Passwordless authentication is an approach to user authentication that eliminates the need for traditional passwords, replacing them with alternative methods of verifying a user’s identity. This authentication method aims to enhance security, user experience, and convenience by leveraging various authentication factors other than passwords.

Biometric authentication utilizes unique physical characteristics of individuals, such as fingerprints, facial features, iris patterns, or voiceprints, to verify their identity. Biometric data is captured and compared against stored templates to grant access without the need for passwords. Benefits of passwordless authentication include enhanced security, as passwords are susceptible to various security risks such as phishing, credential stuffing, and password reuse. Passwordless methods also improve user experience by reducing friction during the authentication process, eliminating the need to remember complex passwords, and offering more convenient and intuitive authentication options. Additionally, passwordless authentication aligns with modern security best practices and regulatory requirements, making it an attractive option for organizations seeking to enhance security and usability in their authentication workflows.

In terms of revenue, the global passwordless authentication market was worth US$ 13.2 Bn in 2023, anticipated to witness CAGR of 12.8% During 2024 – 2034.

Trends in the Global Passwordless Authentication Market

• Rise of Biometric Authentication: Biometric authentication methods, such as fingerprint recognition, facial recognition, iris scanning, and voice recognition, are increasingly being adopted as passwordless authentication solutions. The proliferation of biometric sensors in smartphones and other devices, along with advancements in biometric algorithms and security, is driving the growth of biometric authentication in various industries.
• Expansion of FIDO Standards: The adoption of FIDO (Fast Identity Online) standards, including FIDO2 and WebAuthn, is gaining momentum across the industry. These standards provide a framework for passwordless authentication using public key cryptography and enable interoperability between different authentication methods and devices. Organizations are leveraging FIDO-compliant solutions to enhance security and user experience in their authentication processes.
• Integration with Identity and Access Management (IAM) Solutions: Passwordless authentication is increasingly being integrated with IAM platforms to provide centralized identity management and authentication capabilities. IAM solutions offer features such as single sign-on (SSO), multi-factor authentication (MFA), and identity governance, which complement passwordless authentication and enhance overall security posture.

Mobile/Portable segment has garnered major market share in the global passwordless authentication market in 2023.

Passwordless authentication methods, such as biometrics (e.g., fingerprint, facial recognition) and push notifications, offer a seamless and user-friendly authentication experience on mobile devices. Unlike traditional password-based authentication, which can be cumbersome and error-prone, passwordless methods eliminate the need for users to remember complex passwords and input them manually. This improved user experience enhances customer satisfaction and encourages adoption of mobile passwordless authentication solutions.

Regulatory frameworks such as GDPR, PSD2, and CCPA mandate strong authentication measures to protect user data and privacy, especially in mobile applications that handle sensitive information. Passwordless authentication methods help organizations comply with regulatory requirements by reducing reliance on passwords, which are often targeted in cyberattacks. Mobile passwordless authentication solutions that meet regulatory standards for security and privacy are in high demand among organizations.

Hardware segment had the highest share in the global Passwordless Authentication Market in 2023.

Hardware-based authentication solutions, such as security keys and smart cards, offer a higher level of security compared to traditional password-based methods. These hardware devices store cryptographic keys or biometric data locally, reducing the risk of credential theft, phishing attacks, and unauthorized access. As organizations prioritize security in their authentication processes, there is a growing demand for hardware-based solutions that provide robust protection against cyber threats.

Ongoing advancements in hardware technology, such as the miniaturization of security keys, the integration of biometric sensors, and the development of tamper-resistant hardware, drive innovation in the passwordless authentication market. Manufacturers continuously improve the design, performance, and functionality of hardware-based authentication devices to meet the evolving needs of organizations and end-users. These technological advancements enhance the reliability, usability, and security of hardware-based passwordless authentication solutions, driving adoption in diverse industries and use cases.

By End Use Industry government industry segment had the highest share in the global Passwordless Authentication Market in 2023.

Government agencies manage sensitive information and critical infrastructure that are prime targets for cyberattacks. Traditional password-based authentication methods are vulnerable to various security threats such as phishing, credential theft, and brute-force attacks. Passwordless authentication solutions, which leverage biometric data, cryptographic keys, or other authentication factors, offer enhanced security and protection against unauthorized access. Government agencies prioritize security and are increasingly adopting passwordless authentication to safeguard sensitive data and critical systems from cyber threats.

Government agencies are subject to strict regulatory frameworks and compliance standards related to data security, privacy, and access control. Regulations such as FISMA (Federal Information Security Management Act), NIST SP 800-63, and GDPR (General Data Protection Regulation) mandate strong authentication measures to protect sensitive information and ensure privacy rights. Passwordless authentication solutions enable government agencies to comply with regulatory requirements by offering multi-factor authentication (MFA) capabilities that enhance security and mitigate the risk of data breaches. Compliance with industry standards and regulations is a key driver for the adoption of passwordless authentication in the government sector.

North American organizations must comply with various regulatory frameworks and industry standards related to data security and privacy.

Regulations such as HIPAA (Health Insurance Portability and Accountability Act), PCI DSS (Payment Card Industry Data Security Standard), and NIST SP 800-63 mandate strong authentication measures to protect sensitive information and ensure privacy rights. Passwordless authentication solutions help organizations meet regulatory requirements by offering multi-factor authentication (MFA) capabilities that enhance security and reduce the risk of data breaches.

Compliance with regulatory standards drives the adoption of passwordless authentication across industries in North America. With the increasing frequency and sophistication of cyberattacks, organizations in North America are prioritizing cybersecurity measures to protect sensitive data and mitigate risks. Traditional password-based authentication methods are prone to vulnerabilities such as phishing, credential theft, and brute-force attacks. Passwordless authentication solutions offer a more secure alternative by leveraging biometric data, cryptographic keys, or other authentication factors to verify user identities without relying on passwords. As organizations seek robust cybersecurity solutions, the demand for passwordless authentication is on the rise in North America.

Competitive Landscape: Global Passwordless Authentication Market are

• Beyond Identity
• DUO Security
• Entrust
• Fujitsu
• HID Global
• IBM
• Microsoft
• NEC
• OKTA
• OneLogin
• Thales
• Veridium
• Other Industry Participants

Global Passwordless Authentication Market Scope

 Global Passwordless Authentication Market

By Offering

• Hardware
• Software
• Services

By Authentication Type

• Single-factor authentication
• Multi-factor authentication

By Mobility

• Mobile/ Portable
• Fixed

By Technology

• Fingerprint or Thumbprint Authentication
• Authentication Using Face Recognition
• Challenge Response Authentication Mechanism
• Others

By End Use Industry

• Healthcare
• Banking, financial services and insurance (BFSI)
• IT and Telecom
• Retail and Consumer Electronics
• Government
• Manufacturing
• Transportation and Logistics
• Others

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

 Report Representation:

Table of Contents

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**Exclusive for Multi-User and Enterprise User.

Global Passwordless Authentication Market

By Offering

• Hardware
• Software
• Services

By Authentication Type

• Single-factor authentication
• Multi-factor authentication

By Mobility

• Mobile/ Portable
• Fixed

By Technology

• Fingerprint or Thumbprint Authentication
• Authentication Using Face Recognition
• Challenge Response Authentication Mechanism
• Others

By End Use Industry

• Healthcare
• Banking, financial services and insurance (BFSI)
• IT and Telecom
• Retail and Consumer Electronics
• Government
• Manufacturing
• Transportation and Logistics
• Others

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

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