Global Two-Factor Authentication Market 2017-2021

Global two-factor authentication (2FA) market outlook

The two-factor authentication market analysis report compiled by Technavio’s market research analyst predicts the global 2FA market to grow steadily at a CAGR of around 24% by 2021. One of the major drivers contributing to the multi-factor authentication market growth is the exponential rise in the volume of online transactions. An increasing number of consumers have started depending on internet for transactions. This has increased the frequency of cyber-attacks, especially on websites where online transactions are significantly high. Hackers target lucrative sectors that have a huge online customer base. To counter these cyber-attacks, organizations have started implementing authentication methods such hardware one-time passwords (OTP) tokens, software OTP tokens, e-mail, and phone-based authentication to make online transactions more secure. Moreover, the availability of 3G and 4G devices will further boost online transactions, leading to the increased adoption of 2FA.

One of the latest multi-factor authentication market trends gaining traction in this market is the development of cloud-based 2FA. The high maintenance cost for hardware and software-based two-factor and three-factor authentication models, has created a demand for cloud-based 2FA solutions. Factors like pay-per-use, improved reliability and scalability, easy installation and upgrading, less dependency on internal IT personnel, and zero maintenance costs compel organizations to adopt cloud based 2FA solutions. It ensures secure access to networks and applications, addresses compliance requirements for the security of regulated data, and protects users while improving user experience. These benefits simplify the deployment and management of traditional hardware tokens. With cloud providers offering stronger authentication measures and role-based access control, the cloud-based 2FA solutions are expected to witness a higher rate of adoption during the forecast period.

Competitive landscape and key vendors

The global 2FA market is characterized by the presence of many international and regional vendors. Since the international players are rapidly expanding their footprint in the market, the regional vendors are finding it difficult to retain their market share. Vendors with better technical and financial resources are developing products with features such as secure access, strong security, and ease of integration. To gain a competitive advantage, it is imperative for vendors to distinguish their product and service offerings through clear and unique value propositions. The international players are expected to grow inorganically by acquiring regional and local vendors in the next few years.

Leading vendors in the market are –

• Entrust
• Gemalto
• RSA Security
• SecurEnvoy
• VASCO Data Security International

Other prominent vendors in the 2FA market include Authenex, Authentify, Authy, Deepnet Security, DynaPass, Fortinet, HID Global, ID Control, Meontrust, Mi-Token, PointSharp, Protectimus Solutions, SecureAuth, SecurEnvoy, SecurStar, and Yubico.

Segmentation by end-user and analysis of the 2FA market

• BFSI
• PCI
• Government
• Healthcare

During 2016, the banking, financial services, and insurance (BFSI) segment dominated the 2FA market and accounted for a major part of the overall market share. The growing dependency on electronic transactions providing encouragement to cyber criminals to target organizations dealing with critical financial details is the primary contributor to the growth of this segment in the 2FA market. As a result, organizations have implemented, biometric authentications and hardware OTP to ensure that 2FA enables secure access to vulnerable data. With the increasing number of cyber-attacks such as hacking and phishing, the need for the adoption of 2FA in the BFSI sector will increase in the coming years.

Geographical segmentation and analysis of the 2FA market

• APAC
• Europe
• MEA
• North America
• South America

In this market study, analysts have estimated North America to dominate the 2FA market during the forecast period. The presence of large banks and PCI companies and the increase in regulatory requirements are the major factors driving the adoption of 2FA in the region. Further, advances in authentication solutions, such as phone-based authentication, SMS tokens, and tokens integrated with biometric authentication, have accelerated the 2FA market growth in the US. Owing to the stringent government regulations, the US government is one of the main adopters of advanced authentication solutions in the region.

Key questions answered in the report include

• What will the two-factor authentication market size and the growth rate be in 2021?
• What are the key factors driving the global 2FA market?
• What are the key market trends impacting the growth of the global 2FA market?
• What are the challenges to the two-factor authentication market growth?
• Who are the key vendors in the global 2FA market?
• What are the market opportunities and threats faced by the vendors in the global 2FA market?
• Trending factors influencing the market shares of the APAC, Europe, MEA, North America, and South America.
• What are the key outcomes of the five forces analysis of the global 2FA market?

Technavio also offers customization on reports based on specific client requirement.

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