United Kingdom Passwordless Authentication Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Product Type (Fingerprint Authentication, Palm Print Recognition, Iris Recognition, Face Recognition, Voice Recognition, Smart Card, and Others), and United Kingdom Passwordless Authentication Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Passwordless Authentication Market Insights Forecasts to 2035

• The United Kingdom Passwordless Authentication Market Size was Estimated at USD 1283.22 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 16.92% from 2025 to 2035
• The United Kingdom Passwordless Authentication Market Size is Expected to Reach USD 7159.78 Million by 2035

According to a Research Report Published by Spherical Insights & Consulting, the United Kingdom Passwordless Authentication Market Size is Anticipated to Reach USD 7159.78 Million by 2035, Growing at a CAGR of 16.92% from 2025 to 2035. Technological developments and growing adoption in sectors including retail, healthcare, and finance are driving market expansion. Generative AI technology can help improve biometric authentication systems' accuracy and resilience by creating artificial datasets, which boosts the market expansion.

Market Overview

The UK electrodeposited copper foils market refers to the subsegment focused on the integration, distribution, and application of the cybersecurity and identity management system, which eliminates the need for traditional passwords to verify user identity. Rather than depending on easily forgotten or compromised passwords, passwordless methods use alternative authentication techniques like hardware tokens, one-time passcodes, or biometrics (facial recognition, fingerprints) to provide a more seamless and secure user experience, lowering the risks of password-related breaches and improving overall cybersecurity. As organizations deal with more and more data breaches and growing cybersecurity concerns, passwordless authentication has emerged as a crucial solution to protect sensitive data while streamlining and expediting the login process. The flaws caused by password use and issues resulting from password use, such as password reuse across several platforms, have significantly increased this trend. The market's passwordless authentication solutions, including hardware keys or biometrics, are designed to survive phishing attempts and provide more secure, meaningful interactions. The UK government officially committed to rolling out passkeys (FIDO2-based passwordless authentication) for GOV.UK digital services like HMRC, NHS, benefits, and tax credit portals. By the end of 2025, the country plans to do away with passwords and the flimsy SMS-based two-factor authentication system.

Report Coverage

This research report categorizes the market for the United Kingdom passwordless authentication market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom passwordless authentication market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom passwordless authentication market.

Driving Factors

The market for United Kingdom passwordless authentication is boosted by the growing need for more robust security solutions and better user experiences across digital platforms. Furthermore, the quick uptake of cloud services, mobile devices, and zero-trust security models has made it easier for passwordless solutions to flourish in the market expansion. Additionally, businesses are driven to these solutions because they can save help desk expenses related to password resets while also improving adherence to data protection laws. As companies place a higher priority on safe, easy access, particularly in remote work and hybrid settings, passwordless authentication is becoming a crucial component of digital transformation. Passwordless authentication solutions are becoming more and more popular due to the increasing sophistication and frequency of cybersecurity attacks. These solutions are being adopted by organizations more frequently in an attempt to strengthen security against credential-based assaults.

Restraining Factors

The market development could be affected by some factors, such as the substantial initial implementation costs, which serve as a deterrent, particularly for SMEs, a lack of development in the current IT infrastructure, specialist software integration, and large expenditures in continuous maintenance and staff training.

Market Segmentation

The United Kingdom passwordless authentication market share is classified into component, and product type.

• The hardware segment accounted for the largest market share in 2024 and is anticipated to grow at a substantial CAGR over the forecast period.

The United Kingdom passwordless authentication market is divided by component into hardware, software, and services. Among these, the hardware segment accounted for the largest market share in 2024 and is anticipated to grow at a substantial CAGR over the forecast period. This segment is driven by multiple factors of cryptographically secure hardware. Smart cards, tokens, wristbands, key fobs, biometric systems, and mobile solutions are examples. Furthermore, the increasing need for multi-factor authentication in industries such as government, healthcare, and finance has increased the dependence on hardware-based solutions for secure authentication.

• The smart card segment held a significant share in 2024 and is anticipated to grow at a rapid pace during the forecast period.

The United Kingdom passwordless authentication market is segmented by product type into fingerprint authentication, palm print recognition, iris recognition, face recognition, voice recognition, smart card, and others. Among these, the smart card segment held a significant share in 2024 and is anticipated to grow at a rapid pace during the forecast period. This is because of the growing integration of IoT (Internet of Things) technologies into SIM cards and mobile phones. The growing need for smart cards in the government sector which has boost the segment growth.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom passwordless authentication market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Luciditi
• Yoti
• Authentiq
• Deepnet Security
• Veridium
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom passwordless authentication market based on the below-mentioned segments:

United Kingdom Passwordless Authentication Market, By Component

• Hardware
• Software
• Services

United Kingdom Passwordless Authentication Market, By Product Type

• Fingerprint Authentication
• Palm Print Recognition
• Iris Recognition
• Face Recognition
• Voice Recognition
• Smart Card
• Others.