Passwordless Authentication Market Overview
As per MRFR analysis, the Passwordless Authentication Market Size was estimated at 19.59 (USD Billion) in 2022. The Passwordless Authentication Market Industry is expected to grow from 22.88(USD Billion) in 2023 to 92.4 (USD Billion) by 2032. The Passwordless Authentication Market CAGR (growth rate) is expected to be around 16.78% during the forecast period (2024 - 2032).
Key Passwordless Authentication Market Trends Highlighted
The rising frequency of cyberattacks and data breaches has accelerated the adoption of passwordless authentication solutions. The inclusion of biometrics such as fingerprints and facial recognition has improved user experience and provided a more secure alternative. Moreover, there is a demand for authentication methods that are device agnostic due to the growing popularity of mobile devices and IoT.
Key market drivers revolve around enhanced security, better user experience, and adherence to compliance mandates. This is in line with the surge in cloud-based services and remote work models that have been adopted globally.
Recent trends in the passwordless authentication market include the increasing use of multi-factor authentication (MFA), the rise of zero-trust authentication models and the adoption of biometric-based solutions. As traditional password-based authentication poses risks, businesses seek advanced ways to protect their data and systems from harm.
Figure 1: Passwordless Authentication Market Passwordless Authentication Size, 2023-2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Passwordless Authentication Market Drivers
Increasing Demand for Enhanced Security in Digital Transactions
As cyber-attacks and data breaches are on the rise, more strict security measures have become necessary for digital transactions. Passwordless authentication methods prove to be better than traditional password-based authentication approaches. Due to the high susceptibility of passwords to phishing, brute force attacks, and other forms of cyber threats, implementing passwordless authentication helps reduce unauthorized access to sensitive information as well as financial details.
Hence, the banking, healthcare, and e-commerce sectors are technology-driven. The rapid increase in digital payments and proliferation of the Internet of Things (IoT) has led to the adoption of passwordless authentication because users can enjoy an efficient and secure experience that is not confined to a single channel.
Growing Adoption of Cloud-Based Services and Remote Work
The accelerated adoption of cloud-based services and the increasing prevalence of remote work have contributed to the growth of the Global Passwordless Authentication Market Industry. Cloud-based applications and services often require users to access sensitive data and applications from remote locations, making traditional password-based authentication methods less effective. Passwordless authentication provides a more convenient and secure solution for remote access, as it eliminates the need to remember and enter complex passwords.
Additionally, the increasing adoption of bring-your-own-device (BYOD) policies in workplaces has created a need for more flexible and secure authentication methods that can accommodate diverse devices and operating systems.
Government Regulations and Compliance Requirements
Stringent government regulations and compliance requirements related to data protection and cybersecurity have also fueled the adoption of passwordless authentication. Regulatory bodies worldwide are enforcing stricter measures to protect consumer data and prevent data breaches. Passwordless authentication aligns with these regulatory mandates by providing a more secure and compliant method of user authentication. It helps organizations meet compliance requirements and avoid potential penalties associated with data breaches and security incidents.
Passwordless Authentication Market Segment Insights
Passwordless Authentication Market Authentication Method Insights
The Authentication Method segment plays a pivotal role in shaping the dynamics of the Global Passwordless Authentication Market. Among the various methods, biometrics (Fingerprint, facial recognition, and iris recognition) has garnered significant traction, accounting for a substantial share of the market revenue in 2023, and it is projected to maintain its dominance throughout the forecast period. The adoption of biometrics is driven by its enhanced security features, convenience, and user-friendliness. Organizations recognize the advantages of biometric authentication in safeguarding sensitive data and ensuring regulatory compliance, leading to its widespread implementation across various industries.
Multi-factor authentication (MFA) is another prominent method that has gained significant momentum in the market. MFA adds an extra layer of security by requiring users to provide multiple forms of identification, such as a password, OTP, or biometric data. This enhanced security mechanism has made MFA a popular choice for high-security applications, particularly in the banking and healthcare sectors. Zero-Knowledge Proof, a relatively new but promising authentication method, has emerged as a game-changer in the industry. It allows users to prove their identity without revealing their actual password or sensitive information.
This advanced technology offers robust security while maintaining user privacy, making it an attractive option for applications that demand the highest levels of data protection. Behavioral Analytics is another innovative authentication method that has gained traction in the market. It analyzes user behavior patterns, such as typing speed, mouse movements, and device usage, to create unique user profiles. This method provides continuous authentication, ensuring that only authorized users can access sensitive systems and applications. The Global Passwordless Authentication Market is expected to witness substantial growth in the coming years, driven by the rising demand for enhanced security measures and the increasing adoption of cloud-based services.
As organizations prioritize data protection and regulatory compliance, the market for passwordless authentication solutions is poised to expand significantly.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Passwordless Authentication Market Deployment Model Insights
The deployment model segment is divided into On-Premise, Cloud-Based, and Hybrid for the Global Passwordless Authentication Market. The Cloud-Based segment is projected to occupy the largest market size, reaching 60% by 2024 due to the accelerated adoption of cloud-based solutions that provide better flexibility, scalability, and cost-efficiency. The compound annual growth rate of the segment is envisaged to be 18.5%, exceeding $30 billion by 2032. However, the On-Premise segment is likely to experience a relatively stable growth rate because of the orientation of the vast number of organizations on better data and security control.
It is expected to exceed $9 billion by 2032. Simultaneously, the Hybrid segment is likely to gain popularity over the years due to the combination of on-premise and cloud-based solutions pervasively observed in a wide scope of organizations and enterprises.
Passwordless Authentication Market Organization Size Insights
The Global Passwordless Authentication Market segmentation by Organization Size comprises Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. SMEs are anticipated to dominate the market in the coming years owing to their increasing adoption of digital technologies and growing awareness about the benefits of passwordless authentication. Large enterprises are also expected to contribute significantly to the market growth due to their focus on enhancing security measures and improving operational efficiency.
Passwordless Authentication Market Industry Vertical Insights
The Global Passwordless Authentication Market is segmented vertically by industry into financial services, healthcare, government, retail, IT, and telecom. Among these, the financial services sector is expected to hold the largest market share, owing to the increasing adoption of passwordless authentication solutions by banks and other financial institutions to enhance security and reduce fraud. The healthcare sector is also expected to witness significant growth, driven by the need to protect patient data and comply with regulations. The government sector is expected to adopt passwordless authentication solutions to improve security and efficiency in various applications, such as citizen ID systems and e-government services.
The retail sector is expected to grow due to the increasing use of online shopping and the need to provide a seamless and secure checkout experience for customers. The IT and telecom sector is expected to adopt passwordless authentication solutions to enhance security for employees and customers, as well as to streamline access to applications and services.
Passwordless Authentication Market Device Type Insights
The Passwordless Authentication Market is segmented by Device Type into Smartphones, Laptops, Tablets, and Other IoT Devices. The Smartphone segment is expected to hold the largest share of the market in 2023, accounting for over 45% of the Global Passwordless Authentication Market revenue. This is due to the increasing adoption of smartphones and the growing popularity of mobile applications. The laptop segment is expected to be the second-largest segment, followed by the tablet segment. The Other IoT Devices segment is expected to grow at the fastest rate during the forecast period due to the increasing adoption of IoT devices in various industries.
Passwordless Authentication Market Regional Insights
The Global Passwordless Authentication Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in the coming years, owing to the early adoption of advanced technologies and stringent data protection regulations. Europe is expected to follow North America in terms of market size, driven by government initiatives to promote cybersecurity and the presence of a large number of technology companies. APAC is expected to witness the fastest growth rate over the forecast period due to the increasing adoption of passwordless authentication solutions in emerging economies, particularly in China and India.
South America and MEA are expected to contribute a smaller share to the overall market but are expected to grow at a steady pace. In 2024, the Global Passwordless Authentication Market revenue in North America is projected to reach USD 12.5 billion, while the market in Europe is estimated to be valued at USD 9.8 billion. The APAC market is expected to reach USD 7.2 billion in 2024, followed by South America with USD 2.3 billion and MEA with USD 1.9 billion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Passwordless Authentication Market Key Players And Competitive Insights
Major players in the Passwordless Authentication Market are actively involved in strategic initiatives such as mergers and acquisitions, collaborations, and partnerships to expand their market presence and gain a competitive edge. Leading Passwordless Authentication Market players are continuously investing in research and development to introduce innovative solutions and enhance their product portfolio. The increasing adoption of cloud-based passwordless authentication solutions is driving market growth, as it eliminates the need for on-premises infrastructure and provides flexibility and scalability. Additionally, growing concerns regarding data breaches and cyberattacks are fueling the demand for robust and secure passwordless authentication solutions.
