Passwordless Authentication

Global Passwordless Authentication Market to Reach US$53.6 Billion by 2030

The global market for Passwordless Authentication estimated at US$20.4 Billion in the year 2024, is expected to reach US$53.6 Billion by 2030, growing at a CAGR of 17.4% over the analysis period 2024-2030. Passwordless Authentication Hardware, one of the segments analyzed in the report, is expected to record a 18.4% CAGR and reach US$34.0 Billion by the end of the analysis period. Growth in the Passwordless Authentication Software segment is estimated at 16.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$5.6 Billion While China is Forecast to Grow at 23.1% CAGR

The Passwordless Authentication market in the U.S. is estimated at US$5.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$12.0 Billion by the year 2030 trailing a CAGR of 23.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.8% and 15.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.9% CAGR.

Global Passwordless Authentication Market - Key Trends & Drivers Summarized

Is the Age of Passwords Finally Over? A Deep Dive into the Evolution of Authentication

For decades, passwords have been the primary method of securing digital identities, but their inherent weaknesses have led to a paradigm shift toward passwordless authentication. Cybersecurity threats have escalated, with credential stuffing, phishing, and brute force attacks exploiting human tendencies to reuse or create weak passwords. A study by Verizon found that 81% of data breaches stem from compromised credentials, fueling the urgency for a more secure and user-friendly alternative. Passwordless authentication leverages biometrics, cryptographic keys, and device-based verification, eliminating the risks associated with stored or shared passwords. The shift is not just about security but also convenience—enterprises and consumers are embracing technologies like FIDO2, WebAuthn, and Zero Trust security models to redefine authentication. With the rise of mobile-first and cloud-based ecosystems, passwordless solutions are being seamlessly integrated into digital workflows, driving unprecedented adoption. The push from regulatory bodies, such as the NIST (National Institute of Standards and Technology) and GDPR (General Data Protection Regulation), further accelerates the move away from password dependency. Enterprises, especially in financial services, healthcare, and e-commerce, are rapidly deploying biometric and hardware token authentication, as they balance compliance with usability. As cybercriminals refine their tactics, organizations are compelled to rethink authentication strategies, making passwordless solutions not just an option but a necessity in today’s digital-first world.

What’s Powering the Surge in Passwordless Adoption? The Role of AI, Biometrics & Hardware Keys

Technological advancements have propelled passwordless authentication into the mainstream, with AI-driven identity verification, sophisticated biometric sensors, and hardware-based security solutions leading the charge. Facial recognition, fingerprint scanning, iris detection, and voice recognition have become central to secure access control, especially with the widespread adoption of smartphones and IoT devices. The integration of AI and machine learning in authentication processes enables continuous identity validation, behavioral biometrics, and risk-based authentication, drastically reducing fraud. Meanwhile, hardware security keys, such as those compliant with FIDO2 standards, provide robust protection against phishing and MITM (man-in-the-middle) attacks by ensuring cryptographic-based authentication. As more companies shift to decentralized identity frameworks, blockchain is also emerging as a key enabler of passwordless security, allowing users to control their credentials without relying on centralized databases prone to breaches. Cloud-based identity-as-a-service (IDaaS) providers are integrating multi-factor and adaptive authentication mechanisms, offering enterprises scalable security solutions without traditional password risks. Governments and enterprises alike are endorsing passwordless systems, with major industry players—Microsoft, Google, and Apple—driving FIDO2 and passkey adoption across consumer and enterprise applications. In workplaces, passwordless authentication is being integrated into single sign-on (SSO) solutions, virtual desktop infrastructures (VDI), and remote work platforms, ensuring frictionless access without security trade-offs. The rapid evolution of these technologies underscores a fundamental shift toward a password-free digital future.

Which Sectors Are Embracing Passwordless Security? Industry-Wide Transformations in Progress

The adoption of passwordless authentication is gaining traction across diverse industries, from finance to healthcare, driven by the need to eliminate credential-based vulnerabilities and enhance user experience. In the financial sector, banks and fintech firms are deploying biometric authentication and mobile cryptographic keys to secure digital banking platforms and payments. Major financial institutions have moved toward facial and fingerprint recognition for account logins, eliminating reliance on OTPs (one-time passwords) that are increasingly targeted by fraudsters. Healthcare providers are also leveraging passwordless solutions to meet HIPAA compliance requirements, ensuring seamless and secure patient data access while mitigating the risk of phishing attacks on medical records. Retail and e-commerce giants are adopting biometric logins and passkeys to combat account takeovers (ATO) and checkout fraud, reducing friction in online shopping experiences. The enterprise workforce, particularly in hybrid and remote work environments, is shifting to passwordless authentication for securing access to cloud applications, VPNs, and corporate resources, enhancing both security and employee productivity. Government agencies worldwide are investing in passwordless authentication to strengthen citizen identity verification, national security infrastructures, and e-governance services. Meanwhile, the travel and hospitality sector is integrating biometric authentication for seamless passenger check-ins and border control processes, enhancing both security and efficiency. Even gaming and media streaming services are embracing passwordless logins, improving user accessibility while thwarting credential-sharing abuses. The widespread deployment of passwordless authentication is fundamentally reshaping security frameworks across industries, signaling a long-term departure from traditional password-based models.

The Growth in the Passwordless Authentication Market Is Driven by Several Factors…

The increasing adoption of cloud computing, IoT, and remote work environments is pushing enterprises to seek more secure authentication models, fueling the demand for passwordless authentication solutions. The shift toward Zero Trust security frameworks, emphasizing continuous identity verification, is accelerating the adoption of biometric and cryptographic key-based authentication methods. Consumer expectations for seamless, frictionless digital experiences are compelling businesses to eliminate password-related friction points, enhancing both security and user satisfaction. The proliferation of AI-driven fraud detection systems is making adaptive authentication more sophisticated, enabling organizations to implement behavioral biometrics and real-time risk assessments. Regulatory mandates, such as PSD2 in Europe and the California Consumer Privacy Act (CCPA), are enforcing stricter identity verification protocols, encouraging passwordless adoption across regulated industries. The convergence of identity verification with decentralized blockchain technologies is gaining momentum, offering enhanced privacy and security without reliance on centralized credential repositories. The rapid penetration of biometric-enabled smartphones and wearable devices is further driving consumer familiarity and acceptance of passwordless authentication methods. Strategic collaborations between tech giants, authentication providers, and financial institutions are fostering a more standardized and interoperable passwordless ecosystem, increasing global adoption rates. The growing need to combat credential-based cyber threats, such as phishing, brute force attacks, and credential stuffing, is compelling enterprises to deploy passwordless security at scale. As cybersecurity challenges evolve, passwordless authentication is not just a trend but a critical technological shift reshaping the future of digital identity management worldwide.

SCOPE OF STUDY:

The report analyzes the Passwordless Authentication market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Passwordless Authentication Hardware, Passwordless Authentication Software, Passwordless Authentication Services); Product Type (Fingerprint Authentication, Iris Recognition, Palm Print Recognition, Face Recognition, Voice Recognition, Smart Card Authentication, Other Product Types); Authentication Type (Single-factor Authentication, Multi-factor Authentication); End-Use (Government End-Use, IT & Telecom End-Use, Retail End-Use, Transportation & Logistics End-Use, Aerospace & Defense End-Use, BFSI End-Use, Healthcare End-Use, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• Auth0 (a product unit of Okta)
• Axiad
• Beyond Identity
• Cisco Systems, Inc.
• CyberArk
• Frontegg
• HID Global Corporation
• HYPR Corp
• Microsoft
• Nametag Inc.
• Okta, Inc.
• OneLogin, Inc.
• Ping Identity
• Prove
• RSA Security LLC
• Secret Double Octopus
• Thales Group
• Token (Tokenize Inc.)
• Transmit Security
• Yubico

TARIFF IMPACT FACTOR

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APRIL 2025: NEGOTIATION PHASE

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