Japan - Multifactor Authentication Market 2024-2028
Japan - multifactor authentication market size is projected to increase by USD 1,088.98 million, at a CAGR of 24.39% between 2023 and 2028. The growth rate of the market depends on several factors, including the emergence of cloud-based multifactor authentication solutions and services, the stringent government regulations to increase the adoption of multifactor authentication, and the increase in the volume of online transactions. Multifactor authentication solutions and services comprise biometrics and phone-based authentication solutions, making them the most secure authentication solutions in the market. Multifactor authentication is a security process that validates the user multiple times before allowing access to the data. It ensures that no security breach would affect the confidentiality of the data.
The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Component, which comprises service and product. Additionally, it categorizes Deployment into on premises and cloud, and covers Type, including password-based authentication and password-less authentication. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
What will be the Size of the Market During the Forecast Period?
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Market Overview
Market Growth Analysis Driver
The emergence of cloud-based multifactor authentication solutions and services is the key factor driving market growth. The rise in maintenance costs for hardware and software-based two-factor and three-factor authentication models has aroused the interest of many companies in the adoption of cloud-based multifactor authentication solutions and services. Market players are integrating multifactor authentication techniques with the cloud due to the growing demand for cloud-based multifactor authentication. Companies prefer cloud-based multifactor authentication because of its benefits, such as easy installation and upgrading, pay-as-you-go, zero maintenance costs, less dependency on internal IT personnel, and improved reliability and scalability.
Additionally, the adoption of the cloud is rapidly increasing among industries, giving rise to many security challenges for cloud service providers and other ecosystem vendors, especially in dealing with the complexity of privacy and data protection regulations. The demand for multifactor authentication for securing the data and information in the cloud environment is likely to provide huge opportunities to multifactor authentication solution providers and cloud service providers, which will drive the growth of the market during the forecast period.
Market Growth and Trends
Growing adoption of BYOD among enterprises is the primary trend shaping market growth. The growing BYOD movement continues to draw authentication concerns for enterprise security. Organizations are figuring out ways to seal the cracks between employee authentication and enterprise security. For easy onboarding, firms can implement multifactor authentication to manage employee access on enterprise applications.
Moreover, aligning with market trends and analysis, in the context of providing high security, secure authentication and authorization of a user is crucial to protecting the user's personal information. It involves the security of the whole infrastructure. Thus, the growing adoption of the BYOD concept acts as a driving factor for the growth of the market during the forecast period.
Market Restrain
Inconvenience of bearing hardware tokens and vulnerability to threats is a challenge that affects market growth. Hardware tokens are susceptible to theft and might not be recognized by the systems in use. The hardware OTP token is an additional device that must always be carried around, making it inconvenient for users. These devices can be easily forgotten by end-users. The storage capacity of hardware tokens is very low (a few kilobytes).
In addition, these devices are sensitive to high temperatures, physical damage, and dust. There is a potential for permanent corruption in hardware devices, and reformatting is almost impossible. Hardware devices are also vulnerable to man-in-the-middle attacks. These disadvantages and the short life span make hardware tokens a less popular option for end-users, which may impede market growth during the forecast period.
Market Segmentation By Mention Segment
The market share growth by the service segment will be significant during the forecast period. Increased flexibility in enterprises has enabled employees to work from home or outside the office. In such cases, verification of the remote access user is crucial. So, enterprises are adopting safe and secure authentication services that allow only an authorized person to access their information. Multifactor authentication solutions and services are gaining prominence in organizations for restricting people from gaining unauthorized access to critical data and tampering with critical information. People are granted access after their identity is confirmed with the information stored in the database.
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The service segment showed a gradual increase in the market share of USD 127.42 million in 2018. The major factors expected to drive the Japan - multifactor authentication market are increased data breaches, cyber-attacks, and the growing adoption of BYOD among enterprises. The introduction of cloud-based multifactor authentication technology has reduced the maintenance costs associated with hardware and software-based authentication. Furthermore, multifactor authentication enables secured access control, tracks fraudulent activities, and facilitates authentication of online transactions. The banking sector witnessed the highest adoption of multifactor authentication solutions and services, which enabled secure transactions and reduced data loss and fraudulent activities. Thus, such factors will drive the growth of the services segment of the multifactor authentication market in Japan during the forecast period.
Market Segmentation By Deployment
On-premises multifactor authentication is installed and runs on systems on the premises of the organization utilizing the product rather than at a remote facility such as a cloud or a server farm. The multifactor authentication software is made up of databases and modules that work together to specifically meet the special requirements of large businesses with regard to the automation of corporate-wide business systems and their functions. Additionally, on-premises multifactor authentication solutions and services offer a high level of confidence to end-users in the security of servers. The adoption of on-premises multifactor authentication is expected to maintain steady growth of the on-premises segment of the market during the forecast period.
Market Customer Landscape
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Market Customer Landscape
Who are the Major Market Companies?
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
- Akamai Technologies Inc.: The company offers multifactor authentication services through their platform Akamai MFA that provides FIDO2 MFA security, IdP integration, automatic provisioning, event report, self-service user registration and multiple authentication factors like secure push, standard push, TOTP, SMS, and more.
- Amazon.com Inc.: The company offers multifactor authentication services such as AWS multi-factor authentication that requires a second authentication factor in addition to user name and password sign-in credentials.
- Cisco Systems Inc.: The company offers multifactor authentication services through its subsidiary Duo Security that provides powerful authentication methods such as biometrics, tokens, passcodes, the Duo Push mobile app, and more.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 14 market companies, including:
- Entrust Corp.
- Fujitsu Ltd.
- International Business Machines Corp.
- Kyndryl Inc.
- Microsoft Corp.
- NEC Corp.
- Okta Inc.
- Ping Identity Corp.
- Quest Software Inc.
- Salesforce Inc.
- Thales Group
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Segment Overview
The market research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018-2028
- Component Outlook
- Service
- Product
- Deployment Outlook
- On premises
- Cloud
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Japan Multifactor Authentication Market Scope |
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Report Coverage |
Details |
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Page number |
141 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 24.39% |
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Market Growth 2024-2028 |
USD 1,088.98 million |
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Market structure |
Concentrated |
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YoY growth 2023-2024(%) |
23.02 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akamai Technologies Inc., Amazon.com Inc., Cisco Systems Inc., Entrust Corp., Fujitsu Ltd., International Business Machines Corp., Kyndryl Inc., Microsoft Corp., NEC Corp., Okta Inc., Ping Identity Corp., Quest Software Inc., Salesforce Inc., and Thales Group |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Japan Multifactor Authentication Market Research Report?
- CAGR of the market report forecast during the forecast period
- Detailed information on factors that will drive the growth of the market between 2024 and 2028
- Precise estimation of the market size and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the market across Japan
- Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of Industry companies
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