Passwordless Authentication Market by Offering (Hardware, Software, and Services), Motility (Fixed/Rack Mounted, and Mobile/Portable), Authentication Type (Single-factor, Multi-factor), End-Use Industry and Region - Global Forecast to 2027
The global passwordless authentication market size is estimated to be USD 6.6 billion in 2022 and is projected to reach USD 21.2 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 26.2% during the forecast period.
Some factors driving market expansion include a lower overall cost of ownership, robust security with fewer breaches, and enhanced user experiences. However, the higher cost of deployment and reluctance to move from a traditional password-based approach to passwordless authentication solutions are expected to hinder the market growth.
By motility, fixed/rack mounted to grow at higher CAGR during the forecast period
The passwordless authentication industry has been segmented into two segments based on motility: fixed/rack mounted and mobile/portable. Fixed/rack mounted devices can be deployed at a single location to authenticate a large number of users. A tamper-resistant hardware device that is fixed or rack-mounted may incorporate smart cards and sensors. To validate user identification, these devices rely on physical attributes, such as a fingerprint, face patterns, or iris or retinal patterns. Such devices are improving the user experience by automating and supporting identity management on the user side. Thus, Fixed/Rack Mounted is anticipated to grow at the highest CAGR during the forecast period.
By end-use industry, BFSI industry to account for the largest market size during the forecast period.
Among the industries embracing biometrics technology, banking and finance confront key security concerns, such as fraud and hacking. The BFSI industry is witnessing a rise in the frequency of bank employee frauds and customer queries about changing passwords to access their accounts, generating demand for biometric solutions. This technology is gaining popularity due to its dependability, precision, and low cost. Passwordless authentication technologies provide financial institutions with a competitive edge as clients continue to seek greater fraud and identity theft protection. Thus, the BFSI industry is opting for passwordless authentication solutions, generating a larger market share.
By offering, hardware segment to grow at the largest market size during the forecast period
The hardware offering of the passwordless authentication market includes security identifying and authentication devices, including cameras, scanners, and readers. Such machines employ automated techniques of authenticating or identifying an individual based on a physiological or behavioral attribute of a human being. The high-end security provided by these hardware devices along with enhanced user experience, is the primary reason for their popularity and hence is gaining the highest market share.
Breakdown of primaries:
In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, other innovation and technology directors, and executives from various key organizations operating in the passwordless authentication market.
By company type: Tier 1: 40%, Tier 2: 35%, and Tier 3: 25%
By designation: C-level: 40%, Directors: 35% and others: 25%
By region: North America: 30%, APAC: 45%, Europe: 20%, Rest of World (RoW): 5%
Major vendors in the global passwordless authentication market include HID Global (US), NEC (Japan), Microsoft (US), Fujitsu (Japan), Okta (US), Duo Security (US), Thales (France), Beyond Identity (US), Entrust (US), Ping Identity (US), Veridium (UK), OneLogin (US), IBM (US), Yubico (US), Secret Double Octopus (Israel), LogMeOnce (US), Trusona (US), LastPass (US), IDEE (Germany), Prove (US), HYPR (US), Authentiq (UK), BehavioSec (US), Stytch (US), Signicat (Norway), Ubisecure (UK), EmpowerID (US), 1Kosmos (US), Identite (US), Cidaas (Germany), Keyless (US), and PureID (UK).
The study includes an in-depth competitive analysis of the key players in the passwordless authentication market, their company profiles, recent developments, and key market strategies.
The report segments the passwordless authentication market and forecasts its size by offering (hardware, software, and services), motility (fixed/rack mounted, mobile/portable), authentication type (single-factor authentication, multi-factor authentication), end-use industry (BFSI, IT and ITeS, government and law enforcement, healthcare, manufacturing, retail and consumer electronics, travel and hospitality, and others), and region (North America, Europe, Middle East and Africa, Asia Pacific, and Latin America).
The study also includes an in-depth competitive analysis of the market's key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key benefits of buying report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall passwordless authentication market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.
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