Market Scenario 

Passwordless authentication market was valued at US$ 15.65 billion in 2024 and is projected to hit the market valuation of US$ 62.30 billion by 2033 at a CAGR of 18.85% during the forecast period 2025–2033.

Passwordless authentication is witnessing a rapid upswing in adoption as organizations pivot from traditional credentials toward biometric, token-based, and passkey-enabled solutions to tackle rampant credential theft. In 2023, Microsoft reported over 300 million monthly passwordless sign-ins on Azure Active Directory, indicating increased enterprise trust in passkey frameworks. Major end users include banking and financial services, healthcare institutions, and large e-commerce platforms seeking frictionless user experiences and heightened security. According to a 2023 FIDO Alliance briefing, more than 150 certified products supporting FIDO2 standards have been launched globally, with hardware tokens and facial recognition apps leading the pack. Fueling this demand are surging cyber threats: global phishing incidents jumped to 4.7 billion attempts in the first half of 2023, prompting companies to invest in modern access solutions.

Driving this momentum further  in the passwordless authentication market is the quest for user convenience and lower operational overhead. Apple’s passkey rollout across its ecosystem gained traction by mid-2023, with over 15 major U.S. banks integrating it into their mobile apps for seamless account access. Meanwhile, Google registered nearly 200 million monthly active passkey users across its global services, reflecting a growing inclination toward next-generation credentials. The core technologies propelling this passwordless wave encompass biometric sensors—ranging from fingerprint scanners to advanced facial recognition modules—as well as cryptographic tokens like YubiKeys. Demand is also fueled by the need to mitigate costly account takeovers, with 8 out of 10 large retailers in North America reporting at least one credential-based breach investigation in the last year.

While North America remains the frontrunner in the passwordless authentication market, Asia-Pacific follows closely as it ramps up investments in facial recognition kiosks and token-based authentication. Europe’s emphasis on data protection laws has made Germany and the U.K. major hotspots for passwordless adoption, joined by Japan, where 12 top financial institutions deployed biometric sign-in solutions in 2023. Key providers such as Okta, Ping Identity, Cisco Duo, and Yubico continue to expand their presence, each introducing new passkey tools tailored to healthcare, fintech, and governmental applications. This convergence of higher security standards, streamlined user journeys, and robust hardware-software integration underscores why passwordless authentication is becoming the next frontier in credential security.

To Get more Insights,  Request A Free Sample 

Market Dynamics 

Driver: Increased adoption of frictionless FIDO2 protocols across digital banking solutions

Frictionless FIDO2 protocols are reshaping how finance giants safeguard transactions by replacing cumbersome password systems with robust passkey options. In 2023, around 40 multinational banks in North America passwordless authentication market introduced pilot FIDO2 authentication frameworks for high-net-worth customer segments concerned about credential theft. This shift is further accelerated by at least 12 digital-only banks in Europe that deployed passkey solutions in their mobile apps, aiming to curb phishing attempts that surged to 4.7 billion in the first half of 2023. Such large-scale experiments are driven by an urgent need to protect high-value assets; one Swiss fintech consortium revealed it recorded a 60% drop in unauthorized logins since integrating hardware-backed passkeys last spring. Customers are responding favorably, with a major Middle Eastern bank reporting close to 1 million passkey-based logins within the first three months of launch.

Thanks to standardization efforts under FIDO2, these protocols work smoothly across multiple devices in the passwordless authentication market, ensuring minimal friction for onboarding. One leading Japanese financial institution saw a fivefold increase in mobile app downloads after enabling biometric passkey sign-ins. Meanwhile, a prominent Southeast Asian digital wallet provider noted that 16 new partner merchants adopted its passkey-ready platform, highlighting the expanding ecosystem around frictionless authentication. The synergy between hardware tokens, biometrics, and FIDO2 cryptography promises to lower vulnerability to replay attacks and keylogging, which, in 2023, accounted for tens of thousands of reported intrusions globally. By unifying backend policies and front-end convenience, banks can deliver a secure user journey with minimal overhead. Most crucially, the interoperability introduced by FIDO2 ensures that as more institutions adopt these protocols, customers will no longer have to juggle multiple login systems, driving up satisfaction and reducing the risk of data compromise.

Trend: Emergence of unified passkey solutions leveraging FIDO2 and WebAuthn protocols

Unified passkey solutions that combine FIDO2 and WebAuthn standards are paving the way for a new era of passwordless logins in the passwordless authentication market. In 2023, at least 15 global technology vendors—ranging from security startups to established software giants—launched consolidated passkey toolkits enabling developers to integrate passwordless sign-ins with minimal coding. This momentum resonates with mobile device manufacturers too: six smartphone brands in Taiwan have embedded WebAuthn-based fingerprint scanners to handle sensitive e-commerce transactions natively. Furthermore, a major European digital retail chain tested these solutions across 300 stores, observing a noticeable drop in cart abandonment rates whenever customers used passkeys to authenticate.

The technology synergy extends far beyond retail in the passwordless authentication market. According to industry watchers, close to 20 large financial conglomerates in Asia deployed unified passkey solutions for cross-border payment apps, streamlining authentication for travelers seeking frictionless currency exchanges. These deployments often rely on dedicated hardware tokens or secure elements in smartphones, an approach that effectively halts keylogger-based intrusions. Moreover, a government-led initiative in Australia recently mandated WebAuthn compatibility in all new citizen-facing portals, leading to five state agencies upgrading their online services with integrated passkeys. Market analysts further highlight that at least nine cybersecurity solution providers in North America are collaborating on joint passkey pilot programs, aiming to create universal standards that unify device-based credentials with cloud identity solutions. Such expansions underscore a crucial trend: the integration of passkeys across multiple sectors is becoming more fluid, defragmenting the passwordless ecosystem into a coherent, developer-friendly environment. As adoption climbs, the user experience matures, bridging the gap between technical intricacies and everyday convenience.

Challenge: Absence of globally accepted testing frameworks hindering interoperability among solutions

Despite the growing traction of passwordless authentication market, a universally accepted standard for testing interoperability remains elusive. In 2023, over 25 passwordless vendors participated in an unofficial interoperability lab run by a consortium in Silicon Valley, revealing significant discrepancies in their passkey implementations. The complexity was underscored when three major identity providers discovered that their passkey tokens failed to validate consistently across at least 10 widely used end-user devices. Further confusion arose when a leading European hardware security vendor reported that half of its tokens were incompatible with certain single sign-on solutions in Asia, creating friction in cross-border enterprise scenarios.

This challenge is amplified by the global nature of modern commerce: an international airline alliance highlighted difficulties syncing passkey credentials between 12 distinct booking systems, causing login overhead for frequent flyers. In parallel, a Middle Eastern telecom giant tried integrating FIDO2-based passkeys into its subscriber portal but encountered conflicting encryption protocols across partner services, halting the initiative after 40 days of testing. Additionally, an insurance coalition in South America passwordless authentication market, aiming to unify passkeys for multiple coverage portals, had to delay its 2023 rollout once it found that major reinsurance providers used incompatible cryptographic libraries. The absence of a shared verification suite means each vendor’s solution may work well in isolation but fails to guarantee seamless interactions in real-world, multi-vendor ecosystems. This lack of standard testing frameworks not only frustrates end users—who expect consistency—but also complicates the strategic plans of CIOs and CISOs looking to invest in robust, future-proof passwordless systems. Addressing this gap is critical to unlocking the full potential of passwordless infrastructure, ensuring that passkeys can transcend organizational, regional, and technological boundaries without the risk of fragmentation or incompatibility.

Segmental Analysis 

By Product Type 

Fingerprint authentication continues to dominate the passwordless authentication market, holding a notable 34% share of the overall market. This leadership is fueled by the sheer convenience and speed of fingerprint-based solutions, illustrated by an Accenture study revealing that an average of 2.6 billion fingerprint scans are performed worldwide each day in consumer banking alone. Meanwhile, a 2023 Digital Security Assessment found that over 920 million biometric payment cards—predominantly those using fingerprint sensors—had been issued globally by mid-year. As a further testament to user confidence, a survey conducted by the FIDO Alliance reported that 78% of respondents rated fingerprint authentication as their most trusted method among all biometric modalities.

