Extended Authentication Market Global Industry Analysis & Forecast (2024–2030)

The Global Extended Authentication Market was valued at USD 12.96 billion in 2023 and is projected to reach USD 17.68 billion by 2030, expanding at a CAGR of 4.54% during the forecast period. Rising cybersecurity threats, digital transformation, cloud adoption, and regulatory compliance mandates are collectively driving steady growth across industries.

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Industry Overview

Extended authentication primarily refers to advanced authentication frameworks built around the Extensible Authentication Protocol (EAP) and Multi-Factor Authentication (MFA).

Extensible Authentication Protocol (EAP)

EAP is a security framework widely used in Wi-Fi networks and enterprise connectivity environments. It extends the authentication methods used in Point-to-Point Protocol (PPP) and enables secure credential exchange over encrypted networks.

EAP supports multiple authentication methods, including:

Token cards
Smart cards
Digital certificates
One-time passwords (OTP)
Public key encryption

By restricting access to authorized users only, EAP reduces network congestion while improving data security and privacy compliance.

Multi-Factor Authentication (MFA)

MFA requires users to provide two or more verification factors before gaining access to systems, applications, VPNs, or online accounts. Two-factor authentication (2FA) is a subset of MFA that uses exactly two verification methods.

MFA has become a core component of modern Identity and Access Management (IAM) frameworks. It significantly reduces the risk of credential compromise, phishing attacks, and unauthorized access.

COVID-19 Impact

The COVID-19 pandemic accelerated digital transformation globally. With remote work becoming mainstream, cyberattacks surged dramatically.

According to findings by F5 Labs, phishing attacks increased by approximately 220% during the early stages of lockdowns.

Key pandemic-driven market impacts include:

Increased remote workforce security needs
Surge in cloud adoption
Rise in phishing and ransomware attacks
Expansion of digital banking and eCommerce

Organizations strengthened their cybersecurity posture by implementing MFA and advanced authentication systems, boosting market growth during and after the pandemic.

Market Drivers

1. Rise in Online Identity Theft

The Consumer Sentinel Network, maintained by the Federal Trade Commission, tracks fraud and identity theft complaints across federal and state agencies.

With the rapid digitization of banking, government services, and enterprise applications, digital identities are increasingly targeted by cybercriminals. High-profile data breaches and advanced fraud tactics are pushing organizations to adopt stronger authentication frameworks.

Industries including BFSI, healthcare, and government are implementing MFA solutions to protect sensitive information and comply with regulatory standards.

2. Growth in Online Transactions and Digital Banking

The global surge in:

eCommerce
Net banking
Mobile banking
Digital wallets

has created heightened demand for OTP authenticators, biometric verification, and token-based authentication systems.

Central banks and regulatory bodies are enforcing strong customer authentication (SCA) requirements, particularly in financial services. MFA plays a crucial role in:

Securing online payments
Preventing phishing attacks
Protecting customer credentials
Reducing fraud in digital transactions

Healthcare and retail sectors are also integrating MFA into cloud-based systems to secure payment and patient data.

Market Restraints

High Deployment and Maintenance Costs

Despite strong demand, several factors limit adoption, especially among SMEs:

Hardware token expenses
Biometric device costs
Software licensing fees
Compliance certification requirements
Ongoing technical support and upgrades

For small and medium-sized enterprises, implementing full-scale MFA systems can be financially challenging.

Additionally, a lack of technical expertise in cybersecurity deployment and management can slow adoption rates.

Market Segmentation

By Authentication Method

Smart Cards
Biometrics
Mobile Smart Credentials
Tokens
Others

Biometrics – Fastest Growing Segment

Biometric authentication verifies individuals based on physical traits such as:

Fingerprints
Retina and iris scans
Facial recognition
Voice recognition

Biometrics offer strong non-repudiation and non-transferability, making them highly secure. The widespread integration of fingerprint sensors in smartphones and national ID programs has significantly boosted adoption.

Government agencies, banking institutions, and enterprise IAM systems are leading biometric implementation.

By Industry

BFSI
Healthcare
Media & Entertainment
Government
Others

Media & Entertainment – Fastest Growing Vertical

The media and entertainment industry has emerged as a high-risk cybersecurity target due to valuable digital content and intellectual property.

Streaming platforms such as:

Netflix
Amazon Prime Video
Disney+ Hotstar

have experienced phishing campaigns and credential stuffing attacks. According to Kaspersky, thousands of malware attempts have used streaming services as bait.

This growing threat landscape is pushing media companies to strengthen authentication measures and implement MFA across digital platforms.

Regional Analysis

North America – Largest Market Share

North America dominates the global extended authentication market due to:

Strong cybersecurity infrastructure
High cloud adoption rates
Strict data compliance regulations
Presence of leading MFA vendors

The region houses major technology providers such as:

Microsoft
Okta
Broadcom
Oracle Corporation
Salesforce

Due to sophisticated cyberattacks and high enterprise digitization, North America is expected to retain its leadership through 2030.

Europe

Europe benefits from strong data protection regulations such as GDPR, driving organizations to implement secure authentication mechanisms.

Asia-Pacific

Asia-Pacific is witnessing rapid growth driven by:

Expanding digital banking
Rising smartphone penetration
Increasing government digital identity programs
Growing eCommerce ecosystems

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Competitive Landscape

Major players in the Extended Authentication Market include:

Broadcom
OneSpan
Microsoft
Okta
RSA Security
Cisco Systems (Duo Security)
Ping Identity
HID Global
ForgeRock
CyberArk
OneLogin
SecureAuth
Oracle Corporation
Salesforce

Recent Developments

May 2021: Microsoft introduced new cybersecurity solutions and employee protection strategies to combat large-scale cyber threats.
March 2021: Okta signed a definitive agreement to acquire Auth0 for USD 6.5 billion, strengthening its identity-as-a-service capabilities.
Strategic Collaboration: Ping Identity partnered with One Identity to integrate access management with identity governance technologies.
Ping Identity also launched PingID MFA on the Amazon Web Services Marketplace to enhance cloud infrastructure security.

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Future Outlook

The Extended Authentication Market is expected to experience steady expansion through 2030, driven by:

Escalating cyber threats
Remote work security demands
Growth in cloud and SaaS deployments
Digital banking expansion
Regulatory enforcement

As cyberattacks grow more sophisticated, authentication strategies are evolving toward passwordless authentication, behavioral biometrics, AI-driven risk analysis, and adaptive MFA.

Extended authentication solutions will remain central to modern cybersecurity architecture, ensuring secure digital identities across enterprises, governments, and consumers worldwide.