Market Size of Authentication Services Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 22.00 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Authentication Services Market Analysis
The Authentication Services Market was valued at USD 731.34 million in 2020 and is expected to reach USD 2411.45 million by 2026, at a CAGR of 22% over the forecast period 2021 - 2026. Digital channels are becoming significant as consumers interact with businesses and each other. In this digital world, companies are becoming increasingly dependent on a web of systems, both on and off their networks, to manage, store, and transmit various information, such as the financial accounts, personally identifiable information, intellectual property, and transaction records. In support of this, organizations are increasingly adopting automation solutions to enable swift workflow and analyze the work processes so that they can improvise the areas that challenge the company's progress.
- Moreover, a steep increase in the number of security and data breaches have made it imperative for organizations to adopt robust authentication tools. According to a survey by IdentityForce, there were approximately 2,013 confirmed data breaches in 2019. Microsoft reported a data breach of its non-corporate email services from January to March 2019. It allowed hackers to access email accounts by manipulating Microsoft's customer support portal.
- Further, an immense amount of data is being deployed over the cloud, increasing the vulnerability of data breaches. In October 2019, Adobe reported the unauthorized exposure of account information of 7.5 million users on Adobe Creative Cloud, due to an unprotected online database.
- Growing data breach incidents are driving the adoption of authentication services across the world. According to the 2020 Trustwave Global Security Report, it was found that 33% of cyberattack incidents occurred in North America. Small and medium enterprises (SMEs) are considered the most-affected end users when it comes to cyberattacks. They suffer more malware attacks, but the frequency of attacks against SMEs appears to be on the rise.
- During the current situation of a global pandemic, the demand for remote work solutions has been witnessing a surge, owing to multiple enterprises transitioning from their conventional workplace setup to work from home scenarios. These impacts have to be carefully taken care of in the context of the organization's cybersecurity, as more personal unsecured devices started accessing the organization network, increasing the risk of compromising network security.
- Additionally, since the start of the COVID-19 outbreak, the number of cyberattacks has been drastically increasing, adversely affecting individuals, businesses, and organizations. According to the Check Point Software Technologies survey, the number of cyberattacks during the Q1 of 2020 increased by more than 70%. Such a large number of cybercrimes in the context of COVID-19 made the public question the reliability of the existing sensitive data management practices. These instances are further fueling market growth.
Authentication Services Industry Segmentation
Authentication services allow organizations to identify someone or something by providing access control for systems in which it checks the person's or a thing's credentials against the ones stored in a database.
By Authentication Type | |
Single Factor Authentication | |
Multi Factor Authentication |
By Service Type | |
Compliance Management | |
Managed Public Key Infrastructure (PKI) | |
Subscription Keys Management | |
Other Service Types |
By End-user Industry | |
IT and Telecommunications | |
BFSI | |
Government & Defense | |
Healthcare | |
Other End-user Industries |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East and Africa |
Authentication Services Market Size Summary
The authentication services market is experiencing significant growth, driven by the increasing reliance on digital channels and the need for robust security measures to protect sensitive information. As businesses and consumers interact more through digital platforms, the demand for effective authentication solutions has surged. This is largely due to the rising incidence of data breaches and cyberattacks, which have highlighted the vulnerabilities associated with traditional password-based security systems. Organizations are increasingly adopting multifactor authentication (MFA) and other advanced security measures to safeguard financial accounts, personally identifiable information, and intellectual property. The shift towards remote work, accelerated by the global pandemic, has further underscored the importance of secure authentication methods, as more employees access corporate networks from personal and potentially unsecured devices.
North America is poised to lead the authentication services market, with the United States playing a pivotal role due to its extensive use of electronic data and computer networks in business operations. The region's regulatory bodies are actively promoting the adoption of advanced authentication methods to mitigate cyber threats, particularly in the financial sector. The competitive landscape of the market is characterized by high rivalry, with key players investing in research and development, strategic partnerships, and mergers and acquisitions to enhance their offerings and maintain a competitive edge. Recent innovations, such as IBM's self-aware token and FSS's adaptive authentication solution, reflect the ongoing efforts to advance authentication technologies and address the evolving security challenges faced by organizations worldwide.
Authentication Services Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Growth in the Number of Digital Identities
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1.1.2 Authentication Needed for Security Compliances and Regulations
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1.1.3 Growing Adoption of Bring Your Own Device (BYOD)
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1.2 Market Restraints
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1.2.1 High Cost Involved with Matured Authentication Methods
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2. MARKET SEGMENTATION
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2.1 By Authentication Type
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2.1.1 Single Factor Authentication
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2.1.2 Multi Factor Authentication
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2.2 By Service Type
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2.2.1 Compliance Management
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2.2.2 Managed Public Key Infrastructure (PKI)
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2.2.3 Subscription Keys Management
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2.2.4 Other Service Types
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2.3 By End-user Industry
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2.3.1 IT and Telecommunications
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2.3.2 BFSI
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2.3.3 Government & Defense
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2.3.4 Healthcare
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2.3.5 Other End-user Industries
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2.4 Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia-Pacific
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2.4.4 Latin America
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2.4.5 Middle East and Africa
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Authentication Services Market Size FAQs
What is the current Authentication Services Market size?
The Authentication Services Market is projected to register a CAGR of 22% during the forecast period (2024-2029)
Who are the key players in Authentication Services Market?
Entrust Datacard Corporation, Tata Communications., IBM Corporation, Microsoft Corporation and Google LLC are the major companies operating in the Authentication Services Market.