Keeping passwords secure is a top priority for organizations; once a password is compromised, a security breach is very difficult to prevent or detect since attackers are in possession of legitimate credentials. By removing the risk associated with passwords organizations can add a significant layer to the overall security of their IT infrastructure.
As a result, Passwordless Authentication has become a popular and catchy term. It is used to describe a set of identity verification solutions that remove the password from all aspects of the authentication flow and from the recovery process as well. By eliminating passwords as a method of authentication, organizations will remain competitive, secure, compliant and have a modern authentication system that does not require users to remember passwords.
KuppingerCole research indicates that the Passwordless Authentication market is growing rapidly, with vendors offering mature solutions that support millions of users across different industries including finance, healthcare, government, defense, insurance, manufacturing and retail. This has yielded a dynamic, exciting and competitive space where different vendors provide similar but unique methods for customers, partners and employees.
In the light of the increase in cybercrime, more companies are adopting this methodology to protect their platforms, leading this market segment to expect a considerable growth in the coming years. KuppingerCole Analysts predicts that the Compound Annual Growth Rate (CAGR) goes up to 31.1%, leading the Passwordless Authentication market to reach 6.6 billion US dollars by 2025.
This expected growth can also be attributed to the user-friendliness of this method and to the possibility the easy integration of those systems within a company framework, as well as the rising cases of data theft and the constant search of the companies to protect their sensitive information. North America and EMEA are the regions where this service is experiencing the strongest growth.
The Passwordless Authentication segment includes vendors that provide a consistent login experience across all devices, introduce a frictionless user experience, include an integrated authentication approach and ensure that no passwords or password hashes are travelling over the network anymore. It excludes vendors who claim to provide a passwordless solution, but whose product merely offers passwords with additional verification steps.
Various solutions are still password-bound, among which password managers and legacy multi-factor authentication (MFA) solutions, which utilise passwords as a factor in their authentication process. There are a sizable number of vendors in the Passwordless Authentication market. Many of the vendors have developed specialized risk-based passwordless products and services, which can integrate with customers’ on-premises IAM components and support the migration of legacy applications to modern authentication systems.
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