Passwordless Authentication Market Overview
The passwordless authentication market is projected to grow US$ 50 Bn by 2031, at an expected CAGR of more than 25% during the forecast period 2021-2031. Passwordless authentication is basically a type of multi-factor authentication, which requires users to prove their identity without using passwords as a factor.
Some authentication may still require a username. The security process of passwordless authentication relies on few unique biological characteristics of an individual in order to verify authenticity. There are major factors like improved security and convenient way of accessing data from anywhere, driving the growth of passwordless authentication systems.
What is Driving Demand for Passwordless Authentication?
There is an increase in penetration of smartphones and other consumer electronic devices, demanding for access to end-user accounts and logins. Growing adoption of passwordless authentication for an additional layer of security beyond passwords is another factor driving the growth of passwordless authentication market.
Further, advanced technologies such as internet of things (IoT) and artificial intelligence in devices such as smartphones and tablets among others are factors, driving the growth of passwordless authentication solutions. There are companies, who are adopting the use of fingerprint authentication and smartcards in their offices, which is further propelling the sales of passwordless authentication systems.
Security points like fingerprint sensors and smartcards are making a way for a smooth flow of data between point and allowing for a seamless experience. Enterprises are making use of facial recognition, voice analysis and iris recognition to authenticate and verify its employees. Furthermore, the global rise in applications of fingerprint recognition and facial recognition in consumer electronics is expected to propel the passwordless authentication demand.
Rise in Applications of Passwordless Authentication in Banking Sector
There are roughly 80% of hacking-related breaches because of weak and reused passwords. More than 90% users reuse passwords across work and personal accounts. This is the reason, why banking industry is moving towards implementation of passwordless authentication for an additional layer of security of their customer’s accounts.
Human errors are always referred as a security hole, which cannot be fixed by IT team. There are several ways that IT can minimize the risk, pro security professional are heavily focusing on the same. The particularly weak link is authentication, so authentication system in banking sector are adopting, especially as cloud services multiply and there is an increase in danger from weak or stolen passwords.
Thus, rise in applications of passwordless authentication in banking sector is augmenting the growth of passwordless authentication solutions globally.
US and Canada Passwordless Authentication Market Outlook
The US has majority of the key vendors offering wide range of authentication solutions. This is one of the major driving factor for passwordless authentication market in the country. All the major industries such as healthcare, banking, retail, logistics, consumer electronics and others are moving towards the adoption of passwordless authentication.
There is an increase in adoption of passwordless authentication technology in the country and there is a good number of research projects going on. This can impel the expansion of passwordless authentication in the US, as well as in Canada.
Most of the states in the US and Canada are making strides and tops in the implementation of passwordless authentication solutions across different applications. Due to significant rise of passwordless authentication demand in the US, it will attribute to the availability of more technical solutions in the upcoming years.
Authentication and biometrics technology has moved far beyond its initial use case as an additional layer of security which leads the way for growth of passwordless authentication technology, in the coming years.
Who are the Key Passwordless Authentication Vendors?
Some of the leading vendors of passwordless authentication include
- Fujitsu Ltd.
- NEC Corporation
- Accu-Time Systems Inc.
- EyeVerify, Inc.
- Crossmatch Technologies
- M2SYS Technology
- Thales Group
- Dermalog Identification Systems GmbH
- East Shore Technologies, Inc. and others.
The companies involved in the software and services of passwordless authentication are carrying out different expansion strategies to increase their customer base and market shares. They are also focusing on strategic partnerships and acquisitions with other companies to broaden thier product offerings.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
Key Segments of Passwordless Authentication Market
- Passwordless Authentication Software
- Professional Services
- Managed Services
By Authentication Type:
- Single-factor Authentication
- Multi-factor Authentication
By End-use Industry:
- Consumer Electronics
- Aerospace & Defense
- Rack mount
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- East Asia
- South Korea
- South Asia & Pacific
- Australia & New Zealand
- Rest of South Asia & Pacific
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa