Report Overview

Global Two-Factor Authentication Market- Industry Trends & Forecast Report 2027

Global two-factor authentication market was worth USD 4.8 billion in 2020 and is further projected to reach USD 14.5 billion by the year 2027, growing at a CAGR of 17.2% in the forecast period. The industry is growing at a rapid pace as a result of new online payment platforms such as PayPal, Stripe, and others, as well as an increase in cybercrime cases worldwide. Furthermore, the weak nature of passwords, as well as the annoyance related to password generation and use, is propelling the worldwide two-factor authentication market forward.

Source: BlueWeave Consulting

Global Two-Factor Authentication Market- Overview

Two-factor authentication or 2FA or two-step verification is an add-on step during the sign-in or log-in step. This may refer to the commonly used methods of sending a code or a fingerprint scan verifying your identity and protecting you from cyber attackers. Using two-factor authentication, you can overcome the weaknesses of passwords without the hassle of creating or remembering them. In addition to reducing fraud and data theft cases, two-factor authentication is also crucial for establishing secure online relationships. Global Two-Factor Authentication Market Forecast and Trends.

Growth Drivers

Rising Volume of Online Transactions

According to The Nilson Report, around 1.01 billion credit card transactions occur every day around the world. Adding online payment platforms such as PayPal and debit card transactions will further increase this number. The large number of transactions made via the Internet and Internet banking makes this a popular target for hackers looking for critical information. Therefore, financial institutions and online payment applications are increasingly adopting two-factor authentication to protect their clients from phishing and fraud during transactions. This factor is expected to influence the global two-factor authentication market significantly.

Increasing Cases of Cyber Crime Activities

According to a report conducted by McAfee and the Center for Strategic and International Studies in partnership, cybercrime costs around USD 1trillion to the world’s economy, which is a little more than 1% of the global GDP. This loss is projected to jump even higher during the COVID-19 pandemic as the hackers receive new opportunities to attack businesses and organizations working remotely through online networks.Therefore, the government is issuing various stringent regulations for industries to adopt strict internal controls for safeguarding their customer’s financial information.

Restraints

Lack of Proper Security and Vulnerability

Even though two-factor authentication might increase security, it is far from perfect, and malicious acts are still possible. A lack of thorough security scans is to blame for the extensive abundance of malicious apps on Google Play and the Apple App Store. Consequently, you can successfully secure the applications with the OTP that you enter. Additionally, all forms of MFA (Multi-Factor Authentication), especially SMS-based MFA, can be easily hacked. Thus, if hackers are interested in the information, they will invest more effort into breaking the 2FA system. This may act as a major restraining factor for market growth.

Impact of COVID-19 on Global Two-Factor Authentication Market

In the wake of COVID-19, the global market for two-factor authentication grew tremendously. The boom in this market is due to the increasing dependence on the internet, leading to a rise in cybercrimes during the lockdown phase. With major shifts towards remote working and rapid deployment of remote systems and networks, the cyber security attacks have shifted from individuals to corporations, government and public organizations, such as healthcare. These organizations are more vulnerable to data theft. As a result, businesses and corporations are investing in two-factor authentication (2FA) to safeguard their systems and protect their users from potential data theft.

Global Two-Factor Authentication Market - By Type

Based on type, the global two-factor authentication market is segmented into one-time password (OTP) and public key infrastructure (PKI). The one-time password (OTP) holds the largest market share. OTPs are unique and automatically generated passwords that can only be used once. This method of authentication is extremely safe because the SMS is only transmitted to the linked mobile number. Moreover, the password changes every time, and it can only be used only once. This offers an extra layer of protection and protects users from intrusive attacks.

Global Two-Factor Authentication Market - By Model

Based on models, the global two-factor authentication market is categorized into smart cards with PIN, one-time passwords with PIN, biometric technology with PIN, smart cards with biometric technology, and others. The smart card with PIN segment holds the highest market share and is also projected to witness the highest CAGR during the forecast period as well. It is gaining huge popularity in the two-factor authentication market as it acts like a portable, personal security device. Debit/credit cards are one of the most prominently used smart cards that make millions of transactions securely every day.

Global Two-Factor Authentication Market - Regional Insights

Geographically, the global two-factor authentication market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. North America accounts for the largest share in the global two-factor authentication market because of the strong data security infrastructure and stringent government regulations regarding the use of multi-factor authentication for cyber security purposes. For instance, in the USA, financial organizations that process and store card payment information have to comply with PCI-DSS and offer two authentication factors to ensure their customer’s security.

