Passwordless Authentication Market to Surpass Valuation of US$ 8,944.3 Million By 2033 | Fingerprint to Remain Top Segment with Growing Adoption of Smartphones Says Astute Analytica

Growing enterprise reliance on biometric and token-based authentication propels the passwordless market forward. Providers innovate frictionless FIDO2/WebAuthn solutions, boosting collaboration between fintech, retail, and the public sector, while unresolved interoperability hinders the seamless global rollout of passkey technologies.

New Delhi, Jan. 13, 2025 (GLOBE NEWSWIRE) — The global passwordless authentication market was valued at US$ 923.3 million in 2024 and is projected to reach US$ 8,944.3 million by 2033 at a CAGR of 28.7% during the forecast period 2025–2033.

The global passwordless authentication market is witnessing robust engagement from established tech providers, financial institutions, and security specialists. Enterprises are striving to eliminate reliance on traditional passphrases in pursuit of simpler and less vulnerable login experiences. Microsoft reported 2 million monthly passwordless sign-ins through Windows Hello in early 2023, reflecting profound interest in seamless user access. In parallel, Apple strengthened its presence by introducing five brand-new passkey integrations with top United States banks. This deepening commitment to keyless security methods is anchored by rising demand for biometric solutions, where fingerprint authentication takes center stage. IBM identified seven significant cross-industry alliances formed in 2023 to bolster adoption of biometrics-based sign-in, amplifying the traction of single factor authentication as a straightforward yet effective security model. End users, particularly in banking, financial services, and insurance (BFSI), stand out for their rigorous data protection standards and wide-scale transactions. Yubico revealed distributing one million hardware keys specifically to BFSI institutions in the same year, underscoring how critical these solutions are for building consumer trust. Companies across North America and Europe continue to roll out pilot projects, with 1,500 BFSI institutions launching advanced passwordless solutions globally to address persistent fraud threats and cultivate smoother operations.

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Rapid expansions of the passwordless authentication market also extend to Asia and the Middle East, regions that security vendors consider ripe for adoption. Google oversaw nine expansions of FIDO2-compliant solutions across major digital banking platforms from Japan to the United Arab Emirates, demonstrating the widespread appetite for frictionless logins. At the same time, Auth0 tracked an average of eight million global biometric logins monthly, reflecting how swiftly consumers and businesses are embracing face scans, fingerprint matches, and hardware keys. According to RSA’s 2023 data, 25 new enterprise clients embraced token-based methods to quash vulnerabilities tied to public Wi-Fi usage and phishing attempts. Meanwhile, FIDO Alliance membership grew to 800 organizations, with 120 additions during 2023 alone, reinforcing the collective impetus behind fluid authentication practices. As a result, single factor authentication architectures, championed by end users in BFSI and beyond, continue to reinforce how passwordless mechanisms can solve critical security hurdles and enhance operational efficiency.

Key Findings in Passwordless Authentication Market

Market Forecast (2033) US$ 8,944.3 million
CAGR 28.7%
Top Drivers
  • Increased adoption of frictionless FIDO2 protocols across digital banking solutions
  • Rising demand from retail platforms integrating biometric-based identity verification systems
  • Enhanced user readiness fueled by smartphone-based authentication across secure transactions
Top Trends
  • Emergence of unified passkey solutions leveraging FIDO2 and WebAuthn protocols
  • Growing collaboration between hardware token producers and enterprise security providers
  • Widespread integration of AI-driven face recognition in consumer authentication systems
Top Challenges
  • Absence of globally accepted testing frameworks hindering interoperability among solutions
  • Lack of unified guidelines across industries restricting large-scale passkey adoption
  • Limited user education leading to misconceptions about biometric data security

Prominent Product Offerings Elevating Fingerprint Authentication To A Leadership Position Globally

Fingerprint authentication in 2024 commands enormous attention in the passwordless authentication market due to its intuitive design and proven reliability. Apple introduced 12 new models of Touch ID sensors tailored for heightened sensitivity on MacBooks and iPads, catering to professionals who manage large data volumes across finance and healthcare. Samsung, recognizing the demand for rapid sign-ins in online banking, launched 18 smartphone models with upgraded ultrasonic fingerprint readers that can handle multiple users on a single device. Qualcomm responded to these trends by shipping 250 million fingerprint scanning chipsets, which power a wide range of consumer electronics seeking uncomplicated authentication methods. Goodix, a leading provider of in-display fingerprint sensors, doubled its optical sensor shipments from five million to ten million units to handle surging requests from emerging nations. Synaptics, meanwhile, reported collaborating with 40 top BFSI clients to integrate embedded fingerprint modules into bank-issued portable devices, ensuring corporate platforms benefit from a straightforward sign-in.

The escalation of fingerprint technology in the global passwordless authentication market resonates especially with everyday users who crave immediate and foolproof access to apps and financial portals. Biometric innovations are driving a spike in second-generation scanners, enabling faster identification without compromising security. In 2024, three major automobile manufacturers also integrated custom fingerprint ignition systems to align with the rising trend of keyless setups, reflecting how this modality has transcended traditional phone or laptop use. Fingerprint authentication’s reliability spans a range of end-user applications, from high-frequency fintech solutions to streamlined corporate workflows. These product breakthroughs, together with consistent user acceptance, fortify fingerprint authentication as the foremost choice in passwordless implementations, emphasizing practicality and confidence for professionals and everyday consumers alike.

Single Factor Authentication Stands Resolute As An Unrivaled Industry Forefront Contender

Single factor authentication remains a cornerstone approach in the passwordless authentication market, enjoying renewed prominence in IT security portfolios. Okta referenced implementing 14 new single factor protocols for corporate ecosystems seeking swift deployment and minimal overhead. This streamlined setup holds appeal for organizations that want faster user sign-ins without overly complex infrastructure changes. Auth0 documented the onboarding of 22 BFSI networks utilizing single factor authentication tokens configured to expedite the sign-up process for first-time users. Amazon Web Services, recognizing enterprises’ desire for simpler credential management, surfaced with eight new single factor access controls within its IAM console, catering to small and medium-scale organizations aiming for straightforward solutions.

Several use cases highlight why single factor authentication continues to endure so successfully. In 2024, the FIDO Alliance welcomed nine additional hardware key vendors delivering single factor sign-in, reinforcing a well-defined ecosystem centered on simplicity. Cisco, one of the key security providers in the passwordless authentication market, to mitigate internal vulnerabilities, reported that their single factor pilot program reached 2,000 employees looking to streamline daily logins. Meanwhile, RSA offered fresh guidance on hardware-based tokens, revealing that nine BFSI organizations had adopted minimalistic models that still curbed phishing and password reuse. Such take-up underscores the unwavering trust enterprises are placing in single factor authentication for daily operations, as ease of use has proven integral to consistent compliance. Though multifactor solutions also have their benefits, single factor setups produce immediate convenience, reinforcing the method’s strong foothold in everyday scenarios and corporate frameworks alike.

BFSI Sector Claims Dominating Influence As A Prominent End User Base

In 2024, the BFSI sector exhibits pronounced leadership throughout the passwordless authentication market landscape, with financial corporations and banking boards emphasizing robust security regimens. Visa publicly acknowledged collaborating with six advanced token providers to streamline cardholder verifications, ensuring minimal friction for contactless payment experiences. Mastercard, addressing large-scale transaction volumes, integrated new fingerprint scanning modules across 12 credit card offerings to mitigate potential data breaches. PayPal, known for ecommerce facilitation, unveiled a refined passwordless flow that recorded 10 million user verifications through face or mobile-based biometrics within a quarter, indicating how BFSI operations shape confidence in these methods.