Microsoft Corporation is a leading player in the Passwordless Authentication Market, offering a comprehensive suite of passwordless authentication solutions. The company's Windows Hello platform provides biometric authentication capabilities, including facial recognition and fingerprint scanning, for seamless and secure user access. Microsoft's partnership with FIDO Alliance further strengthens its position in the market, enabling the development and adoption of interoperable passwordless authentication standards.
A prominent competitor in the Passwordless Authentication Market is Okta, Inc., which provides a cloud-based identity and access management platform. Okta's solution offers multi-factor authentication, single sign-on, and adaptive authentication features, providing a robust and user-friendly passwordless authentication experience. The company's focus on delivering a seamless and secure authentication experience has positioned it as a key player in the market.
Key Companies in the Passwordless Authentication Market Include
Passwordless Authentication Market Industry Developments
The global passwordless authentication market is projected to reach USD 92.4 billion by 2032, exhibiting a CAGR of 16.78% from 2024 to 2032. Rising concerns over data breaches and unauthorized access to sensitive information drive the demand for passwordless authentication solutions. Additionally, advancements in biometrics and multi-factor authentication technologies contribute to market growth.
Recent developments include
- In February 2023, Microsoft announced plans to eliminate passwords for Microsoft accounts, emphasizing passwordless sign-in methods like Windows Hello and Microsoft Authenticator.
- In January 2023, Google introduced passkeys, a new passwordless sign-in method that uses cryptographic keys stored on users' devices instead of traditional passwords.
Passwordless Authentication Market Segmentation Insights
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Passwordless Authentication Market Authentication Method Outlook
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Biometrics (Fingerprint, Facial Recognition, Iris Recognition)
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Multi-Factor Authentication (MFA)
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Zero-Knowledge Proof
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Behavioral Analytics
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Passwordless Authentication Market Deployment Model Outlook
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On-Premise
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Cloud-Based
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Hybrid
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Passwordless Authentication Market Organization Size Outlook
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Passwordless Authentication Market Industry Vertical Outlook
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Financial Services
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Healthcare
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Government
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Retail
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IT and Telecom
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Passwordless Authentication Market Device Type Outlook
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Smartphones
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Laptops
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Tablets
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Other IoT Devices
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Passwordless Authentication Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
19.59 (USD Billion) |
| Market Size 2023 |
22.88 (USD Billion) |
| Market Size 2032 |
92.4 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
16.78% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Vasco Data Security International, CyberArk, Okta, RSA Security, Beyond Identity, Yubico, Microsoft, ForgeRock, Ping Identity, Centrify, Duo Security, SecureAuth, Thales, HID Global, Auth0 |
| Segments Covered |
Authentication Method, Deployment Model, Organization Size, Industry Vertical, Device Type, Regional |
| Key Market Opportunities |
Increasing cyber threatsRising demand for enhanced securityGrowing adoption of cloud and mobile technologiesGovernment regulations and complianceAdvancements in biometric authentication |
| Key Market Dynamics |
Rising demand for enhanced securityIncreasing adoption of cloud-based servicesGrowing awareness of password-related breachesGovernment regulations and compliance requirementsThe emergence of new technologies, such as biometrics and facial recognition |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global passwordless authentication market is expected to reach USD 92.4 billion by 2032, growing at a CAGR of 16.78% from 2024 to 2032.
North America is expected to hold the largest market share in the global passwordless authentication market due to the early adoption of advanced technologies and the presence of major players in the region.
The growing need for enhanced security, the increasing adoption of cloud-based services, and the rising number of cyberattacks are the key growth drivers of the global passwordless authentication market.
Passwordless authentication finds applications in various sectors, including banking and finance, healthcare, government, and e-commerce.
Major players in the global passwordless authentication market include Microsoft, Google, Amazon Web Services, Okta, and Ping Identity.
The lack of awareness about passwordless authentication solutions, concerns regarding security, and the need for interoperability among different vendors are some of the challenges faced by the global passwordless authentication market.
The global passwordless authentication market is expected to grow at a CAGR of 16.78% from 2023 to 2032.
The key trends in the global passwordless authentication market include the adoption of biometrics, the use of artificial intelligence, and the growing popularity of multi-factor authentication.
The COVID-19 pandemic has accelerated the adoption of passwordless authentication solutions due to the increased reliance on online services and remote work.
The growing demand for secure and convenient authentication solutions, the increasing adoption of cloud-based services, and the rising number of cyber threats present significant opportunities for growth in the global passwordless authentication market.
