Multi Factor Authentication Market Size, COVID-19 Impact Analysis, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI1761
Multi Factor Authentication Market size is expected to gain significant traction over 2021-2027, on account of the escalating need to safeguard sensitive data across enterprises, due to the dramatic increase in cyber-attacks worldwide. According to reliable statistics, ransomware accounted for nearly 81% of the financially motivated cyber-attacks in 2020, with $4.44 million as the average cost of a data breach.
Multifactor authentication (MFA) is an innovative security technology that requires various authentication methods from independent credential categories to verify the identity of the users. The MFA method combines 2 or more independent credentials such as passwords, security tokens, and biometric verification methods to confirm a user’s identity and allow them to log in or make transactions.
Escalating investment in cloud infrastructure, coupled with the strong focus of smartphone manufacturers on launching products with built-in security and privacy features, are among the prominent trends stimulating the market share. The global spending on cloud infrastructure services surged by 33% in 2020, with the IT channel playing a major role in its growth. This high spending will result in a considerable rise in demand for multi factor authentication architecture during the forecast timeframe.
Considering the end-user spectrum, the multi factor authentication market share from BFSI segment is poised to exhibit a considerable growth rate through 2027, which can be credited to the skyrocketing online transactions, especially during the coronavirus pandemic, and the introduction of the highest security standard protocols across this sector. Prominent organizations in the banking sector, like the RBI, have unveiled novel guidelines for secure internet-banking services and multi-factor authentication to safeguard regulated entities such as scheduled commercial banks from phishing attacks.
Regionally, the Asia Pacific is anticipated to account for an appreciable multi factor authentication market revenue by 2027, given the high preference for digital payments, alongside the ever-increasing smartphone users. Over the past years, nearly 46% of the 1.8 billion-strong online population in the region has been regularly using e-wallets to make a switch to cash-free consumerism. Developing nations like India and China accounted for 70% of the e-wallet users between 2017-2019.
The competitive landscape of the multi factor authentication market comprises of companies such as ZK Software, Watchdata Technologies, Technology Nexus AB, Suprema Inc, Securenvoy (Shearwater Group), SecuGen (Pivotec), SMS Passcode, MorphoTrak (formerly Sagem Morpho), RSA Security LLC (Symphony Technology Group), Lumidigm, HID Global, Gemalto NV (Thales Group), Fujitsu Ltd. (Furukawa Group), Dell Technologies, Deepnet Security, Cross Match Technologies, among others.
Strategic M&A and business expansions are the key strategies undertaken by these market participants to drive their geographical footprint and gain a competitive edge over rivals. For instance, Prove entered a deal to acquire Early Warning Services’ mobile authentication business, multi-factor authentication & orchestration systems, as well as Authentify line of business in July 2020, with an objective to accelerate growth and penetration in the global financial institutions.
Prevalence of Remote Working Amid COVID-19 & its Impact on the Multi Factor Authentication Market Trends:
The ongoing coronavirus pandemic has been posing negative impacts on several industrial sectors. The capital markets across the globe have been facing significant instability as well as high volatility owing to the temporary closure of businesses and implementation of other strict measures, hence creating challenges across the industrial spectrum during the forecast timeframe. However, the surge in communications and the rapid shift towards remote working are likely to increase the risk of cyber-attacks, which could add impetus to the industry penetration.
Various risk management and security leaders are placing high emphasis on safeguarding their companies and making them resilient against cyber threats. Mounting deployment of the cloud computing technology boosted by digitalization during the pandemic, alongside the rising awareness of multi factor authentication efficiency, will help the market grow at a steady rate in years to come.
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