The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The Authentication Services Market was valued at USD 731.34 million in 2019?and is expected to reach USD 2411.45 million by 2025, at a CAGR of 22% over the forecast period 2020?- 2025.
- With the corporate perimeter changing, employees not only handle the internal information pertaining to the organizations but also the confidential information relating to the clients or information provided by the clients which makes it essential for the organizations to deploy authentication services that prevent any misconduct by either granting access to its employees to a specific area of the organization or information relating to any important project.
- The increasing trend of digitization has resulted in increased access via devices which has made the organizations obliged to engage authentication solutions. The BFSI sector has been tremendously affected by the digitizations with many organizations trying to digitize its services. This is expected to drive the market throughout the forecast period.
- The increasing adoption of the authentication services across the healthcare sector to maintain the confidentiality of the crucial information pertaining to a particular patient, data associated with the concerned person handling, and operating the right equipment is expected to boost the market over the forecast period.
- For instance, HCI Group, a leader in healthcare IT consulting services wanted to deploy biometric identification to track visiting hours of the licensed trainers without having to worry about the heavy IT infrastructure requirement and maintenance cost. Henceforth they adopted CloudABIS to use Biometric-as-a-service from M2SYS.
Scope of the Report
Authentication services allow organizations to identify someone or something by providing access control for systems in which it checks the person or a things credentials against the ones stored in a database. This report segments the market by Type (Single-Factor, Multi-Factor), Deployment (Cloud, On-Premise End-User, and Geography.
Key Market Trends
BFSI Sector is Expected to Hold Significant Share.
- The utilization of banking and financial services through online portals is increasing at a high pace, which creates a demand for advanced authentication to protect the vital data of consumers associated with the banking organization.
- According to the RBI, the share of electronic transactions in the total volume of retail payments increased from 88.9% in 2016-2017 to 92.6% in 2017-2018. This represents a lucrative opportunity for the authentication service providers which could boost the growth for the market over the forecast period.
- Some of the prominent players in the BFSI sector have been adopting the authentication services which has enabled them to provide their consumers with a safe and secure environment to do their transactions.
- For instance, In March 2018, Mizuho Bank deployed Fujitsu’s Finplex Online Authentication Service for its mobile banking customers enabling the biometric login for Mizuho’s mobile customers.
- With the number of web attacks increasing drastically since 2015, coupled with an increase in the emergence of multiple platforms for transactions, has left the organizations more vulnerable to hacking and loss of critical information. This is expected to drive the need for more secure and efficient methods of operations fueling the demand for the authentication services over the forecast period.
North America is Expected to Hold the Largest Share
- According to the Federal Trade Commission, identity thefts related to payment and banking sector are prominent in the United States, which in turn, would boost the adoption of authentication services over the forecast period.
- The increased adoption of the BYOD in the region has resulted in the increased need for the adoption of multi-way authentication and risk mitigation authentication methods. This is expected to boost the market over the forecast period.
- The increased adoption of cloud computing by the banking organizations and the financial institutions in the region, authentication services are set to gain more pace in terms of adoption.
- In 2017, Bank of America turned to the Microsoft Cloud as part of its digital transformation, in order to help deliver new business efficiencies, support digital culture change, and better meet customer needs.
- With IT and Telecommunications sector booming in the region, there has been tremendous growth in terms of the number of employees, the details pertaining to salary, office timings, and holidays are stored, which further accumulates as a big data making it essential for the organizations to keep the data safe and away from compromising.
The competitive rivalry in the authentication services market is high owing to the presence of some key players such as Gemalto NV, Bell Canada amongst others. The ability of these competitors to continually innovate their products and services has enabled them to achieve a competitive advantage over other players in the market. Through research and development activities, mergers and acquisitions, and strategic partnerships these players have been able to gain a larger footprint in the market.
- June 2019 - IBM announced the decision to acquire Red Hat Inc. for USD 34 billion. With this acquisition, IBM is set to become the world’s number one hybrid cloud provider, offering companies the only open cloud solution.
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