Security demands in BFSI revolve around precision, speed, and risk mitigation, making passwordless approaches a natural fit. In 2024, run-of-the-mill phishing attempts pressured many high-stakes financial service firms to reevaluate sign-in processes. IBM’s data revealed that seven top investment banks in the passwordless authentication market installed single factor tokens for day-to-day internal systems, removing obstacles in corporate pipelines. Citigroup reported strengthening over 4,000 employee workstations with hardware-based authentication after analyzing consistent security lapses tied to legacy passwords. JPMorgan Chase, tapping into FIDO2-based frameworks, processed an average of 150,000 daily passwordless logins among asset managers. Meanwhile, HSBC introduced specialized biometric systems to simplify remote transactions for high-net-worth clients, marking a milestone in BFSI’s movement toward entirely frictionless experiences. All these implementations confirm that BFSI stands at the frontline of passwordless measures, driving intricate security measures that influence how the broader commercial sector adopts user authentication.

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Asia Pacific Emerges As The Most Rapidly Expanding Key Market Stronghold

Asia Pacific’s growing appetite for passwordless authentication market stands out in 2024, anchored by sustained economic growth and increased mobile device usage. In Japan, NTT Data bolstered six new cloud-based authentication hubs, pivoting toward region-wide expansions for BFSI services. China’s Alipay unveiled 15 advanced biometric solutions, spotlighting how everyday transactions can be seamless without the burden of passwords. India’s State Bank deployed advanced fingerprint recognition for 100,000 employees as part of a concerted effort to streamline operations across extensive rural branches. Samsung SDS, focusing heavily on Southeast Asia, processed 20 million daily transactions linked to single factor sign-ins, boosting confidence within emerging markets seeking faster digital transitions.

The region’s inclination toward frictionless security is fueled by digital banking expansions and a population increasingly seeking mobile-based services over traditional desktops. In 2024, DBS Bank in Singapore introduced a face-recognition login for 500,000 savings account holders, emphasizing user convenience and reliable identity checks. Malaysia’s Maybank distributed 9,000 hardware-based tokens to small businesses wanting simpler authentication for daily transactions. Indonesia’s Gojek recorded 11 million user authentications on its integrated platform, reflecting the broader integration of BFSI elements with e-wallets and ride-hailing services in the passwordless authentication market. Meanwhile, Australia’s Big Four banks collaborated with local vendors to disseminate single factor tokens within small-scale merchant networks, bridging the gap for real-time validations. Collectively, this momentum in Asia Pacific illuminates a lasting and profitable market environment where secure, user-friendly authentication methods align perfectly with the region’s vast demographic and economic dynamism.

Global Passwordless Authentication Market Major Players:

  • Microsoft Corporation
  • Google LLC
  • Okta, Inc.
  • NEC Corp.
  • HID Global
  • Thales Group
  • IBM Corporation
  • Ping Identity Corporation
  • LastPass (LogMeIn)
  • Yubico
  • HYPR Corp.
  • RSA Security LLC
  • Beyond Identity
  • 1Kosmos
  • Keyless Technologies
  • Other Prominent Players

Key Segmentation:

By Component

  • Hardware
  • Software
  • Services

By Product Type

  • Fingerprint Authentication
  • Palm Print Recognition
  • Iris Recognition
  • Face Recognition
  • Voice Recognition
  • Smart Card
  • Security Tokens
  • PINs (Personal Identification Numbers)
  • Device-Based Authentication
  • QR Code Authentication
  • Others

By Authentication Type

  • Single-factor Authentication
  • Multi-factor Authentication

By Portability

  • Fixed
  • Mobile

By End Use Industry

  • Banking, Financial Services, and Insurance (BFSI)
  • Healthcare
  • IT & Telecommunications
  • Government & Defense
  • Retail & E-Commerce
  • Education
  • Transportation & Logistics
  • Media & Entertainment
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • South America

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About Astute Analytica

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