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IT SecurityAuthentication

PUBLISHER: Fairfield Market Research | PRODUCT CODE: 2169329

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PUBLISHER: Fairfield Market Research | PRODUCT CODE: 2169329

Multi-factor Authentication Market Insights, Competitive Landscape, and Market Forecast - 2033

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Description

Table of Contents

Introduction

Multi-factor authentication has become a foundational layer of modern cybersecurity, requiring users to prove their identity with more than a single password before accessing applications, networks or data. By combining something a person knows, something they have and something they are, these systems make stolen credentials far less useful to attackers. In 2026, the market is valued at US$23 Bn and is projected to reach US$54 Bn by 2033, registering a CAGR of 13.00%. Growth is being fuelled by a relentless rise in ransomware and credential theft, together with regulations that increasingly mandate stronger authentication across finance, government, healthcare and critical infrastructure. At the same time, the technology itself is changing. Organisations are moving away from text message codes and toward passkeys and other phishing-resistant, passwordless methods that improve both security and user experience. Major identity platforms are making passkeys the default sign-in option, and the number of passkeys in use has already passed 5 billion, showing how quickly this transition is gathering pace.

Market Insights

The market is segmented by component, authentication type, organisation size and end user. Components include hardware such as security keys and tokens, software platforms that manage authentication policies, and services covering deployment, integration and support. Authentication types are split between password-based approaches, where an additional factor supplements a password, and passwordless approaches that remove the password altogether. Passwordless is the fastest-growing authentication type, expanding at a 19.6% CAGR, reflecting broad interest in passkeys and biometric sign-in. Organisation size segments cover large enterprises and small and medium enterprises, the latter increasingly targeted with simpler, cloud-delivered offerings. End users include BFSI, government and defence, healthcare, IT and telecom, retail and e-commerce, and others. The dominant trend is the migration from SMS codes toward passwordless methods. In July 2026, a leading enterprise identity platform announced that passkeys would become its default sign-in method, and industry figures from May 2026 showed more than 5 billion passkeys in use worldwide, confirming adoption at consumer and enterprise scale.

Drivers

Two high-impact drivers dominate the outlook. The first combines ransomware, credential theft and regulatory mandates for multi-factor authentication, and it exerts its strongest effect over the short term. Attackers routinely exploit stolen or weak passwords to gain initial access, and insurers, regulators and auditors now expect stronger authentication as a basic control. This pushes organisations of every size to deploy or upgrade their systems. The second driver is the shift to passkeys and phishing-resistant authentication, rated high impact over the medium term. Traditional one-time codes can be intercepted or socially engineered, so buyers are adopting cryptographic methods that bind credentials to devices and resist phishing. Restraints remain relevant. User friction and the difficulty of integrating authentication with legacy systems form a medium-impact restraint over the medium term, especially in complex enterprises. Attacks designed to bypass multi-factor protections, together with deployment costs that weigh on smaller firms, represent a further medium-impact restraint in the short term.

Business Opportunity

Passkey migration and passwordless platforms form a high-growth revenue pool. As major platforms make passkeys the default and consumers become familiar with biometric sign-in, enterprises are planning to retire passwords across workforce and customer applications. This creates demand for platforms that manage passkey enrolment, device binding, account recovery and policy enforcement, as well as for consulting and integration services that help organisations transition without disrupting users. Vendors able to simplify this journey for both large enterprises and smaller firms are well placed to win long-term contracts. A second, adjacent revenue pool lies in identity threat detection and machine identities. Attackers increasingly target authentication systems themselves, so organisations need tools that monitor identity infrastructure, detect suspicious sign-in behaviour and respond to compromised sessions. Meanwhile, the number of non-human identities, such as workloads, applications and automated services, is growing rapidly, and each requires secure credentials. Providers that extend authentication into these areas can broaden their role from sign-in protection to comprehensive identity security.

Region Analysis

North America leads the market with a 39.0% share in 2026, reflecting high cybersecurity spending, frequent ransomware incidents, strict sector regulations and an early move toward passkeys among large enterprises and government agencies. The region is also home to many of the identity platforms shaping industry standards. Europe is a substantial market where data protection rules, financial services requirements for strong customer authentication and rising cyber resilience obligations support steady adoption across both public and private sectors. Asia Pacific is the fastest-growing region, expanding at a 15.4% CAGR, as rapid digitalisation, growth in mobile banking and e-commerce, and expanding cloud use encourage governments and businesses to strengthen identity controls. Latin America is building momentum as banks, retailers and public agencies respond to fraud and account takeover attacks with stronger authentication. The Middle East and Africa shows growing interest, led by national digital transformation programmes, investment in financial services and heightened attention to protecting critical infrastructure from increasingly sophisticated cyber threats.

Key Players

  • Microsoft
  • Cisco Systems (Duo)
  • Okta
  • Thales
  • RSA Security
  • Ping Identity
  • Yubico
  • HID Global
  • Entrust
  • OneSpan

Segmentation

By Component:

  • Hardware
  • Software
  • Services

By Authentication Type:

  • Password-based
  • Passwordless

By Organization Size:

  • Large Enterprises
  • Small & Medium Enterprises

By End User:

  • BFSI
  • Government & Defense
  • Healthcare
  • IT & Telecom
  • Retail & E-commerce
  • Others

By Geographic Coverage:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa
Show more

Table of Contents

1. Executive Summary

  • 1.1. Global Multi-factor Authentication Market Snapshot
  • 1.2. Future Projections
  • 1.3. Key Market Trends
  • 1.4. Regional Snapshot, by Value, 2026
  • 1.5. Analyst Recommendations

2. Market Overview

  • 2.1. Market Definitions and Segmentations
  • 2.2. Market Dynamics
    • 2.2.1. Drivers
    • 2.2.2. Restraints
    • 2.2.3. Market Opportunities
  • 2.3. Value Chain Analysis
  • 2.4. COVID-19 Impact Analysis
  • 2.5. Porter's Five Forces Analysis
  • 2.6. Impact of Russia-Ukraine Conflict
  • 2.7. PESTLE Analysis
  • 2.8. Regulatory Analysis
  • 2.9. Price Trend Analysis
    • 2.9.1. Current Prices and Future Projections, 2025-2033
    • 2.9.2. Price Impact Factors

3. Global Multi-factor Authentication Market Outlook, 2020 - 2033

  • 3.1. Global Multi-factor Authentication Market Outlook, by Component, Value (US$ Bn), 2020-2033
    • 3.1.1. Hardware
    • 3.1.2. Software
    • 3.1.3. Services
  • 3.2. Global Multi-factor Authentication Market Outlook, by Authentication Type, Value (US$ Bn), 2020-2033
    • 3.2.1. Password-based
    • 3.2.2. Passwordless
  • 3.3. Global Multi-factor Authentication Market Outlook, by Organization Size, Value (US$ Bn), 2020-2033
    • 3.3.1. Large Enterprises
    • 3.3.2. Small & Medium Enterprises
  • 3.4. Global Multi-factor Authentication Market Outlook, by End User, Value (US$ Bn), 2020-2033
    • 3.4.1. BFSI
    • 3.4.2. Government & Defense
    • 3.4.3. Healthcare
    • 3.4.4. IT & Telecom
    • 3.4.5. Retail & E-commerce
    • 3.4.6. Others
  • 3.5. Global Multi-factor Authentication Market Outlook, by Region, Value (US$ Bn), 2020-2033
    • 3.5.1. North America
    • 3.5.2. Europe
    • 3.5.3. Asia Pacific
    • 3.5.4. Latin America
    • 3.5.5. Middle East & Africa

4. North America Multi-factor Authentication Market Outlook, 2020 - 2033

  • 4.1. North America Multi-factor Authentication Market Outlook, by Component, Value (US$ Bn), 2020-2033
    • 4.1.1. Hardware
    • 4.1.2. Software
    • 4.1.3. Services
  • 4.2. North America Multi-factor Authentication Market Outlook, by Authentication Type, Value (US$ Bn), 2020-2033
    • 4.2.1. Password-based
    • 4.2.2. Passwordless
  • 4.3. North America Multi-factor Authentication Market Outlook, by Organization Size, Value (US$ Bn), 2020-2033
    • 4.3.1. Large Enterprises
    • 4.3.2. Small & Medium Enterprises
  • 4.4. North America Multi-factor Authentication Market Outlook, by End User, Value (US$ Bn), 2020-2033
    • 4.4.1. BFSI
    • 4.4.2. Government & Defense
    • 4.4.3. Healthcare
    • 4.4.4. IT & Telecom
    • 4.4.5. Retail & E-commerce
    • 4.4.6. Others
  • 4.5. North America Multi-factor Authentication Market Outlook, by Country, Value (US$ Bn), 2020-2033
    • 4.5.1. U.S. Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 4.5.2. U.S. Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 4.5.3. U.S. Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 4.5.4. U.S. Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 4.5.5. Canada Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 4.5.6. Canada Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 4.5.7. Canada Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 4.5.8. Canada Multi-factor Authentication Market Outlook, by End User, 2020-2033
  • 4.6. BPS Analysis/Market Attractiveness Analysis

