User Authentication Solution Market Report 2025

The user authentication solution market size has grown rapidly in recent years. It will grow from $14.45 billion in 2024 to $16.21 billion in 2025 at a compound annual growth rate (CAGR) of 12.2%. The growth during historic period is driven by the rising adoption of digital platforms, increasing demand for secure online transactions, heightened focus on data privacy, growing need for secure remote access, and greater awareness of identity theft.

The user authentication solution market size is expected to see rapid growth in the next few years. It will grow to $25.36 billion in 2029 at a compound annual growth rate (CAGR) of 11.8%. The growth in the forecast period is fueled by the expanding adoption of biometric authentication, increased use of artificial intelligence in security, rising demand for passwordless authentication, stronger emphasis on customer-centric security, and growing preference for frictionless authentication experiences. Key trends expected during the forecast period include passive authentication technologies, advancements in biometric authentication, innovations in multi-factor authentication, progress in AI-driven threat detection, and developments in blockchain-based identity verification.

The rise in cyberattacks is expected to drive the growth of the user authentication solution market in the coming years. A cyberattack is a deliberate attempt by an individual or group to breach another individual’s or organization’s information system to disrupt operations or gain unauthorized access to computer systems. This increase in cyberattacks is fueled by the expanding digitalization of data and services, which broadens the attack surface and offers more opportunities for cybercriminals to exploit vulnerabilities. User authentication solutions enhance cybersecurity by ensuring that only authorized users can access sensitive systems and data, thereby reducing the risk of unauthorized access and preventing potential cyberattacks. For example, Check Point Software Technologies Ltd., an Israel-based cybersecurity firm, reported a 30% rise in weekly cyberattacks on corporate networks in Q2 2024 compared to Q2 2023, along with a 25% increase compared to Q1 2024. As a result, the growing prevalence of cyberattacks is fueling the demand for user authentication solutions.

Key players in the user authentication solution market are focusing on technological innovations such as automatic account lockout to better prevent unauthorized access by blocking login attempts after multiple failures. Automatic account lockout is a security feature that temporarily restricts access to an account following a predetermined number of consecutive failed login attempts, protecting accounts from brute-force or repeated password guessing attacks. For instance, in April 2024, the Pension Fund Regulatory and Development Authority (PFRDA), a statutory regulatory body in India, introduced a new two-factor authentication (2FA) system for National Pension System (NPS) accounts. Users log in with their user ID and password and then verify their identity via an Aadhaar-based OTP sent to the mobile number linked to their Aadhaar. The latest generation of 2FA improves security by incorporating adaptive intelligence and biometric integration. Unlike traditional 2FA methods relying on SMS or email codes, modern solutions include biometric scans (fingerprint or facial recognition), device-based tokens, and real-time behavioral analysis for seamless user authentication. Many platforms now employ push notifications with location and device metadata, phishing-resistant protocols such as FIDO2/WebAuthn, and QR code-based logins that enhance security while minimizing user friction.

In July 2025, SecurityBridge GmbH, a Germany-based software company, acquired CyberSafe Limited for an undisclosed amount. This acquisition aims to enhance SecurityBridge’s cybersecurity platform by integrating CyberSafe’s TrustBroker products, which offer contextual single sign-on (SSO), policy-driven multi-factor authentication (MFA), and passwordless authentication for systems, applications, and products within data processing (SAP) environments. CyberSafe Limited is a UK-based internet security company specializing in user authentication solutions.

Major players in the user authentication solution market are Microsoft Corporation, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Broadcom Inc., Thales Group, DXC Technology Company, Atos SE, IDEMIA Group S.A.S., Okta Inc., HID Global Corporation, Entrust Corporation, Ping Identity Holding Corp., ForgeRock Inc., OneSpan Inc., Yubico AB, SecureAuth Corporation, OneLogin Inc., Trusona Inc., and BIO-key International Inc.

North America was the largest region in the user authentication solution market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in user authentication solution report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the user authentication solution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

A user authentication solution is a security system or mechanism designed to verify the identity of users attempting to access a digital system, network, or application. It ensures that access is granted only to authorized individuals by validating their credentials - such as passwords, biometrics, tokens, or multi-factor authentication (MFA) - against a trusted identity provider or database.

The key components of a user authentication solution include hardware, software, and services. Hardware refers to the physical devices and equipment used to confirm a user's identity and protect access to systems or data. Deployment models vary and include cloud-based, on-premises, and hybrid solutions. Authentication methods cover password-based authentication, multi-factor authentication (MFA), biometric authentication, single sign-on (SSO), OAuth, and OpenID Connect. Additionally, various technologies such as artificial intelligence and machine learning, blockchain, the Internet of Things (IoT), and cloud computing support these solutions. They serve multiple end-user sectors, including banking, financial services, and insurance (BFSI), healthcare, information technology (IT) and telecom, retail, government, education, and others.

The user authentication solution market research report is one of a series of new reports that provides user authentication solution market statistics, including user authentication solution industry global market size, regional shares, competitors with a user authentication solution market share, user authentication solution market segments, market trends and opportunities, and any further data you may need to thrive in the user authentication solution industry. This user authentication solution market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The user authentication solution market consists of revenues earned by entities by providing services such as user identity verification, login and access management, password management, multi-factor authentication, user registration and onboarding, and access logs and audit trails. The market value includes the value of related goods sold by the service provider or included within the service offering. The user authentication solution market also includes sales of authentication-as-a-service platforms, multi-factor authentication (MFA) tools, single sign-on (SSO) products, and biometric authentication solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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