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.
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.
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.
