Multifactor Authentication (MFA) Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 21.11 Billion |
| Market Size (2030) | USD 45.30 Billion |
| Growth Rate (2025 - 2030) | 16.50% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Multifactor Authentication (MFA) Market Analysis by Mordor Intelligence
The global multifactor authentication market size currently stands at USD 21.11 billion in 2025 and is projected to reach USD 45.30 billion by 2030, reflecting a strong 16.50% CAGR. This growth trajectory is underpinned by zero-trust adoption, tightening data-protection directives, and escalating ransomware premiums that drive urgent investment in stronger authentication. Regulatory mandates such as the 2025 HIPAA Security Rule in the United States and the European Digital Identity Wallet regulation are shifting procurement from basic OTP tools to phishing-resistant passkeys and hardware tokens, confirming the multifactor authentication market’s transition toward high-assurance solutions. At the same time, supply-chain shocks to secure-element chips and escalating A2P SMS fees are pushing buyers to favor software-based or device-embedded factors. North America’s zero-trust leadership, Asia-Pacific’s mobile-identity initiatives, and Europe’s wallet regulation together create a global flywheel that sustains double-digit expansion for the multifactor authentication industry through 2030.
Key Report Takeaways
- By offering type, software held 48.3% of multifactor authentication market share in 2024, while passwordless platforms are projected to grow at 19.2% CAGR through 2030.
- By authentication model, two-factor methods led with 46.4% revenue share in 2024; passwordless authentication is forecast to advance at 18.4% CAGR.
- By deployment mode, cloud solutions commanded 41.2% of the multifactor authentication market size in 2024, whereas hybrid deployment is expected to expand at 17.7% CAGR to 2030.
- By enterprise size, large organizations captured 62.5% revenue in 2024; SMEs are anticipated to grow at 16.9% CAGR.
- By access channel, web and SaaS applications controlled 44.5% share of the multifactor authentication market size in 2024; the mobile workforce segment is rising at 17.6% CAGR.
- By industry, banking and financial institutions led with 24.3% revenue share in 2024, and cryptocurrency exchanges are tracking a 17.1% CAGR through 2030.
- By geography, North America retained 37.8% market share in 2024, while Asia-Pacific heads the growth league at 16.5% CAGR.
Global Multifactor Authentication (MFA) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rapid migration to Zero-Trust security architectures across regulated industries | +3.2% | Global, with early adoption in North America and EU | Medium term (2-4 years) |
| Surge in ransomware-as-a-service driving insurance premium hikes | +2.8% | Global, concentrated in North America and Europe | Short term (≤ 2 years) |
| Mandated FIDO-based strong authentication for e-Government portals in EU | +2.1% | Europe, with spillover to APAC government programs | Medium term (2-4 years) |
| Push-notification phishing kits raising demand for phishing-resistant MFA | +1.9% | Global, particularly affecting enterprise segments | Short term (≤ 2 years) |
| AI-powered deep-fake attacks forcing higher-factor biometrics | +1.6% | Global, with early impact in financial services | Long term (≥ 4 years) |
| Mandalorian Class Public-Private threat-intel sharing models (US and Five-Eyes) | +1.4% | North America, UK, Australia, with limited global reach | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Rapid Migration to Zero-Trust Security Architectures Across Regulated Industries
Zero-trust blueprints now require continuous identity checks on every session, elevating MFA from an optional add-on to core control. Canadian banks must abandon SMS OTP under OSFI B-13, pushing hardware tokens and biometric factors into routine operations.[1]Corbado, “OSFI B-13 Guideline,” corbado.com U.S. financial majors, including Capital One have pledged to remove employee passwords by end-2025, substituting device-certificate–anchored passkeys that cut credential-stuffing risk. Vendors respond by building platform fabrics that unify authentication across workforce, customer, and machine identities, strengthening the multifactor authentication market’s ecosystem breadth.
Surge in Ransomware-as-a-Service Driving Insurance Premium Hikes
Cyber insurers now treat phishing-resistant MFA as baseline hygiene. Policies are refused or repriced upward where email-only or SMS-OTP remains in place, making MFA investment a direct insurance-cost hedge.[2]American Banker, “How Capital One is eliminating passwords,” americanbanker.com As adversary-in-the-middle kits commoditize, boards shift funding from perimeter firewalls to identity assurance, propelling multifactor authentication market demand among mid-size enterprises previously slow to modernize.
