June 14, 2016 -
Technavio has published a new report entitled “Global Two-Factor Biometrics Market 2016-2020“, which forecasts that the global market will grow at CAGR of over 22% between 2016 and 2020.
The company’s research analysts attribute this market growth to the increasing use of mobile devices to access critical information.
Since these mobile devices are not completely secure, there are high chances of fraudulent activities and misuse of critical corporate and business data.
The report finds that many enterprises are increasingly adopting two-factor biometrics to secure their networks from prevalent security threats while equipping their employees with secure access to their systems.
According to Technavio’s findings, North America currently dominates the two-factor biometrics market with nearly 37% of the total market share.
The large number of global financial institutions and big companies present in the market, the upswing in the use of technologies such as enterprise mobility and cloud services among enterprises, and the growing number of cyber-attacks and malware cases are all contributing to growth in the two-factor biometrics market in North America during the forecast period.
Technavio’s new market research report offers a detailed breakdown and analysis of the two-factor biometrics segment based on end-users.
“The latest trend in the market is the increasing adoption of out-of-band (OOB) authentication,” said Amrita Choudhury, lead analyst of ICT at Technavio Research. “The OOB authentication includes the use of two separate networks working simultaneously to authenticate a user’s identity. This authentication technology works well even if a fraudulent user gains all security credentials to a user’s account. The OOB authentication methods available in the market are hardware OOB authentication tokens and mobile phone-based OOB authentication tokens, inclusive of SMS and back-up calls.”
During 2015, the banking, finance, and insurance services (BFSI) segment comprised of more than 43% of the overall market share to lead the global two-factor biometrics market.
Technavio analysts find that there is a growing need for highly secure identification and verification methods stemming from the increasing occurrence of security breaches and transaction frauds.
Global banks and financial institutions are integrating two-factor biometrics to allow their customers to securely access online accounts through a mobile application, the report said.
Meanwhile, the potential surge in hacking, phishing, and other cyber crimes is expected to drive the adoption of two-factor biometrics in the BFSI sector.
The report highlights four key vendors in the market, including EMC, Entrust, Gemalto, and VASCO.
The global market appears to be highly fragmented as a result of regional vendors struggling to compete with international vendors, and established vendors being likely to acquire small-scale regional vendors to gain a greater market share.
The research shows that key factors like technological innovations, a rise in the number of acquisitions, and increasing product and service extensions will only boost the level of competition in this market in the next few years.