Global Multi-Factor Authentication Market - Segmented by Authentication (Two-Factor, Three-Factor, Four-Factor), End User (Healthcare, BFSI, Government), Region - Growth, Trends, and Forecast (2018 - 2023)
The global multi-factor authentication market is expected to register a CAGR of 14.4% over the forecast period of 2018–2023. The scope of market covers both hardware and software solutions offered by various vendors of the market.
The need to share sensitive and often regulated information across organizational and even corporate boundaries has become commonplace, majorly as a result of the advent of data center, cloud services, and “bring-your-own-device” policy. As a result, a huge amount of security and data breaches are being witnessed and are anticipated to grow further. Today, an immense amount of data and infrastructure is being deployed over the cloud, thus increasing the cost due to these breaches. All these factors have driven the need for a more robust authentication, driving the multi-factor authentication market.
Government Sector to Hold a Significant Share
The governments of various countries across the globe are adopting digitization to create transparency and to cater information to the public. The governments are investing in digital transformation at the national or state level to enhance fraud management and increase productivity. As of 2016, over 130 countries used online services to pay taxes and access various basic information, to ease public tasks. Estonia, a European country allows their 1.3 million residents to vote and pay every taxes online and provides access over 155 services over the internet, which creates vulnerability, thereby fueling the market growth over the forecast period. However, the need and demand for better IT infrastructure is compelling governments to invest rigorously in the enhancement of the IT department which is likely to boost the advanced authentication market. Hackers are finding new ways to compromise the data and perform illegal activities. This is expected to increase the usage of multi-factor authentication.
United Arab Emirates to Drive the Market in the Middle East Region
United Arab Emirates is expected to be one of the prime targets for identity attacks according to the United States homeland security department. The government's initiative to make Dubai a smart city is expected to increase such attacks on the country further. It has been identified that about 561 cyber attacks with a need for authentication crisis have been averted in six months in the country, which emphasizes the need for multi-factor authentication technology in the country. United Arab Emirates has one of the highest levels of malware threats compared to other regions. About 10.26 million incidents have been reported in the country. The growing trend of bring-your-own-device (BYOD) among companies has further emphasized the need for authentication technologies to ensure the safekeeping of data. The number of payments through online banking has also been on the rise. About one in every five transactions is through online modes of payment. Cashless payments in the country have also increased owing to the government’s implementation of e-Government strategies. All these factors are expected to drive the need for multi-factor authentication across the country.