Mandated FIDO-Based Strong Authentication for EU e-Government Portals
EU Regulation 2024/1183 obliges all member states to deliver e-wallets supporting high-assurance, cross-border login by 2026, creating a unified baseline for FIDO-compliant solutions. The public-sector deadline catalyzes private-sector rollouts, while Japan and Australia introduce similar frameworks, broadening the multifactor authentication market footprint in Asia-Pacific.
Push-Notification Phishing Kits Raising Demand for Phishing-Resistant MFA
Attackers exploit human reflex to tap “Approve” on unsolicited push alerts, bypassing second factors. Enterprises now pivot to passkeys bound cryptographically to devices, closing the social-engineering gap. Amazon’s roll-out of passkeys to 175 million customers highlights consumer-scale feasibility.[3]FIDO Alliance, “Amazon says 175 million customers now use passkeys,” fidoalliance.org
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Legacy SCADA/ICS environments' limited MFA interoperability | -2.3% | Global, concentrated in manufacturing and utilities | Long term (≥ 4 years) |
| Rising OTP SMS costs amid A2P fee inflation | -1.8% | Global, with acute impact in emerging markets | Short term (≤ 2 years) |
| Fragmented mobile authenticator UX hurting workforce adoption | -1.5% | Global, particularly affecting SME segments | Medium term (2-4 years) |
| Hardware token chip shortages and secure-element supply risk | -1.2% | Global, with supply chain concentration in Asia | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Legacy SCADA/ICS Environments' Limited MFA Interoperability
Industrial networks depend on deterministic latency and continuous uptime. Injecting extra login steps risks downtime, so plant operators isolate OT from IT rather than retrofit full MFA, capping reachable multifactor authentication market revenue in heavy industry.
Rising OTP SMS Costs Amid A2P Fee Inflation
US carrier 10DLC surcharges and higher global termination rates inflate authentication bills—from USD 0.003 to USD 0.01 per message plus monthly fees—prompting digital brands to phase out SMS OTP. Fee hikes strike hardest in cost-sensitive segments, slowing adoption until cheaper passkey workflows mature.
Segment Analysis
By Offering Type: Software Dominance Amid Passwordless Acceleration
Software solutions generated 48.3% of 2024 revenue and anchor the largest slice of the multifactor authentication market. Subscription licensing, API toolkits, and cloud consoles streamline rollouts across hybrid workforces. The segment's value proposition scales further as enterprises migrate perimeter controls into identity fabrics that integrate compliance reporting and adaptive risk metrics. Passwordless platforms—led by WebAuthn toolchains and SDKs—are clocking 19.2% CAGR, reflecting buyer preference for factors that erase credential databases and defeat phishing at the root. Hardware remains indispensable for regulated workloads that stipulate isolated secure-element storage, yet chip shortages inflate token costs and nudge budgets toward software.
Demand for implementation expertise turns managed services into an attractive niche. Service partners design enrollment campaigns, retrofit legacy apps, and monitor MFA dashboards, turning one-off product placement into recurring advisory revenue. As a result, large integrators bundle rollouts with broader zero-trust projects, lifting average contract values and reinforcing the multifactor authentication market’s shift to platform-centric procurement.
Note: Segment shares of all individual segments available upon report purchase
By Authentication Model: Two-Factor Leads While Passwordless Surges
Two-factor login still underpins 46.4% of 2024 revenue, primarily through authenticator apps and SMS codes that deliver quick risk reduction. However, phishing-resistant passkeys are expanding at 18.4% CAGR as browser and mobile-OS vendors bake FIDO2 into native workflows. Microsoft’s decision to make new consumer accounts passwordless by default supplies a powerful reference model. Multifactor frameworks requiring three or more factors remain compulsory in select government and financial segments, but the broader commercial appetite pivots toward risk-based orchestration that elevates factor strength dynamically.
By Deployment Mode: Cloud Leadership With Hybrid Growth
Cloud-hosted identity platforms amassed 41.2% of 2024 spending because SaaS delivery accelerates rollout and harmonizes policy across on-prem and SaaS apps. Hybrid deployments are forecast to rise 17.7% CAGR as CISOs retain on-prem connectors for data residency, while orchestrating policy from the cloud. Private-cloud sub-models appeal to highly regulated verticals wanting security segregation without forfeiting elasticity, enlarging the multifactor authentication market addressable base.
By Enterprise Size: Large Enterprises Lead, SMEs Accelerate
Large organizations commanded 62.5% of 2024 revenue, reflecting deeper compliance budgets. Yet SME demand is surging at 16.9% CAGR thanks to turn-key SaaS bundles that remove infrastructure headaches. Okta’s startup competition and bundled developer credits illustrate how vendors court small firms with low-touch onboarding. Insurers further accelerate SME purchasing by tying cyber-policy eligibility to MFA rollout, widening the multifactor authentication market penetration curve.
