The global passwordless authentication market is projected to expand at a compound annual growth rate of 18.2% between 2022 and 2030, according to industry analyst Grand View Research.
In addition, Grand View is predicting this market could be worth $55.7 billion by 2030.
What's Driving Market Growth?
Grand View indicated that several factors could drive the passwordless authentication market's growth, including:
- Increasing adoption of smartphones and other electronic gadgets and rising need for biometric authentication to secure these devices
- Many organizations requiring or planning to require an additional layer of protection beyond passwords to authenticate end-user identities
- The push to use biometric technology to reduce fraud exposure and lower authentication costs among global organizations
Fingerprint recognition, facial recognition and other forms of passwordless authentication provide various benefits to organizations of all sizes and across a variety of industries, Grand View pointed out. These benefits include:
- Increased security and accountability
- Convenient and easy to use
- Non-transferable nature of passwordless authentication factors
As the demand for passwordless authentication grows, there may be more investments than ever before in this market, too.
1Password Acquires Passage, CISA Promotes Passwordless Security
Password management company 1Password in November 2022 acquired passwordless authentication provider Passage for an undisclosed sum. Together, 1Password and Passage are creating a passwordless authentication platform that could drive adoption of passkeys, the companies said. The platform is expected to be released in beta mode in early 2023.
Previously, Jen Easterly, director of the Cybersecurity & Infrastructure Security Agency (CISA), in October 2022 encouraged Americans to utilize multi-factor authentication (MFA) and other forms of passwordless security. Easterly also urged technology providers to lead the charge to teach people about passwordless authentication and its benefits.
MSSPs can play a key role in delivering passwordless authentication to global organizations. In addition to adopting passwordless authentication, MSSPs can provide security solutions that empower organizations to utilize it now and in the future.