Technavio report examines multi-factor authentication market trends for 2017-2021
Technavio has published a new research report on the global multi-factor authentication market which analyzes key trends expected to impact the market outlook from 2017-2021.
The report forecasts that the market will grow at a CAGR of nearly 23 percent during the forecast period.
Enterprises are adopting safe and secure authentication services that allow only an authorized person to access their information.
“Multi-factor authentication solutions are gaining prominence in organizations to monitor people from gaining unauthorized access to critical data and tampering with critical information,” Amrita Choudhury, a lead analyst for IT security research at Technavio, said. “Advanced multi-factor authentication solutions provide fraud protection by using verification techniques like hardware OTP authentication, smart card-based authentication, phone-based authentication, and biometrics.”
Technavio analysts found that the leading emerging market trends driving the global multi-factor authentication market are introduction of Out-of-band (OOB) authentication, the emergence of cloud-based multi-factor authentication, and the increased adoption of unified platforms for authentication purposes.
OOB authentication helps end-users to prevent fraud, and can work using a secured communication channel.
According to the report, enterprises are adopting OOB technology for high-risk transactions to verify the identity of the user and authenticate for both financial and non-financial transactions.
The technology has several benefits, such as its ability to work well in a situation when a hacker gains security credentials to the account of a user, and it is relatively inexpensive to deploy compared with keys and other complex biometrics-based technologies.
Cloud-based multi-factor authentication solutions have also become a popular multi-factor authentication method because they are easy to install and upgrade, they are pay-as-you-go, they do not require any maintenance costs, they are less dependent on internal IT personnel, and their improved reliability and scalability, the report said.
In addition, cloud-based multi-factor authentication offers secure access to networks and applications, protects users while improving user experience, and addresses compliance requirements for the security of regulated data.
Technavio also found that some of the cost-conscious organizations have shifted to the use of software authentication methods.
Meanwhile, certain government agencies continue to use the hardware authentication method, which has prompted vendors to introduce a unified platform that can provide both hardware and software authentication solutions.
“Unified platforms for authentication will reduce the costs involved in maintaining separate platforms and modules,” Choudhury said. “They will also enable users to switch easily to other authentication solutions. Unified platforms are penetrating the global multi-factor authentication market.”
Last month, Technavio released new research that forecasts the fingerprint biometrics market will grow at a CAGR of nearly 12 percent from 2017 to 2021, driven by the growing need for secure authentication, especially in government projects.