How Has the Passwordless Authentication Market Evolved Historically and What is its Current Size?
The passwordless authentication market has seen considerable growth due to a variety of factors.
• The passwordless authentication market has experienced rapid growth in recent years. It will grow from $20.07 billion in 2024 to $23.64 billion in 2025, at a compound annual growth rate (CAGR) of 17.8%.
This growth can be attributed to the rising threat of cyberattacks and data breaches, the proliferation of mobile devices, regulatory compliance requirements, increased cloud computing adoption, and greater awareness of password management.
What is the Forecasted Market Size and CAGR for the Passwordless Authentication Market?
The passwordless authentication market is expected to maintain its strong growth trajectory in upcoming years.
• The passwordless authentication market is expected to grow to $45.01 billion by 2029, at a CAGR of 17.5%.
This growth is driven by a focus on user experience, the shift toward zero-trust security, stronger authentication methods, and regulatory data protection emphasis. Key trends include multi-factor authentication, behavioral biometrics, continuous authentication, and innovative solutions.
What Key Factors and Trends Are Driving The Growth Passwordless Authentication Market?
The increasing apprehension about data security is predicted to fuel enhancements in the passwordless authentication industry. Data security is critical in safeguarding every phase of digital data handling against corruption, theft, or unsanctioned access. A range of factors, including increased connectivity, intricate IT systems, and advanced hacking methods, have heightened concerns for data safety. Passwordless authentication improves data protection by substituting conventional password-based techniques with more secure alternatives like biometrics, hardware tokens, or cryptographic keys. This bolsters authentication and significantly reduces the probability of unauthorized sensitive data access. For example, the Information Commissioner’s Office (ICO), responsible for regulating data protection and privacy laws in the UK, reported that between 2022 and 2023, cyber-related incidents constituted 25.9% of all personal data breaches reported to the ICO. This figure rose to 32.5% in the subsequent 12 months. The ICO reliably updates their online platform with breach statistics, highlighting the continuing escalation in data security risks. Hence, the burgeoning concerns surrounding data security are instrumental in propelling growth in the passwordless authentication sector.
What Are The Market Segments In The Passwordless Authentication Market?
The passwordless authentication market covered in this report is segmented –
1) By Type: Fingerprint Authentication, Palm Recognition, Iris Recognition, Face Recognition, Voice Recognition, Smart Card
2) By Component: Hardware, Software, Services
3) By Authentication Type: Single-factor Authentication, Multi-factor Authentication
4) By Portability: Fixed, Mobile
5) By End-user: IT And Telecom, Retail, Transportation And Logistics, Aerospace And Defense, BFSI, Healthcare, Government
Subsegments:
1) By Fingerprint Authentication: Optical Fingerprint Scanners, Capacitive Fingerprint Scanners, Ultrasonic Fingerprint Scanners, Thermal Fingerprint Scanners
2) By Palm Recognition: Palm Vein Recognition, Palm Print Recognition, 3D Palm Recognition
3) By Iris Recognition: Near Infrared Iris Scanning, Multimodal Iris Recognition, Mobile Iris Recognition
4) By Face Recognition: 2D Face Recognition, 3D Face Recognition, Infrared Face Recognition, Thermal Face Recognition, Facial Landmark Detection
5) By Voice Recognition: Speaker Verification, Speech-To-Text Biometrics, Voiceprint Recognition, Biometric Authentication Via Voice Assistants
6) By Smart Card: RFID Smart Cards, Smart Card With Biometrics, Contactless Smart Cards, Multi-Factor Authentication Smart Cards
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How Are Emerging Trends Reshaping The Dynamics Of The Passwordless Authentication Market?
Significant organizations in the passwordless authentication market, such as Center Identity, are focusing on devising innovative solutions like secret location authentication facilities to enhance their market earnings. These secret location authentication services allow for passwordless identification by using the user's actual location as a means of authentication. For example, in April 2024, the American cybersecurity firm, Center Identity introduced their Patented Secret Location Authentication. In this, the user authenticates themselves through a location on a map they select, thereby negating the need for intricate passwords. Rather than depending on customary passwords or authentication tokens, geographic data is used in secret location authentication to establish the user's presence at a pre-set location. It also employs artificial intelligence to make sure the hints given for secret location choices align with strong cybersecurity requirements and provide an uncomplicated recovery process. Unlike hardware-dependent methods, this process is economical as it does not necessitate any extra gadgets. Such a move by Center Identity is aimed to enhance its efficiency while providing businesses with rigorous security protocols and simplified access control.
Who Are the Key Players In The Passwordless Authentication Market?
Major companies operating in the passwordless authentication market are:
• Microsoft Corporation
• International Business Machines Corporation (IBM)
• Fujitsu Limited
• NEC Corporation
• Thales Group
• Okta Inc.
• HID Global Corporation
• Entrust Corporation
• LogMeIn Inc.
• Ping Identity Corporation
• Duo Security LLC
• Signicat AS
• Prove Identity Inc.
• OneLogin Inc.
• Beyond Identity Inc.
• Stytch Inc.
• Trusona Inc.
• HYPR Corp.
• Ubisecure Limited
• Secret Double Octopus Ltd.
• EmpowerID LLC
• Veridium Ltd.
• IDEE GmbH
• Yubico AB
• LogMeOnce LLC
What Are The Regional Insights Into The Passwordless Authentication Market?
North America was the largest region in the passwordless authentication market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the passwordless authentication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
