Advanced Authentication Market size is set to grow by USD 55.87 billion from 2024-2028, increasing volume of online transactions boost the market, Technavio

NEW YORK, June 18, 2024 /PRNewswire/ -- The global advanced authentication market size is estimated to grow by USD 55.87 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 19.31%  during the forecast period. Increasing volume of online transactions is driving market growth, with a trend towards introduction of out-of-band (OOB) authentication. However, increasing cost of otp tokens  poses a challenge. Key market players include 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., Open Text Corporation, Microsoft Corp., NEC Corp., Okta Inc., OneSpan Inc., Oracle Corp., Thales Group, and Versasec AB.

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Market Driver

The advanced authentication market is experiencing significant growth due to the increasing adoption of Out-of-Band (OOB) authentication technology. This secure authentication method prevents fraud by utilizing a second network for verification, making it an effective multi-factor authentication solution. OOB technology offers high security levels, eliminates the need for middleware, and supports mobile phone authentication. Its open architecture platform enables integration with third-party solutions and provides access to corporate logins. By enhancing security for VPN access, OOB technology is a valuable investment for businesses. 

The Advanced Authentication market is experiencing significant growth due to the increasing need for secure and efficient access control systems. Passwords are no longer sufficient for protecting sensitive data, leading to the adoption of multi-factor authentication (MFA) and biometric authentication technologies. Passwordless authentication, such as SMS-based and email-based verification, are also gaining popularity. Cloud-based solutions are becoming more common, offering convenience and flexibility. Factors like convenience, security, and cost-effectiveness are driving trends in the market. Confidence: 90% 

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Market Challenges

• The advanced authentication market is experiencing higher costs due to substantial initial deployment and replacement expenses. These costs consist of the pricing and licensing model, infrastructure needs, hardware necessities, and token warranties, as well as the resources and effort required for implementation and management. This trend is more pronounced in regions with limited vendor presence, such as South America and Eastern Europe, where a small number of US and European vendors, including Entrust, RSA Security, and VASCO, dominate the market. The absence of significant competition is leading to increased costs for OTP tokens, which may hinder market expansion during the forecast period.
• The Advanced Authentication market faces several challenges in implementing effective security measures. One major challenge is the increasing number of password-based attacks, requiring more robust multi-factor authentication (MFA) solutions. Decryption of tokens and certificates is another challenge, necessitating advanced encryption techniques. Additionally, the integration of biometric authentication into various systems poses technical complexities. Furthermore, ensuring compatibility with various devices and platforms adds to the implementation challenges. Lastly, ensuring user experience while maintaining security is a constant balancing act. These challenges necessitate continuous innovation and improvement in advanced authentication technologies.

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Segment Overview 

This advanced authentication market report extensively covers market segmentation by  

1. Technology 
• 1.1 Biometrics
• 1.2 Multi-factor authentication
2. Type 
• 2.1 Large enterprise
• 2.2 SME
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Biometrics-  Advanced authentication market is thriving due to increasing cybersecurity concerns. Businesses invest in multi-factor authentication and biometric technologies for enhanced security. Single sign-on solutions streamline access, saving time and resources. The market growth is driven by the rising number of data breaches and the need for secure digital transactions. Companies prioritize user experience, ensuring seamless authentication processes. Compliance with regulations such as GDPR and HIPAA further boosts market demand.

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Research Analysis

The Advanced Authentication Market is experiencing significant growth due to the increasing usage of mobile devices for transactions online and the subsequent security dangers. Cyber security breaches through hacking, viruses, and identity theft pose a major threat to sensitive information, particularly in enterprises where employees handle large databases and application servers. To mitigate these risks, advanced authentication methods such as geofencing models using Global Positioning System technology, biometrics, and multi-factor authentication are being adopted. These verification factors include names and passwords, authorization or permission, and verification codes sent via email or text message. Cloud computing and remote working methods have further complicated security, making advanced authentication essential for securing online payment gateways and protecting against online fraud.

Market Research Overview

The Advanced Authentication Market encompasses innovative solutions that ensure secure and seamless user access to digital platforms. These solutions employ multi-factor authentication, biometric verification, and behavioral analytics to mitigate cyber threats. The market is driven by the increasing adoption of cloud services, the proliferation of IoT devices, and the growing need for data security. Additionally, regulatory compliance requirements and the rising trend of remote work are further fueling market growth. The advanced authentication market offers significant opportunities for technology providers, as businesses seek to enhance their security posture and protect sensitive information. Solutions that provide ease of use, scalability, and integration with existing systems are expected to gain traction in the market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Technology
• Biometrics
• Multi-factor Authentication
• Type
• Large Enterprise
• SME
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

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SOURCE Technavio