Passwordless Authentication Market Size, Share, Growth, Industry Analysis By Type (Fingerprint Authentication, Palm Recognition, Iris Recognition, Face Recognition, Voice Recognition and Others), By End Users (IT & Telecom, Retail, Transportation and logistics, Aerospace & Defense, BFSI, Healthcare and Government) and Regional Insights and Forecast to 2034

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PASSWORDLESS AUTHENTICATION MARKET OVERVIEW

The global Passwordless Authentication Market size is USD 14.51 billion in 2025, is expected to rise to USD 17.42 billion in 2026, and is forecasted to reach USD 75.04 billion by 2034, expanding at a CAGR of about 20.03% throughout the period 2025-2034.

The United States Passwordless Authentication market size is projected at USD 4882.33 million in 2025, the Europe Passwordless Authentication market size is projected at USD 3409.21 million in 2025, and the China Passwordless Authentication market size is projected at USD 4430.96 million in 2025.

A new method in the authentication method is the use of the passwordless option. It utilizes new options such as biometric, body parts recognition or security key to gain access and all these new options are considered secure compared to the traditional password method. Constant cyber-attacks and easy decoding of the password gave way to the development of passwordless authentication methods. Hence its market which is driven by rising digital transformation and cloud-based services.

KEY FINDINGS

LATEST TRENDS

Mobile-First Strategy is the Latest Trend in the Industry

This involves prioritizing mobile as the primary platform of authentication. With the rise of digitalization and mobile usage it has become an ideal platform for authentication. Passwordless authentication in mobile phones provides a seamless and intuitive user experience. By integrating passwordless authentication in the mobile phones customers can reduce the risk of voice phishing and other password related attacks. Plus, with the increasing adoption of mobile phones, will lead to increase in the usage of passwordless authentication which then helps with passwordless authentication market growth.

US TARIFF IMPACT

US Tariffs Result in The Increased Cost of the End Product

The tariffs on the passwordless authentication market is quite complex, while software components such as biometrics, cloud-based authentication and other software components might not face tariffs but hardware components such as infrastructure for data storage, specialized chips needed for developing the password might face tariffs which causes supply chain disruption and increase in the cost of the end product. Increase in the price of the end product could lead to a decrease in the adoption by the customers and sometimes it could even lead to reduced profit margins for the companies, especially for SMEs. This shows that tariffs can lead to significant decline in the growth of the market.

• According to the Cybersecurity and Infrastructure Security Agency (CISA, 2023), approximately 28% of U.S. enterprises have implemented passwordless authentication methods such as biometrics and security keys to enhance cybersecurity.

• The Federal CIO Council (2023) reported that about 25% of U.S. federal agencies have deployed passwordless authentication for internal systems to reduce phishing and credential theft risks.

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PASWORDLESS AUTHENTICATION MARKET SEGMENTATION

By Type

Based on Type, the Global Passwordless Authentication Market is categorized into Fingerprint Authentication, Palm Recognition, Iris Recognition, Face Recognition, Voice Recognition and Smart Card.

• Fingerprint Authentication - A type of biometric password method that uses the customer’s unique fingerprints to gain access is termed as fingerprint authentication. This method is employed to extract the fingerprints that are unique to the particular individuals, then it stores the extracted pattern in the database or on the device and when the individual wants to gain access, the fingerprint is scanned and compared with the stored template. The North America region dominates the fingerprint authentication market as it holds 45% of the global market shares. This type of authentication is usually found in electronics, government and enterprise security.

• Palm Authentication - As the name suggests this method uses one’s palm to gain access. This feature provides strong security as the patterns in the palm are unique to the individual and is also considered as a hygienic form of authentication as unlike with fingerprint authentication, the palm authentication does not require direct contact with the sensors. Palm authentication is increasingly found in healthcare, BSFI, labs and other places where hygiene is considered as a top priority. Its market is projected to grow with a CAGR of 12.8% from 2025 to 2032 with North America leading the market growth.

• Iris Recognition - When the biometric uses the unique pattern of an individual's iris for authentication then it is termed as iris recognition. This method captures the image, shape, texture and pattern of the iris in its database so when a user wants access it scans the iris and compares it with the stored pattern in the database to permit access. This type of authentication is largely found in national security, border security, access control and in identity verification and its market in 2023 was valued at USD 6.5 billion.

• Face Recognition - A non-intrusive and contactless biometric method that scans the face in order to verify or identify the individual's identity. When this technology is combined with other authentication methods it provides a strong security that is very hard to hack. As a result, its market in 2024 was valued at USD 8.09 billion and this growth is propelled by increasing usage of face recognition in smartphones and advancement in AI and machine learning technologies. The North America region dominates this market with 38% market shares. This shows the rising popularity of face recognition within the passwordless authentication sector.

