Multi-factor Authentication Market Overview
Rising digital transactions, increasing data breaches and cyber-attacks, growing adoption of bring your own device (BYOD) among enterprises, stringent data privacy regulations and the growing pressure of data security compliances are some of the key factors driving the growth of multi-factor authentication market across the globe.
Multi-factor authentication is a process that requires more than one type of authentication from different categories of credentials to validate the identity of an individual for login or other transactions. Presently, multi-factor authentication is being used by various organizations to implement an additional layer of security that needs users to authenticate via knowledge, possession, and inherence factors to gain access to the organizational resources.
On the basis of the authentication type, the multi-factor authentication market has been categorized into two-factor, three-factor, four-factor, and five-factor authentication. Owing to the increasing use of two-factor authentication in banking, financial services, and insurance (BFSI), and IT and telecom industry, this authentication model accounted for largest market share in 2018.
On the basis of application, the multi-factor authentication market has been segmented into government and defense, BFSI, retail, IT and telecom, healthcare, and travel and immigration. Among these, the BFSI industry accounted for the largest market share in 2018 owing to the growing need for identification and verification for secure online transactions.
Based on geography, North America held the largest market share in 2018 attributed to the advanced IT infrastructure and the presence of a large number of financial institutions in the region. However, Asia Pacific (APAC) is anticipated to be the fastest growing region during the forecast period; this can be attributed to the improving economic conditions in developing countries like China and India. In addition, rising internet penetration coupled with growing usage for e-wallets and mobile payment applications, growing demand for higher security authentication in the region.
Multi-factor Authentication Market Dynamics
The growing adoption of BYOD among enterprises is driving the growth of the multi-factor authentication market around the globe. With growing demand for mobility solutions at the workplace, numerous enterprises have started implementing BYOD policies. This policy enables employees to carry their own devices, such as laptops, smartphones, and tablets to the workplace, and use them with enterprise mobility applications to easily access corporate data. Enterprises have their own benefits by implementing BYOD policies, as it increases employee productivity and also reduces the IT setup time. Furthermore, the rise in the usage of cloud-based apps has also made the adoption of BYOD easier for enterprises as cloud-based apps can be accessed from anywhere, which enables employees to access corporate resources anytime irrespective of their location. Hence, organizations are implementing multi-factor authentication for users to ensure secure access to organizational data from BYOD devices.
In addition, rising digital transactions also fuel the demand for multi-factor authentication worldwide. With increasing digitalization and adoption of e-commerce, the dependency on digital payments for online purchases has also increased, as well as the threat of cyber-attack on digital payment platforms. Thus, financial institutions are implementing multi-factor authentication methods including phone-based authentication, one-time password (OTP), biometrics, and security token, among others to make the digital transactions more secure.
The growing popularity of OTP has been observed to be one of the key trends in the market. OTP is an automatically generated one-time alphanumeric or numeric string that authenticates the identity of a user for a single transaction or login within a limited time period. The OTP is a possession based second authentication factor i.e. OTP received on personal mobile phones. The password becomes invalid after the OTP has been used. Presently, due to enhanced security of OTP, financial institutions, organizations, and e-commerce sector deploying OTP for transactions, and login.
Multi-factor Authentication Market Competitive Landscape
With the presence of numerous market players, the multi-factor authentication market is fragmented and competitive in nature. Some of the market players have been focusing on inorganic growth strategies such as mergers and acquisitions, and product launches to expand their market foothold. For instance, in November 2018, Entrust Datacard Corporation acquired Safelayer Secure Communications S.A., a leading provider of multi-factor authentication. Moreover, in October 2018, Cisco Systems Inc. acquired Duo Security Inc., a provider of unified access security and multi-factor authentication solutions for customers across the globe.
Some of the players of this market is focusing on new product launches to increase their presence. For instance, in July 2018, WatchGuard Technologies Inc. launched AuthPoint, a cloud-based multi-factor authentication solution designed for small and medium businesses (SMBs). Additionally, in March 2018, SecureLink Inc. launched its SecureLink Authenticator App for multi-factor authentication when accessing the SecureLink platform.
Some of the key players operating in the global multi-factor authentication market include NEC Corporation, Nexus Group, RCG Holdings Limited, Secugen Corporation, Securenvoy Ltd, Suprema HQ Inc, Vasco Data Security International, Inc., Entrust Datacard Corporation, WatchGuard Technologies, Inc., Deepnet Security Ltd., aPersona, Inc., Fujitsu Ltd., Symantec Corporation, and Gemalto NV.
The report will also provide a country-wise analysis. Some of the major countries that are covered in the report include U.S., Canada, Mexico, Brazil, U.K., Germany, France, Italy, Spain, China, Japan, India, South Korea, Australia, South Africa, Turkey, U.A.E., and Saudi Arabia.