Electrical Industry Today

Strong Customer Authentication (SCA) Market CAGR 8.8% (2025–2035): Global Trends, Growth Drivers, and Future Outlook

By 2035, Strong Customer Authentication will not only safeguard online transactions but also redefine how individuals and organizations establish trust in an increasingly digital world.
Published 01 November 2025

The Strong Customer Authentication Market is witnessing rapid growth driven by the global rise in digital transactions, increasing cyber threats, and strict regulatory compliance mandates across industries. Valued at USD 7.93 billion in 2024, the market is expected to reach USD 8.63 billion in 2025 and further expand to USD 20.1 billion by 2035, growing at a robust CAGR of 8.8% during the forecast period (2025–2035).

As digital banking, e-commerce, and online payments continue to expand globally, SCA solutions are becoming critical to ensure secure, seamless, and compliant user authentication.

Market Overview & Forecast

  • Market Size 2024: USD 7.93 Billion
  • Market Size 2025: USD 8.63 Billion
  • Market Size 2035: USD 20.1 Billion
  • CAGR (2025–2035): 8.8%
  • Base Year: 2024
  • Historical Data: 2019–2023
  • Forecast Period: 2025–2035
  • Market Forecast Units: USD Billion
  • Report Coverage: Revenue Forecast, Market Trends, Competitive Landscape, and Growth Factors

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Competitive Landscape

Leading companies in the SCA market are focusing on innovation, partnerships, and advanced authentication technologies to meet regulatory standards and user expectations. Key players include:

  • Thales Group
  • Idemia
  • RSA Security LLC
  • Duo Security (Cisco)
  • Mastercard Inc.
  • Gemalto NV
  • Okta Inc.
  • Ping Identity
  • Microsoft Corporation
  • Visa Inc.
  • Salesforce.com Inc.
  • American Express Company
  • OneLogin
  • IBM Corporation
  • FIS Global

These organizations are driving the development of biometric authentication, adaptive security, and AI-based fraud detection to enhance user experience and transaction safety.

Key Market Drivers

  • Regulatory Compliance Enhancements: Global regulations such as PSD2 in Europe and similar frameworks worldwide are enforcing the adoption of multi-factor authentication.
  • Rising Cyber Threats: Increasing instances of phishing, identity theft, and online fraud are accelerating SCA adoption.
  • Surge in Digital Transactions: Growing e-commerce, mobile banking, and fintech solutions demand robust verification methods.
  • User Experience Optimization: Businesses are integrating frictionless authentication to balance security with customer convenience.
  • Biometric Technology Integration: Adoption of fingerprint, facial recognition, and voice authentication is transforming identity verification.


Key Market Opportunities

  • Expansion in E-commerce and Fintech: The rapid digitalization of payment systems offers massive adoption potential for SCA.
  • Growth in Biometric Solutions: Rising demand for secure, password-less authentication methods presents significant innovation opportunities.
  • Increased Regulatory Mandates: Governments and financial bodies pushing for secure identity frameworks drive solution deployment.
  • Rising Incidents of Identity Theft: Growing need for advanced fraud prevention and data protection solutions.
  • Integration with AI and Machine Learning: Smart, risk-based authentication models are enhancing predictive and adaptive security.


Market Trends & Dynamics

  • Shift Toward Password-less Authentication: Users prefer multi-factor and biometric verification over traditional passwords.
  • Adoption of Cloud-Based SCA Solutions: Cloud security platforms enhance scalability and speed of authentication services.
  • AI and Behavioral Analytics in Authentication: AI-powered SCA systems can predict fraudulent patterns in real time.
  • Increasing Financial Sector Adoption: Banks, payment gateways, and fintech startups are early adopters of strong authentication systems.
  • Focus on Seamless Omnichannel Experience: Organizations aim for consistent authentication across devices and applications.

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Market Segmentation

By Technology:

  • Biometric Authentication
  • Multi-Factor Authentication (MFA)
  • Risk-Based Authentication
  • Behavioral Analytics

By Deployment:

  • Cloud-Based
  • On-Premises

By Solution Type:

  • Hardware Tokens
  • Software Tokens
  • Smartcards
  • Mobile Authentication

By End Use:

  • Banking, Financial Services & Insurance (BFSI)
  • E-commerce
  • Healthcare
  • Government
  • IT & Telecommunications

By Region:

  • North America: U.S., Canada
  • Europe: Germany, UK, France, Italy, Spain, Rest of Europe
  • Asia Pacific: China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC
  • South America: Brazil, Mexico, Argentina, Rest of South America
  • Middle East & Africa: GCC, South Africa, Rest of MEA

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Geographical Insights

  • North America: Leads the market due to stringent cybersecurity regulations, advanced financial infrastructure, and high digital payment adoption.
  • Europe: Driven by PSD2 compliance, widespread e-commerce, and biometric authentication deployment.
  • Asia Pacific: Exhibits strong growth due to rapid fintech expansion, digital transformation, and increasing smartphone penetration.
  • South America & MEA: Witnessing moderate growth fueled by expanding online commerce and government-led cybersecurity programs.


Conclusion

The Strong Customer Authentication Market is on a robust growth trajectory, fueled by global digitalization, regulatory compliance, and increasing cyber risks. With a projected CAGR of 8.8% (2025–2035), the market is expected to become a cornerstone of secure digital identity verification worldwide. Technological advancements in biometrics, AI-based authentication, and multi-factor verification will continue to redefine trust and security in digital transactions.

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