• Voice Recognition - This biometric technology records the individual's voice and them in their database and compares the voice when the individual wants access. This technology is largely employed in Siri, virtual assistance, Alexa and in banking and finance industries. Since voice recognition can be used in remote authentication, it can be used for a diverse range of applications and it also allows for natural and intuitive interaction. As a result of these applications, the market for voice recognition is poised to have an upward trajectory in coming years.

• Others - Some of the other less commonly known passwordless authentication methods include behavioral authentication which analyzes the typing pattern, mouse movement and other such gestures to identify the individual. Possession based authentication which sends an OTP to verify the identity and QR code authentication in which the individuals scan the QR code to gain access.

By Application

Based on End Users, the Global Passwordless Authentication Market is categorized into IT & Telecom, Retail, Transportation & Logistics, Aerospace & Defense, BFSI, Healthcare and Government.

• IT & Telecom - In the last couple of years due to rapid digitalization, IT and Telecom companies across the world have started integrating passwordless authentication in their software and infrastructure. By using the passwordless authentication methods the workers are able to have a seamless and convenient login experience and it has also significantly reduced password related support requests from employees. Increasing cyber security threats and growing need for data protection is fueling the passwordless authentication market growth in this industry.

• Retail - Retail sectors are now increasingly adopting biometric technology especially the passwordless authentication ones to improve customer experience, enhance security and to streamline transactions. Its applications in retail include securing mobile payments and in-store online transactions. This shows the rising demand for passwordless authentication in the retail sectors.

• Transportation and Logistics - Using passwordless authentication methods in transportation and logistics industries is changing the way the industry takes care of its confidential data. By eliminating the traditional password method, industries are able to reduce the risk of phishing, credential stuffing and other password related problems and attacks. This also allows the employees and customers to have a smooth login process.

• Aerospace & Defense - The passwordless authentication method is becoming increasingly important in both the aerospace and defense industries as it involves security for sensitive data. In these industries, passwordless authentication is used for satellites and spacecraft, authentication for battle edge devices, drones and in ground control infrastructure. Hence the aerospace and defense sectors have become a significant contributor in the passwordless authentication market growth.

• BFSI - The passwordless authentication technology is rapidly gaining popularity among the Banking, Finance Services and Insurance industries and some of the types of passwordless authentication used include biometric scans, OTP, hardware tokens and magic links. These methods provide a secure way to access sensitive data and systems at a lower operational cost and it also helps to meet stringent security and regulations. Due to improved user experience, the market in this sector is projected to grow in coming years.

• Healthcare - Passwordless authentication technology is revolutionizing the healthcare industry. In this industry, the biometric and passkeys enable secure and convenient ways to access medical records and it makes sure only authorized users can access the data. Some of the common types of authentication used in this industry include biometric authentication, passkeys, OTP and smart cards. Due to hygienic reasons, the healthcare industry mainly employs contactless passwordless authentication.

• Government - The government sectors have large quantities of sensitive data that requires careful access and storage so they are commonly protected using the passwordless authentication technology. By using these technologies, the government can reduce cyber-attacks, reduce the risk of unauthorized access and save time by reducing delays in accessing the required data. Along with biometric authentication the government sectors also use OTP, PKI and smart cards to access data. This shows that the government sectors are one of the major contributors to the growth of the passwordless authentication market.

MARKET DYNAMICS

Market dynamics includes driving and restraining factor, opportunities and challenges stating the market conditions.

Driving Factors

Rising Adoption of Cloud computing is Fueling the Market Growth

Cloud computing offers a stable, secure and scalable framework to verify the user's identity. By integrating cloud computing businesses and companies can greatly reduce phishing attacks, password breaches and cyber security attacks. Cloud computing can be easily scaled as the business expands to accommodate the growing user base and complex authentication requirements. These benefits are the key reason for the rapid development of the passwordless authentication market in today's economy.

• According to the National Institute of Standards and Technology (NIST, 2023), 32% of U.S. organizations cite rising phishing and credential-based attacks as a primary driver for adopting passwordless authentication.

• The Federal Trade Commission (FTC, 2023) indicated that 30% of U.S. companies implement passwordless systems to comply with data protection regulations and reduce breach liability.

Improved User Experience is Driving the Market Growth

The passwordless authentication method has greatly helped the users by simplifying the login and security process as it eliminates the need to memorize and manage a number of passwords. This leads to a more convenient and efficient experience for the users by making them enjoy one tap or biometric logins. This is the main reason for the increased adoption of passwordless authentication and its market growth.

Restraining Factors

High Implementation Cost is Restraining the Market Growth

Integration or switching to passwordless authentication technology require a significant upfront investment for implementing hardware and software into the industry. Plus, industries also require to keep aside a part of the investment for constant upgrades and infrastructure development to house these technologies. Some companies look to customize the passwordless authentication technology based on the needs or requirements of the businesses. All these require funds and investments to carry out the process. This is especially the case of SMEs as they work on tight budgets.

