Multi-Factor Authentication Market to Hit $40 Bn by 2030 at 18% CAGR, Driven by Cybersecurity Needs

Growing cybersecurity threats and digital transformation are accelerating global adoption of advanced multi-factor authentication solutions.

WILMINGTON, DE, UNITED STATES, November 17, 2025 /EINPresswire.com/ -- According to a new report published by Allied Market Research Multi-factor Authentication Market By Authentication type (Password and Password Less), Model Type (Two-Factor Authentication, Three-Factor Authentication, Four-Factor Authentication, and Five-Factor Authentication), Component (Hardware, Solution, and Services) and End User (BFSI, Government, Travel & Immigration, Military &Defense, Commercial Security, IT, Telecommunication, Healthcare, Media & Entertainment, and Others) : Global Opportunity Analysis and Industry Forecast, 2021-2030, The global multi-factor authentication market size was valued at USD 10,300 million in 2020, and is projected to reach USD 40,000 million by 2030, registering a CAGR of 18% from 2021 to 2030.

The global Multi-Factor Authentication (MFA) market is witnessing strong growth as organizations increasingly prioritize secure access management across digital platforms. With cyberattacks becoming more sophisticated, enterprises are shifting from traditional password-based systems to multi-layered authentication methods that combine biometrics, tokens, and behavioral analytics for enhanced protection.

Technological advancements, rising regulatory pressures, and the rapid expansion of remote and hybrid work environments are further accelerating MFA adoption across industries. As businesses migrate to cloud-based infrastructure, MFA has become a fundamental component of modern cybersecurity frameworks to safeguard sensitive data, applications, and operational processes.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲: https://www.alliedmarketresearch.com/request-sample/A13118

𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬
The primary driver of the MFA market is the exponential rise in cyber threats, including phishing, credential stuffing, and identity theft. Organizations are increasingly deploying MFA solutions to mitigate security risks and comply with stringent data protection laws. The significant growth in digital transactions across BFSI, e-commerce, and government sectors is also fueling market expansion.

Growing cloud adoption is another major catalyst, as enterprises require secure access controls for cloud-hosted applications and platforms. Cloud-based MFA solutions offer scalability, lower deployment costs, and seamless integration, making them a preferred choice for small and large organizations alike. Additionally, the proliferation of mobile devices is enabling mobile-based MFA formats such as OTPs and push notifications.

However, high deployment costs and user inconvenience associated with certain authentication methods, such as tokens and hardware-based systems, continue to restrain the market. Organizations with legacy IT environments may face integration challenges during MFA implementation, impacting overall adoption rates, especially in developing regions.

Opportunities are emerging from the rapid adoption of biometric authentication—fingerprint, iris, and facial recognition technologies—offering both convenience and strong security. Increasing demand for passwordless authentication solutions is also contributing to market innovation, with vendors focusing on frictionless user experiences and fraud prevention capabilities.

Furthermore, AI and machine learning integration is transforming MFA systems by enabling adaptive authentication. These systems assess risk levels in real-time based on user behavior, location, and device patterns, strengthening authentication while reducing unnecessary user prompts. This shift toward intelligent security systems is expected to significantly boost market growth in coming years.

𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝘁𝗼 𝗔𝗻𝗮𝗹𝘆𝘀𝘁: https://www.alliedmarketresearch.com/connect-to-analyst/A13118

𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
The multi-factor authentication market is broadly categorized by authentication type, model type, component, and end user. By authentication type, the market is divided into password-based and passwordless authentication. Based on model type, it includes two-factor, three-factor, multi-factor with four-factor authentication, and multi-factor with five-factor authentication. In terms of components, the market comprises solutions, hardware, and services. By end user, the market serves a wide range of sectors, including BFSI, government, travel and immigration, military and defense, commercial security, IT, telecommunications, healthcare, media and entertainment, and others.

𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
North America leads the multi-factor authentication market, driven by early technology adoption, strong cybersecurity regulatory frameworks, and high investments in digital security infrastructure. The presence of major MFA solution providers and increased cyber incidents across key industries further support regional dominance.

Asia-Pacific is expected to grow at the fastest pace due to rapid digitalization, expanding e-commerce activity, and rising cybercrime in countries such as China, India, and Japan. Government-led cybersecurity initiatives, growing cloud penetration, and increased awareness among SMEs are collectively boosting MFA adoption across the region.

𝗙𝗼𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆: https://www.alliedmarketresearch.com/purchase-enquiry/A13118

𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀:
The key players operating in the multi-factor authentication market analysis include Microsoft, Broadcom, Onespan, Okta, Micro Focus, Thales, Rsa Security, Duo Security (Cisco), Ping Identity, Hid Global. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝘁𝘂𝗱𝘆
• By authentication type, in 2020 the password authentication is estimated to be the major shareholder. However, password less authentication is expected to witness highest growth rate during the multi-factor authentication market forecast period.
• On the basis of model type, the two-factor segment accounted for the highest revenue in 2020, however, the multi-factor with four-factor authentication is expected to witness highest growth rate during the forecast period.
• On the basis of component, the solution segment accounted for the highest revenue in 2020, however, the services is expected to witness highest growth rate during the forecast period
• On the basis of end user, the BFSI sector accounted for the highest revenue in 2020, however, the healthcare segment is expected to witness highest growth rate during the forecast period.
• Region wise, the multi-factor authentication industry was dominated by North America. However, Asia-Pacific is expected to witness significant growth in the upcoming years.

𝗧𝗿𝗲𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 𝗶𝗻 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆:
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David Correa
Allied Market Research
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