Market Trends of Authentication Services Industry
This section covers the major market trends shaping the Authentication Services Market according to our research experts:
Multi Factor Authentication is Expected to Drive the Market Growth
- Passwords have been a traditional source of authentication for the past couple of years. However, hackers exploit this single gateway to access the records of the users and companies and cause losses worth billions to these entities. A recent study by Verizon suggests that “compromised identities” represent the top reason for security breaches. In the previous year (2019), the number of data breaches in the United States alone aggregated to 1,473, with more than 164.68 million records exposed, according to the survey data published by the Identity Theft Resource Center.
- Multifactor authentication has been promoted as a countermeasure to reduce the incidences of data breaches. Further, according to Verizon, insecure password practices exploited in 81% of these spurring cyberattacks worldwide in 2017. While employee education and training can help, the demand for multifactor authentication to require additional proof of identity beyond simple username and password is gaining widespread acceptance in the United States.
- The concept of multifactor authentication was first conceptualized in 1984, and since 2010, multifactor authentication was widely used. This earlier application required complex infrastructure and additional devices. But with the increase in cloud services, the authentication methods have increased vastly. Now forms of MFA include a password combined with authentication apps, facial recognition, or fingerprint readers.
- Owing to this, governments across the world are promoting the use of multifactor authentication. For instance, in the United States, the Defense Federal Acquisition Regulation Supplement (DFARS), in its directive, has outlined the mandatory use of multifactor authentication for all local and remote accounts associated with users who access controlled and unclassified information.
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North America is Expected to Hold the Largest Share
- North America is anticipated to lead the market studied, with the United States being the most prominent contributor. Businesses in the region are increasingly getting dependent on computer networks and electronic data to conduct their regular operations. Increasing pools of personal and financial information are also transferred and stored online.
- According to IBM, the country with the highest average total cost of a data breach amounted to USD 8.19 million in 2019 was the United States. As per the Identity Theft Resource Center, in 2018, the number of data breaches and exposed records in the United States was 1,257 and 471.23 million, respectively.
- Furthermore, the BYOD trend favors the conditions for advanced authentication methods, such as smart cards, physical tokens, and KPIs, to access sensitive information or to login to the client servers.
- Moreover, with the regulatory bodies in the region warning financial institutions against cyber threats, the demand for market studied is anticipated to increase. For instance, the Fed and the OCC are urging financial institutions under their supervision of the importance of high cybersecurity risk management policies during periods of heightened global stresses.
- The joint statement from the two agencies, issued in January 2020, stresses the importance of high-risk management measures, including reviewing, updating, and testing incident acknowledgment and business continuity plans, guarding against unauthorized access with decent authentication and securely configuring systems and services.
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