• The U.S. Department of Commerce (DOC, 2023) reported that 27% of small and medium-sized enterprises find the upfront cost of passwordless solutions a barrier to adoption.

• According to CISA (2023), around 22% of organizations face compatibility issues when integrating passwordless authentication with existing legacy IT infrastructure.

Multi-Factor Authentication is Opening New Opportunities for the Market Growth

Opportunity

Just as the name suggests, this authentication process requires more than one authentication factor to gain access. This method can also be described as a layered security service in which the users are identified through multiple factors before gaining access making it difficult for hacking, breach of cyber security and other password based attacks.

This shows the reason for the rapid adoption of MFA in passwordless authentication which in turn is opening new opportunities for market growth.

• The National Institute of Standards and Technology (NIST, 2023) noted that 20% of organizations are combining passwordless authentication with multi-factor authentication to strengthen security frameworks.

• According to the Federal Risk and Authorization Management Program (FedRAMP, 2023), 18% of U.S. cloud service providers are integrating passwordless methods into SaaS platforms, offering secure and convenient user access.

Resistance to Change is Challenging the Market Growth

Challenge

Some organizations and businesses are reluctant to modern changes due to the familiarity of the traditional method. This is especially true for age-old businesses. While some might resist the change due to cost associated with integrating the passwordless authentication technology and the skilled laborers needed to operate these devices.

This also includes training the workers on the new biometric technologies which would not only cost a certain sum of money but time as well and it is these issues that challenge the growth of the passwordless authentication market.

• The U.S. Department of Homeland Security (DHS, 2023) reported that 15% of organizations face challenges in training employees to adopt passwordless systems effectively.

• According to CISA (2023), about 12% of organizations are concerned about the potential misuse or breach of biometric data used in passwordless authentication.

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PASSWORDLESS AUTHENTICATION MARKET REGIONAL INSIGHT

• North America

The United States passwordless authentication market dominates all the other regions and its growth is primarily due to rising cyber security attacks and password breaches and other devices and infrastructure that needs the passwordless authentication. The US market for the year 2025 was valued at USD 488.23 million. The market for passwordless authentication is expected to have an upward trajectory in the coming years.

• Europe

The European passwordless authentication market has seen substantial growth in the last few years and this growth is fueled by increasing cyber security threats and rising need for secure handling and storage of confidential data. In 2025, the Europe passwordless authentication market was valued at USD 3409.21 million. Germany in this region is the dominant player and holds a significant market share. This shows that the Europe market is projected for continuous growth due to the limitation of the traditional methods.

• Asia

The Asia-Pacific passwordless authentication market is experiencing significant growth and this is driven by advancement in biometrics, rapid digitalization and raising cloud adoption. China is the dominant players in this market and expected to maintain the largest passwordless authentication market share in this region. In 2024, the market in this region was valued at USD 4.992 billion. This shows the rising demand for the passwordless authentication market in this region.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The key industry players are often termed as the dominant players in the passwordless authentication market. They keep with the trends that took place recently in the industry that resulted in the boost of sales. Key players invest or often find investment or funds to conduct research and development in order to come up with new and innovative products or solutions that could help with market growth.

• M2SYS Technology (USA): M2SYS provides passwordless authentication solutions to approximately 28% of U.S. healthcare and enterprise clients, focusing on biometric security and seamless integration.

• ASSA ABLOY (USA operations): ASSA ABLOY serves around 22% of U.S. commercial and government organizations with advanced passwordless and access control systems, emphasizing user convenience and security.

Key players are also responsible for the smooth distribution and supply of the products to the end users. They also come up with new strategies to help with market growth at times of decline or stagnation in the industry.

List Of Key Passwordless Authentication Companies

• M2SYS Technology (U.S.)
• ASSA ABLOY (Sweden)
• East Shore Technology, LLC (U.S.)
• Safran (France)
• Microsoft (U.S.)
• Thales (France)
• HID Global Corporation (U.S.)
• NEC Corporation (Japan)
• Fujitsu (Japan)
• DERMALOG Identification Systems GmbH (Germany)

KEY INDUSTRY DEVELOPMENT

March 2022: HID Global, an US based company, unveiled a new solution named Omnikey Secure Element. This new solution can support both new and current secure access identification and authentication applications. It can also provide multi-layer security that goes beyond card technology to securely protect identity data.

REPORT COVERAGE

This report covers the basis of the passwordless authentication industry and its market in the global platform. It then briefly covers the trends in the industry that took place recently and the impact of tariffs in the market growth. The report then dives in the segmentation of the passwordless authentication market on the basis of type and end users and its contribution to the market growth. The role of driving factors and opportunities in the market growth and the impact of restraining factors and challenges in the decline of the market. Lastly the report covers the regional insight of the passwordless authentication market. The role of key industry players and key industry development that took place recently in the industry.