A Companies & Markets report reveals that the global multi-factor authentication market will reach $5.45 billion by 2017.
The report also estimates an estimated compound annual growth rate of 17.3% from 2012 to 2017. Two-factor authentication is most commonly used multi-factor authentication model in the world with smartcard/PIN and one-time password making up the top authentication methods.
Biometric-based multi-factor authentication solutions are also growing at a fast rate. While North America and Europe constitute a majority of the biometric market, APAC is currently the fastest growing region.
The report discusses a number of acquisitions and mergers, but some of the key developments in the authentication industry worth noting are Microsoft’s October 2012 purchase of PhoneFactor (U.S.), Apple’s July 2012 purchase of AuthenTec and Sagem Morpho’s purchase of biometric technology company L1 Identity.
The report reveals that the two-factor authentication model constitutes nearly 90% of the multi-factor authentication market, with a majority of applications falling in the banking/finance, travel/immigration and commercial security sectors. Though less common, three-factor authentications include smart card with PIN and biometric technology, smart card with two biometric modalities, pin with two biometric modalities and three biometric modalities.
Four and five-factor authentication involves the combination of smart card and pin with more than one biometric modality— face recognition, fingerprint recognition, voice recognition, etc. Three-factor authentication is most commonly used in private access settings like bank lockers, secure data access, defense and immigration while four and five-factor authentication models are generally restricted to high-cost initiatives in defense, research and federal applications.
The full report can be found on the Companies & Markets website.