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
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:
Our in-depth analysis of the hardware OTP token authentication market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Growing number of internet-based transactions and high level of security provided by hardware OTP tokens are the key factors driving market growth.
The market is anticipated to attain a high CAGR over the forecast period, i.e., 2020-2029.
High upgrading and replacement costs, Rise in adoption of software authentication methods and inconvenience in carrying the hardware devices are estimated to hamper market growth.
The market in North America region will provide ample growth opportunities as it is the largest market. moreover, Asia Pacific region has lots of growing opportunities with significant growth as it is the fastest growing market.
The major players dominating the hardware OTP Token Authentication market are Authenex Inc., Entrust Corporation, Thales Group, Microcosm Ltd., Dell Inc. and others.
The company profiles are selected on the basis of revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, end-user industry and region.
With respect to application, banking, financial services and insurance sector is anticipated to hold the largest market share owing to the growing preference among individuals for secure transactions.
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