Overview of the global two-factor biometrics market
Technavio’s market research analyst has estimated the global two-factor biometrics market to grow profoundly at a CAGR of almost 23% by 2020. The growing number of online transactions is considered to be one of the major drivers for this market. Though internet-based financial transactions are highly vulnerable to cyber-attacks, consumers are still dependent on the Internet for financial transactions due to its high convenience. Even though many financial institutions from across the globe have started using hardware OTP (one-time password) for financial transactions, the rising number of online-dependent customers will augment the need for better security techniques. This need for better security measures will fuel the need for two-factor authentication among end users from the banking and financial sectors.
This market study identifies the introduction of OOB (out-of-band) authentication as one of the major trends gaining traction in this market. This technique involves the use of two separate networks that work simultaneously to confirm and authenticate a user’s identity. Since OOB authentication requires a secondary authentication, it prevents fraudsters from accessing a user’s account even if they have all the secure credentials. The growing implementation of OOB authentication methodologies will greatly aid in the growth of the global two-factor biometrics market in the coming years.
Segmentation by end user and analysis of the two-factor biometrics market
- BFSI
- PCI
- Government
- Healthcare
During 2015, the BFSI segment accounted for more than 43% of the total market share and is anticipated to dominate this market until the end of 2020. Owing to increasing instances of transaction frauds in the BFSI sector, the requirement for highly secure identification and verification methods is on the rise. Factors such as the increase in hacking, phishing, and other cyber-related crimes will compel the adoption of better security systems in this sector during the next four years.
Geographical segmentation and analysis of the two-factor biometrics market
- APAC
- Europe
- Latin America
- MEA
- North America
North America will dominate this market during the forecast period and is envisaged to account for an impressive market share of almost 35% by 2020. In this region, the presence of many global financial institutions, increased acceptance among financial institutions, growing instances of security threats, and early adoption of technological advances are primary factors that will fuel the growth of the market.
Competitive landscape and key vendors
Due to the presence of several small regional vendors and large multinational vendors, this market appears to be highly fragmented. Regional vendors struggle to compete with international vendors and established vendors are likely to acquire small-scale regional vendors to gain a better share of the market. Factors like technological innovations, rise in the number of acquisitions, and increasing product and service extensions will intensify the level of competition in this market in the coming years.
The leading vendors in the market are -
- EMC
- Entrust
- Gemalto
- VASCO
The other prominent vendors in the two-factor biometrics market are Authenex, Authentify, Authy, Deepnet Security, DynaPass, Fortinet, HID Global, Meontrust, Mi-Token, PointSharp, Protectimus Solutions, SecureAuth, SecurEnvoy, and SecurStar.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global two-factor biometrics market?
- What are the key market trends impacting the growth of the global two-factor biometrics market?
- What are the challenges to market growth?
- Who are the key vendors in the global two-factor biometrics market?
- What are the market opportunities and threats faced by the vendors in the global two-factor biometrics market?
- Trending factors influencing the market shares of APAC, Europe, Latin America, MEA, and North America.
- What are the key outcomes of the five forces analysis of the global two-factor biometrics market?
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