Hardware authentication refers to a security system which utilizes a hardware device or security token that is used by individuals and organizations to authorize access to a network service. The device may be in the form of a USB device, smart card or may be embedded in a frequently used object such as a key fob. Security tokens provide additional assurance through a method known as two-factor authentication. The user’s personal identification number (PIN), is used to authorize them as the holder of that particular device; the device then displays a number which uniquely identifies the user to the service, permitting them to log in. The identification number for each user is changed regularly, usually every five minutes or so. Due to the growing demand for security, the hardware authentication market is expected to witness significant growth during the forecast period.
High level of security offered by hardware authentication solutions, and increasing preference of online transactions for speed and convenience purpose is the major force driving the hardware authentication market. Further, advancements in the IT sector is possible only if the productivity of remote and mobile users is focused and encouraged while considering protection of their sensitive information. Thus, strong authentication mechanisms are continuously being deployed in small and medium sized enterprises. However, since hardware devices may be inconvenient to carry sometimes, software authentication methods are being preferred by some organizations. Also, the cost associated with upgradation and replacement of hardware authentication devices is high which is anticipated to restrain the market growth.
With ongoing advancements in next-generation hardware OTP tokens and development of combined hardware and software authentication platforms known as unified authentication platforms, the market is destined to flourish during the forecast period. In case of multi-factor authentication, the data stored is in digital form which is very difficult to alter, recreate or decrypt. The OTP token authentication method handles public authentication security problems with the addition of an extra feature for effective verification. Several portable hardware devices have been designed as an authentication method. They have a size similar to credit cards and have a magnetic strip that holds critical data. These smart cards firmly store public and private certificate information. These cards are carried by the user and inserted into a card reader attached to a computer device.
The global hardware authentication market is categorized on the basis of mechanism, authentication device, end use industry and geographic regions. Segmentation on the basis of mechanism includes OTP based, certificate based and hybrid. Type of authentication devices provided by hardware authentication market includes token devices, biometrics, and others. Hardware authentication devices market by solution is further categorized on the basis of tokens as OTP based, USB based, SIM based, Mini OTP based, smart cards, and others. Segmentation on the basis of end user industry comprises of banking, financial services and insurance (BFSI), healthcare, government, PCI (Payment card industry), commercial security, and others. The hardware authentication market has been studied for five geographic regions namely North America, Europe, Asia Pacific, Middle East and Africa, and South America.
Among major end-use verticals, BFSI sector is expected to lead the global hardware authentication market during the forecast period due to the increasing number of online transactions and as adoption of hardware authentication ensures multi-step authentication which has now become crucial for security purpose. The demand for secure identification and verification techniques is high in this segment as customer data is vulnerable to losses, attacks and security violations are likely to foster the demand for hardware authentication solutions. North America is predicted to be a major revenue shareholder due to extensive adoption of mobile devices especially, smart phones within the region. Also, few vendors are offering combined solutions for both software systems and hardware devices, since, there has been increased use of mobile devices such as smartphones in the region. Increasing government concerns related to cyber security are projected be responsible for market growth in Europe. Asia Pacific region is forecasted to be the fastest growing region due to rapid growth and advancements in its economy and establishment of large organizations.
The key players in the global hardware authentication market are Gemalto N.V., Dell Inc., Symantec Corporation, VASCO Data Security International, Inc, Authenex, Inc., Deepnet Security Ltd, Entrust, Inc., FEITIAN Technologies Co., Ltd., Fortinet Inc., and Yubico, Nexus group, PistolStar, Inc., and SecureMetric Technology, among others.
The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.
The study is a source of reliable data on:
The regional analysis covers:
The report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases). The report also features a complete qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.
A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the report projects the attractiveness of each major segment over the forecast period.
Highlights of the report:
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.
Please fill the Request TOC form below.
Make an enquiry before buying this Report
Please fill the enquiry form below.