Passwordless Authentication Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2025-2034)

The global passwordless authentication market size attained a value of approximately USD 16.59 Billion in 2024. The market is further expected to grow at a CAGR of 15.20% between 2025 and 2034, reaching a value of USD 68.29 Billion by 2034. The market for passwordless authentication is rapidly growing, owing to increased technological advancements and the need for improved digital experiences. The rising adoption of mobile and cloud-based services that promise a seamless and secure experience for the users has propelled greater demand for passwordless authentication methods. These methods redefine a more secure and convenient access model for the users. The growth of this market is also due to increased demand for wide-scale authentication solutions in industries such as finance, healthcare, and retail.

Demand for passwordless authentication solutions majorly stems from established facilities with the other types of multifactor authentication (MFA) and zero-trust security models to improve security in their remote work environments. Passwords are used to authenticate almost everything running within computers other than biometrics, which might also be a key component for passwordless setups rendering access that is secure and seamless. As various organizations adopt passwordless authentication, they reestablish and reinforce the safe state while at the same time minimizing vulnerabilities of password theft/breaches and streamlining digital access. As more organizations are turning to enhanced login solutions that do away with the use of passwords, the passwordless authentication market expands rapidly.

By virtue of not having a password that can be stolen, such an authentication system dramatically reduces the occurrence of password-related vulnerabilities to attacks, hacks, or breaches. For example, passwordless systems make use of both passkey authentication and biometric authentication to address password-based logins that can ensure elevated security measures on login or access. These solutions with integration of multi-factor authentication (MFA) built into them ensures added protection to the authenticating process, Moreover, as organizations are increasingly switching over to SaaS platforms, passwordless technologies are expected to act key to ensure security access across different applications. Inside the core security architecture, passwordless authentication enforces access for the supply chains. The unique offerings of passwordless authentications provide seamless and secure login experiences, hence, these are poised for further adoption across various industries in the coming years.

The rapid growth of the passwordless authentication market is due to an ever-increasing need to eliminate weak and repeated passwords, employ some duplicate passwords, and address the perennial issues of stolen passwords. The banking sector heavily relies on traditional passwords, exposing the entire network to major security challenges once a password is stolen thus leading to catastrophic security breaches. Passwordless authentication introduces additional layers of enhancement within the authentication process, consequently lessening the risks associated with the theft of passwords. In a sector like banking, where sensitive financial data is involved, passwordless authentication thus ensures robust security features while improving the user experience at the same time.

Product Type Insights

Fingerprint verification dominates the overall passwordless authentication market as a secure biometric technology, providing hassle-free user authentication with the scan of distinct finger patterns. It offers better accuracy and ease of use, making it ideal for mobile usage and critical applications, providing strong protection against illegitimate access.

Palm print verification is extensively used as a sophisticated biometric identification technique that inspects the peculiar vein and ridge patterns of an individual's palm. It has high accuracy and security; hence these are best suited for settings that necessitate robust access control and prevention of frauds.

Iris recognition is another accurate biometric identity technology that examines the distinct structures in the iris. It offers safe access management in extremely secure settings, such government buildings and banks, with little chance of fraud as it is exceedingly accurate and dependable.

Face recognition technology provides a quick and non-intrusive authentication method by using distinctive facial traits for identification. It is being increasingly utilized in security systems and mobile phones, offering convenience and security while improving user experience in a variety of businesses.

Voice recognition with natural language processing advancements offers increased consumer convenience. It is becoming a more popular choice for frictionless authentication since it increases efficiency when integrated into virtual assistants and customer support platforms.

Smart card technology is broadly used in banking, healthcare, and transportation owing to its adaptability and security advantages. Its main drivers include the increasing demand for safe transactions, seamless integration with electronic payment systems, and improved authentication for access control.

Authentication Type Insights

Key drivers for single-factor authentication (SFA) are its ease of use, ease of deployment, and affordability. It is still commonly used in low-risk deployments where convenience to the user is crucial. With easy configuration, SFA grants rapid access to systems and is a popular option for organizations and users who require little security. The increasing demand for strong security, particularly in high-risk scenarios, is one of the main drivers of multi-factor authentication’s (MFA) growing popularity. By combining several authentication criteria, including passwords, biometrics, and tokens, MFA improves security in light of growing cyberthreats. It is driven by the need to protect sensitive data, the need to comply with regulations, and the expanding popularity of remote work.

