Passwordless Authentication Market-Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type, By Authentication Type, By End-user Industry, By Region & Competition, 2021-2031F

The Global Passwordless Authentication Market is projected to experience substantial growth, rising from USD 21.83 Billion in 2025 to USD 62.09 Billion by 2031 at a CAGR of 19.03%. Instead of relying on memorized secrets, passwordless authentication verifies user identity through cryptographic keys, hardware tokens, or biological traits. The market is primarily driven by the urgent need to prevent credential theft and phishing attacks while simultaneously improving the user experience by removing login barriers. Furthermore, organizations are adopting these solutions to lower helpdesk costs related to password resets and to adhere to strict regulatory compliance standards regarding data protection.

The necessity for this shift is highlighted by data demonstrating the operational inefficiencies inherent in traditional methods. According to the 'FIDO Alliance', in '2024', 56% of consumers abandoned accessing an online service in the prior month because they had forgotten their password. Despite these evident commercial incentives, the difficulty of meshing modern authentication standards with aging legacy infrastructure remains a major obstacle that impedes rapid deployment across large enterprises.

Market Driver

The increasing frequency of credential-based cyberattacks serves as the main catalyst driving the global passwordless authentication market. Because threat actors continue to exploit static credentials through advanced social engineering and phishing campaigns, organizations are forced to replace shared secrets with biometric and cryptographic verifiers. This security necessity is underscored by the vulnerability of traditional login methods; according to the 'State of Global Authentication' report by Yubico in January 2025, 47% of Gen Z and Millennial respondents experienced social media account hacks. Consequently, enterprises are swiftly deploying phishing-resistant credentials, a trend evidenced by Okta's 2025 data showing a 69% year-over-year increase in FastPass adoption among Fortune 500 customers, marking a decisive shift toward secure authentication standards.

In parallel, the reduction in operational costs and helpdesk support requirements provides a strong financial incentive. Conventional password policies create significant administrative burdens, consuming IT resources and reducing productivity due to frequent account lockouts. Transitioning to passwordless workflows removes these friction points, offering an immediate return on investment by allowing support teams to concentrate on high-value tasks. This efficiency is confirmed by industry data; the FIDO Alliance reported in February 2025, in the 'State of Passkey Deployment in the Enterprise' study, that 77% of surveyed organizations saw a measurable decrease in help-center calls after implementing passkeys. This tangible operational benefit, alongside enhanced security, solidifies the business case for retiring passwords.

Market Challenge

A significant restraint on the Global Passwordless Authentication Market is the complexity of integrating modern authentication standards with aging legacy infrastructure. Many enterprises depend on foundational systems based on older protocols that lack native support for cryptographic keys or biometric validation. This incompatibility compels organizations to either develop expensive, customized middleware or maintain fragmented hybrid environments where passwordless solutions protect only a portion of the IT ecosystem. The resources required to bridge this technical gap often delay full deployment, diminishing the immediate return on investment and causing hesitation among decision-makers concerned about operational disruption.

This technical debt directly hinders market growth by slowing the rate at which large organizations can fully retire passwords. Rather than achieving a rapid, comprehensive rollout, companies are often forced into extended migration phases that leave security vulnerabilities exposed. The impact of this implementation hurdle is evident in recent industry findings; according to the 'Identity Defined Security Alliance' in '2024', '38% of security stakeholders cited complex technology environments as a leading obstacle to implementing identity security outcomes'. This data confirms that the rigidity of existing infrastructure remains a persistent bottleneck, preventing the market from reaching its full expansion potential despite the clear demand for enhanced security.

Market Trends

The widespread adoption of consumer passkeys across major technology ecosystems is fundamentally transforming the deployment landscape for global passwordless authentication. By embedding FIDO credentials directly into consumer devices and operating systems, industry leaders such as Apple, Google, and Microsoft are democratizing access to cryptographic security, effectively turning billions of smartphones and laptops into compliant hardware tokens. This shift compels enterprise vendors to accelerate support for platform-native authenticators, moving the market away from proprietary hardware toward software-based models that utilize existing user devices. The scale of this consumer-led standardization is clear; according to Google's 'The Keyword' blog in May 2024, more than 400 million Google Accounts utilized passkeys for sign-ins, indicating a massive normalization of this technology that is now influencing workforce identity strategies.

Simultaneously, the integration of passwordless authentication into Zero Trust security frameworks is redefining the strategic importance of identity management solutions. In this model, passwordless validation is not merely a standalone entry point but a crucial element of a continuous verification architecture that evaluates user identity, device health, and context before granting access to resources. This convergence steers the market toward holistic Identity and Access Management (IAM) platforms that unify authentication with broader security policies, establishing identity as the new perimeter. This strategic focus is validated by investment priorities; according to the '2024 Data Threat Report' by Thales in March 2024, 41% of security leaders identified Identity and Access Management as the top technology priority for implementing their Zero Trust strategies.

Key Market Players

• NEC Corporation
• Microsoft Corporation
• HID Global Corporation
• M2SYS Technology
• Safran SA
• DERMALOG Identification Systems GmbH
• Fujitsu Limited
• East Shore Technologies, Inc
• Thales Group
• Crossmatch Technologies.

Report Scope

In this report, the Global Passwordless Authentication Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Passwordless Authentication Market, By Type

• Fingerprint Authentication
• Palm Print Recognition
• Iris Recognition
• Face Recognition market
• Smart Card
• Voice Analysis
• Others

Passwordless Authentication Market, By Authentication Type

• Single-factor Authentication
• Multi-factor Authentication

Passwordless Authentication Market, By End-user Industry

• BFSI
• Aerospace & Defense
• Healthcare
• Retail
• Food Delivery
• IT & Telecom
• Government
• Others

Passwordless Authentication Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Passwordless Authentication Market.

Available Customizations:

Global Passwordless Authentication Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).