Passwordless Authentication Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Product Type (Fingerprint Authentication, Palm Print Recognition, Iris Recognition, Face Recognition, Voice Recognition, Smart Card, Others), By Authentication Type (Single-factor Authentication, Multi-factor Authentication), By Portability (Fixed, Mobile), By End-User (IT & Telecom, Retail, Transportation & Logistics, Aerospace & Defence, BFSI, Healthcare, Government, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Passwordless Authentication Market Size

The global passwordless authentication market size was worth USD 18.36 billion in 2024 and is projected to grow from USD 21.81 billion in 2025 to reach USD 86.35 billion by 2033, growing at a CAGR of 18.77% during the forecast period (2025-2033).

Passwordless authentication is a secure method of verifying users' identities without the need for traditional passwords. Instead of relying on easily forgotten or compromised passwords, passwordless methods leverage alternative authentication techniques like biometrics (fingerprint, facial recognition), one-time passcodes, or hardware tokens.

These methods provide a smoother and more secure user experience, reducing the risks associated with password-related breaches and enhancing overall cybersecurity. As organizations increasingly face data breaches and rising cybersecurity concerns, passwordless authentication has become a vital solution to protect sensitive information while making the login process easier and more efficient.

With advancements in artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), passwordless authentication is rapidly transforming industries such as finance, healthcare, government, and e-commerce. Its growing adoption is expected to significantly boost market growth over the coming years as businesses and individuals alike seek more secure and user-friendly authentication methods.

Passwordless Authentication Market Trends

Adoption of biometrics

Biometric authentication methods, including facial recognition, fingerprint scanning, and iris recognition, are gaining rapid traction due to their robust security features and ease of use. These technologies are becoming increasingly popular for securing access to devices and services, offering a seamless, user-friendly experience. As a result, biometrics are being widely adopted in sectors like finance, healthcare, and government.

• For example, major financial institutions such as Wells Fargo and Bank of America have integrated fingerprint and iris scanning for secure customer verification at ATMs. Similarly, airports across the U.S. and healthcare centers have embraced iris recognition for secure and efficient passenger and patient identification.

This growing trend underscores the ability of biometrics to deliver both security and convenience, making them a key driver in the global market.

Passwordless Authentication Market Growth Factors 

Increase in cybersecurity threats

The rising frequency and sophistication of cybersecurity threats are driving the adoption of passwordless authentication solutions. Organizations are increasingly migrating to these solutions as part of their efforts to bolster security against credential-based attacks. Cybercriminals are employing more advanced techniques, such as ransomware, phishing, and identity-based attacks, to breach systems and gain unauthorized access.

• For example, ransomware accounted for nearly one-third of global breaches, with credential theft emerging as one of the leading causes. On average, it takes about 150 days to detect these breaches.

This highlights the urgent need for stronger authentication methods like passwordless solutions to prevent long-term security gaps and mitigate the risk of unauthorized access.

Restraining Factors

High implementation costs

One of the main challenges in adopting passwordless authentication is the high upfront cost, which can deter small and medium-sized businesses (SMBs) from implementing the technology. These initial expenses often include licensing fees, hardware modifications (such as biometric scanners), and integration with existing IT infrastructure. For many SMBs, the short-term financial strain of these investments may outweigh the immediate benefits, leading some to stick with traditional, password-based systems that are more budget-friendly but less secure.

However, research indicates that in password-reliant environments, 20-50% of IT support calls are password-related, costing approximately $70 per call. This highlights the potential long-term savings that passwordless systems could offer, reducing the burden of IT support costs and minimizing security breaches over time. While the initial investment may be significant, the long-term benefits in terms of operational efficiency and improved security could ultimately justify the expense for many businesses.

Market Opportunities

Remote workforce expansion

The rapid growth of remote work has created a significant opportunity for the global market. As businesses embrace distributed work environments, they face challenges in securing access to sensitive systems and data. Traditional password-based authentication methods are particularly vulnerable in a remote workforce, as they increase the risk of password sharing or theft.

By adopting passwordless technology, organizations can enhance their cybersecurity measures, ensuring business continuity without compromising sensitive data.

• For example, a LastPass report revealed that 92% of organizations are either using or planning to implement passwordless technology, highlighting the growing recognition of its value in securing a mobile and remote workforce.

This shift presents a substantial market opportunity as businesses prioritize stronger authentication methods to safeguard their operations and adapt to the evolving demands of remote work.

Regional Insights

North america: dominant region with a significant market share

North America remains the dominant region in the global market, driven by an escalating need for advanced security solutions amid rising cybersecurity threats. The region has witnessed a sharp increase in cyberattacks, including credential theft, phishing, and other forms of identity-based breaches. As a result, organizations are actively seeking alternatives to traditional password systems to enhance security while improving user experience.

North American companies, especially in sectors like finance, healthcare, and government, are adopting passwordless solutions to meet growing demands for both higher security standards and seamless user authentication. The region’s regulatory environment, including stringent data protection laws, further accelerates the shift toward passwordless technologies.

Asia-pacific: rapidly growing region

Asia-Pacific (APAC) is experiencing rapid growth in the global market. The region’s strong push for digital transformation is a significant driver of this expansion, particularly in high-demand sectors like finance, healthcare, and information technology (IT). These industries are embracing biometric technologies and other passwordless authentication solutions to secure sensitive data and streamline user access. Moreover, technological advancements, such as the development of more accurate and efficient biometric systems, are fueling the adoption of passwordless solutions across APAC. 

Country insights

• United States: The U.S. is leading the global market, driven by its robust cybersecurity infrastructure and increasing demand for secure digital transactions. Major industries, particularly finance, healthcare, and government, are rapidly adopting passwordless solutions.

Companies like Apple and Google have already integrated biometrics and multi-factor authentication into their services to enhance security. With increasing regulatory pressure, such as from the California Consumer Privacy Act (CCPA), the U.S. continues to be a front-runner in implementing passwordless authentication technologies.

• Canada: In Canada, the adoption of passwordless authentication is largely driven by a strong emphasis on compliance with data protection regulations and enhancing user experiences. Financial institutions, healthcare providers, and government agencies are adopting these solutions to mitigate cybersecurity risks.

For instance, the Royal Bank of Canada has adopted biometric authentication for secure mobile banking. Canada’s privacy-focused regulatory environment and its push for digital innovation are creating favorable conditions for the growth of passwordless authentication.

• United Kingdom: The United Kingdom is witnessing significant growth in passwordless authentication, particularly in the financial services sector, where data protection and secure transactions are critical. The UK government has also placed a strong emphasis on improving cybersecurity across industries.

A prime example is Barclays Bank, which offers customers secure access to banking services through biometric solutions, reducing reliance on passwords. The UK's commitment to stringent data protection laws, such as GDPR, encourages the widespread adoption of secure authentication technologies.

• Germany: Germany, as one of Europe’s largest economies, is investing heavily in cybersecurity, especially passwordless authentication solutions. The demand for advanced security technologies is driven by industries such as automotive, finance, and government.

For example, Deutsche Bank has adopted multi-factor authentication solutions to safeguard customer transactions. Germany’s proactive stance on data protection and its digital transformation initiatives are making it a key market for the adoption of passwordless authentication technologies.

• China: China is rapidly adopting passwordless authentication technologies, especially for mobile and online transactions. As mobile payments have become a norm with apps like Alipay and WeChat, the need for secure authentication methods is essential. For example, China’s tech giant Alibaba has incorporated fingerprint and facial recognition for secure access to its e-commerce platforms.

The country’s growing digital economy and government efforts to modernize its cybersecurity infrastructure are pushing forward the adoption of passwordless authentication solutions.

• India: India is seeing a significant increase in demand for passwordless authentication solutions, particularly in the IT and finance sectors. With the rise of digital banking and online transactions, organizations are seeking more secure alternatives to traditional passwords.

For instance, ICICI Bank has implemented biometric authentication for mobile banking. India’s growing e-commerce and fintech markets, coupled with government initiatives like the Digital India program, are driving the adoption of secure, passwordless solutions across industries.

• Japan: Japan’s commitment to advanced technologies, particularly in healthcare, finance, and technology sectors, is accelerating the adoption of passwordless authentication. The country’s tech-savvy population and the demand for secure, efficient systems in industries like healthcare are propelling this shift. For example, Japan’s Mitsubishi UFJ Financial Group (MUFG) has adopted fingerprint and facial recognition technologies for secure banking.

Passwordless Authentication Market Segmentation Analysis

By component

Hardware solutions are becoming increasingly vital in the global market due to their high level of security and compliance with industry standards like FIDO2 and zero-trust protocols. Devices such as smart cards, biometric scanners, and security tokens provide highly secure, phishing-resistant authentication, which is especially crucial for enterprises handling high-value data.

These hardware solutions are less susceptible to common security risks, making them the preferred choice in industries where data integrity is paramount. Their deployment is growing in sectors such as finance, healthcare, and government, where protecting sensitive data and maintaining secure access controls are top priorities.

By product type

Fingerprint-based authentication remains the leading product type in the global market, largely due to its widespread use and established history in mobile device security. Fingerprint scanners offer an affordable and effective form of authentication, as they cannot easily be duplicated, making them more secure than traditional passwords.

As mobile devices have become ubiquitous, fingerprint authentication has gained popularity for access control, providing a seamless user experience without compromising security. This technology's ability to integrate into mobile devices has driven its adoption across various sectors, particularly in consumer electronics and financial services.

By authentication type

Multi-factor authentication (MFA) is the dominant authentication type in the global market, offering enhanced security by requiring two or more independent credentials for user verification. This method significantly reduces the risk of unauthorized access, making it ideal for securing sensitive information and applications.

Although Single-Factor Authentication (SFA) is faster and more convenient for users, it is more vulnerable to breaches and not recommended for environments requiring high levels of security. MFA, which often combines biometrics, security tokens, and other factors, is increasingly favored in sectors like banking, healthcare, and government, where data protection is critical.

By portability

The mobile or portable segment currently leads the global market, driven by the widespread adoption of mobile devices for both personal and professional use. Mobile-first authentication solutions, including biometric authentication and push notifications, are gaining traction as they offer greater security and a more user-friendly experience compared to traditional password-based methods.

As the demand for mobile access grows, businesses are adopting passwordless solutions to provide secure access while eliminating the inconvenience of remembering complex passwords. This shift is particularly significant in industries like banking, e-commerce, and healthcare, where mobile security is increasingly integral to user trust and operational efficiency.

By end-user

The BFSI sector dominates the global market, driven by the growing need for secure, efficient authentication methods to protect sensitive financial data and transactions. As cyber threats in the financial sector become more sophisticated, the BFSI segment is investing heavily in passwordless technologies like biometrics, MFA, and secure tokens to mitigate risks and prevent fraud.

The sector is also focusing on enhancing the customer experience by streamlining access to digital banking services while ensuring high levels of security. This trend is fueling rapid growth within the BFSI market, with adoption expected to continue at a high rate due to regulatory demands and the need for improved fraud prevention.

Company Market Share

Key market players are investing in advanced technologies and pursuing strategies such as collaborations, acquisitions, and partnerships to enhance their products and expand their market presence.

SecureAuth: An Emerging Player

SecureAuth is a newcomer to the passwordless authentication market and focuses on identity security and access management solutions. It is recognized for inventing new ways of combining passwordless methods with multi-factor authentication, thereby allowing businesses to strengthen their security posture better.

Recent Developments

• In October 2024, SecureAuth announced the launch of its new adaptive authentication feature, which leverages machine learning to assess user behavior and risk levels in real-time, further streamlining secure access for users while minimizing friction.

Recent Developments

• October 2024- Center Identity announced the launch of its patented passwordless authentication solution designed specifically for businesses. This innovative system aims to streamline user access while enhancing security by eliminating traditional passwords, which are often vulnerable to breaches.
• October 2024- Bitwarden introduced its passwordless authentication feature using "magic links" through its API. This enhancement allows users to access their accounts securely without needing a password, improving both security and user experience. 

Analyst Opinion

As per our analyst, the passwordless authentication market is experiencing significant growth, driven by factors such as the rise in cybersecurity threats and the continued expansion of the remote workforce. These factors are pushing organizations to adopt more secure and user-friendly authentication methods. However, high implementation costs remain a restraint, particularly for small and medium-sized businesses (SMBs) that may face challenges in implementing such advanced solutions.

Despite these challenges, the rapid growth of IoT and connected devices presents a substantial opportunity for the market. As IoT ecosystems expand, traditional password-based systems become increasingly inadequate, creating a strong demand for secure, scalable alternatives like passwordless authentication.