Portability Insights

Major drivers for fixed authentication solutions in the passwordless authentication market are the requirement for secure, trusted access in static environments such as offices and data centers. Strong security features, seamless interaction with current infrastructure, and compliance are offered by this kind of portability. On the other hand, the growing user demand for convenient, on-the-go access is driving the demand for mobile authentication. The proliferation of mobile apps, work-from-home modes, and cloud-based services necessitates convenient, secure passwordless alternatives with strong user authentication without a loss of portability and security.

End Use Insights

Secure, scalable access to cloud services and data fuels the need for passwordless authentication solutions in the IT and telecom industry. Companies in the retail industry are increasingly seeking to improve customer experience and protect transactions, making passwordless authentication a priority for frictionless and secure purchases. Moreover, access control security and efficiency in transportation and logistics operations increase the demand for passwordless authentication. High-security requirements and stringent access control for secure systems compel the use of passwordless authentication solutions in the aerospace and defense sector. In the BFSI sector, the market observes an increasing need for robust security and compliance, compelling passwordless authentication demand to protect financial transactions and customer information. Preserving confidential health information and protecting secure patient access are key motivators for increased adoption of passwordless authentication in healthcare industry. Governments implement passwordless technologies for safe citizen access, compliance, and data protection for confidential information.

Component Insights

The need for hardware goods like fingerprint readers, biometric scanners, and smart cards that improve the security of passwordless authentication is driven by growing demands for safe, physical access control systems. On the other hand, software is key in combining authentication technologies with prevailing systems, fueling the use of passwordless solutions due to seamless user interface and advanced security measures. The need for managed services, such as cloud-based authentication and system integration, facilitates the expansion of passwordless authentication market, allowing companies to adopt secure, scalable solutions without significant infrastructure investments.

Regional Insights

Led by the use of industry-advanced passwordless authentication technology, the market in North America is rapidly expanding. Security issues, especially those related to data security, are of utmost concern. This has driven the leading companies to invest in strong solutions. Further, interest in enriching the user experience encourages various industries to integrate seamless authentication approaches. The exponential evolution of IoT and AI technologies enhances the pace towards needing secure and effective access controls further, since the new chances of authentication opportunities arise with such innovation. Since more security concerns for organizations ensue, advanced forms of authentication are even more significant in North America's technology-centered ecosystem.

U.S. Passwordless Authentication Market Trends

Increased data breaches and cyberthreats are driving the market for passwordless authentication in the U.S., resulting in booming security investments and technology. Businesses are implementing smart authentication solutions to promote both user comfort and security. Furthermore, the widespread use of AI and IoT technologies is influencing U.S. companies to implement more secure, scalable, and smooth authentication processes in order to safeguard confidential data in a variety of industries.

Europe Passwordless Authentication Market Trends

Strong data security laws, GDPR and increased demand for improved security have positively impacted on the European market for passwordless authentication. The need for pthese smart solutions is being driven by increased attention to privacy and data security issues. In order to improve user experience without sacrificing adherence to strict security regulations, European companies are using similar solutions. Growth in the area is also fueled by theincreased number of remote work situations and digitalization in industries.

Asia Pacific Passwordless Authentication Market Trends

The market for passwordless authentication is growing quickly in the Asia Pacific region as a result of growing digitalization and emerging cybersecurity risks. To improve security and user experience, the region's massive tech-based industries, such as financial and e-commerce, are adopting passwordless solutions. Furthermore, the need for seamless authentication procedures is being driven by the growing use of mobile devices and IoT technologies, which is making the market more crucial for companies looking to safeguard sensitive data and secure digital infrastructures.

Key Passwordless Authentication Company Insights

Key players in the passwordless authentication market are concentrating on strengthening their position in the market by offering innovative solutions to changing security needs. They are engaging in strategic initiatives like partnerships, acquisitions, and the creation of cutting-edge technologies and are continuously improving their solutions to meet the demands of many industries and increase their market presence.

ASSA ABLOY

ASSA ABLOY, a global pioneer in access solutions with a variety of passwordless authentication methods, including smart card and biometric technologies, was founded in 1994 and has its headquarters in Stockholm, Sweden. ASSA ABLOY is dedicated to protecting and streamlining access across a variety of sectors, including as government, residential, and commercial markets.

Fujitsu

Founded in 1935 in Tokyo, Japan, Fujitsu offers state-of-the-art passwordless authentication technologies that rely on AI, biometrics, and facial recognition to offer safe digital access. The IT, healthcare, and financial sectors all employ the company's solutions.

