Two-Factor Authentication Market is predicted to reach USD 72.1 billion at a CAGR of 17.2% during the forecast period 2024-2032

Market Research Future (MRFR) has published a cooked research report on the “Two-Factor Authentication Market” that contains information from 2024 to 2032. The Two-Factor Authentication Market is estimated to register a CAGR of 17.2% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global Two-Factor Authentication Market — Suprema Inc (South Korea), Symantec Corporation (U.S.), OneSpan Inc (U.S.), HID Corporation (U.S.), Gemalto NV (Netherlands), CA Inc (U.S.), Google LLC (U.S.), NEC CORPORATION (Japan), IDEMIA (France), Fujitsu Ltd (Japan), and RSA Security LLC (U.S.)

Market Highlights

The Two-Factor Authentication Market is accounted to register a CAGR of 17.2% during the forecast period and is estimated to reach USD 72.1 billion by 2032.

two-factor authentication (2FA) was a growing market in the cybersecurity industry. Two-factor authentication is a security process that requires users to provide two different authentication factors to verify their identity before accessing a system or account. These factors typically fall into three categories: something you know (password), something you have (token or device), and something you are (biometric).

Segment Analysis

The global Two-Factor Authentication Market has been segmented based on Type, Model, and Technology.

Based on the type, the two-factor authentication market segmentation includes public key infrastructure and one-time passwords. The one-time password segment held the majority share in 2021, accounting for approximately 56-60% of the two-factor authentication market revenue. OTPs are unique and automatically generated passwords that can only be used once. This authentication method is extremely safe because the SMS is only transmitted to the linked mobile number. Moreover, the password changes every time and can only be used once. This offers an extra layer of protection and protects users from intrusive attacks.

Based on the model, the two-factor authentication market segment includes a smart card with biometric technology, a smart card with PIN service, biometric technology with PIN, and a one-time password with PIN. Smart card with PIN service dominated the market in 2021 and is expected to be the fastest-growing segment during the forecast period of 2022-2030. It is gaining huge popularity in the two-factor authentication industry 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.

Based on the technology, the two-factor authentication market segmentation includes the mobile PKI office suite, SafeNet OTP authenticators, out-of-band authenticators, PKI authenticators, and logical & physical access control. The SafeNet OTP authenticators segment had the highest market revenue share in 2021. The reason is the feasibility and economic prices providing a required level of security to the businesses. This technology enables organizations to authenticate the digital identities of users using multiple parameters such as knowledge-based, possession-based, and inherence-based factors.

Regional Analysis

The global Two-Factor Authentication Market, based on region, has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. The North American two-factor authentication market is anticipated to expand at a significant CAGR during the study period, accounting for USD 17.2 billion in 2023 owing to the strong data security infrastructure and stringent government regulations regarding the use of multi-factor authentication for cyber security purposes. For instance, financial organizations that process and store card payment information in the USA must comply with PCI-DSS and offer two authentication factors to ensure customer security. Moreover, the major countries covered in the market report include the United States, Germany, Canada, France, the United Kingdom, Italy, Spain, India, Japan, Australia, China, South Korea, and Brazil.

The European two-factor authentication market is the world's second-largest due to the huge amounts of technology and digitizing data. Increasing innovations, rising investments, and growing research and development activities are expected to drive revenue growth in the market. The rising need for the prevention of cyberattacks, commercial espionage, fraud, and theft, providing data security and privacy, and prevention of sensitive information leaks for business development are other factors expected to drive market revenue growth in the region over the forecast period. Further, the German two-factor authentication market held the largest market share, and the France two-factor authentication market was the fastest-growing market in the European region.

The Asia Pacific two-factor authentication market is expected to grow at the fastest rate of CAGR during the forecast period. Increasing population, rapid urbanization, and rising digitalization leading to cyber threats in countries such as India, Indonesia, and China are some factors expected to drive revenue growth in the two-factor authentication market. In addition, the inclination of business sectors, such as trading, insurance, and banking, towards efficient and seamless authentication procedures for ensuring secure remote access for users, are rising importance of two-factor authentication in the region. The region's growth can be attributed to increasing spending on connected devices, growing investments in various cloud and IoT technologies, and spiraling demand for digital services. Soaring emphasis on the security of personal data and authentication of online transactions, coupled with increasingly stringent regulatory compliances, is stimulating the demand for two-factor authentication.

Key Findings of the Study

• The global Two-Factor Authentication Market is expected to reach USD 72.1 billion by 2032, at a CAGR of 17.2% during the forecast period.


• The Asia Pacific two-factor authentication market is expected to grow at the fastest rate of CAGR during the forecast period. Increasing population, rapid urbanization, and rising digitalization leading to cyber threats in countries such as India, Indonesia, and China are some factors expected to drive revenue growth in the two-factor authentication market.


• Based on the type, the two-factor authentication market segmentation includes public key infrastructure and one-time passwords. The one-time password segment held the majority share in 2021, accounting for approximately 56-60% of the two-factor authentication market revenue.


• Suprema Inc (South Korea), Symantec Corporation (U.S.), OneSpan Inc (U.S.), HID Corporation (U.S.), Gemalto NV (Netherlands), CA Inc (U.S.), Google LLC (U.S.), NEC CORPORATION (Japan), IDEMIA (France), Fujitsu Ltd (Japan), and RSA Security LLC (U.S.)