In 2023, the global passive authentication market was valued at USD 1.64 billion, and projections anticipate it will grow to USD 6.77 billion by 2030, achieving a compound annual growth rate (CAGR) of 22.8% between 2024 and 2030. Traditional password-based authentication remains vulnerable to breaches and hacking, leading to rising interest in more secure verification approaches.

Looking ahead, the market is expected to scale rapidly—from USD 1.64 billion in 2023 to USD 6.77 billion by 2030—driven by several forces: increasing demand for stronger security; growing expectations for friction-free user experience; stricter data privacy regulation; advances in biometric technologies; rising awareness of cyber threats; and wider adoption of cloud solutions making deployment easier and more cost-efficient.

Other trends include greater emphasis on user convenience (such as reducing reliance on passwords), the rise of cloud-based passive authentication for scalability and lower upfront cost, and improved technologies in device-behavior and biometrics (facial, fingerprint, iris). Organizations also face regulatory imperatives—such as GDPR, CCPA—that require robust methods for verifying user identity.

Key Market Trends & Insights & Market Size & Forecast

• Regional dynamics: North America held the largest share in 2023, accounting for 39.0% of global revenues. Meanwhile, the Asia-Pacific region is set to record the highest growth rate during the forecast period.
• By organization size: Large enterprises dominated in 2023, representing 64.6% of the market.
• By function: Compliance management was the leading function in terms of revenue share in 2023, at 32.52%.
• By vertical: The BFSI (Banking, Financial Services, and Insurance) sector led with 23.5% of the market share in 2023.

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Key Companies & Market Share Insight

Major providers in the passive authentication field are engaging in strategic initiatives to gain competitive advantage. These include developing new product offerings, forming partnerships, acquisitions, and collaborations. For instance, in late 2023, Source introduced Banking-as-a-Service (BaaS) solutions to supply essential insights and controls to sponsor banks in their deals with fintechs. Also, Thales in mid-2024 launched “Passwordless 360°”, intended to provide a broad set of password-less authentication options (including modern passkeys, building upon previous investments in related technology). In another move, NEC Corporation of America released NeoFace® Reveal Version 5 in early 2024, a forensic face recognition solution aimed at law enforcement agencies, government bodies, and organisations dealing with high-security requirements.

These players hold significant market share and help set industry direction through innovation and geography. As the need for security intensifies, firms that can offer reliable passive authentication across diverse verticals—especially in BFSI, government, healthcare, retail—and that support both cloud-based and on-premises deployment are likely to gain further dominance.

Key Companies

Leading companies in the global passive authentication market include:

• Aware Inc.
• BehavioSec
• Cisco Systems, Inc.
• FICO Company
• International Business Machines Corporation (IBM)
• Jumio
• NEC Corporation of America
• OneSpan
• Source
• Thales

Conclusion

Passive authentication is emerging as a critical component of digital security strategies, driven by threats to traditional methods, regulatory pressure, and demand for seamless experiences. With large enterprises currently setting the pace, rapid growth in smaller organisations, especially in Asia-Pacific, is poised to shift the competitive landscape. Companies that offer adaptable, compliant, and user-friendly passive authentication solutions—leveraging advances in biometrics, cloud deployment, and behavior analytics—will likely lead as the market scales toward USD 6.77 billion by 2030.

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