Global Password Based Authentication Market – Industry Trends and Forecast to 2031

Password Based Authentication Market Analysis and Size

Generally, single factor authentication system is a security framework which is very popular in the global market for its single step authentication to authenticate the person’s authority. The single factor authentication has a distinctive feature compared to other conventional authentication techniques involving password and username verifications and identifications in this system. Furthermore, it has an advanced biometrics security system with advanced features for identifying the person, including fingerprints, iris recognition, facial recognition, and voice recognition techniques.

Data Bridge Market Research analyzes that the password based authentication market which was USD 6,389.20 million in 2023, would rocket up to USD 38,572.8 million by 2031, and is expected to undergo a CAGR of 25.20% during the forecast period. “Fingerprint Recognition” dominates the type segment of the password-based authentication market due to the high demand for this type in the market. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

Single-factor authentication (SFA) is a process for securing the access to a given system, such as a website or network which identifies the party inviting access through only one category of credentials. The most common instance of SFA system is a password-based authentication. Password security trusts on the diligence of the system user or administrator who sets up the account.

Password-Based Authentication Market Dynamics

Drivers

• Payment security concerns

Rising offline and online payment safety and security concerns globally are the major factors which are projected to drive the growth of single-factor authentication systems. Some of the prominent areas of SFA application such as electronic voter registration ID registries, e-passports, general identification and fraud prevention, biometric visas, digitized driver licenses, and election management.

• Highly used in banking sector

Growing investments in banking sectors and increasing demand for secure and safe financial transactions are the major factors expected to drive the growth of the SFA market. There is an increasing acceptance of Single-factor authentication systems technology in the banking sector to maintain privacy and security and protect financial transactions.

• Government initiatives

Rising competition in the global market has raised the demand for the security of confidential information and data of an organization for maintaining their position in the market. Numerous initiatives taken by the governments to provide unique identity cards for every citizen are expected to drive the market's growth.

Opportunities

• High volume of online transactions

The growing volume of online transactions due to consumers' large adoption of digital banking is expected to propel the demand for single factor authentication. The use of internet banking, spurt in ecommerce and mandatory laws by central banks are growing large corporations to authenticate consumers with strong authentication measures. The rising use of mobile banking is set to increase the demand for OTP authenticators during online transactions. Furthermore, the integration of these systems for payment in many sectors, such as healthcare, retail, and BFSI, has created extensive opportunities for the growth of the single-factor authentication market.

• Growing acceptance of cloud platforms for businesses

The increasing acceptance of cloud platforms for businesses, mainly in developing countries, is expected to increase password-based authentication market growth in Asia-Pacific. For instance, in 2020, as per the Nutanix Cloud Index 2018, India will observe triple growth in adopting hybrid cloud workloads from 13 percent to 43 percent. The increasing adoption of digital technology for customer engagement is growing the company's focus on business expansion and developing new products.

Restraints/Challenges

• Increasing limitations on password-based authentication standards

Growing limitations on password-based authentication standards are expected to obstruct the market's growth during the forecast period. For instance, problems with cloud compatibility and scalability can create major problems for organizations or enterprises that want to deploy password-based authentication systems.

• High cost associated with implementation

Password-based authentication products normally carry a premium price tag because there is no integrated interoperability between seller offerings. Aggregated nodes can enforce undesirable capital charges for resources that might not all be required. Furthermore, maintenance contract and software licensing costs can increase recurring Password Based Authentication costs. These factors will hamper the market growth.

This password-based authentication market  report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the password-based authentication market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In November 2020, Hitachi ABB Power Grids announced that they had signed a 5-year contract with Dubai Electricity and Water Authority (DEWA) to provide energy solutions. Under this agreement, the company will supply, install, test, and commission 15 new substations and refurbish and upgrade 18 existing substations across Dubai. Thus, the company will supply its MicroSCADA solution helping to protect, control, measure, and supervise power systems

Global Password-Based Authentication Market Scope

The password-based authentication market is segmented on the basis of type, offering, functionality type, and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Fingerprint Recognition
• Iris Recognition
• Palm Print Recognition
• Face Recognition
• Vein Recognition
• Signature Recognition
• Voice Recognition
• Others

Offering

• Hardware
• Software

Functionality Type

• Contact
• Noncontact
• Combined

End-User

• Government, Military and Defence
• Healthcare, Automotive
• Banking and Finance
• Consumer Electronics
• Travel & Immigration
• Security
• Others

Password Based Authentication Market Regional Analysis/Insights

The password-based authentication market is analysed and market size insights and trends are provided by country, type, offering, functionality type and end-user as referenced above.

The countries covered in the market  report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, rest of Middle East and Africa,  Brazil, Argentina and rest of South America.

North America is expected to dominate the password-based authentication market because of the strong base of automotive facilities and the strong presence of major players in the market.

Asia-Pacific is expected to witness significant growth during the forecast period of 2023 to 2030 due to the increase in government initiatives to promote awareness, rise in automotive facilities, growing research activities in the region, availability of massive untapped markets, and large population pool.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

ICT Infrastructure Growth Installed base and New Technology Penetration

The password-based authentication market also provides you with detailed market analysis for every country growth in healthcare expenditure for capital equipment, installed base of different kind of products for password-based authentication market, impact of technology using life line curves and changes in healthcare regulatory scenarios and their impact on the password-based authentication market. The data is available for the historic period 2010-2020.

Competitive Landscape and Password-Based Authentication Market Share Analysis

The password-based authentication market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to password-based authentication market.

Some of the major players operating in the password-based authentication market are:

• Safran (France)
• NEC Corporation India Private Limited (India)
• FUJITSU (Japan)
• Aware, Inc. (U.S.)
• Gemalto Cogent, Inc. (U.S.)
• BIO-key International (U.S.)
• Precise Biometrics (Sweden)
• secunet Security Networks AG. (Germany)
• Thales Group (France)
• Cognitec Systems GmbH (Germany)
• Crossmatch. (U.S.)
• Fulcrum Biometrics, LLC. (U.S.)
• Daon (Ireland)
• Facebanx (U.S.)
• HID Global Corporation/ASSA ABLOY AB. (U.S.)
• SUPREMA Inc, (South Korea)
• Iritech, inc. (U.S.)
• M2SYS Technology (U.S.)

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