Passwordless Authentication Market–Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Fingerprint Authentication, Palm Print Recognition, Iris Recognition, Face Recognition market, Smart Card, Voice Analysis, and Others), By Authentication Type (Single-factor Authentication, Multi-factor Authentication), By End-user Industry (BFSI, Aerospace & Defense, Healthcare, Retail, Food Delivery, IT & Telecom, Government, Others), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 21.83 Billion
CAGR (2026-2031)	19.03%
Fastest Growing Segment	Palm Print Recognition
Largest Market	North America
Market Size (2031)	USD 62.09 Billion

Market Overview

The Global Passwordless Authentication Market will grow from USD 21.83 Billion in 2025 to USD 62.09 Billion by 2031 at a 19.03% CAGR. Passwordless authentication validates a user's identity through biological traits, hardware tokens, or cryptographic keys rather than requiring memorized secrets. The market is primarily propelled by the critical need to mitigate phishing attacks and credential theft while simultaneously enhancing the user experience by eliminating login friction. Organizations are increasingly adopting these solutions to reduce helpdesk costs associated with password resets and to meet stringent regulatory compliance requirements regarding data protection.

The urgency for this transition is underscored by data highlighting the operational inefficiencies of traditional methods. According to the 'FIDO Alliance', in '2024', 56% of consumers abandoned accessing a service online in the previous month because they could not remember their password. Despite these clear commercial drivers, the complexity of integrating modern authentication standards with aging legacy infrastructure remains a significant challenge that hinders rapid deployment across large enterprises.

Key Market Drivers

The escalating frequency of credential-based cyberattacks constitutes the primary catalyst propelling the global passwordless authentication market. As threat actors increasingly exploit static credentials through sophisticated phishing and social engineering campaigns, organizations are compelled to abandon shared secrets in favor of cryptographic and biometric verifiers. This security imperative is highlighted by the vulnerability of traditional login methods across all demographics. According to Yubico, January 2025, in the 'State of Global Authentication' report, 47% of Gen Z and Millennial respondents reported having their social media account passwords hacked. Consequently, enterprises are rapidly deploying phishing-resistant credentials to close this security gap. According to Okta, in 2025, the year-over-year adoption of their passwordless FastPass solution grew by 69% among Fortune 500 customers, signaling a decisive market shift toward unphishable authentication standards.

Concurrently, the reduction in operational costs and helpdesk support for password resets serves as a formidable financial incentive. Traditional password policies impose a significant administrative burden, consuming IT resources and lowering productivity due to frequent lockouts. Transitioning to passwordless workflows eliminates these friction points, delivering an immediate return on investment by liberating support teams to focus on high-value tasks. This efficiency gain is substantiated by industry data; according to the FIDO Alliance, February 2025, in the 'State of Passkey Deployment in the Enterprise' report, 77% of surveyed organizations achieved a measurable reduction in help-center calls following the rollout of passkeys. This tangible operational benefit, combined with enhanced security, cements the business case for retiring passwords.

Download Free Sample Report

Key Market Challenges

The complexity of integrating modern authentication standards with aging legacy infrastructure acts as a formidable restraint on the Global Passwordless Authentication Market. Many enterprises rely on foundational systems built upon older protocols that do not natively support cryptographic keys or biometric validation. This incompatibility forces organizations to develop costly, customized middleware or maintain fragmented hybrid environments where passwordless solutions cover only a fraction of the IT ecosystem. The resource drain required to bridge this technical gap often delays full deployment, reducing the immediate return on investment and causing hesitation among decision-makers who fear operational disruption during the transition.

This technical debt directly hampers market growth by slowing the velocity at which large-scale organizations can completely retire passwords. Instead of a rapid, comprehensive rollout, companies are forced into prolonged migration phases that sustain security vulnerabilities. The severity of this implementation hurdle is evident in recent industry findings. According to the 'Identity Defined Security Alliance', in '2024', '38% of security stakeholders cited complex technology environments as a leading obstacle to implementing identity security outcomes'. This data confirms that the rigidity of existing infrastructure remains a persistent bottleneck, preventing the market from realizing its full expansion potential despite the clear demand for enhanced security.

Key Market Trends

The rapid expansion of consumer passkeys across major technology ecosystems is fundamentally altering the deployment landscape for global passwordless authentication. By embedding FIDO credentials directly into operating systems and consumer devices, industry leaders like Apple, Google, and Microsoft are democratizing access to cryptographic security, effectively transforming billions of smartphones and laptops into compliant hardware tokens. This shift forces enterprise vendors to accelerate support for platform-native authenticators, moving the market away from proprietary hardware toward software-based implementation models that leverage existing user devices. The scale of this consumer-driven standardization is evident in the adoption rates of major platforms. According to Google, May 2024, in the 'The Keyword' blog, more than 400 million Google Accounts have used passkeys to sign in, signaling a massive normalization of this technology that is now bleeding over into workforce identity strategies.

Simultaneously, the integration of passwordless authentication into Zero Trust security frameworks is redefining the strategic value of identity management solutions. In this model, passwordless validation is no longer a standalone entry gate but a critical component of a continuous verification architecture that assesses user identity, device health, and context before granting access to specific resources. This convergence drives the market toward holistic Identity and Access Management (IAM) platforms that unify authentication with broader security policies, making identity the new perimeter. Organizations are prioritizing this synergy to eliminate lateral movement risks associated with compromised credentials. This strategic focus is substantiated by industry investment priorities; according to Thales, March 2024, in the '2024 Data Threat Report', 41% of surveyed security leaders selected Identity and Access Management as the top technology priority for implementing their Zero Trust strategies.

Segmental Insights

Based on recent segmental analysis from leading market research firms, Palm Print Recognition is identified as the fastest-growing segment in the Global Passwordless Authentication Market. This rapid expansion is primarily driven by the escalating demand for contactless biometric solutions, which prioritize user hygiene and reduce surface contamination risks in high-traffic environments. Furthermore, palm recognition offers superior security by utilizing complex ridge and vascular patterns that are significantly more difficult to forge than facial or fingerprint credentials. The continuous evaluation and validation of these algorithms by the National Institute of Standards and Technology (NIST) have reinforced market confidence, accelerating the technology's adoption across the banking and healthcare sectors.

Regional Insights

North America currently holds the leading position in the global passwordless authentication market due to the widespread adoption of secure identity management solutions across the region. This dominance is primarily driven by rising cybersecurity concerns and the extensive presence of established technology infrastructure. Additionally, strict regulatory frameworks compel organizations to upgrade security protocols to protect sensitive data. Specifically, guidelines from the National Institute of Standards and Technology (NIST) regarding digital identity verification actively encourage the shift away from traditional credentials. Consequently, government and financial sectors are integrating biometric and hardware-based systems to ensure compliance and prevent data breaches.

Recent Developments

• In February 2025, Cisco Duo announced the general availability of its Passwordless Authentication for Windows Logon across all commercial editions. This new capability was engineered to mitigate security risks by facilitating a secure single sign-on experience for employees immediately upon accessing their Windows workstations. The solution functions in conjunction with Duo Passport to deliver an integrated authentication process that removes the necessity for traditional alphanumeric passwords. By eliminating reliance on static credentials, the company aimed to reduce the surface area for phishing attacks and credential theft while streamlining the login workflow for enterprise users in desktop environments.
• In February 2025, Thales launched the OneWelcome FIDO Key Lifecycle Management solution to assist large enterprises in deploying and administering FIDO security passkeys at scale. This offering combined an interoperable management platform with the company’s hardware security keys, which were specifically designed for complex organizational requirements. The product was developed to support Chief Information Security Officers in accelerating the transition to passwordless architectures by providing centralized control over the entire lifecycle of security keys. This release focused on removing operational barriers, enabling IT teams to efficiently provision and manage phishing-resistant authentication methods across their workforce.
• In September 2024, Google introduced a technical update enabling the automatic synchronization of passkeys across Windows, macOS, and Linux operating systems. Previously restricted to Android devices, this functionality allowed users to store passkeys within the company's password manager on desktop platforms and access them across different ecosystems without requiring QR code scans. To protect these synchronized credentials, the technology giant implemented a new PIN-based recovery layer that ensured end-to-end encryption. This development was a strategic measure to advance the global adoption of passwordless standards by resolving cross-platform accessibility challenges for consumer accounts.
• In May 2024, Microsoft implemented passkey support for its consumer account ecosystem, covering services such as Microsoft 365, Copilot, and Xbox. This update permitted users to authenticate their identities using biometric methods, such as facial recognition and fingerprints, or device-specific PINs instead of traditional passwords. By integrating this capability, the company sought to defend users against phishing schemes and credential stuffing attacks, which had become increasingly frequent. The deployment allowed individuals to generate and store cryptographic keys directly on their devices, establishing a faster and more secure mechanism for accessing digital services.

Key Market Players

• NEC Corporation
• Microsoft Corporation
• HID Global Corporation
• M2SYS Technology
• Safran SA
• DERMALOG Identification Systems GmbH
• Fujitsu Limited
• East Shore Technologies, Inc
• Thales Group
• Crossmatch Technologies.

By Type	By Authentication Type	By End-user Industry	By Region
Fingerprint Authentication Palm Print Recognition Iris Recognition Face Recognition market Smart Card Voice Analysis and Others	Single-factor Authentication Multi-factor Authentication	BFSI Aerospace & Defense Healthcare Retail Food Delivery IT & Telecom Government Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Passwordless Authentication Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Passwordless Authentication Market, By Type:

• Fingerprint Authentication
• Palm Print Recognition
• Iris Recognition
• Face Recognition market
• Smart Card
• Voice Analysis
• and Others

• Passwordless Authentication Market, By Authentication Type:

• Single-factor Authentication
• Multi-factor Authentication

• Passwordless Authentication Market, By End-user Industry:

• BFSI
• Aerospace & Defense
• Healthcare
• Retail
• Food Delivery
• IT & Telecom
• Government
• Others

• Passwordless Authentication Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE