Global Passwordless Authentication Market Size, Share, Growth Analysis, By Component, By Product Type, By Authentication Type, By Portability, By End-user - Industry Forecast 2024-2031

Global Passwordless Authentication Market size was valued at USD 14.36 billion in 2022 and is poised to grow from USD 16.11 billion in 2023 to USD 40.47 billion by 2031, growing at a CAGR of 12.2% during the forecast period (2024-2031).

The growing popularity of smartphones and other consumer electronics is one of the main factors propelling the market for password or biometric authentication. The industry is expanding because to the growing necessity for security measures other than passwords. Because passwordless authentication methods offer enhanced security and convenient data access from any location, they continue to gain favor. For instance, in June 2022, WinMagic announced the launch of MagicEndpointTM, their passwordless authentication and encryption solution. WinMagic entered the password-less market with MagicEndpointTM, providing encryption and authentication solutions for data and users. The solution satisfies the needs of cyber security while reducing password friction and enabling CISOs and other IT security and technology professionals to quickly implement passwordless authentication.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Passwordless Authentication Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Passwordless Authentication Market Segmental Analysis

The global passwordless authentication market is segmented based on product type, component, authentication type, portability, end-user, and region. In terms of components, the market is segmented into software, hardware, and services. Based on product type the market is segmented into fingerprint authentication, palm recognition, iris recognition, face recognition, voice recognition, smart card, and others. In terms of authentication type, the market is segmented into single-factor authentication, and multi-factor authentication. With respect to classification by portability, the market is classified into fixed and mobile. By end-user, the market is categorized into IT & Telecom, Transportation & Logistics, Retail, Aerospace & Defence, BFSI, Healthcare, Government, and others. Region Wise, the global passwordless authentication market is widespread into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the Global Passwordless Authentication Market

Businesses are focusing on enhancing user experiences to obtain a competitive edge since a decrease in login friction may persuade clients to select one supplier over another: It is difficult to create and remember more than one password at once. Changing a lost password is often a challenging task as well. As a result, users frequently select passwords that are simpler for them to remember.

Restraints in the Global Passwordless Authentication Market

The implementation of passwordless authentication needs to come after a thorough plan that includes employee education and the introduction of innovative hardware or software. Creating and implementing a project and change management strategy requires time that may be spent on other crucial projects or tasks. Additionally, staff training is necessary. The costs of related hardware and software are also included in the adoption of passwordless authentication: The cost of hardware installation includes the cost of purchasing tokens, cards, and devices for every employee. Even though the cost of utilizing the program might be lower, there might still be some unforeseen expenses, such as those for maintenance, migration, and software management. Deployment costs consequently limit the market for passwordless authentication.

Market Trends of the Global Passwordless Authentication Market

Biometrics uses human physical traits, including speech, voice, palm, retina, iris, and fingerprinting, among others, to evaluate and authenticate individuals. One of its key benefits and the reason for its widespread use is that this authentication method's non-repudiation, non-transferable, and non-identifiable feature provides a high level of protection against fraud.