Competitive Landscape

The leading players in the global two-factor authentication market are Gemalto NV, Fujitsu Ltd., Suprema Inc., OneSpan Inc., NEC CORPORATION, Symantec Corporation, RSA Security LLC, IDEMIA, HID Global Corporation, CA Inc., Google LLC, Entrust, SecurEnvoy, VASCO Data Security International, OneLogin, LastPass, Okta, Ping Identity, Auth0, and other prominent players.

The market is highly competitive and consolidated with the presence of leading global and regional industry participants. To minimize the risk of security breaches, these companies heavily invest in new technologies and infrastructure to improve their security level. Moreover, competitive strategies such as partnerships, mergers, acquisitions, and collaborations are also very prominent in this market to maximize resources and skills. For instance, Stellar Cyber recently announced their distribution partnership with Pentium Co., Ltd., for reselling of former’s security operation platforms.

Recent Developments

• In August 2021, CEQUENS, an Egyptian Communication Platform as a Service (CPaaS) provider, announced the launch of its new product, 'Verify.'Any company can use the solution to verify online identities and protect online accounts using two-factor authentication.

• In August 2021, Google confirmed that the YouTube creators would be required to use 2-step verification to access YouTube Studio to access key functions.

Scope of the Report

By Type

• One Time Password (OTP)

• Public Key Infrastructure (PKI)

By Model

• Smart Card with PIN

• One Time Password with PIN

• Biometric Technology with PIN

• Smart Card with Biometric Technology

• Others

By Technology

• OTP Authenticators

• PKI Authenticators

• Physical & Logical Access Control

• Out-Of-Band Authenticators

• Mobile PKI Office Suite

• Others

By End-User

• Banking and Finance

• Government, Military & Defense

• Commercial Security

• Travel & Immigration

• Healthcare

• Consumer Electronics

• Aerospace

• Others

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Rising Volume of Online Transactions
         2. Increasing Cases of Cyber Crime Activities
      2. Market Restraints
         1. Lack of Proper Security and Vulnerability
      3. Market Challenges
         1. Negative Influence of the COVID-19
      4. Market Opportunity
         1. Inconvenience of Carrying Hardware Tokens and Vulnerability to Threats
         2. Cost and Complexity of Implementing Two-Factor Authentication
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Global Two-Factor Authentication Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Type
         1. One Time Password (OTP)
         2. Public Key Infrastructure (PKI)
      2. By Model
         1. Smart Card with PIN
         2. One Time Password with PIN
         3. Biometric Technology with PIN
         4. Smart Card with Biometric Technology
         5. Others
      3. By Technology
         1. OTP Authenticators
         2. PKI Authenticators
         3. Physical & Logical Access Control
         4. Out-Of-Band Authenticators
         5. Mobile PKI Office Suite
         6. Others
      4. By End-User
         1. Banking and Finance
         2. Government, Military & Defense
         3. Commercial Security
         4. Travel & Immigration
         5. Healthcare
         6. Consumer Electronics
         7. Aerospace
         8. Others
      5. By Region
         1. North America
         2. Europe
         3. Asia-Pacific
         4. Latin America
         5. Middle East &Africa
6. North America Two-Factor Authentication Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2020-2027
   2. Market Share and Forecast
      1. By Type
      2. By Model
      3. By Technology
      4. By End-User
      5. By Country
         1. U.S.
         2. Canada
7. Europe Two-Factor Authentication Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2020-2027
   2. Market Share and Forecast
      1. By Type
      2. By Model
      3. By Technology
      4. By End-User
      5. By Country
         1. Germany
         2. U.K.
         3. Russia
         4. France
         5. Italy
         6. Spain
         7. Rest of Europe
8. APAC Two-Factor Authentication Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2020-2027
   2. Market Share and Forecast
      1. By Type
      2. By Model
      3. By Technology
      4. By End-User
      5. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Rest of APAC
9. LATAM Two-Factor Authentication Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2020-2027
   2. Market Share and Forecast
      1. By Type
      2. By Model
      3. By Technology
      4. By End-User
      5. By Country
         1. Mexico
         2. Brazil
         3. Rest of LATAM
10.  MEA Two-Factor Authentication Market Overview
    1. Market Size and Forecast
       1. By Value (USD Billion), 2020-2027
    2. Market Share and Forecast
    3. By Type
    4. By Model
    5. By Technology
    6. By End-User
    7. By Country
       1. Saudi Arabia
       2. UAE
       3. South Africa
       4. Rest of MEA
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
12. Impact of COVID-19 on Global Two-Factor Authentication Market
13. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Gemalto NV
    2. Fujitsu Ltd.
    3. Suprema Inc.
    4. OneSpan Inc.
    5. NEC CORPORATION
    6. Symantec Corporation
    7. RSA Security LLC
    8. IDEMIA
    9. HID Global Corporation
    10. CA Inc.
    11. Google LLC
    12. Entrust
    13. SecurEnvoy
    14. VASCO Data Security International
    15. OneLogin
    16. LastPass
    17. Okta
    18. Ping Identity
    19. Auth0
    20. Other Prominent Players
14. Key Strategic Recommendations

List of Figures

Figure 1: Global Two-Factor Authentication Market Segmentation

Figure 2: Global Two-Factor Authentication Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: Global Two-Factor Authentication Market Size, By Value (USD Billion), 2017-2027

Figure 5: Global Two-Factor Authentication Market Share (%), By Type, By Value, 2017-2027

Figure 6: Global Two-Factor Authentication Market Share (%), By Model, By Value, 2017-2027

Figure 7: Global Two-Factor Authentication Market Share (%), By Technology, By Value, 2017-2027

Figure 8: Global Two-Factor Authentication Market Share (%), By End-User, By Value, 2017-2027

Figure 9: Global Two-Factor Authentication Market Share (%), By Region, By Value, 2017-2027

Figure 10: North America Two-Factor Authentication Market Size, By Value (USD Billion), 2017-2027

Figure 11: North America Two-Factor Authentication Market Share (%), By Type, By Value, 2017-2027

Figure 12: North America Two-Factor Authentication Market Share (%), By Model, By Value, 2017-2027

Figure 13: North America Two-Factor Authentication Market Share (%), By Technology, By Value, 2017-2027

Figure 14: North America Two-Factor Authentication Market Share (%), By End-User, By Value, 2017-2027

Figure 15: North America Two-Factor Authentication Market Share (%), By Country, By Value, 2017-2027

Figure 16: Europe Two-Factor Authentication Market Size, By Value (USD Billion), 2017-2027

Figure 17: Europe Two-Factor Authentication Market Share (%), By Type, By Value, 2017-2027

Figure 18: Europe Two-Factor Authentication Market Share (%), By Model, By Value, 2017-2027

Figure 19: Europe Two-Factor Authentication Market Share (%), By Technology, By Value, 2017-2027

Figure 20: Europe Two-Factor Authentication Market Share (%), by End-User, By Value, 2017-2027

Figure 21: Europe Two-Factor Authentication Market Share (%), By Country, By Value, 2017-2027

Figure 22: Asia-Pacific Two-Factor Authentication Market Size, By Value (USD Billion), 2017-2027

Figure 23: Asia-Pacific Two-Factor Authentication Market Share (%), By Type, By Value, 2017-2027

Figure 24: Asia-Pacific Two-Factor Authentication Market Share (%), By Model, By Value, 2017-2027

Figure 25: Asia-Pacific Two-Factor Authentication Market Share (%), By Technology, By Value, 2017-2027

Figure 26: Asia-Pacific Two-Factor Authentication Market Share (%), By End-User, By Value, 2017-2027

Figure 27: Asia-Pacific Two-Factor Authentication Market Share (%), By Country, By Value, 2017-2027

Figure 28: Latin America Two-Factor Authentication Market Size, By Value (USD Billion), 2017-2027

Figure 29: Latin America Two-Factor Authentication Market Share (%), By Type, By Value, 2017-2027

Figure 30: Latin America Two-Factor Authentication Market Share (%), By Model, By Value, 2017-2027

Figure 31: Latin America Two-Factor Authentication Market Share (%), By Technology, By Value, 2017-2027

Figure 32: Latin America Two-Factor Authentication Market Share (%), By End-User, By Value, 2017-2027

Figure 33: Latin America Two-Factor Authentication Market Share (%), By Country, By Value, 2017-2027

Figure 34: Middle East & Africa Two-Factor Authentication Market Size, By Value (USD Billion), 2017-2027

Figure 35: Middle East & Africa Two-Factor Authentication Market Share (%), By Type, By Value, 2017-2027

Figure 36: Middle East & Africa Two-Factor Authentication Market Share (%), By Model, By Value, 2017-2027

