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Fighting the rise of payment fraud and cyber attacks has also fueled the growth of the fraud prevention, detection and risk mitigation markets. Among those trends is the multi-factor authentication market that continues to see new investments as financial fraud rises.

A new report from Adroit Market Research indicates that by 2025, the multi-factor market will be worth roughly $20.41 billion — a growth of roughly 24% over the next six years. In North America alone — the top multi-factor authentication market — it's already more than a $1.8 billion industry.

According to the latest research, what's driving this growth is "rising financial frauds, cyber-attacks and increased usage of digital payments through smartphones and other wireless devices." As more companies invest in digital transformation strategies, the need for multi-factor authentication methods will continue to grow. For example, the study pointed to the rising investments in cloud technologies and enterprise mobility as a contributing factor the the multi-factor authentication solution growth.

According to Adroit's research, "Rising internet users coupled with increase in use of digital payments is expected to create demand for multi-factor authentication system. Breaching of financial data is a potential threat to banking and FinTech companies, owing to which banking and financial companies are integrating two-factor and multi-factor authentication in the process of digital payment. Moreover, security and privacy threats through malware are constantly growing."

The future of authentication could move beyond simply two factor, which is currently the most dominating security protocol in the market at the moment. In 2018, two-factor authentication accounted for roughly 70% of market share. This trend could shift, however, are fraud and cyber attacks continue to cause more threats. Banking, financial services and insurance accounts for roughly 47% of the total market revenue.

"In the forecast period, three-factor authentication technique is anticipated to grow with the highest CAGR as it is becoming more of a mainstream option for internet security in financial companies as well as consumer-targeted businesses," the report indicated.

"The application of three-factor authentication is increasing as two-factor authentication is not capable of handling increasingly aggressive threats, such as phishing, ATM skimming and malware,"  according to Adroit's research.