Summary
The Global Passwordless Authentication Market size is expected to reach $37.1 billion by 2028, rising at a market growth of 18.0 % CAGR during the forecast period.
Passwordless authentication is defined as a secure encryption method that utilizes unique identifying features like security numbers, or biological traits. The most common physical characteristics that are employed as authentication methods include iris recognition, voice analysis, face recognition, and fingerprint recognition. In addition, the provision of high security and data access from anywhere in the world has made passwordless authentication extraordinarily efficient and convenient.
In comparison to conventional modes of authentication, passwordless authentication needs less user interaction throughout the login process. With the help of a set of two cryptographic data encryption keys, a private key that is kept secret and a public key that is general, public key cryptography authenticates the user. It also uses a number of new (or relatively new) abbreviations and standards, such as the FIDO2 standard (Fast IDentity Online 2, a superset used for the combination of Client to Authenticator Protocol [CTAP] and WebAuthn).
The types of identification proof(s) required in place of passwords and how they are used typically determine the security of passwordless authentication systems. A secure confirmation message to the account holder’s phone or tablet, for instance, is typically thought to be safer than a password.
The passwordless authentication methods essentially include the verification of a user’s identity without employing any conventional passwords. Instead, it utilizes more secure routes like one-time passwords (OTPs), biometrics, and magiclinks. Physical traits like retinal or fingerprint scans and behavioral traits like touch screen dynamics and typing can be used to uniquely identify a person.
COVID-19 Impact Analysis
The lockdown limits imposed by COVID-19 caused many organizations to switch from their traditional workplace structure to remote working, and consequently, working-from-home solutions increased. As more unsecured personal systems were given access to a company, the danger of security breaches increased, making the network more susceptible to hackers. Many internet fraudsters used the situation as an opportunity to hack the company’s system. As a result, one of the variables influencing the increasing expansion in the improvement of authentication methods during COVID-19 is the rise in cybercrime.
Market Growth Factor
Strengthening of cybersecurity with the implementation of passwordless authentication
Most organizations have been using conventional security systems that ask for a simple password to access services and portals, which may contain sophisticated information like user and financial data. However, the advent of technology and AI/ML interfaces have also enhanced the approaches to cyberattacks. This means that the conventional alphanumeric password systems are easily nullified to trespass the security systems. This allows cyberattackers to obtain sophisticated data and easy spying on messages, commit fraud, and even sell company trade secrets.
Increased productivity and decreased long-term costs
Enterprises spend lots of resources and effort on the management and storage of passwords. The amount of time an IT personnel spends enhancing security by resetting and changing passwords as per the storage laws adds to the cost of a company. It is also highly unsustainable to maintain and keep up with so many passwords. The implementation of passwordless authentication encryption systems helps in the reduction of such costs.
Market Restraining Factor
High costs of deployment
Passwordless authentication is a highly detailed plan for its implementation. Its employment necessitates the use of entirely new software and hardware as well as trained personnel. In certain cases, the organization might also need to completely scale up the project and replace the management plan.
Product Type Outlook
On the basis of product type, the passwordless authentication market is divided into fingerprint authentication, palm recognition, iris recognition, face recognition, voice recognition, smart card, and others. The face recognition segment recorded a considerable growth rate in the passwordless authentication market in 2021. The increased utilization of face recognition encryption methods in government organizations, especially law enforcement departments, has been witnessed in the past few years.
Component Outlook
Based on component, the passwordless authentication market is categorized into hardware, software, and services. The software segment procured a significant revenue share in the passwordless authentication market in 2021. Enterprises and organizations utilize authentication software to protect their consumer data and business across the mainframe computers, workstations, facility entrances, and data servers. Most authentication software is provided as software-as-a-service solutions.
Authentication Type Outlook
Based on authentication type, the passwordless authentication market is bifurcated into single-factor authentication and multi-factor authentication. The single-factor authentication segment garnered the maximum revenue share in the passwordless authentication market in 2021. The single factor authentication (SFA) protects entry to any particular system, like a portal or website. The method allows access to users by using a single kind of credential. These are highly quick and easily deployable and are used mainly along the conventional password-based systems.
Portability Outlook
On the basis of portability, the passwordless authentication market is segmented into fixed and mobile. The mobile segment garnered a considerable revenue share in the passwordless authentication market in 2021. The movability of mobile authentication systems allows for easy installation. Most mobile encryption systems use multiple biometric authentication formats and use handhelds, IoT devices, and wearable technology.
End User Outlook
Based on end-user, the passwordless authentication market is fragmented into IT & telecom, retail, transportation & logistics, aerospace & defence, BFSI, healthcare, government, and others. The IT and telecom segment garnered a substantial growth rate in the passwordless authentication market in 2021. During the digital revolution that introduced new electronic gadgets like smart speakers and rendered music players useless, the industry witnessed a high implementation rate of authentication and encryption methods.
Regional Outlook
On the basis of region, the passwordless authentication market is analysed across North America, Europe, Asia Pacific, and LAMEA. The North America segment procured the maximum revenue share in the passwordless authentication market in 2021. Rising data security and cybersecurity concerns in the region have propelled the utilization of passwordless authentication in the region. Consequently, the increased usage and development of fields like the internet of things, machine learning, and artificial learning are necessitating the need for more robust encryption systems with multiple formats.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Assa Abloy AB, Dermalog Identification Systems Gmbh, East Shore Technology, LLC, Fujitsu Limited, M2SYS Technology, Inc., Microsoft Corporation, NEC Corporation, Okta, Inc. and Thales Group S.A.
Scope of the Study
Market Segments covered in the Report:
By Product Type
• Fingerprint Authentication
• Palm Recognition
• Iris Recognition
• Face Recognition
• Voice Recognition
• Smart Card
• Others
By Component
• Hardware
• Software
• Services
By Authentication Type
• Single-factor
• Multi-factor
By Portability
• Fixed
• Mobile
By End User
• Government
• BFSI
• IT & Telecom
• Retail
• Transportation & Logistics
• Healthcare
• Aerospace & Defense
• Others
By Geography
• North America
o US
o Canada
o Mexico
o Rest of North America
• Europe
o Germany
o UK
o France
o Russia
o Spain
o Italy
o Rest of Europe
• Asia Pacific
o China
o Japan
o India
o South Korea
o Singapore
o Malaysia
o Rest of Asia Pacific
• LAMEA
o Brazil
o Argentina
o UAE
o Saudi Arabia
o South Africa
o Nigeria
o Rest of LAMEA
Companies Profiled
• Assa Abloy AB
• Dermalog Identification Systems Gmbh
• East Shore Technology, LLC
• Fujitsu Limited
• M2SYS Technology, Inc.
• Microsoft Corporation
• NEC Corporation
• Okta, Inc.
• Thales Group S.A.
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