Figure 37: Middle East & Africa Two-Factor Authentication Market Share (%), By Technology, By Value, 2017-2027

Figure 38: Middle East & Africa Two-Factor Authentication Market Share (%), By End-User, By Value, 2017-2027

Figure 39: Middle East & Africa Two-Factor Authentication Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: Global Two-Factor Authentication Market Size, By Type, By Value, 2017-2027

Table 2: Global Two-Factor Authentication Market Size, By Model, By Value (USD Billion), 2017-2027

Table 3: Global Two-Factor Authentication Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 4: Global Two-Factor Authentication Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 5: Global Two-Factor Authentication Market Size, By Region, By Value (USD Billion), 2017-2027

Table 6: North America Two-Factor Authentication Market Size, By Type, By Value (USD Billion), 2017-2027

Table 7: North America Two-Factor Authentication Market Size, By Model, By Value (USD Billion), 2017-2027

Table 8: North America Two-Factor Authentication Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 9: North America Two-Factor Authentication Market Size, By End-User, By Value (USD Billion), 2017-2027,

Table 10: Europe Two-Factor Authentication Market Size, By Type, By Value (USD Billion), 2017-2027

Table 11: Europe Two-Factor Authentication Market Size, By Model, By Value (USD Billion), 2017-2027

Table 12: Europe Two-Factor Authentication Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 13: Europe Two-Factor Authentication Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 14: the Asia-Pacific Two-Factor Authentication Market Size, By Type, By Value (USD Billion), 2017-2027

Table 15: the Asia-Pacific Two-Factor Authentication Market Size, By Model, By Value (USD Billion), 2017-2027

Table 16: the Asia-Pacific Two-Factor Authentication Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 17: the Asia-Pacific Two-Factor Authentication Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 18: Latin America Two-Factor Authentication Market Size, By Type, By Value (USD Billion), 2017-2027

Table 19: Latin America Two-Factor Authentication Market Size, By Model, By Value (USD Billion), 2017-2027

Table 20: Latin America Two-Factor Authentication Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 21: Latin America Two-Factor Authentication Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 22: The Middle-East & Africa Two-Factor Authentication Market Size, By Type, By Value (USD Billion), 2017-2027

Table 23: The Middle-East & Africa Two-Factor Authentication Market Size, By Model, By Value (USD Billion), 2017-2027

Table 24: The Middle-East & Africa Two-Factor Authentication Market Size, By Technology, By Value (USD Billion), 2017-2027

Table 25: The Middle-East & Africa Two-Factor Authentication Market Size, By End-User, By Value (USD Billion), 2017-2027

Table 26: Gemalto NV Financial Analysis

Table 27: Gemalto NV Business Overview

Table 28: Fujitsu Ltd. Financial Analysis

Table 29: Fujitsu Ltd.Business Overview

Table 30: Suprema Inc. Corporation Financial Analysis

Table 31: Suprema Inc. Corporation Business Overview

Table 32: OneSpan Inc.Financial Analysis

Table 33: OneSpan Inc.Business Overview

Table 34: NEC CORPORATIONFinancial Analysis

Table 35: NEC CORPORATIONBusiness Overview

Table 36: Symantec Corporation Financial Analysis

Table 37: Symantec Corporation Business Overview

Table 38: RSA Security LLC Financial Analysis

Table 39: RSA Security LLC Business Overview

Table 40: IDEMIA Financial Analysis

Table 41:IDEMIA Business Overview

Table 42: HID Global CorporationFinancial Analysis

Table 43: HID Global CorporationBusiness Overview

Table 44: CA Inc.Financial Analysis

Table 45: CA Inc. Business Overview

Table 46: Google LLCFinancial Analysis

Table 47: Google LLC Financial Analysis

Table 48: Entrust Financial Analysis

Table 49: Entrust Business Overview

Table 50:SecurEnvoyFinancial Analysis

Table 51:SecurEnvoyBusiness Overview

Table 52:VASCO Data Security InternationalFinancial Analysis

Table 53:VASCO Data Security InternationalBusiness Overview

Table 54:OneLoginFinancial Analysis

Table 55:OneLoginBusiness Overview

Table 56:LastPassFinancial Analysis

Table 57:LastPassBusiness Overview

Table 58:OktaFinancial Analysis

Table 59:OktaBusiness Overview

Table 60:Ping Identity Financial Analysis

Table 61:Ping Identity Business Overview

Table 62:Auth0Financial Analysis

Table 63:Auth0Business Overvie