in June 2021, Ping Identity launched PingOne for enterprises at Identiverse 2021. The PingOne for Individual is a personal identity solution that ensures enterprises to provide their customers with full control on how they store & share the verified personal data. Consumers also share their up-to-date personal information with businesses or other individuals using a digital wallet on their mobile devices.
The market research report multi-factor authentication (MFA) includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:
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Market, By Component
Market, By Authentication Model
Market, By Application
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
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Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
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Regulatory filings
Government procurement records and policy documents
Academic research
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Company reports
Annual reports, investor presentations, and filings
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GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →