Passwordless Authentication Market Size, Share and Trends 2026 to 2035

Numerous market players are actively entering this market, drawn by partnerships, R&D and business expansions. Several tech companies, such as Microsoft Corporation, NEC CORPORATION, Okta and some others have started investing rapidly for developing passwordless authentication solutions in different parts of the world.

Various startup brands are engaged in developing passwordless authentication solutions across the globe. The prominent startup companies dealing in passwordless authentication consist of 1Kosmos, Descope, Bazalt and some others.

The biometric authentication segment held the largest share of 32.70% in the 2025 global passwordless authentication market. The biometric authentication includes facial recognition, iris/retina scan, voice, and fingerprint recognition. The segment is accelerating at a speed, with most of the individuals and companies having preferred and adopted this authentication as advanced technology in their respective sectors. The biometric access into the big companies for attendance review of the employee in their system has made the monitoring easy with the right calculation of the time.
The behavioural biometrics segment is expected to grow at a CAGR of 19.30% during the forecast period. The behavioural biometrics is an AI-driven approach involving mouse movement, navigation habits, and typing patterns. The segment consistently authenticates users by cracking complex patterns such as mouse movement and typing rhythm, serving adaptive and passive security for passwordless authentication.

The mobile app-based segment held the largest share of 37.40% in the 2025 global passwordless authentication market. The mobile app-based authentication helps to navigate the security status from anywhere and has access to stop or lock if any fraud is detected. The segment is increasingly expanding in work and modern home systems. The organization builds applications that provide access to mark attendance and secure data according to the departments under the IT team's supervision. The modern high-tech home systems have adopted authenticators to protect their personal space from theft and criminals. Overall, the mobile-app-based authentication is strengthening the infrastructure of the organization sector and protecting the personal environment.

The multi-channel (omnichannel platforms) segment is expected to grow at a CAGR of 18.80% during the forecast period. The omnichannel platform is fundamental for global passwordless authentication. It enables secure, seamless, and consistent user experience throughout every essential point, such as websites, call centers, and mobile apps. The segment could lead under the fastest growing segment due to unified customer profiles and individual remarkable identity solutions that engage with ease with numerous authentication methods like hardware keys, push notifications, and biometrics.

The cloud-based segment held the largest share of 53.90% in the 2025 global passwordless authentication market. The cloud-based technology is making headlines in every market with its potency and benefits in reaching the company's target and vision on point, accelerating expansion. In the global passwordless authentication sector, the cloud-based technology enables off-site identity and access management (IAM) services mostly via single sign-on (SSO) platforms such as Microsoft Entra ID and Okta. The development of this segment aims to elevate cryptography, hardware tokens, and biometrics.

The hybrid segment is expected to grow at a CAGR of 17.50% during the forecast period. The hybrid deployment bridges the gap in advancement by merging on-premises and cloud-based identity systems to encourage devices and users. With the mixed authentication methods such as FIDO2/passkeys, push notifications, and biometrics through solutions like Microsoft Entra ID, the segment has taken a grip on development in the market.

The large enterprise segment held the largest share of 61.50% in the 2025 global passwordless authentication market. The large enterprises are adopting passwordless authentication to save time and work more effectively on important tasks, rather than typing or remembering passwords to various applications and so on. The vast amount of data requires a high level of security, so the passwordless authentication sector has significantly grown with the changing preferences of users in the security space to ensure accuracy. For large enterprises, passwordless authentication is prominent for the growth of the market and the enterprise.

The SMEs segment is expected to grow at a CAGR of 18.10% during the forecast period. The small and medium enterprises are steadily developing into the global passwordless authentication market. The SMEs accelerate solutions such as password managers and single sign-on (SSO), as well as user experience. There are a few challenges for the SMEs, like cost and limited in-house expertise, that have hindered growth in this segment. Despite these challenges, the development is paving the way to succeed in this market due to increasing cyberattacks and regulatory pressure.

The workforce authentication segment held the largest share of 36.10% in the 2025 global passwordless authentication market. The segment is emerging with the employees' growth and the need to guide them with the work environment and required access, leveraging employee access management. During the pandemic the remote work was adopted largely, and so the remote authentication came into action more actively to verify user identities through security keys, mobile devices, and biometrics. This advanced and improved work setting.

The consumer authentication segment is expected to grow at a CAGR of 17.90% during the forecast period. The consumer authentication involves online banking, e-commerce, social media, and mobile app logins. To verify consumer identity, banks, companies have created their own application. Online banking is available at all banks for easy access to consumer banking details and transactions, as well as making official transactions through responsible banks for accurate record-keeping of statements. The e-commerce and social media sector is emerging, so the safety of the online transactions and content platforms needs passwordless authentication to manage a large amount of user-based data.

The banking, financial services, and insurance (BFSI) segment held the largest share of 27.30% in the 2025 global passwordless authentication market. The BFSI industry is a crucial driver and a quick adopter of passwordless authentication, accelerating technologies such as secure tokens and biometrics to enhance security against the increasing cyberattacks, which improves user experience. The BFSI sector requires continuous authentication of its sensitive user data, leading to advancements in passwordless authentication to enhance security for this critical segment.

The healthcare segment is expected to grow at a CAGR of 18.70% during the forecast period. The healthcare sector is deploying passwordless authentication in its patient registration data to secure patient-sensitive details and medical devices. The development is led with the help of pre-built SDKs and APIs from the identity providers, and the linking with the existing systems, such as EHRs. The implementation of the passwordless maturity model has effectively transformed the market. The biometric method protects hardware keys for a user-friendly, quick experience, leading to improved patient care and streamlined clinical workflows.

The fingerprint or thumbprint authentication segment held a dominant presence in the passwordless authentication market in 2025, due to its spread across more industries such as consumer electronics, finance, and the health industry. Many enterprises were integrating biometrics identification in their security systems to make security more convenient and to reduce the shortcomings that come with use of passwords. Furthermore, fingerprint scans have been widely adopted by banking and healthcare sectors, thereby, where identity and privacy of such personal and financial information matter.

The authentication using face recognition segment is expected to grow at the fastest rate in the passwordless authentication market during the forecast period of 2024 to 2034, owing to its enhanced security performance and the need for contactless authentication caused by the pandemic. According to the Cybersecurity and Infrastructure Security Agency (CISA) in 2023, the use of facial recognition technology for secure access and identification becoming more widespread in the federal government space. Furthermore, the growing importance of hygiene, especially after the pandemic, and the ever-increasing novelty of touchless systems only add to the increased adoption of this technology in various industries.

The multi-factor segment accounted for a considerable share of the passwordless authentication market in 2025, due to their improved security functions. This likelihood of repeated cyber-attacks, phishing, and data breaches made organizations from all industries incorporate MFA as a key tool in their security measures. Moreover, the strong security model grew in demand every time companies operating across the globe started implementing enhanced data privacy regulations such as the GDPR of the European Union, and the CCPA of California.

The single factor segment is anticipated to grow with the highest CAGR in the passwordless authentication market during the studied years, owing to these applications where low-risk performances and breakpoint detection outweigh concerns of sophisticated security measures. Though SFA is not as secure as the MFA it is a better and faster approach for industries providing consumer-facing applications in a retail or entertainment landscape. Furthermore, the improvements in the use of mobile applications and cloud services, which use SFA for tasks such as account authentication or transaction confirmation further propel the segment.

The BFSI segment led the global passwordless authentication market in 2025, due to the rise in regulatory rules and enforcement and the rising spate of cybercrimes aimed at the financial sector. Data protection, especially during transfer, became more of a concern to the sector with evolving regulatory requirements such as PSD2 in Europe, and CCPA in California among others this forced the adoption of passwordless authentication, especially multi-factor authentication (MFA). Phishing, account takeovers, and data breaches are all real threats to financial institutions since the cost of cybercrime in the financial sector is rising annually.

• According to Secureframe, the global cost of cybercrime is expected to reach USD 10.5 trillion by 2025, increasing at an annual rate of 15%.

The healthcare segment is projected to expand rapidly in the passwordless authentication market in the coming years, owing to the nature of hits surging, and healthcare organizations are shifting their focus to security to guard patient data. Laws such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States are able to dictate strong measures for data protection. This is resulting in healthcare providers embracing innovative authentication methods in the protection of Electronic Health Records (EHR) and other important systems. Furthermore, the expansion of the digital healthcare industry involving telemedicine and wrist-worn health monitoring systems is likely to fuel the adoption of efficient and safe authentication methods.

• According to the 2024 report published by Cobalt, there has been a 239% increase in large breaches involving hacking over the last four years.

Why did Europe hold a Significant Share of the Passwordless Authentication Industry?
Europe held a significant share of the market. The rising adoption of QR code authentication by the educational institutions in several countries, including Germany, France, Italy, the UK and some others has boosted the market expansion. Also, technological advancements in the e-commerce sector, coupled with the rapid expansion of the manufacturing sector, are expected to drive the growth of the passwordless authentication market in this region.

Latin America held a considerable share of the industry. The growing deployment of cloud-based fingerprint scanners in the telecom sector across numerous countries such as Argentina, Peru, Brazil and some others has driven the market growth. Also, the rapid adoption of passwordless authentication by the automotive companies is expected to propel the growth of the passwordless authentication market in this region.

The Middle East and Africa held a notable share of the market. The increasing demand for facial recognition devices from the energy and utilities sector in several countries, including the UAE, South Africa, Saudi Arabia and some others, has boosted the industrial growth. Additionally, numerous government initiatives aimed at developing the fintech companies are expected to foster the growth of the passwordless authentication market in this region.

Fujitsu Limited is a Japanese multinational information and communications technology (ICT) company that provides a broad range of technology products, services, and solutions worldwide. It is a leading digital transformation partner, the largest IT services provider in Japan, and is listed on the Tokyo Stock Exchange.

Google LLC is a multinational technology company, founded in 1998 by Larry Page and Sergey Brin, that specializes in internet-related services and products like search, online advertising, and cloud computing. It is a subsidiary of the parent company, Alphabet Inc., and is known for its search engine technology and products such as YouTube, Android, and Gmail.

HID Global Corporation is a worldwide leader in trusted identity solutions, providing products and services for secure access control, identity verification, and tracking for people, places, and things.

IBM is an American multinational technology company that provides hybrid cloud, AI, and consulting services to businesses and governments worldwide. It has a long history of innovation, from the introduction of the punch card to its current focus on areas including quantum computing and artificial intelligence.

Okta is a cloud-based identity and access management service that securely connects users to the applications and devices they use. It provides solutions for single sign-on (SSO), multi-factor authentication (MFA), and user lifecycle management, enabling organizations to manage employee, partner, and customer access securely and efficiently.

Microsoft is an American multinational technology corporation founded in 1975 by Bill Gates and Paul Allen. Headquartered in Redmond, Washington, it develops, sells, and licenses software, services, and hardware, with a mission to "empower every person and every organization on the planet to achieve more.

NEC Corporation is a Japanese multinational information technology and network solutions company headquartered in Tokyo, Japan. Founded in 1899, it integrates IT and network technologies to provide solutions for areas such as IT services, social infrastructure, public safety, and telecommunications.