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