Information is a valuable commodity, and protecting critical data is a complex task. Multi-factor authentication systems are becoming an increasingly popular choice when it comes to securing information, whether it’s at a personal or institutional level.
Enter hardware one time password (OTP) token authentication. This is a two-factor authentication solution that enables secure remote network access and digital signature functionality with the help of a physical hardware authenticator or a secure token. Hardware OTP uses a security token issued to a user to generate a unique password that acts as a second authentication factor.
The added layers of security provided by hardware OTP tokens make it more difficult for attackers to hack into a user’s system. Even in cases of identity theft, attackers will not be able to cause any damage unless they have access to the physical security token.
Currently, the Global Hardware OTP Token Authentication Market is seeing impressive growth, with a projected CAGR of 9.96 percent from 2013-2018.
TechNavio analysts have taken a closer look at the growing market, and have compiled a list of the top four growth drivers in the Global Hardware One Time Password Token Authentication Market.
Increased Dependence on the Internet for Transactions
We all know that online transactions are quick and easy, but most consumers are also acutely aware of the risks involved.
Even so, the risks clearly aren’t enough of a threat to outweigh the convenience of online banking and shopping, so the onus falls on banks to provide secure online transaction facilities.
In fact, the online facilities provided by financial services companies are proving to be their key differentiators in a highly saturated market, leading companies to offer more online features and functionalities to try and outdo the competition. Said companies are looking to secure authentication solutions like OTP token authentication, which will aid the market’s growth.
Increase in Advanced and Complex Threats
The frequency and complexity of advanced cyber-attacks are at an all-time high. These attacks are targeted at critical installations such as government departments, web servers, customer and password databases, and some of the more impressive threats are even able to crash the entire infrastructure of an attacked destination. Oftentimes, simple authentication just isn’t enough to thwart these sophisticated attacks, so many companies, governments and financial institutions are implementing strong authentication techniques such as hardware OTP token authentication to secure their infrastructure.
Growing Adoption in the Government Sector
In that vein, the rise in cyber-attacks on critical government installations has increased demand for hardware OTP tokens from government departments. Furthermore, insider thefts (think Edward Snowden) and other advanced breaches are at an all-time high in government departments. To complicate matters further, increased employee mobility means that data and networks need to be accessed on the move.
All these factors are creating a rather large demand for better authentication solutions and access control methods. Since the information held by government installations is, in general, more critical than other sectors and industries, stronger security measures, including OTP token authentication, are being implemented.
Rise in Compliance Requirements
Compliance affects companies from all industries handling critical data, such as the baking, financial services, insurance, payment card, and healthcare sectors. They are required to comply with security and privacy requirements set by regulatory authorities, and any breach in compliance can result in not only financial loss but also damage to a company’s reputation. Strict compliance requirements are one major reason for the growth of the Global Hardware OTP Token Authentication market, and it’s estimated that compliance was the main driving factor for 60 percent of companies that have adopted advanced security solutions.
