The Hardware OTP Token Authentication Market was valued at USD 261.33 million in 2019?and is expected to reach USD 403.31?million by 2025, at a CAGR of 7.5% over the forecast period 2020?- 2025. Hardware OTP tokens are a product category within the two-factor authentication sector, primarily used for ensuring user authentication and access management applications. Primary authentication is followed by the secondary authentication with the use of a hardware device. Since user login authentication without the possession of hardware devices is not allowed, hardware tokens are reliable in ensuring authenticated user login.
- The portability factor associated with these hardware devices further eliminates the need for external software and hardware for identity management. The enhanced level of security provided by these tokens is a major factor reinforcing their demand across the various end-user industries around the world.
- Enterprises, BFSI, government, healthcare, and other segments (gaming, service providers, etc.) are few of the end-user industry segments that require or are required to have multi-factor authentication for granting access to information or usage of services. The mandatory regulations from many government bodies make it necessary for the use of OTP.
- Software OTP, SMS, email, biometrics, etc., are available substitutes to hardware OTP tokens, but hardware tokens are considered more secure as they do not require a network to access the passcode or PIN and are not susceptible to hacks, among other threats.
Scope of the Report
A token is a piece of data that has no meaning or use on its own, but when combined with the correct tokenization system it becomes a vital player in securing the application. Token-based authentication works by ensuring that each request to a server is accompanied by a signed token, which the server verifies for authenticity and only then responds to the request.
Key Market Trends
Disconnected Hardware OTP Token Authentication Market Has the Largest Share
- A disconnected hardware OTP token requires the number to be copied into the passcode field by hand. Disconnected tokens have neither a physical nor logical connection to the client computer. Disconnected tokens do not require a special input device, and instead, use a built-in screen to display the generated authentication data, which the user enters manually via a keyboard or keypad.
- Disconnected tokens are the most common type of security tokens used, usually in combination with a password, in two-factor authentication for online identification. These devices have been in the market for over three decades and have undergone various developments, in order to avoid miscreants getting access to it.
- Disconnected hardware OTP token authentication segment enjoys the largest share in the market studied, due to the ease in use and the increased security it offers against connected or networked devices.
Early Adoption Enables North America to Have the Largest Market Share
- The United States is the largest contributor to breach activity with 2,330 breaches reported with the UK positioned 2nd far behind with reported 184 breach reports. Number of breaches: 2,330, in the United States led to total exposed records of 2,317,065. This led to the personal information being compromised and password and other details getting exposed.
- As per the White House Council of Economic Advisers, the US economy loses approximately USD 57 billion to USD 109 billion per year to dangerous cyber activity. The increase in the number of data breaches is pushing many organizations to adopt hardware OTP devices that provide another layer of security for the user to secure themselves.
- Enterprises these days are operating globally and their employees travel to various offices across the globe. The OTP token authentication allows access as well as provide an additional layer of security to the organizations to secure their and the employee’s information.
The Hardware OTP Token Authentication Market is highly consolidated and consists of few major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market focus on expanding their customer base across the end users. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability and ARPU.
- April 2019 - Thales completed the acquisition of Gemalto (Euronext Amsterdam and Paris: GTO), creating a global leader in digital identity and security. With Gemalto, Thales will cover the entire critical decision chain in a digital world, from data generation via sensors, to real-time decision support. Completed in 15 months, the acquisition of Gemalto by Thales for EUR 4.8 billion creates a Group on a new scale and a global leader in digital identity and security employing 80,000 people.
- November 2017 - RSA a subsidiary of Dell Technologies expanded its technology ecosystem, in order to make strong authentication more continuous, proactive, and pervasive. Offering seamless interoperability with the CyberArk Privileged Account Security Solution, Microsoft Windows Hello, Palo Alto Networks Next-Generation Firewall, and VMware Workspace ONE, RSA enables organizations to quickly and easily leverage the broad set of modern mobile authentication methods from the RSA SecurID Access solution.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client’s requirements
- 3 months of analyst support