Hardware OTP token authentication: Key market research findings
- The Americas dominate the market geographically
- BFSI sector accounts for a majority of the market’s revenue
- Key vendors – Dell, Gemalto, Symantec, and VASCO
Technavio’s market research analysts predict the global hardware OTP token authentication market to grow at a CAGR of more than 8% between 2016 and 2020. The growth of the market is fueled by the high level of security provided by hardware OTP tokens. Hardware OTP tokens use a two-factor authentication method which ensures that the user has a hardware device available for initial authentication followed by a second level of authentication. Hence, hardware OTP tokens ensure proper user authentication, avoiding chances for network infiltrations. According to our research analysts, the Americas will be the key revenue generating region of the global market and will retain its position as the dominant shareholder throughout the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the hardware OTP token authentication market based on the end-user.
“The global authentication market includes both software and hardware authentication methods. Vendors in the market are introducing a unified platform that can allow the use of both hardware and software authentication methods, eliminating the cost involved in shifting from one platform and module to another. Also, the users can easily switch from one hardware OTP token authentication solution to another hardware OTP authentication solution,” says Ishmeet Kaur, Lead Analyst, ICT, Technavio Research.
During 2015, the BFSI sector posted an impressive revenue of over $380 million to become the key revenue generating end-user vertical of the global hardware OTP authentication devices. The increased adoption of hardware OTP token authentication in the BFSI sector can be attributed to the huge number of online transactions made on a daily basis in financial organizations. This segment of the market is expected to continue its dominance over the market during the forecast period. Based on the research carried out by our analysts, the hardware OTP token authentication market for the BFSI sector will grow at a CAGR of more than 8% by 2020.
The prominent players in the global hardware OTP token authentication market include Dell, Gemalto, Symantec, and VASCO. Vendors in the market offer both hardware and software authentication solutions because of the rising BYOD trend. Major vendors try to balance the authentication solution offered between convenience and security. Software authentication is faster to deploy while hardware tokens are preferred for their enhanced security. With the rising use of smartphones, major vendors like Gemalto provide a combined solution that is OS- and device-agnostic.
A more detailed analysis is available in the Technavio report, Global Hardware OTP Token Authentication Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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