Market Size and Overview:

According to the report published by Virtue Market Research in Global Passwordless Authentication Tools Market was valued at USD 14.66 Billion and is projected to reach a market size of USD 41.95 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 16.2%.

The adoption of passwordless authentication is on the rise among users seeking secure access to their accounts and information, bypassing traditional password systems. This trend reflects a broader movement toward enhanced security and simplified authentication processes, fueling rapid growth in the market for passwordless authentication tools. The surge in cyberattacks and data breaches underscores the necessity for more robust security measures. With sensitive data increasingly stored online, the vulnerability to theft and unauthorized access escalates, rendering conventional password-based authentication less effective. Passwordless authentication, leveraging biometrics or alternative methods to verify user identities, emerges as a safer and more practical solution.

Future years are poised to witness a heightened demand for efficient and secure authentication techniques across various industries. Factors such as the proliferation of cloud-based technologies, the surge in cyber threats and data breaches, and the escalating interest in passwordless authentication tools by small and medium-sized businesses (SMBs) are key drivers shaping market growth.

Global Passwordless Authentication Tools Market Drivers:

1. Enhanced Security Needs: The escalating demand for heightened security is a primary driver propelling market growth.
2. Convenience Demand: The increasing preference for convenience, coupled with the imperative for enhanced security across diverse sectors, is a significant factor driving the global market for passwordless authentication tools.

Traditional password-based authentication methods are losing efficacy in the face of escalating cyber threats and data breaches, compelling businesses to seek more secure alternatives. Passwordless authentication tools, employing biometrics or other means to authenticate users, offer superior security compared to traditional passwords. By eliminating the need for users to input passwords, these tools also mitigate the risk of phishing attacks, enhancing security, particularly in sectors like banking and financial services where safeguarding confidential data is paramount.

The convenience factor further fuels the demand for passwordless authentication tools globally. Traditional passwords often pose challenges for users in terms of recall and management. In contrast, passwordless authentication tools allow users to access their accounts and data without the burden of remembering complex passwords. Biometric factors such as fingerprints or facial recognition are easier for users to recall and utilize, enhancing convenience and user experience. Moreover, these tools streamline authentication processes by eliminating the need for multiple stages to access an account, making authentication quicker and more convenient.

Global Passwordless Authentication Tools Market Challenges:

Despite the benefits, the global market for passwordless authentication tools faces challenges, notably regarding potential privacy concerns associated with biometric data. Biometric authentication necessitates the collection and storage of sensitive personal data, raising privacy and security issues. Incidents of biometric data theft and misuse underscore the importance of robust security measures and compliance with relevant data protection laws. Organizations must implement stringent security measures to safeguard users' biometric data and adhere to applicable regulations, considering cultural and legal barriers in certain regions or sectors.

Global Passwordless Authentication Tools Market Opportunities:

The widespread adoption of mobile devices and cloud-based services presents significant opportunities for passwordless authentication tools globally. As reliance on mobile devices and cloud services grows, the demand for convenient and secure authentication methods escalates. Passwordless authentication tools, easily integrable into mobile apps and cloud services, offer a practical and secure alternative to traditional password-based authentication methods, tapping into this expanding trend.

COVID-19 Impact on Global Passwordless Authentication Tools Market:

The COVID-19 pandemic has had a dual impact on the global market for passwordless authentication tools. On one hand, the surge in online services and remote work has heightened awareness of the need for secure authentication processes, driving up the demand for passwordless authentication tools. However, financial volatility and budget constraints stemming from the pandemic may limit organizations' ability to invest in advanced authentication technologies. Additionally, the pandemic has spawned new security challenges such as an increase in social engineering scams and phishing attacks, necessitating innovative solutions. Consequently, the market experiences negative impacts, underscoring the importance of adaptable passwordless authentication tools that can cater to evolving business and user needs in the post-pandemic era.

