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:
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Token cards
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Smart cards
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Digital certificates
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One-time passwords (OTP)
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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:
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Increased remote workforce security needs
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Surge in cloud adoption
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Rise in phishing and ransomware attacks
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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:
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eCommerce
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Net banking
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Mobile banking
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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:
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Securing online payments
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Preventing phishing attacks
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Protecting customer credentials
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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:
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Hardware token expenses
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Biometric device costs
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Software licensing fees
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Compliance certification requirements
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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
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Smart Cards
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Biometrics
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Mobile Smart Credentials
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Tokens
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Others
Biometrics – Fastest Growing Segment
Biometric authentication verifies individuals based on physical traits such as:
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Fingerprints
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Retina and iris scans
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Facial recognition
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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
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BFSI
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Healthcare
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Media & Entertainment
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Government
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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:
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Netflix
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Amazon Prime Video
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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:
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Strong cybersecurity infrastructure
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High cloud adoption rates
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Strict data compliance regulations
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Presence of leading MFA vendors
The region houses major technology providers such as:
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Microsoft
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Okta
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Broadcom
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Oracle Corporation
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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:
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Expanding digital banking
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Rising smartphone penetration
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Increasing government digital identity programs
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Growing eCommerce ecosystems
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Competitive Landscape
Major players in the Extended Authentication Market include:
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Broadcom
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OneSpan
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Microsoft
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Okta
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RSA Security
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Cisco Systems (Duo Security)
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Ping Identity
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HID Global
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ForgeRock
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CyberArk
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OneLogin
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SecureAuth
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Oracle Corporation
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Salesforce
Recent Developments
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May 2021: Microsoft introduced new cybersecurity solutions and employee protection strategies to combat large-scale cyber threats.
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March 2021: Okta signed a definitive agreement to acquire Auth0 for USD 6.5 billion, strengthening its identity-as-a-service capabilities.
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Strategic Collaboration: Ping Identity partnered with One Identity to integrate access management with identity governance technologies.
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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:
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Escalating cyber threats
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Remote work security demands
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Growth in cloud and SaaS deployments
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Digital banking expansion
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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.
