Two-Factor Authentication Market Research Report Information By Type (Public key infrastructure and One-time password), Model (Smart card with biometric technology and PIN service, Biometric technology with PIN, and One-time password with PIN), Technology (Mobile PKI office suite, SafeNet OTP authenticators, Out-of-band authenticators and Logical & physical access control), End-User (Consumer Electronics, Banking & Finance, Healthcare, Travel & Immigration, and Military & Defense), Region (North America, Europe) – Market Forecast Till 2032

Global Two Factor Authentication Market Overview

Global Two Factor Authentication Market Size was valued at USD 7,684.9 billion in 2023. The Two Factor Authentication Market industry is projected to grow from USD 8,984.7 Billion in 2024 to USD 31,084.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.8% during the forecast period (2023 - 2032). Two Factor Authentication, or 2FA, is an additional layer of security that goes beyond a username and password to secure the security of online accounts. 2-factor authentication adds an extra degree of security to an account, preventing anyone from signing in even if they know the password. The various factors attributing to the growth of the Two-Factor Authentication Market are the increasing volumes of online transactions, the growing requirement to secure personal data from cyber-attacks and increasing government initiatives to adopt biometric authentication. Furthermore, the increasing use of smartphones for online payments, growing use of multi-factor authenticators, and growing benefits of two-factor authentication (2FA) for businesses are expected to present lucrative opportunities for the market players during the forecast period.

Figure1: Global Two Factor Authentication Market, 2019 - 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Two Factor Authentication Market Trends

• Machine Learning and Integration with Zero-Trust Security

Machine learning (ML) technologies are changing two-factor authentication by enabling adaptive and intelligent authentication techniques. ML algorithms leverage enormous amounts of data, such as user activity, device information, and network patterns, to detect anomalies and potential security threats in real time.

For example, ML-powered 2FA systems can recognize anomalous login patterns, such as several unsuccessful logins attempts or access from unfamiliar locations, and prompt additional verification steps. These systems are constantly learning and adapting to changing threats, which makes them incredibly effective at thwarting complicated cyberattacks.

Furthermore, by combining 2FA and Zero-Trust principles, enterprises can implement rigorous access controls based on identity verification and contextual variables. Every access request is completely validated and permitted, lowering the likelihood of unauthorized access and lateral movement inside the network.

Additionally, Zero Trust architectures use continuous monitoring and analytics to detect and respond to anomalies in real time, hence improving security posture. The combination of MFA and Zero Trust Security provides a complete protection plan against modern cyber threats.

Two Factor Authentication Market Type Segment Insights:

Two Factor Authentication Type Insights

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 2023, accounting for approximately 61.1% 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.

Figure2: Global Two Factor Authentication Market, by Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Two Factor Authentication Market Model Segment Insights:

Two Factor Authentication Model Insights

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 cards with PIN service dominated the market in 2023 and is expected to be the fastest-growing segment during the forecast period of 2024-2032. 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 secure every day.

Two Factor Authentication Market Technology Segment Insights:

Two Factor Authentication Technology Insights

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 2023. 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.

Two Factor Authentication Market End- User Segment Insights:

Two Factor Authentication End- User Insights

Based on the end-user, the two-factor authentication market segment includes consumer electronics, banking & finance, healthcare, travel & immigration, and military & defense. BFSI accounted for the highest market revenue share in 2023. The banking and finance industry handles a large amount of private, sensitive, and confidential information. Increasing cyber dangers and security breach risks result in significant data loss. Two-factor authentication stops unwanted users from gaining access and is effective against identity theft and fraud. The requirement for high data security, controlled monetary transactions, and safe data transfer in banks and insurance firms are among the issues projected to boost demand for two-factor authentication in the banking and financial sectors. Furthermore, rigorous laws and obligatory government compliances are likely to boost the usage of two-factor authentication further, driving revenue growth in the category throughout the forecast period.

Two Factor Authentication Market Regional Insights:

Two Factor Authentication Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. In terms of revenue, North America attained a market share of 34.7% in 2023 with a market value of USD 2,662.5 million. The region includes developed economies such as the United States and Canada. The United States is at the epicenter of cybercrime owing of the greater penetration of digital technology in end-user sectors than other countries. Companies in the United States and Canda suffer an increasing number of cyberattacks, which have severe consequences. Due to the increasing risk of cyber-attacks that enterprises and individuals face, cybersecurity has grown in importance in the United States.

As per Identity Theft Resource Center (ITRC) report issued in February 2024, the US registered 3,205 data breaches in 2023, up 78% from 2022. High-profile data breaches and cybersecurity incidents have raised awareness among enterprises and consumers about the importance of effective security measures to protect personal and sensitive information. Thus, companies are increasingly deploying two-factor authentication solutions to assist organizations in lowering the risk of account takeover and identity theft.

Figure3: GLOBAL TWO FACTOR AUTHENTICATION MARKET SIZE BY REGION 2023 vs 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe has an advanced banking and financial system that widely adopts 2FA technology to secure transactions. Furthermore, the governments in the region are rapidly taking initiatives to strengthen their country’s security by promoting the adoption of advanced national IDs, e-passports, and e-visas that make use of biometric technology. Other end-use verticals adopting 2FA are commercial security and healthcare. Germany is the most advanced European country with respect to the development of two-factor authentication technology. It is the hub of technological innovations in Europe. Several associations, standards, and policies are operational in the country, such as International Standardization and Security Policy, International Biometric Program, National Biometric Security Project, and International Biometric Industry Association. The key federal institutions adopting 2FA in Germany are the Federal Ministry of the Interior, the Federal Border Police, the Federal Office for Information Security, and the Federal Criminal Police Office.

Asia Pacific is predicted to see the highest CAGR during the projection period. 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 2FA.

Two Factor Authentication Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Two Factor Authentication Market is highly competitive and dominated by established, pure-play vendors. The vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Two Factor Authentication Market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Thales Group, Fujitsu, Suprema., OneSpan, NEC Corporation, Broadcom, RSA., IBM, HID Global Corporation, Google LLC, and others. The global Two Factor Authentication Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Two Factor Authentication Market include.

• Thales Group


• Fujitsu


• OneSpan


• NEC Corporation


• Broadcom


• IBM


• HID Global Corporation


• Google LLC


• Others

Two Factor Authentication Industry Developments

• In May 2024, RSA announced that it is strengthening Microsoft environments through an ongoing cooperation that brings added security to Office environments. The new External Authentication Methods (EAM) feature will enable more customers to extend their use of RSA solutions—including RSA authentication and access capabilities—in far more Microsoft environments.


• In January 2024, HID announced the acquisition of ZeroSSL, an SSL certificate. The acquisition will not only expand HID’s capabilities in delivering protected communications to and from websites, but also improve its reputation as a leading provider of trusted PKI solutions.


• April 2023, Thales introduced the SafeNet Token Fusion series. This revolutionary USB token collection combines Fast IDentity Online 2.0 (FIDO2) with PKI/CBA to provide a single authenticator. Thales' new tokens were designed to protect Microsoft Azure Active Directory (Azure AD) users by reducing the risk of account compromise and providing improved security for accessing cloud and web apps.