Passwordless Authentication Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Passwordless Authentication Market Size

Passwordless Authentication Market Trends & Growth Drivers

Adoption of Continuous Authentication Is Key Trend in Market

• Traditional, point-in-time authentication techniques are being replaced by more- dynamic approaches, such as continuous authentication, which is an emerging trend in the passwordless authentication market.
• This method provides enhanced security by quickly detecting whether an authenticated session that has been hijacked or if unapproved users have access.
• Also, it enhanced the user experience by removing the requirement for users to input their credentials many times throughout a session.
• It also involves behavioral biometrics, which uses distinctive behavioral patterns for authentication; and technology that analyzes trends and spots suspicious user activity.
• This technology will replace the binary approach to authentication—authenticated or not—with a more advanced, risk-based strategy that adapts dynamically to user behavior and circumstances.

Enhanced User Experience Is Major Driver for Market

• To acquire a competitive edge, businesses are concentrating on improving their user experience to gain a competitive advantage, since a reduction in log-in friction may persuade customers to choose one provider over another. Creating and remembering several passwords at once is also not practical.
• Users have the ease of not having to change forgotten passwords or frequently update them for security.
• Furthermore, the numerous passwordless sign-in techniques work the same across a variety of devices.
• Organizations also gets the advantage of rising productivity, as a result, less effort is devoted to problems with passwords.

Accessibility Concerns Is Major Challenge for Market

• In the context of passwordless authentication, accessibility refers to the development and application of authentication techniques that can be used by people with diverse abilities, such as those who have visual, auditory, motor, or cognitive limitations.
• There are accessibility issues with passwordless authentication, thus many developers and organizations need to make sure their systems are accessible to everyone, including those with disabilities.
• Accessible digital services are required by law in several countries, emphasizing the moral obligation to guarantee that all users have equal access to secure authentication.
• Passwordless authentication techniques such as voice recognition, fingerprint scanning, and facial identification may provide difficulties in loud settings, for individuals with dissimilar limbs or skin disorders, and because of variations in facial features.

Passwordless Authentication Market Analysis

Technology Insights

• The fingerprint authentication category will dominate the market by contributing 60% revenue in 2024.
• This is due to factors such as rise in identity threats, widespread use of fingerprint sensors for authentication in consumer electronics, increasing use of biometric authentication in government offices, and development of touchless fingerprint technology solutions.
• Furthermore, the category’s growth is enhanced by the efficient implementation of biometric time and attendance systems for evaluating work hours and employee productivity.
• Face recognition is expected to witness a CAGR of 28% in 2025−2032.
• Increasingly, border officials are using face recognition, particularly at airports, to confirm travelers' identities.
• Smartphones are another device where this technology is frequently utilized; here, it is employed for functions including payment verification, app log-ins, and phone unlocking.

The technologies covered in the report include:

• Fingerprint Authentication (Largest Category)
• Face Recognition (Fastest-Growing Category)
• Iris Recognition
• Others

Offering Insights

• The hardware category will dominate the market, by contributing 55% revenue in 2024.
• A range of hardware allows users to carry out multi-factor authentication using cryptographically secure devices.
• This includes smart cards, tokens, wristbands, key fobs, biometric systems, and mobile solutions.
• Hardware utilized in passwordless authentication includes wristbands, smart cards, tokens, biometric systems, and mobile solutions.
• The software category is expected to witness a CAGR of 30% from 2025 to 2032.
• Software for passwordless authentication include Thales' SafeNet Authentication Client, Fujitsu's AuthConductor, and IBM Security Verification Software.
• Authentication software is used by companies to protect their business and consumer data in workstations, mainframe computers, data servers, Wi-Fi routers, and facility doors.

The following offerings are included in the report:

• Hardware (Largest Category)
• Software (Fastest-Growing Category)
• Services

Industry Insights

• The BFSI category will dominate the market by contributing 40% revenue in 2024, and it is expected to witness a CAGR of 29% from 2025 to 2032.
• The financial institutions can improve their passwordless authentication techniques by granting users access to more formerly password-protected data.
• This enhancement will offer higher output per employee as well as more-widespread access.
• The increasing consumer demand for seamless and secure digital experiences is also fueling the growth of this category.

The following industries are included in the report:

• BFSI (Largest and Fastest-Growing Category)
• IT and ITeS
• Government and Law Enforcement
• Manufacturing
• Retail and Consumer Electronics
• Travel and Hospitality
• Others

Regional Analysis

• The North American region will acquire the largest market share, of 40%, in 2024.
• This is due to the presence of major solution providers, the high adoption of advanced technologies, and the large number of high-profile data breaches.
• Organizations in this region prioritize both security and user convenience, making it likely that this authentication technique will become increasingly prevalent across various sectors in North America.
• The Asia-Pacific region is expected to become the fastest-growing market, with a CAGR of 30%, in 2025−2032. This is due to the rising adoption of cloud-based services, increasing digitalization across various sectors, and growing awareness of cybersecurity threats.
• Moreover, the development of mobile authentication and biometric technologies has made authentication more accessible and practical for companies operating in the APAC.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • U.A.E. (Largest and Fastest-Growing Country Market)
  • Rest of MEA

Passwordless Authentication Market Share

This market is fragmented in nature due to the presence of various key players, including HID Global Corporation, NEC Corporation, Fujitsu Limited, and Okta Inc. Major market players—such as large tech firms, specialized passwordless authentication providers, and emerging startups—are engaging in strategic mergers, acquisitions, joint ventures, partnerships, and expansions to secure their long-term position in the market.

Passwordless Authentication Market News

• In May 2024, Cisco Systems Inc. announced a passwordless authentication solution for Windows Logon. It offers a single sign-on experience, fixing security flaws in conventional login techniques and improving cybersecurity in general.
• In April 2024, Center Identity launched patented passwordless authentication solutions for businesses to manage their workforce’s digital identity securely.
• In March 2024, Infisign Inc. launched a passwordless solution for Oracle EBS, PeopleSoft, and NetSuite. This eliminates the risk of password theft and reduces the burden of password management for users.
• In January 2024, OneSpan Inc. introduced DIGIPASS FX1 BIO devices, which address the challenges of hybrid work environments with their phishing-resistant, passwordless authentication technology.