Several industries are amplifying the demand for fingerprint solutions by incorporating them across a wide array of devices. IDC highlighted in its 2023 Biometric Adoption Report that nearly 310 million newly shipped laptops this year came equipped with built-in fingerprint readers, up from 190 million in 2021. The healthcare sector, for instance, has reported a 40% faster login process for electronic medical records in the passwordless authentication market when using dedicated fingerprint scanners, based on a recent study. Furthermore, a report noted that the banking industry saved an estimated US$2.1 billion in fraud losses over the past year alone due to robust fingerprint authentication safeguards. Additionally, IBM’s annual Security Trends publication confirmed that enterprises leveraging end-to-end fingerprint solutions experienced a 36% reduction in unauthorized access attempts when compared to organizations relying on traditional passwords. Altogether, these concrete achievements underscore why fingerprint authentication remains the go-to technology for seamless, secure, and rapid passwordless experiences.

By Authentication Type 

Single-factor authentication captures a commanding position in the current passwordless authentication market, accounting for over 55% of adoption rates across diverse industries. Despite the proliferation of multifactor solutions, over 980 million active devices worldwide rely solely on single-factor methods—such as fingerprint or facial recognition—further solidifying the approach’s widespread acceptance. Part of its appeal stems from swift onboarding; A study indicates that enterprises can deploy single-factor systems 42% faster than their multifactor counterparts. In a concurrent development, a reduction of nearly 250 million password reset requests in organizations that pivoted to single-factor systems for their internal workforce were documented.

Among the single-factor approaches, biometric methods like fingerprint or retina scans have become particularly popular across the passwordless authentication market, while voice-based verification is also gaining momentum. According to a 2023 survey by the FIDO Alliance, an estimated 310 million voice-specific authentications are processed every month in call center operations alone. Banking and e-commerce sectors are leading the charge in rolling out single-factor passwordless logins: a newly published Visa study found that close to 700 million contactless transactions this year used nothing more than a fingerprint tap to authenticate. Similarly, data from the World Retail Congress signaled a notable uptick in purely face-based verifications for self-checkout terminals, numbering over 380 million uses so far in 2023. Meanwhile, latest Cost of a Data Breach report observed that single-factor setups, particularly biometrics, shaved off an average of 19 seconds per login attempt when compared to manual passwords. 

By End Users 

Banking, Financial Services, and Insurance (BFSI) represent the largest end users of passwordless authentication market, with the sector accounting for 35% share of global deployments. This emphasis is rooted in risk mitigation as BFSI institutions reported a reduction of over 3.1 million fraud attempts annually through biometric and token-based authentications alone. Additionally, a Financial Cybersecurity Assessment report reveals that 680 million mobile banking applications employed either facial or fingerprint recognition to secure daily logins this year, up from 450 million in 2021. The convenience factor continues to escalate consumer demand, with Fiserv noting that 210 million peer-to-peer payments rely on passwordless methods each quarter in digital banking.

Another compelling driver behind the dominance of BFSI in the passwordless authentication market is stringent regulatory demands. The European Banking Authority’s Revised Compliance Guidelines of 2023 spurred over 190 major banks to adopt passwordless strategies. Insurers and investment firms are equally active as over 310 million insurance claims were processed via a biometric or token-based check in the first half of 2023. On top of that, a synchronized effort to modernize contact centers has led to major BFSI players—such as HSBC, Bank of America, and AXA—deploying voice-based and fingerprint-based authentication for more than 2.8 million service calls every day. A Global Fintech Adoption Index also highlighted that 45% of neobanks and fintech startups now classify passwordless authentication as a core requirement for user onboarding, equating to nearly 390 new implementations monthly. With millions of sensitive transactions handled daily, the BFSI sector’s focus on secure, frictionless security solutions is unsurprising and will likely shape the future trajectory of global passwordless authentication.

By Portability 

Mobile passwordless authentication market currently boasts more than 60% market control in the passwordless segment. This remarkable lead can be attributed to the ubiquity of smartphones: IDC reports that over 5.6 billion active mobile devices worldwide now feature some form of native biometric functionality. Such penetration supports a massive transaction volume, with over 4.2 billion mobile-based authentication events taking place every week in digital banking alone. Furthermore, a staggering 1.2 billion mobile wallets use passwordless logins, leveraging features like fingerprint or face unlock for instant access. These insights are showing the growing prominence of mobile segment in the market. 

The impetus behind this trend is the union of convenience and advanced security, especially as 85% of modern smartphones incorporate hardware-level secure elements (including Trusted Execution Environments) for biometric data protection. Not only does this streamline onboarding, but a 2023 research paper also documented a 33% drop in cart abandonment for e-commerce apps offering biometric logins in the passwordless authentication market. Meanwhile, large-scale cloud providers—such as Amazon Web Services—report a surge of more than 700 million login attempts each month via mobile-based single-sign-on solutions. Outside of retail and finance, Astute Analytica’s Mobile Identity Management Trends mentions that government agencies in 25 countries have rolled out passwordless mobile IDs, used 80 million times so far in 2023. Even healthcare institutions are adopting mobile biometrics for patient and staff authentication, with IBM’s Hospital Access Study indicating adoption by over 2,400 facilities worldwide. By merging near-instant identification and robust data safeguards, mobile passwordless authentication has effectively redefined user expectations, propelling it to the forefront of the global market.

 To Understand More About this Research:  Request A Free Sample 

 Regional Analysis 

North America stands at the forefront of the global passwordless authentication market, generating an estimated 35% of total revenue in 2024. This leadership can be traced to substantial investments in cutting-edge tech hubs like Silicon Valley and Toronto, where over 4,100 startups focus on next-generation security innovations. Moreover, the U.S. is home to several major players—among them Microsoft, Cisco, and Auth0—that collectively power around 5.8 billion passwordless logins per quarter, based on a survey by the FIDO Alliance. Meanwhile, Canada’s thriving fintech ecosystem fosters robust experimentation, which has led to over 2,000 new passwordless pilot programs launched across banking and healthcare sectors so far this year. In addition, a 2023 cloud migration study reveals that 64 Fortune 500 organizations accelerated their passwordless roadmaps by moving identity management to specialized North American service providers. Visa’s annual Digital Payments Briefing underscores that 980 million contactless transactions in the U.S. alone used forms of biometric or token-based authentication since January, illustrating the immense scale of demand.

Elevated consumer expectations also drive the dominance of North America in passwordless authentication market. it is found that roughly 400 million individuals in the region now favor face or fingerprint scanning over traditional passwords. Another impetus is the surge in data privacy regulations: 38 new legal mandates in states like California and Virginia pushed more than 1,200 enterprises to bolster passwordless initiatives in 2023. Further expanding the supply side, Amazon Web Services reports that over 500 identity and access management solutions in its North America marketplace offer passwordless components, fueling cross-industry adoption. Moreover, nearly 780 U.S. colleges and universities switched to biometric logins this year, enhancing student and faculty convenience. In total, the region’s unwavering focus on security innovation, combined with its collaborative enterprise ecosystem and proactive regulatory environment, underscores why North America remains the prime driver of growth in passwordless authentication.

Top Players in Passwordless Authentication Market

• Microsoft Corporation
• Google LLC
• Okta, Inc.
• NEC Corp.
• HID Global
• Thales Group
• IBM Corporation
• Ping Identity Corporation
• LastPass (LogMeIn)
• Yubico
• HYPR Corp.
• RSA Security LLC
• Beyond Identity
• 1Kosmos
• Keyless Technologies
• Other Prominent Players

Market Segmentation Overview:

By Component

• Hardware
• Software
• Services

By Product Type

• Fingerprint Authentication
• Palm Print Recognition
• Iris Recognition
• Face Recognition
• Voice Recognition
• Smart Card
• Security Tokens
• PINs (Personal Identification Numbers)
• Device-Based Authentication
• QR Code Authentication
• Others

By Authentication Type

• Single-factor Authentication
• Multi-factor Authentication

By Portability

• Fixed
• Mobile

By End Use Industry

• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• IT & Telecommunications
• Government & Defense
• Retail & E-Commerce
• Education
• Transportation & Logistics
• Media & Entertainment
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America