Authentication Software Market Size, Share, Growth, and Industry Analysis, By Type (Two Factor Authentication, Multi Factor Authentication, Single Factor Authentication), By Service (BFSI, IT and Telecomm, Healthcare, Government, Defense and Surveillance, Consumer Electronics, Others), Regional Insights and Forecast To 2032

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Authentication Software Market Report Overview

global authentication software market size was USD 20.70 billion in 2023 and market is projected to touch USD 28.73 billion by 2032 at CAGR 17.8% during the forecast period.

Authentication software, as opposed to hardware devices, is a method of authenticating users via a software application or mobile app. This is also known as phone-as-a-token authentication, soft token authentication, or mobile authentication. When you log into your account, whether on your desktop or mobile device, or when you conduct a banking transaction, authentication software is used to validate your identity. It eliminates the need to carry a hardware authenticator.

Authentication software includes software for user authentication and data storage (data allowing to identify a person such as username and password and the like). For authentication, three common factors are used: Something you are aware of (such as a password) something you own (such as a smart card) something you are (for example, your fingerprint or another biometric method). Rising cases of cyber-attacks, increasing awareness regarding cyber security, occurrence of online frauds are all driving the authentication software market forward.

COVID-19 Impact: Pandemic Increased the Demand for Authentication Services

During the pandemic, the demand for authentication solutions increased due to a sudden increase in cyber-based attacks, resulting in a higher profit margin. Such incidents prompted more businesses to strengthen their existing security infrastructure. Furthermore, as the work-from-home and remote working cultures became more popular, the world witnessed a surge in cyber-criminal activity that targeted many organizations and their customers. Cybercriminals took advantage of the pandemic to ramp up their malicious activity by exploiting remote employees' vulnerabilities and capitalizing on public interest. As a result, there was an increase in demand for improved security of critical corporate assets, and the authentication software market grew during the pandemic.

Latest Trends

"Rising Demand for Cyber Security to Fuel Market Growth"

The expanding research and development efforts carried out by major players and significant technological advancements are primarily to blame for the expanding market for authentication software. For instance, Mastercard launched a program to establish biometric authentication standards in May 2022, making it possible for customers to pay with a smile. The Biometric Checkout Program is a framework for banks, merchants, and technology providers working on biometric payment authentication services to set technology security and privacy standards. A notification was issued in September 2022 by the Ministry of Road Transport and Highways (MoRTH), allowing citizens to use their Aadhaar digital ID to access a number of transportation-related online services. In Feb 2022, by putting more biometrics, fintech, and cloud aviation technologies into use in Singapore, Thales Group strengthened its partnership with the Economic Development Board (EDB) of the country. All these developments are responsible for market growth.

Authentication Software Market Segmentation

• By Type

According to type, the market can be segmented into two factor authentication, multi factor authentication, and single factor authentication.

In terms of product, two factor authentication is the largest segment.

• By Application

Based on service, the market can be divided into BFSI, IT and telecom, healthcare, government, defense and surveillance, consumer electronics, others.

In terms of application, the largest application is BFSI.

Driving Factors

"Rising Cases of Cyber Attacks to Fuel Market Growth"

The market is expected to expand in response to the rise in cyber-attacks and data breaches. Unauthorized access to a computer system or network in order to obtain customer or user private, sensitive, or confidential financial information is known as a cyber data breach. Authentication, endpoint detection and response (EDR), biometric technology, cloud security, code audits, and embedded system security assessments are all needed to prevent data breaches due to the numerous planned breaches. All these will boost authentication software market growth.

"Strong Government Support to Drive Market Expansion"

One of the main drivers for the market is the security of consumer data. The European Union's General Data Protection Regulation (GDPR), for example, was enacted with the sole purpose of enhancing consumer data security measures. Another trend that is gaining popularity in the market is technological advancement. To strengthen their position in the market, companies are concentrating on the creation of technologically advanced security services and solutions like password-less authentication systems and smart cards. For instance, Xage Security, a computer and network security company based in the U.S., introduced multi-layer, multi-factor authentication security for critical infrastructure in June 2022. As a result, demand for authentication software is expected to grow in the forecast period.

Restraining Factors

"Lack of Awareness Regarding Authentication Tools to Hamper Growth of Market "

The market's expansion is hindered by a lack of awareness of the authentication process. Many businesses have less knowledge of these systems. Additionally, demand for this system is decreasing as a result of cloud security. The market loses both demand and revenue as a result of a lack of awareness. It poses a significant obstacle to the market's overall expansion in the coming years. Also, this system won't be used well because many businesses don't have the technical know-how to use it. Organizational breaches, malware, fraud, and money laundering can all result from inadequate usage. The market may experience delays as a result of all of these obstacles.

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Authentication Software Market Regional Insights

"Growing Demand in North America Anticipated to Boost Market Development"

North America holds the leading position in authentication software market share due to the presence of numerous players like HID Global, Duo Security, Okta, Ping Identity, Microsoft, and IBM. The main growth drivers for the market are rising cyber-attacks and investments in North American nations. The rising demand for authentication, the widespread adoption of cutting-edge technologies, and public awareness of cybersecurity are additional driving forces. Market expansion is anticipated to be aided by the widespread use of personal devices like laptops and smartphones to support business operations.

Key Industry Players

"Market Expansion Is Being Driven By Key Players' Adoption of Novel Strategies"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio.

The top key players in the market are IBM, JumpCloud, Gemalto, Broadcom, Entrust Datacard, Avatier, RSA Security, HID Global, TrustBuilder, Duo Security (Cisco), Specops Software and others. The strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates market demand.

LIST OF TOP AUTHENTICATION SOFTWARE COMPANIES

• IBM
• JumpCloud
• Gemalto
• Broadcom
• Entrust Datacard
• Avatier
• RSA Security
• HID Global
• TrustBuilder
• Duo Security (Cisco)
• Specops Software
• eMudhra
• inWebo Technologies
• RCDevs
• REVE Secure
• Veridium
• IDEMIA
• OneSpan
• Symantec Corporation

Report Coverage

This report examines an understanding of the authentication software market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.