5. Europe Multi-factor Authentication Market Outlook, 2020 - 2033

  • 5.1. Europe Multi-factor Authentication Market Outlook, by Component, Value (US$ Bn), 2020-2033
    • 5.1.1. Hardware
    • 5.1.2. Software
    • 5.1.3. Services
  • 5.2. Europe Multi-factor Authentication Market Outlook, by Authentication Type, Value (US$ Bn), 2020-2033
    • 5.2.1. Password-based
    • 5.2.2. Passwordless
  • 5.3. Europe Multi-factor Authentication Market Outlook, by Organization Size, Value (US$ Bn), 2020-2033
    • 5.3.1. Large Enterprises
    • 5.3.2. Small & Medium Enterprises
  • 5.4. Europe Multi-factor Authentication Market Outlook, by End User, Value (US$ Bn), 2020-2033
    • 5.4.1. BFSI
    • 5.4.2. Government & Defense
    • 5.4.3. Healthcare
    • 5.4.4. IT & Telecom
    • 5.4.5. Retail & E-commerce
    • 5.4.6. Others
  • 5.5. Europe Multi-factor Authentication Market Outlook, by Country, Value (US$ Bn), 2020-2033
    • 5.5.1. Germany Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 5.5.2. Germany Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 5.5.3. Germany Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 5.5.4. Germany Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 5.5.5. Italy Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 5.5.6. Italy Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 5.5.7. Italy Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 5.5.8. Italy Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 5.5.9. France Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 5.5.10. France Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 5.5.11. France Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 5.5.12. France Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 5.5.13. U.K. Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 5.5.14. U.K. Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 5.5.15. U.K. Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 5.5.16. U.K. Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 5.5.17. Spain Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 5.5.18. Spain Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 5.5.19. Spain Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 5.5.20. Spain Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 5.5.21. Russia Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 5.5.22. Russia Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 5.5.23. Russia Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 5.5.24. Russia Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 5.5.25. Rest of Europe Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 5.5.26. Rest of Europe Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 5.5.27. Rest of Europe Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 5.5.28. Rest of Europe Multi-factor Authentication Market Outlook, by End User, 2020-2033
  • 5.6. BPS Analysis/Market Attractiveness Analysis

6. Asia Pacific Multi-factor Authentication Market Outlook, 2020 - 2033

  • 6.1. Asia Pacific Multi-factor Authentication Market Outlook, by Component, Value (US$ Bn), 2020-2033
    • 6.1.1. Hardware
    • 6.1.2. Software
    • 6.1.3. Services
  • 6.2. Asia Pacific Multi-factor Authentication Market Outlook, by Authentication Type, Value (US$ Bn), 2020-2033
    • 6.2.1. Password-based
    • 6.2.2. Passwordless
  • 6.3. Asia Pacific Multi-factor Authentication Market Outlook, by Organization Size, Value (US$ Bn), 2020-2033
    • 6.3.1. Large Enterprises
    • 6.3.2. Small & Medium Enterprises
  • 6.4. Asia Pacific Multi-factor Authentication Market Outlook, by End User, Value (US$ Bn), 2020-2033
    • 6.4.1. BFSI
    • 6.4.2. Government & Defense
    • 6.4.3. Healthcare
    • 6.4.4. IT & Telecom
    • 6.4.5. Retail & E-commerce
    • 6.4.6. Others
  • 6.5. Asia Pacific Multi-factor Authentication Market Outlook, by Country, Value (US$ Bn), 2020-2033
    • 6.5.1. China Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 6.5.2. China Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 6.5.3. China Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 6.5.4. China Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 6.5.5. Japan Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 6.5.6. Japan Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 6.5.7. Japan Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 6.5.8. Japan Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 6.5.9. South Korea Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 6.5.10. South Korea Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 6.5.11. South Korea Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 6.5.12. South Korea Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 6.5.13. India Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 6.5.14. India Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 6.5.15. India Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 6.5.16. India Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 6.5.17. Southeast Asia Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 6.5.18. Southeast Asia Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 6.5.19. Southeast Asia Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 6.5.20. Southeast Asia Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 6.5.21. Rest of SAO Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 6.5.22. Rest of SAO Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 6.5.23. Rest of SAO Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 6.5.24. Rest of SAO Multi-factor Authentication Market Outlook, by End User, 2020-2033
  • 6.6. BPS Analysis/Market Attractiveness Analysis

7. Latin America Multi-factor Authentication Market Outlook, 2020 - 2033

  • 7.1. Latin America Multi-factor Authentication Market Outlook, by Component, Value (US$ Bn), 2020-2033
    • 7.1.1. Hardware
    • 7.1.2. Software
    • 7.1.3. Services
  • 7.2. Latin America Multi-factor Authentication Market Outlook, by Authentication Type, Value (US$ Bn), 2020-2033
    • 7.2.1. Password-based
    • 7.2.2. Passwordless
  • 7.3. Latin America Multi-factor Authentication Market Outlook, by Organization Size, Value (US$ Bn), 2020-2033
    • 7.3.1. Large Enterprises
    • 7.3.2. Small & Medium Enterprises
  • 7.4. Latin America Multi-factor Authentication Market Outlook, by End User, Value (US$ Bn), 2020-2033
    • 7.4.1. BFSI
    • 7.4.2. Government & Defense
    • 7.4.3. Healthcare
    • 7.4.4. IT & Telecom
    • 7.4.5. Retail & E-commerce
    • 7.4.6. Others
  • 7.5. Latin America Multi-factor Authentication Market Outlook, by Country, Value (US$ Bn), 2020-2033
    • 7.5.1. Brazil Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 7.5.2. Brazil Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 7.5.3. Brazil Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 7.5.4. Brazil Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 7.5.5. Mexico Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 7.5.6. Mexico Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 7.5.7. Mexico Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 7.5.8. Mexico Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 7.5.9. Argentina Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 7.5.10. Argentina Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 7.5.11. Argentina Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 7.5.12. Argentina Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 7.5.13. Rest of LATAM Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 7.5.14. Rest of LATAM Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 7.5.15. Rest of LATAM Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 7.5.16. Rest of LATAM Multi-factor Authentication Market Outlook, by End User, 2020-2033
  • 7.6. BPS Analysis/Market Attractiveness Analysis

8. Middle East & Africa Multi-factor Authentication Market Outlook, 2020 - 2033

  • 8.1. Middle East & Africa Multi-factor Authentication Market Outlook, by Component, Value (US$ Bn), 2020-2033
    • 8.1.1. Hardware
    • 8.1.2. Software
    • 8.1.3. Services
  • 8.2. Middle East & Africa Multi-factor Authentication Market Outlook, by Authentication Type, Value (US$ Bn), 2020-2033
    • 8.2.1. Password-based
    • 8.2.2. Passwordless
  • 8.3. Middle East & Africa Multi-factor Authentication Market Outlook, by Organization Size, Value (US$ Bn), 2020-2033
    • 8.3.1. Large Enterprises
    • 8.3.2. Small & Medium Enterprises
  • 8.4. Middle East & Africa Multi-factor Authentication Market Outlook, by End User, Value (US$ Bn), 2020-2033
    • 8.4.1. BFSI
    • 8.4.2. Government & Defense
    • 8.4.3. Healthcare
    • 8.4.4. IT & Telecom
    • 8.4.5. Retail & E-commerce
    • 8.4.6. Others
  • 8.5. Middle East & Africa Multi-factor Authentication Market Outlook, by Country, Value (US$ Bn), 2020-2033
    • 8.5.1. GCC Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 8.5.2. GCC Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 8.5.3. GCC Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 8.5.4. GCC Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 8.5.5. South Africa Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 8.5.6. South Africa Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 8.5.7. South Africa Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 8.5.8. South Africa Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 8.5.9. Egypt Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 8.5.10. Egypt Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 8.5.11. Egypt Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 8.5.12. Egypt Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 8.5.13. Nigeria Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 8.5.14. Nigeria Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 8.5.15. Nigeria Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 8.5.16. Nigeria Multi-factor Authentication Market Outlook, by End User, 2020-2033
    • 8.5.17. Rest of Middle East Multi-factor Authentication Market Outlook, by Component, 2020-2033
    • 8.5.18. Rest of Middle East Multi-factor Authentication Market Outlook, by Authentication Type, 2020-2033
    • 8.5.19. Rest of Middle East Multi-factor Authentication Market Outlook, by Organization Size, 2020-2033
    • 8.5.20. Rest of Middle East Multi-factor Authentication Market Outlook, by End User, 2020-2033
  • 8.6. BPS Analysis/Market Attractiveness Analysis

9. Competitive Landscape

  • 9.1. Company Vs Segment Heatmap
  • 9.2. Company Market Share Analysis, 2025
  • 9.3. Competitive Dashboard
  • 9.4. Company Profiles
    • 9.4.1. Microsoft
      • 9.4.1.1. Company Overview
      • 9.4.1.2. Product Portfolio
      • 9.4.1.3. Financial Overview
      • 9.4.1.4. Business Strategies and Developments
    • 9.4.2. Cisco Systems (Duo)
    • 9.4.3. Okta
    • 9.4.4. Thales
    • 9.4.5. RSA Security
    • 9.4.6. Ping Identity
    • 9.4.7. Yubico
    • 9.4.8. HID Global
    • 9.4.9. Entrust
    • 9.4.10. OneSpan

10. Appendix

  • 10.1. Research Methodology
  • 10.2. Report Assumptions
  • 10.3. Acronyms and Abbreviations
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