A recently published report on the Multi Factor Authentication Market with global forecast to 2025 from Marketsandmarkets, suggests that this sector is expected to grow from USD 5.2 billion in 2016 to USD 18.5 billion by 2025, at a CAGR of 14.9% during the forecast period. Factors such as increases in data breaches and cyber attacks, stringent regulations and the growing pressure of data security compliances, and the growing adoption of BYOD concept among enterprises are driving the growth of the MFA market.
Two-factor authentication (2FA), often referred to as two-step verification, is a security process in which the user provides two authentication factors. Two-factor authentication provides an additional layer of security and makes it harder for attackers to gain access to a person’s devices and online accounts. Two-factor authentication can be achieved using any two of smart cards, PIN, SMS application, tokens, biometrics (iris, face, palm, fingerprint, and so on), passwords, and so on. Smart card with PIN being the most commonly used for two-factor authentication model, which is most commonly used in banking and finance, attendance systems, online transactions, and access control systems.
Banking and finance is one of the most demanding industries when it comes to MFA. Smartcard and PIN combination is the most commonly used MFA in the form of credit cards, debit cards, and ATM cards. One-time password (OTP) is also gaining reputation in the banking and online payment industry. OTP uses SMS/e-mail/smartphone applications to send a one-time password to the authorised persons mobile/smartphone. The major factors for the growth of this market are increasing online traction and the growth of e-commerce for which secure transactions are required. Many regulatory bodies have passed regulation for use of MFA technology in this application. For the security of banking and financial applications such as core banking, online banking, banking cards personalisation systems, trade finance, international payments, foreign exchange, bank guarantee, and other banking and financial services.
Demand from the Americas is expected to be highest for MFA during the forecast period according to the research. The Americas uses different MFA models from the most basic to the most advanced model. Countries such as the US and Canada use MFA in almost all the applications. As security issues have become vital in the government sector, local, regional, and national government organisations are deploying biometric systems owing to advantages such as high accuracy, convenience, and time efficiency. The need for solid security to tackle fraudulence, illegal immigration, and criminal activities has made it necessary for government enterprises to resort security solutions. a large industrial base, and a high regulatory compliance in the Americas are expected to propel the growth of the American MFA market
