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Market research analysts at Technavio have predicted that the global hardware OTP token authentication market will grow steadily at a CAGR of more than 8% by 2020. Hardware OTP tokens use a two-factor authentication method that ensures the availability of a hardware device with the user for initial authentication, which is then followed by a secondary authentication level. Since user login without the hardware device is prevented right at the initial level of authentication, hardware tokens are reliable in ensuring authenticated user login and in also preventing any chances for network infiltrations. Moreover, the hardware device is portable which eliminates the need for a third-party for identity management. This higher level of security provided by OTP hardware tokens is identified to be one of the major factors that will have a positive impact on the growth of the market in the coming years.
The decline in the prices of hardware OTP tokens has led to their increased adoption by SMEs that cannot afford high-end devices. Also, the increasing focus on online transactions that are vulnerable to cyber-attacks and the awareness towards the need to protect critical data are also a major factor for the adoption of multi-factor authentication techniques such as hardware OTP tokens by SMEs. The rise in the use of smartphones results in affecting the prices of hardware tokens, which subsequently leads to their adoption by several SMEs. Organizations in the BFSI, PCI, government, and healthcare have already standardized the usage of hardware solutions, and this trend is expected to continue in the next few years as well.
Due to the increasing trend of bring your own device (BYOD), the vendors in the market offer both hardware and software authentication solutions. The increased use of mobile devices such as smartphones has also resulted in few vendors offering combined solutions for both operating systems and hardware devices. Focusing on increasing their customer base, vendors in the market are constantly trying to expand their global reach. Since all vendors compete to gain a considerable share of the market, the competitive environment in the market is quite intense.
The leading vendors in the market are -
The other prominent vendors in the market are Authenex, Deepnet Security, Entrust, FEITIAN Technologies, Fortinet, HID, ID Control, Nexus, PortalGuard, SecuTech, SecureMetric Technology, and Yubico.
During 2015, the BFSI sector dominated the hardware OTP authentication devices market and posted an impressive revenue of more than USD 380 million. Financial organizations make a number of online transactions every day, and the use of hardware OTP will ensure two-factor authentication leading to secure access. This sector will continue to dominate the market throughout the forecast period, and analysts estimate that the market will grow at a CAGR of more than 8% in this segment.
This market study estimates that in terms of geographical regions, the Americas will be the major revenue contributor to the market throughout the forecast period. Though the region is gradually shifting towards the adoption of software OTP due to the increase adoption of mobile devices, this region will continue its market dominance in the next few years as well. Analysts estimate that this region will post an impressive revenue of more than USD 456 million by 2020.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 07: Market size and forecast
PART 08: Market segmentation by end-users
PART 09: Geographical segmentation
PART 10: Market attractiveness
PART 11: Market drivers
PART 12: Impact of drivers
PART 13: Market challenges
PART 14: Impact of drivers and challenges
PART 15: Market trends
PART 16: Impact of trends
PART 17: Buying criteria
PART 18: Five forces analysis
PART 19: Vendor landscape
PART 20: Key vendor profiles
PART 21: Appendix
PART 22: Explore Technavio
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