The FIDO authentication solutions revenue totalled ~US$ 849.6 Mn in 2020, according to Future Market Insights (FMI). The overall market is expected to reach ~US$ 8.0 Bn by 2031, growing at a CAGR of 22.8% for 2021 – 31.
The demand for FIDO authentication solutions will continue accelerating, increasing competition prevalent in the market. FMI has forecast the top 5 providers to account for around 69.4% of total market in 2020.
FIDO Authentication helps businesses in addressing the need for secure application without compromising user convenience. With the use of FIDO authentication solutions and services, organizations can eliminate the weak links in the authentication chain such as traditional passwords and offer enhanced security and customer experience by password less authentication.
The report also forecasts that the market will surpass a valuation of ~US$ 1.0 Bn by the end of 2021. As per FMI, rapid technological advancements in the IT & telecom industry have created prospects for FIDO authentication solutions. These technologies have become essential in improving economic competitiveness, thereby propelling the market growth.
“Passwordless security solutions are gaining impetus due to the COVID-19 outbreak, as these solutions are designed to securely, affordably, and quickly fill existing security gaps while supporting remote workers for all organizations globally. Advancements in production and management systems have revolutionized several industries in various developed and developing regions. The FIDO U2F security key holds potential for taking cryptocurrency to the masses” says FMI analyst.
Rapid Shift towards Passwordless Authentication
Passwordless authentication aims to eliminate the use of passwords, passphrases, and other shared secrets in authentication when verifying users and authorizing payments. 2020 brought a sharp increase in attacks on systems using legacy and password based multi-factor authentication (MFA).
Key Takeaways: FIDO Authentication Market
• By solution segment, the FIDO U2F Authentication Devices (Security Keys) segment is anticipated to account for the leading share in the global demand for FIDO authentication during the forecast period. The segment estimated to grow at a robust CAGR of 22.4% through 2031.
• The adoption of FIDO authentication solutions in PKI/credential management is expected to rise at maximum pace with a significant CAGR of 26.7% between 2021 & 2031.
• Demand for FIDO authentication in IT & Telecom and BFSI sector is estimated to grow at impressive CAGRs. Of these, BFSI industry is expected to account for leading share in FIDO authentication sales forecast during the forecast period.
• North America is expected to lead the market followed by Europe in 2021. South Asia & Pacific is anticipated to emerge as the fastest growing region between 2021 & 2031.
• The market in Japan is expected to progress at a CAGR of 28.5% through 2031.
• In the U.K., sales are expected to increase at a CAGR of close to 23% over the next ten years.
COVID-19 Impact Analysis on FIDO Authentication Market
While ensuring employee safety and business continuity remained paramount, public companies were simultaneously challenged by a sudden decline in consumer demand, a continuing halt or reduction in onsite activities, and global supply chain issues, which began in China shortly before impacting services in Europe and the Americas regions.
Owing to this, most of the leading players in the FIDO authentication technology are coming with advanced and innovative solutions that meets the ever-changing demand from organizations for advanced security and privacy concerns.
Some of the leading companies in this landscape are Aware, Inc., OneSpan, HYPR Corp, Yubico, Daon, and RSA Security LLC among others. As per Future Market Insight, nearly 70%-72% of the market share is currently covered by the top 15 players.