DERMALOG Identification Systems GmbH

Well-known for their biometrics technology, DERMALOG Identification Systems GmbH was founded in 1995 and has its headquarters in Hamburg, Germany. It provides state-of-the-art iris, face, and fingerprint identification technology. Around the world, secure access solutions in the banking, security, and government sectors use its password-free identification method.

East Shore Technology, LLC

Founded in 2011, East Shore Technology, LLC is headquarted in New York, United States. The company offers cutting-edge passwordless authentication technology, with emphasis on biometrics and artificial intelligence-based security solutions. East Shore seeks to enhance access control for organizations of all industries, while providing secure frictionless authentication processes.

Key Passwordless Authentication Companies:

• HID Global Corporation
• Microsoft Corporation
• Google LLC
• IBM Corporation
• Fujitsu Limited
• NEC Corporation
• Okta, Inc
• Thales Group
• Cisco Systems, Inc.
• Secret Double Octopus
• Beyond Identity,Inc
• ASSA ABLOY
• DERMALOG Identification Systems GmbH
• East Shore Technology, LLC
• M2SYS Technology
• Safran
• Others

Recent Developments

March 2025

Leading provider of cutting-edge Identity and Access Management (IAM) solutions, Key9 Identity, officially launched its state-of-the-art passwordless authentication system. By utilizing public key cryptography and open standards like SAML2, OpenID, and Passkeys, the Key9 platform, which was created to improve security and simplify user experiences, does away with the necessity for conventional passwords.

February 2025

To assist big businesses in deploying and managing FIDO security passkeys at scale, the French biometrics and digital identity company Thales introduced OneWelcome FIDO Key Lifecycle Management. OneWelcome wants to help big businesses quickly implement FIDO passkey standards and passwordless biometric authentication. It offers support for the whole security key lifecycle by combining FIDO security keys that Thales specifically created for large-scale use with an interoperable management platform.

December 2024

At the Gartner Identity & Access Management Summit 2024, RSA, the leader in security-first identity, revealed enhanced phishing-resistant, passwordless capabilities. These new RSA capabilities meet the strictest cybersecurity regulations and are a valuable tool in creating a Zero Trust security architecture. They were developed to protect financial services organizations, government agencies, healthcare, and other highly regulated industries from the most frequent and impactful attacks.

June 2024

Thales unveiled Passwordless 360°, a novel passwordless authentication paradigm that gives Thales's clients the most comprehensive passwordless functionality across a range of user categories and assurance levels. With Passwordless 360°, businesses can take advantage of the newest innovations, such as FIDO passkeys, and maximize their prior investments in passwordless solutions.

April 2024

With the release of its unique hidden location authentication, Center Identity, a trailblazing cybersecurity company, revolutionized the way companies handle employee digital identities. With the use of this patented technology, users can use a secret location chosen on a map to authenticate themselves.

August 2023

In order to satisfy the phishing-resistant requirements of White House Executive Order (EO) 14028, Axiad, a leading provider of organization-wide passwordless orchestration, launched a new Unified Credential Management System (UCMS) package named Passwordless for Air Gapped and Critical Environments. This package integrates Microsoft Security solutions into critical infrastructure and air gapped environments, enabling end user self-service and passwordless authentication.

Global Passwordless Authentication Market Report Segmentation

The study on the passwordless authentication market delivers detailed analysis on region-level perspective depending on specific contemporary industry trends. It considers various segments, such as product type, authentication type, portability, end use, and component. By assessing all these segments, this report presents a thorough discussion of market drivers, regulations, and emerging opportunities observed in the market.

Component Outlook (Revenue, Billion, 2025-2034)

• Hardware
• Software
• Services

Product Type Outlook (Revenue, Billion, 2025-2034)

• Fingerprint Authentication
• Iris Recognition
• Face Recognition
• Voice Recognition
• Smart Card
• Palm Print Recognition
• Others

Authentication Type Outlook (Revenue, Billion, 2025-2034)

• Single-Factor
• Multi-Factor

Portability Outlook (Revenue, Billion, 2025-2034)

• Fixed
• Mobile

End Use Outlook (Revenue, Billion, 2025-2034)

• Aerospace and Defence
• BFSI
• Government and Law Enforcement
• Healthcare
• IT and Telecom
• Retail
• Transportation and Logistics
• Others

Region Outlook (Revenue, Billion, 2025-2034)

• North America
• United States of America
• Canada
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Asia Pacific
• China
• Japan
• India
• ASEAN
• Australia
• Others
• Latin America
• Brazil
• Argentina
• Mexico
• Others
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Nigeria
• South Africa
• Others