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Hardware OTP Token Authentication Market Segmentation by Type (Connected, Disconnected, and Contactless); by Application {Banking, Financial Services and Insurance (BFSI), Government, Enterprise Security, Healthcare, and Others}; by Component (USB, SIM, and Mini Tokens) – Global Demand Analysis and Opportunity Outlook 2029

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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Hardware OTP Token Authentication Market Highlights 2020-2029

The hardware OTP token authentication market is estimated to grow with a high CAGR during the forecast period, i.e., 2021-2029. Extensive research associated with hardware OTP token authentication in western countries, along with the growing number of internet-based transactions and the high level of security provided by the tokens, are expected to fuel this market's progress. The market growth can also be attributed to factors such as the increasing investments from the banking and finance industry and preference for convenience and instant use. 

Hardware OTP Token Authentication Market

The market is segmented on product type into disconnected, connected, and contactless. The disconnected segment is anticipated to grab the most significant share by the end of 2029 because of the ease of use and increased security it offers against connected or network devices. Moreover, disconnected tokens are the most common type of security tokens used, usually in combination with a password, in two-factor authentication for online identification.

Based on application, banking, financial services, and insurance (BFSI) industry is one of the most important industries for hardware OTP token authentication globally. Financial organizations make several online transactions every day, and the use of hardware OTP will ensure two-factor authentication leading to secured access. Thus, BFSI sector is projected to dominate the market and is estimated to grow with a high CAGR throughout the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT

Hardware OTP Token Authentication Market Regional Synopsis

Geographically, the market is segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa region. The increase in the number of data breaches pushes many organizations to adopt hardware OTP devices that provide another layer of security for the user to secure themselves. The market in the United States is predicted to grow at the highest CAGR over the forecast period owing to increase the security of the data. For instance, in 2019, the number of data breaches in the United States amounted to 1,473 with over 164.68 million sensitive records exposed, which cost $1.56 million in the US and $1.43 million in the Middle East. Furthermore, in 2020, the market in North America is evaluated to occupy the largest share in terms of revenue, owing to the growing investment of governmental and non-governmental agencies in security of data, accompanied by the presence of leading IT service and electronic device providers in the region.

Hardware OTP Token Authentication Market

The hardware OTP token authentication market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
  • Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis

Market Segmentation

Our in-depth analysis of the hardware OTP token authentication market includes the following segments:

By Type

  • Connected
  • Disconnected
  • Contactless

By Application

  • Banking, Financial Services & Insurance (BFSI)
  • Government
  • Enterprise Security
  • Healthcare
  • Other End-User Industries

By Component

  • USB Tokens
  • SIM Tokens
  • Mini Tokens

Growth Drivers

  • Growing number of internet-based transactions
  • Increasing investments from banking and finance industry

Challenges

  • High upgrading and replacement costs
  • Rise in adoption of software authentication methods

Top Featured Companies Dominating the Market

  • Authenex Inc.
    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
  • Entrust Corporation
  • Thales Group
  • Microcosm Ltd.
  • OneSpan
  • SurePassID, Corp.
  • Dell Inc. 
  • NortonLifeLock Inc.
  • One Identity LLC.

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