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The advanced authentication market is estimated to grow at a CAGR of 14.85% between 2022 and 2027. The size of the market is forecast to increase by USD 34,366.94 million. The growth of the market depends on several factors, including the increasing volume of online transactions, high-level security provided by hardware OTP tokens, and the growing adoption of BYOD among enterprises.
This report extensively covers market segmentation by technology (biometrics and multi-factor authentication), type (large enterprise and SME), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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High-level security provided by hardware OTP tokens is notably driving the market growth, although factors such as the rising number of technical defects may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Advanced Authentication Market Driver
High-level security provided by hardware OTP tokens is notably driving the market growth. Hardware OTP tokens are based on the advanced authentication method. This requires the user to carry a hardware device for initial authentication, which is followed by the second level of authentication. The first round of authentication keeps off the user from accessing critical information without the hardware. Hence, hardware OTP tokens ensure proper user authentication and help prevent potential network intrusions.
Furthermore, the hardware device promotes mobility and does not require a third party to interfere with identity management. This high-security feature of hardware OTP tokens will be a major growth driver. Therefore, these factors will fuel the global market during the forecast period.
Significant Advanced Authentication Market Trend
Increasing adoption of unified platforms for authentication purposes is an emerging trend in the market. The global market includes software and hardware authentication solutions. Some cost-conscious organizations have shifted to the use of software authentication methods. Certain government organizations still use the hardware authentication method. This has prompted vendors to introduce a unified platform that can provide both hardware and software authentication solutions.
Moreover, these solutions will reduce the cost involved in maintaining separate platforms and modules. They will also enable users to switch easily to other authentication solutions. Unified platforms are also penetrating the global market, which will positively impact the growth of the market in focus during the forecast period.
Major Advanced Authentication Market Challenge
The rising number of technical defects are major challenge impeding market growth. Advanced authentication provides better security than other alternatives such as personal identification numbers (PINs), keys, and tokens. However, the lack of accuracy in advanced authentication solutions is a challenge. This affects the profits of vendors.
Technical defects, including the failure to verify and authenticate the identity of a person, are major issues faced by vendors. Additionally, vendors must conduct multiple trial runs before introducing advanced authentication solutions in the market to ensure a high rate of accuracy. This increases the cost of MFA, preventing price-conscious end-users from adopting the technology. Thus, the rise in the number of technical defects will hamper the growth of the global market during the forecast period.
Key Advanced Authentication Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Advanced Authentication Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Beyond Identity Inc. - The company operates under one segment. The company under this segment provides password-less identity management solutions to help secure digital business. The key offerings of the company include advanced authentication.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the biometric segment will be significant during the forecast period. Biometric technology includes voice, palm geometry, deoxyribonucleic acid (DNA), fingerprints, facial features, iris, and vein geometry. The market is expected to witness growth due to the increasing adoption of biometric technology in various end-user industries.
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The biometric segment was valued at USD 17,919.33 million in 2017 and continued to grow until 2021. Biometric technologies are more accurate than other authentication solutions. An end-user does not need to carry hardware OTP tokens and smart cards for identity verification. In addition, connectivity issues with services provided by telecom operators in countries such as Sri Lanka and Haiti may prevent end-users from using phone-based authentication solutions to verify their identity. Nowadays, most smartphones come with an in-built biometric sensor. Thus, the growing penetration of smartphones is also driving the demand for biometric technology in the global advanced authentication market. Thus, the biometrics segment of the global market is expected to grow during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is the largest geographical segment of the global market and will remain the largest segment during the forecast period. Countries such as the US and Canada use advanced authentication in almost all applications. At present, the US and Canada are the top users of advanced authentication solutions at the global level.
Security issues have become vital in the government sector. Local, regional, and national government organizations are deploying biometric systems owing to high accuracy, convenience, and time efficiency. The need for proper security solutions to tackle fraudulence and criminal activities has made it necessary for government enterprises to resort to security solutions. Furthermore, North America is technologically developed compared to other regions. As a result, the adoption of advanced authentication is high in the region. In addition, advances in authentication solutions, such as phone-based authentication and SMS tokens and tokens integrated with biometric authentication, have boosted the growth of the market in the region.
The US is the largest revenue contributor and is expected to maintain its position during the forecast period. One of the major reasons for market growth in the region is the rise in cyber threats due to technological advances and the use of cloud-based systems to store data. Furthermore, an increase in the adoption of mobile devices for personal and professional purposes has increased the adoption of cybersecurity solutions, such as advanced authentication solutions, which is positively impacting market revenue.
In 2020, the COVID-19 pandemic positively impacted the growth of the market in North America. As a result of the pandemic, several governments, imposed lockdowns in 2020, forcing people to stay at home to contain the spread of the disease. Therefore, the pandemic increased the demand for the digitalization of processes and created new opportunities for cloud services in the end-user industries, such as BFSI), healthcare, and retail. The pandemic also enhanced the remote workflow processes in North American countries which further led to ample opportunities for the growth of the market in North America. Moreover, in 2021, the removal of lockdowns owing to the initiation of large-scale vaccination drives in various countries, coupled with increased funding toward the development of IT infrastructure in end-user industries also fueled the market. hence, such factors are expected to further propel the growth of the market in North America during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Technology (Biometrics and Multi-factor authentication), Type (Large enterprise and SME), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
Advanced Authentication Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.85% |
Market growth 2023-2027 |
USD 34,366.94 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.45 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atos SE, Beyond Identity Inc., Broadcom Inc., Cisco Systems Inc., Entrust Corp., FEITIAN Technologies Co. Ltd., ForgeRock Inc., Fujitsu Ltd., FusionAuth, Infineon Technologies AG, International Business Machines Corp., Mastercard Inc., Micro Focus International Plc, Microsoft Corp., NEC Corp., Okta Inc., OneSpan Inc., Oracle Corp., Thales Group, and Versasec AB |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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