The Global Authentication Services Market Size accounted for USD 1,088 Million in 2022 and is estimated to achieve a market size of USD 7,578 Million by 2032 growing at a CAGR of 21.7% from 2023 to 2032.
Authentication Services Market Highlights
The authentication services market is the market for products and services which provide secure authentication and identity verification for users. This includes solutions for verifying user identities and managing user access to resources when logging into applications and systems. Virtualization and digitalization in small and middle-sized businesses (SMBs) have made authentication more ubiquitous and vital in the current technology space. Authentication not only delivers secure admittance to the delicate content, but it also contributes to enforcing and framing different security control policies, process controls, technologies, procedures, and access regulators in the administrations.
Global Authentication Services Market Dynamics
Authentication Services Market Report Coverage
|Market||Authentication Services Market|
|Authentication Services Market Size 2022||USD 1,088 Million|
|Authentication Services Market Forecast 2032||USD 7,578 Million|
|Authentication Services Market CAGR During 2023 - 2032||21.7%|
|Authentication Services Market Analysis Period||2020 - 2032|
|Authentication Services Market Base Year||2022|
|Authentication Services Market Forecast Data||2023 - 2032|
|Segments Covered||By Service, By Authentication Type, By Token Type, By Vertical, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Auth0 Inc., Broadcom Inc., Duo Security, Entrust Datacard Corporation, ForgeRock Inc., Google LLC, HID Global Corporation, IBM Corporation, Idaptive, LLC, Microsoft Corporation, Ping Identity, OneLogin, RSA Security, SecureAuth Corporation, and Okta Inc.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis|
Authentication Services Market Insights
Rising usage of digital identities and stringent data security acquiescence is majorly driving the growth of this market. Authentication service necessitates the requirement of a public-key infrastructure, which escalates the cost of preliminary deployment in selected environments over public-key authentication. Hence, this cost factor may hinder the growth of the authentication service market. However, improved security, advancement in R&D, huge population opting for authentication services are expected to boost the growth of this market in near future. The need for increased security and privacy in an increasingly digital world drives the authentication services industry. With the increasing number of connected devices and the rise of remote work, there has never been a greater need for secure authentication solutions.
Authentication Services Market Segmentation
The worldwide market for authentication services is split based on service, authentication type, token type, vertical, and geography.
Authentication Service Market By Type of Service
According to an authentication services industry analysis, compliance management service accounted for the utmost share in 2022 and is likely to do so in the coming years. Compliance management is an important service, particularly in highly regulated industries like healthcare and finance. In addition, managed public key infrastructure (PKI) is regarded as one of the most important authentication services due to its critical role in securing digital communication and identity management. Organizations that need to secure sensitive information and maintain secure communication channels must manage subscription keys. Reporting services are also necessary for organisations to keep audit trails and comply with data privacy regulations, but they may not have the same market share as PKI, compliance management, and subscription keys management.
Authentication Services Market By Authentication Types
MFA (multi-factor authentication) is gaining popularity and dominating the authentication services market. SFA is the practise of using only one method to authenticate a user, typically a password or PIN. While SFA is widely used, it is vulnerable to cyber attacks and identity theft due to the ease with which passwords and PINs can be compromised or stolen.
MFA, on the other hand, necessitates the use of multiple authentication methods, such as a password, a security token, a fingerprint, or a facial scan. MFA improves security by requiring attackers to circumvent multiple layers of defence, making it much more difficult to hack into a system or steal an identity.
MFA is becoming progressively important in protecting sensitive information and maintaining secure communication channels as cybersecurity threats become more complex. MFA is being adopted as a standard security measure by many organisations, and it is expected to continue able to dominate the authentication services market in the coming years.
Authentication Services Market By Token Types
Token-less authentication is gaining popularity and is expected to account for the majority of the authentication services market share. Token-less authentication does not require a physical token and instead relies on biometrics, passwords, or mobile devices for authentication. Token-less authentication is more convenient and cost-effective than token-based authentication, and it is gaining traction in a variety of industries such as healthcare, finance, and e-commerce.
Token-based authentication, on the other hand, includes the use of a physical or virtual token to authenticate a user, such as a smart card or security token. Token-based authentication is a dependable and secure authentication method, but it is costly to implement and maintain. The use of mobile devices for authentication is also fueling the growth of token-less authentication. Mobile devices can provide a variety of authentication factors, such as biometrics, device recognition, and location-based data, making them a convenient and secure authentication option.
Authentication Services Market By Vertical
The banking, financial services, and insurance (BFSI) sector has been one of the leading verticals in the authentication services market, according to the authentication services market forecast. Because the BFSI industry handles sensitive financial information and transactions, it is a prime target for cyber attacks and data breaches. Authentication services are critical in protecting these systems from such attacks.
Additionally, because of the large amounts of sensitive data they manage, such as customer information, intellectual property, and confidential business information, the IT, ITES, and Telecom sectors are significant users of authentication services. Furthermore, the government and defence sectors have increased their use of authentication services to secure their systems and prevent unauthorised access to sensitive information. Similarly, the healthcare industry has begun to use authentication services to safeguard sensitive patient data and comply with data privacy regulations.
Authentication Services Market Regional Outlook
The Middle East & Africa
Authentication Services Market Regional Analysis
North America has traditionally been a market leader in authentication services, owing to the presence of major technology companies and the adoption of cutting-edge technologies. The United States and Canada are major contributors to this region's market. Europe is also a huge market for authentication services, owing to the growing demand for secure authentication services in sectors such as banking, healthcare, and government.
The Asia-Pacific region is projected to report the fastest growth in the authentication services market due to increased technological adoption and increased demand for cybersecurity solutions. Countries like China, India, Japan, and South Korea are expected to make significant contributions to this region's market. Because of the increasing adoption of digital technologies and the need to secure sensitive information and transactions, the Middle East and Africa region is expected to grow significantly in the authentication services market.
Authentication Services Market Players
Some of the top authentication services companies offered in the professional report include Auth0 Inc., Broadcom Inc., Duo Security, Entrust Datacard Corporation, ForgeRock Inc., Google LLC, HID Global Corporation, IBM Corporation, Idaptive, LLC, Microsoft Corporation, Ping Identity, OneLogin, RSA Security, SecureAuth Corporation, and Okta Inc.
The market size of authentication services was USD 1,088 Million in 2022.
The CAGR of authentication services is 21.7% during the analysis period of 2023 to 2032.
The key players operating in the global authentication services market is includes Auth0 Inc., Broadcom Inc., Duo Security, Entrust Datacard Corporation, ForgeRock Inc., Google LLC, HID Global Corporation, IBM Corporation, Idaptive, LLC, Microsoft Corporation, Ping Identity, OneLogin, RSA Security, SecureAuth Corporation, and Okta Inc.
North America held the dominating position in authentication services industry during the analysis period of 2023 to 2032.
Asia-Pacific region exhibited fastest growing CAGR for market of authentication services during the analysis period of 2023 to 2032.
The current trends and dynamics in the authentication services industry include increasing number of cyber-attacks and frauds, growing adoption of online and mobile payments, e-commerce, and other digital transactions, and need for secure authentication services to protect against identity theft and fraud.
The compliance management service held the maximum share of the authentication services industry.