The global FIDO authentication market was estimated to be US$ 431.44 million in 2022 and is expected to reach US$ 2436.25 million by 2032 at a CAGR of 18.9%.
FIDO authentication is an open standard for online authentication that was developed by the FIDO Alliance, a non-profit organization consisting of leading technology companies such as Google, Microsoft, PayPal, and Visa. FIDO stands for Fast Identity Online and the goal of this authentication standard is to provide a simpler, more secure and private way to access online services and digital transactions.
FIDO authentication uses public key cryptography to authenticate users and eliminate the need for usernames and passwords, which are often the targets of cyberattacks. Instead, it uses a combination of biometric and/or device-based authentication methods to verify a user's identity. This can include fingerprint, facial or voice recognition, or authentication via a mobile device or security token.
FIDO authentication is a modern framework designed to provide secure and user-friendly authentication methods for online services. The increasing frequency and sophistication of cyber threats have led to growing concerns regarding data security. FIDO authentication helps to address these concerns by providing an additional layer of security that complements traditional authentication methods.
As a result, financial institutions are adopting FIDO authentication to secure their systems and protect against fraud. For instance, PayPal has implemented FIDO authentication to enhance its security measures against cyber threats. Additionally, multi-factor authentication solutions are becoming increasingly popular as a means of strengthening security, and FIDO authentication offers a simple and user-friendly solution that can be easily integrated into existing systems.
Furthermore, FIDO authentication offers a more secure and user-friendly alternative to traditional authentication methods, such as usernames and passwords. This is important because traditional methods are often cumbersome and can be easily compromised, leading to data breaches. FIDO authentication is increasingly being used in the education sector to protect student data and streamline access to digital resources.
The University of Arkansas has adopted FIDO authentication to provide secure access to its online learning platforms and ensure a seamless user experience for students and faculty. Overall, FIDO authentication is a valuable tool for enhancing security and providing a user-friendly experience for online services.
The Banking, Financial Services, and Insurance (BFSI) segment is currently the largest end use industry segment for FIDO authentication. This is due to the sensitive nature of financial data and the high risk of cyber threats in the financial industry. FIDO authentication provides a strong and secure way to authenticate users, helping to protect financial transactions and reduce the risk of fraud and cyber-attacks.
In the BFSI sector, FIDO authentication is being adopted by banks, credit unions, and other financial institutions to provide secure access to their online banking and payment systems. For example, major banks such as Bank of America, Wells Fargo, and JPMorgan Chase have adopted FIDO authentication to enhance their security measures and provide a more secure and seamless user experience for their customers.
Additionally, regulatory requirements such as PSD2 in Europe and the FFIEC guidance in the United States have also contributed to the adoption of FIDO authentication in the financial industry. These regulations require financial institutions to implement stronger authentication methods to protect against fraud and cyber-attacks, making FIDO authentication a popular choice for compliance purposes.
Overall, the BFSI segment is expected to continue to be the largest application segment for FIDO authentication in the foreseeable future, driven by the need for stronger security and compliance with regulatory requirements in the financial industry.
Geographically, the global FIDO authentication market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America.
Following are some of the major trends in these regions –
North America: North America is the largest market for FIDO authentication, with the United States being the major contributor to the growth of the market in the region. The region is characterized by a high number of early adopters of new technology and stringent regulations for data security and privacy.
The BFSI, healthcare, and government sectors are the major contributors to the growth of the FIDO authentication market in North America. Major players in the market such as Microsoft, Google, and PayPal are headquartered in the region.
Europe: Europe is another significant market for FIDO authentication, with countries such as the UK, Germany, and France leading the growth of the market in the region. The adoption of FIDO authentication in Europe is driven by the increasing prevalence of cyber threats, data breaches, and regulatory compliance requirements such as PSD2. The BFSI sector is the largest contributor to the growth of the market in Europe, followed by healthcare and government.
Asia-Pacific: The Asia-Pacific region is expected to witness significant growth in the FIDO authentication market, with countries such as China, Japan, South Korea, and India leading the growth of the market in the region.
The increasing adoption of digital technologies, rising cyber threats, and the growing demand for secure and user-friendly authentication methods are driving the growth of the FIDO authentication market in the region. The BFSI, healthcare, and government sectors are the major contributors to the growth of the market in Asia-Pacific.
Middle East and Africa: The Middle East and Africa region is expected to witness moderate growth in the FIDO authentication market, with countries such as the UAE and Saudi Arabia leading the growth of the market in the region. The growing need for secure authentication methods in various industries such as BFSI, healthcare, and government is driving the adoption of FIDO authentication in the region.
South America: South America is expected to witness moderate growth in the FIDO authentication market, with Brazil being the major contributor to the growth of the market in the region. The increasing prevalence of cyber threats and the growing adoption of digital technologies in various industries such as BFSI, healthcare, and government are driving the growth of the FIDO authentication market in the region.
Companies operating in the global FIDO authentication market are adopting various growth strategies to expand their market presence and increase their revenue.
Some of the major growth strategies adopted by these companies include:
Partnerships and collaborations: Companies are entering into partnerships and collaborations to expand their product offerings and market reach. For example, in 2021, AuthenTrend partnered with ASUSTOR to integrate its biometric authentication technology with ASUSTOR’s network storage devices.
Product innovation and development: Companies are investing in research and development to introduce innovative and advanced FIDO authentication products to meet the evolving needs of the market. For example, in 2020, Yubico launched the YubiKey 5C NFC, a multi-protocol security key that combines USB-C and NFC connectivity.
Mergers and acquisitions: Companies are acquiring or merging with other companies to expand their market presence and strengthen their product portfolio. For example, in 2019, Transmit Security acquired NuData Security to expand its authentication and fraud prevention offerings.
Expansion into new markets: Companies are expanding their operations into new markets to tap into new growth opportunities. For example, in 2021, Thales expanded its FIDO authentication offering into the Asia-Pacific region, citing the growing demand for secure and user-friendly authentication methods in the region.
Strategic alliances and investments: Companies are forming strategic alliances and making investments in other companies to gain access to new technologies and expand their product offerings. For example, in 2021, HID Global invested in Access-IS, a provider of identity verification solutions, to enhance its FIDO authentication offerings.
Amazon Web Services, Inc., CA Technologies, Duo Security, Egis Technology Inc., Feitian Technologies Co., Ltd., Google LLC, HID Global Corporation, Idemia, Intel Corporation, Lenovo Group Limited, Microsoft Corporation, NEC Corporation, RSA Security LLC, Thales Group, Yubico AB and many more.
By End Use Industry:
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By Region
The FIDO authentication market is expected grow at a CAGR of 18.9% from 2023 to 2032.
The FIDO authentication market size is expected to reach US$ 2436.25 million by 2032.
The FIDO authentication market was estimated to be US$ 431.44 million in 2022.
FIDO authentication offers a simple and user-friendly solution that can be easily integrated into existing systems and more secure and user-friendly alternative to traditional authentication methods are the major driving factors of the FIDO authentication market growth.
North America is the largest market for FIDO authentication. The BFSI, healthcare, and government sectors are the major contributors to the growth of the FIDO authentication market in North America.
BFSI segment is the largest application segment for FIDO authentication in the foreseeable future, driven by the need for stronger security and compliance with regulatory requirements in the financial industry.
Amazon Web Services, Inc., CA Technologies, Duo Security, Egis Technology Inc., Feitian Technologies Co., Ltd., Google LLC, HID Global Corporation, Idemia, Intel Corporation, Lenovo Group Limited, Microsoft Corporation, NEC Corporation, RSA Security LLC, Thales Group and Yubico AB are leading players in the FIDO authentication market.
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