Advanced Authentication Market Size (2024 - 2029)

The financial services advanced authentication market is experiencing significant growth, driven by the increasing need for secure data sharing and the rise in online transactions. This growth is fueled by the proliferation of cloud-based services, online fraud, and the evolving technology landscape, which demand enhanced security measures to protect sensitive information. Solution providers are focusing on developing comprehensive platforms compatible with various operating systems to address these security challenges. The banking, financial services, and insurance sector is particularly pressured to innovate continuously to safeguard customer data against the growing threat of cyberattacks.

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Market Size of Advanced Authentication Industry

Advanced Authentication Market in the Financial Service Industry Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 13.60 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration High

Major Players

Advanced Authentication Market in the Financial Service Industry Major Players

*Disclaimer: Major Players sorted in no particular order

Financial Services Advanced Authentication Market Analysis

The global advanced authentication market in the financial service industry was valued at USD 3.476 billion in 2020, and it is expected to register a CAGR of 13.6% over the forecast period 2021-2026. The financial services domain, to provide seamless services to its end users, needs to share sensitive and often regulated information across organizations and corporates. The need for sharing data has increased considerably over the last few years, majorly as a result of the advent of cloud-based services.

  • Online frauds, changing consumer dynamics and increasing technology penetration are driving the adoption of online services among end users. The trend is also driving online transactions, resulting in a renewed emphasis on security and privacy.
  • Major solution providers in the market today are focusing on providing a broad platform to support various existing entities in the environment, including Windows Credential Provider, OSX, iOS, Android, Windows Mobile, and Linux Pluggable Authentication.
  • As the population and creativity of hackers grow, BFSI sector is compelled to deploy new authentication methods which will ensure protection of customer data. It is forcing the vendors for continuous innovation.

Financial Services Advanced Authentication Industry Segmentation

Advanced authentication provides a central place for all authentication policies to be managed. This is important because organizations are usually forced to operate and maintain multiple infrastructures. Advanced authentication, two-factor authentication, or multifactor authentication requires an additional separate factor or credential to complete the log-in or transaction process. 
 

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Advanced Authentication Market Size Summary

The financial services advanced authentication market is experiencing significant growth, driven by the increasing need for secure data sharing and the rise of cloud-based services. As online transactions become more prevalent, the emphasis on security and privacy has intensified, prompting the adoption of advanced authentication methods. Major solution providers are developing platforms that support various operating systems, including Windows, OSX, iOS, Android, Windows Mobile, and Linux. The banking, financial services, and insurance (BFSI) sector is particularly focused on deploying innovative authentication methods to protect customer data from the growing threat of cybercrime. This demand for enhanced security measures is further fueled by consumer concerns over digital transaction anonymity and the need for establishing trust between businesses and consumers.

The Asia-Pacific region is at the forefront of adopting advanced authentication methods, with countries like Malaysia, Singapore, and Thailand implementing regulations and programs to streamline identity verification. The region's high adoption rate of digital banking and commerce underscores the demand for robust authentication solutions. Major players in the market are competing fiercely, with a focus on expanding their global presence. Companies like Gemalto and HID Global are actively developing and promoting advanced authentication technologies, such as biometric systems and two-factor authentication, to enhance security in financial transactions. These innovations are poised to further drive the market's growth, as they address consumer concerns and regulatory requirements in the rapidly evolving digital landscape.

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Advanced Authentication Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Introduction to Market Drivers and Restraints

    3. 1.3 Market Drivers

      1. 1.3.1 Increasing Number of Security Frauds and Technology Penetration is Driving the Market Growth

    4. 1.4 Market Restraints

      1. 1.4.1 Continuous Innovation is Required in Advanced Authentication Methods which Creates a Pressure on Vendors

    5. 1.5 Industry Attractiveness Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Authentication Type

      1. 2.1.1 Smartcards

      2. 2.1.2 Biometrics

      3. 2.1.3 Mobile Smart Credentials

    2. 2.2 Geography

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia-Pacific

      4. 2.2.4 Latin America

      5. 2.2.5 Middle East & Africa

Advanced Authentication Market Size FAQs

The Advanced Authentication Market is projected to register a CAGR of 13.60% during the forecast period (2024-2029)

Fujitsu Ltd., Thales Group (Gemalto N.V), NEC Corp., Broadcom Inc. and Dell Technologies Inc. are the major companies operating in the Advanced Authentication Market.

Advanced Authentication Market Report Snapshots

Financial Services Advanced Authentication Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)