Global Hardware OTP Token Authentication Market 2016-2020

Overview of the global hardware OTP token authentication market

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.

Competitive landscape and key vendors

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 -

• Dell
• Gemalto
• Symantec
• VASCO

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.

Segmentation by end-users and analysis of the hardware OTP token authentication market

• BFSI (Banking, financial services, and insurance)
• PCI (Payment card industry)
• Government
• Healthcare

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.

Geographical segmentation and analysis of the hardware OTP token authentication market

• Americas
• APAC
• EMEA

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.

Key questions answered in the report include

• What will the hardware OTP token authentication market size and the growth rate be in 2020?
• What are the key factors driving the global hardware OTP token authentication market?
• What are the key hardware OTP token authentication market trends impacting the growth of the market?
• What are the challenges to market growth?
• Who are the key vendors in the global hardware OTP token authentication market?
• What are the market opportunities and threats faced by the vendors in the global hardware OTP token authentication market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global hardware OTP token authentication market?

Technavio also offers customization on reports based on specific client requirement.

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