Multi-Factor Authentication Market Trends

Growth Drivers

• Cloud Computing Adoption – The migration of businesses to cloud-based platforms has increased the need for robust authentication solutions. MFA ensures secure access to cloud services and prevents unauthorized users from gaining access to sensitive data stored in the cloud, and with 61% of businesses switching workloads to the cloud in 2020, the markets for MFA is constantly increasing.
• Mobile Device Proliferation – The ubiquity of smartphones and mobile devices has enabled the adoption of mobile-based MFA methods, such as biometric authentication and one-time passwords delivered via SMS or mobile apps, providing convenient yet secure ways to verify user identities. with global smartphone network subscriptions reaching 6.4 billion in 2022, the use of MFA increased several fold.
• Advancement in Technology – Technological advancements have led to the development of innovative MFA methods, such as behavioral biometrics, geolocation, and hardware tokens. These emerging solutions offer improved user experiences while maintaining a high level of data protection.

Challenges

• Complexity and User Friction – Some MFA methods can introduce complexity and friction for users during the authentication process. Remembering multiple authentication factors or navigating through additional verification steps can lead to user frustration and potential abandonment of the process, restraining market growth.
• High investment cost
• Integration challenges, especially in a heterogeneous environment