By Access Channel: Web Applications Dominate, Mobile Workforce Accelerates
Web and SaaS apps represented 44.5% of revenue in 2024, mirroring cloud-first software stacks. Remote-work mobility is expanding 17.6% CAGR as employers equip smartphones with biometrics and device-bound passkeys for anywhere access. Meanwhile, VPN tunnels endure across legacy estates, but CIOs increasingly overlay identity brokers at session start to minimize lateral-movement risk.
Note: Segment shares of all individual segments available upon report purchase
By End-User Industry: Banking Leads, Crypto Exchanges Surge
Banking retains 24.3% revenue share given PSD2 SCA and rising account takeover losses. However, crypto and Web3 exchanges grow at 17.1% CAGR, propelled by irreversible token theft and global regulatory heat. The healthcare vertical accelerates post-HIPAA amendments that oblige all electronic PHI access to be MFA-protected, while public-sector wallet initiatives foster broad citizen adoption in Europe and Asia-Pacific.
Geography Analysis
North America retained 37.8% revenue in 2024 and should log 14.2% CAGR to 2030. U.S. executive orders on critical-infrastructure cybersecurity and Canadian OSFI B-13 collectively institutionalize MFA, while the ecosystem of identity SaaS vendors headquartered in the region keeps innovation cycles brisk. The multifactor authentication market size for North America thus scales steadily as zero-trust procurement enters the maintenance phase and vendors upsell adaptive analytics.
Asia-Pacific is on a 16.5% CAGR trajectory thanks to government identity programs. Japan’s My Number smartphone credential now underpins login for over 650 firms, and Singapore’s banks have replaced SMS with FIDO tokens, broadening mainstream adoption. Australia’s Digital ID framework rolls out passkeys for federal services, spurring private-sector copycats. Emerging economies across Southeast Asia and India extend market runway by leapfrogging legacy passwords straight into mobile biometrics.
Europe advances at solid double digits as Regulation 2024/1183 standardizes wallet login across 27 nations. Public-sector volume guarantees vendor scale, and private online-service providers must interoperate or risk customer churn. The Middle East and Africa, though starting from a smaller base, record increasing deployments aligned with cloud migration and cyber-resilience bids, adding diversified revenue streams to the global multifactor authentication market.
Competitive Landscape
Innovation and Integration Drive Market Success
Success in the multi-factor authentication market increasingly depends on providers' ability to deliver seamless, secure, and scalable solutions that integrate with existing enterprise systems. Incumbent players must focus on expanding their authentication methods to include emerging technologies like passwordless authentication and behavioral biometrics, while maintaining compatibility with legacy systems. The ability to offer flexible deployment options across cloud, hybrid, and on-premises environments, combined with strong compliance capabilities and user-friendly interfaces, has become crucial for maintaining market share. Companies must also develop strong partner ecosystems and maintain robust support infrastructure to serve diverse industry verticals effectively.
For emerging players and contenders, success lies in identifying and addressing specific market gaps or underserved segments with innovative solutions. This includes developing specialized authentication solutions for high-growth sectors like healthcare and financial services, or focusing on specific authentication technologies like mobile-based solutions or hardware tokens. The increasing regulatory focus on cybersecurity and data protection across regions presents both opportunities and challenges, requiring providers to maintain agility in adapting their solutions to evolving compliance requirements.
The market's future success factors also include the ability to address growing concerns around privacy, user experience, and the need for stronger phishing-resistant authentication methods. The role of MFA and 2FA in providing secure access is becoming increasingly critical in this evolving landscape.
Multifactor Authentication (MFA) Industry Leaders
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Giesecke+Devrient GmbH
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GoTrustID Inc.
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Thales Group
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Duo Security (Cisco Systems Inc.)
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RSA Security LLC
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Okta unveiled Cross App Access to safeguard AI agent API calls, charting a differentiation path around machine-to-machine identity.
- June 2025: Meta enabled passkeys on Facebook, enlarging the global pool of consumer users versed in hardware-rooted login.
- May 2025: Microsoft instituted passwordless defaults for new accounts, signaling a paradigm shift that influences enterprise procurement.
- May 2025: FIDO Alliance launched the Passkey Pledge, enlisting major platforms to accelerate password retirement.
Global Multifactor Authentication (MFA) Market Report Scope
The multi-factor authentication market is defined based on the revenues generated from the hardware, software, and services used in various end-user industries across the globe. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the market in terms of drivers and restraints.
The multi-factor authentication market is segmented by offering type (hardware [token, biometric devices, and other devices], software [authenticator solutions and mobile apps], and services), authentication type (two-factor authentication, three-factor authentication, four-factor authentication, and other types of authentication), end-user industry (banking and financial institutions, cryptocurrency, technology-based companies [SaaS and IT service vendors], government [federal, state, and local entities (including system integrators)], healthcare and pharmaceutical, retail and e-commerce, process-based applications [energy and manufacturing], and other end-user industries [education and immigration]), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The report offers market sizes and forecasts in terms of value (USD) for all the above segments.
| Hardware | Tokens (USB, Smart-card, Smartkey) |
| Biometric Devices (Fingerprint, Palm-vein, Facial) | |
| Other Devices (Wearables, Smartcards-NFC) | |
| Software | Authenticator Solutions (TOTP, Push, U2F) |
| Mobile Apps (Native, SDK) | |
| Services | Managed and Professional Services |
| Two-Factor (2FA) |
| Multifactor (3F and 4F) |
| Adaptive / Risk-Based MFA |
| Password-less (WebAuthn, Passkeys) |
| On-premises | |
| Cloud | Public |
| Private | |
| Hybrid |
| Small and Medium-sized Enterprises (SMEs) |
| Large Enterprises |
| VPN and Remote Login |
| Web and SaaS Applications |
| Mobile Workforce |
| Banking and Financial Institutions |
| Cryptocurrency and Web3 Exchanges |
| Technology (SaaS, IT Services, DevOps) |
| Government (Federal, State, Local, Integrators) |
| Healthcare and Pharmaceutical |
| Retail and E-commerce |
| Energy, Utilities and Manufacturing |
| Education, Immigration and Public Services |
| North America | United States | |
| Canada | ||
| South America | Brazil | |
| Rest of South America | ||
| Europe | United Kingdom | |
| Germany | ||
| France | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | GCC |
| Turkey | ||
| Israel | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Egypt | ||
| Rest of Africa | ||
| By Offering Type | Hardware | Tokens (USB, Smart-card, Smartkey) | |
| Biometric Devices (Fingerprint, Palm-vein, Facial) | |||
| Other Devices (Wearables, Smartcards-NFC) | |||
| Software | Authenticator Solutions (TOTP, Push, U2F) | ||
| Mobile Apps (Native, SDK) | |||
| Services | Managed and Professional Services | ||
| By Authentication Model | Two-Factor (2FA) | ||
| Multifactor (3F and 4F) | |||
| Adaptive / Risk-Based MFA | |||
| Password-less (WebAuthn, Passkeys) | |||
| By Deployment Mode | On-premises | ||
| Cloud | Public | ||
| Private | |||
| Hybrid | |||
| By Enterprise Size | Small and Medium-sized Enterprises (SMEs) | ||
| Large Enterprises | |||
| By Access Channel | VPN and Remote Login | ||
| Web and SaaS Applications | |||
| Mobile Workforce | |||
| By End-user Industry | Banking and Financial Institutions | ||
| Cryptocurrency and Web3 Exchanges | |||
| Technology (SaaS, IT Services, DevOps) | |||
| Government (Federal, State, Local, Integrators) | |||
| Healthcare and Pharmaceutical | |||
| Retail and E-commerce | |||
| Energy, Utilities and Manufacturing | |||
| Education, Immigration and Public Services | |||
| By Geography | North America | United States | |
| Canada | |||
| South America | Brazil | ||
| Rest of South America | |||
| Europe | United Kingdom | ||
| Germany | |||
| France | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | GCC | |
| Turkey | |||
| Israel | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Egypt | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is driving the rapid growth of the multifactor authentication market to 2030?
Regulatory mandates, zero-trust rollouts, cyber-insurance requirements, and the migration from passwords to passkeys collectively fuel a 16.50% CAGR through 2030.
How large is the multifactor authentication market size today?
The market is valued at USD 21.11 billion in 2025 and is projected to hit USD 45.30 billion by 2030.
Which authentication model is expanding fastest?
Passwordless methods based on WebAuthn and passkeys are growing at 18.4% CAGR thanks to browser-level support and superior phishing resistance.
Why are SMS OTP costs viewed as a restraint?
Carrier surcharges and 10DLC fees raise per-OTP costs up to USD 0.01, making SMS economically unattractive for high-volume verification.
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