Global Passwordless Authentication Tools Market Recent Developments:

• In November 2022, Okta, a leading independent identity provider, introduced innovations for its Okta Workforce Identity Cloud, including anti-phishing features, unified access control, governance, and privileged access capabilities. These enhancements aim to bolster security, productivity, and agility, providing a centralized control plane for managing identity across all enterprise resources and users.
• In June 2022, HID Global, a trusted identity solutions leader, acquired ACURA, a Brazilian manufacturer and reseller of RFID hardware. This acquisition strengthens HID Global's RFID portfolio and presence in Latin America, adding operational capabilities and manufacturing facilities in Brazil. The addition of ACURA expands HID Global's offerings, providing customers in the region with a comprehensive and customizable RFID portfolio.

Global Passwordless Authentication Tools Market Segmentation:

Global Passwordless Authentication Tools Market Segmentation: By Component

• Hardware
• Software
• Services

The global market for passwordless authentication solutions is segmented into hardware, software, and services. Hardware examples include smart cards and biometric readers, while software encompasses identification software and platform solutions. Services include consulting, implementation, and maintenance. In 2022, the software sector is expected to dominate the market due to the increasing demand for platform solutions and easily integratable authentication software. The hardware market is also anticipated to grow significantly as more businesses and individuals adopt biometric identification techniques. Key industry players include Microsoft Corporation, Fujitsu Ltd., Broadcom Inc., IDEMIA, and HYPR Corp. The market is expanding in response to the growing demand for enhanced security and simplified identification procedures.

Global Passwordless Authentication Tools Market Segmentation: By Authentication Type

• Single Factor
• Multi-Factor

The market for passwordless authentication products is categorized into single-factor and multi-factor authentication types. Single-factor authentication includes biometric identity techniques such as fingerprint or facial recognition, while multi-factor authentication combines two or more authentication factors. By 2022, the multi-factor authentication market is projected to hold the largest share due to the rising demand for more secure login methods. As businesses and individuals prioritize security and streamline authentication procedures, the market is expected to expand further in the coming years.

Global Passwordless Authentication Tools Market Segmentation: By Mobility

• Fixed/Rack Mounted
• Mobile/Portable

The market for passwordless security tools is divided into fixed/rack-mounted and mobile/portable segments based on portability. In 2022, mobile/portable identification tools like smart cards and smartphones are expected to dominate the market. This is attributed to the increasing use of mobile devices for daily tasks and remote work. As businesses invest in securing their networks and data centers, the fixed/rack-mounted market is also anticipated to grow. Major industry players driving this growth include Microsoft Corporation, Fujitsu Ltd., Broadcom Inc., IDEMIA, and HYPR Corp. The market is expected to expand as businesses and individuals seek to enhance security and simplify authentication procedures.

Global Passwordless Authentication Tools Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

The global market for passwordless authentication tools is segmented into North America, Europe, Asia Pacific, the Middle East, and Latin America regions. North America is expected to hold the largest market share in 2022 due to the presence of significant players and early adoption of new technologies. Europe also holds a considerable portion of the market due to its status as a center of technical innovation and stringent data security laws. The Asia Pacific region is anticipated to experience significant development due to rising mobile device adoption and digitalization. As businesses implement cybersecurity measures, the Middle East and Latin America regions are also expected to expand. Major players in the market include Microsoft Corporation, Fujitsu Ltd., Broadcom Inc., IDEMIA, and HYPR Corp. The market is expected to expand globally as businesses and individuals seek to strengthen security in response to stricter data security and cybersecurity laws.

Global Passwordless Authentication Tools Market Key Players:

• HID Global
• NEC
• Microsoft
• Fujitsu
• Okta
• Duo Security
• Thales
• Beyond Identity
• Entrust
• Ping Identity
• Veridium
• OneLogin
• IBM
• Yubico
• IDEE
• HYPR
• EmpowerID
• Keyless
• Authentiq
• LogmeOnce